$($i$)$ MULTIPLE$-$CHOICE QUESTIONS

Choose the correct option for each of the following. Write only the

question number and your chosen answer. For instance, if you think that

the correct answer for number $1$ is $($a$),$ then write it as $1.($a$).$

There are four main classes of debentures. Which of the following does not form part

the main classes:

$($a$)$ Mortgage debentures

$($b$)$ Naked or simple debentures

$($c$)$ Floating debentures

$($d$)$ Redeemable debentures

Which of the following does not form part of the chief characteristics of a close

corporation:

$($a$)$ The name of the association must be followed by the letters CC as well as its

registration number.

$($b$)$ The term capital does not appear in the Act; it is replaced by the term financial

interest.

$($c$)$ In the formation of the CC$,$ each member's contribution may be in cash, in

property corporeal or incorporeal or in the value of services rendered.

$($d$)$ The shares, shareholders or directors

A credit agreement is subject to the requirements of Act $73$ in regard to disclosure of

what is termed the principal debt. This is made up of one of the following:

$($a$)$ The cost price of the goods $($less the agreed value of goods traded in$)$

$($b$)$ All other charges

$($c$)$ Less the amount of the financlal charges.

$($d$)$ None of the above

Statutory payments in a Closed Corporation do not include the following:

$($a$)$ The repayment of a contribution to a member

$($b$)$ The repayment of a portion of a member's contribution to a member

$($c$)$ Any payment to a member who is a creditor of the CC in the normal course of

business

$($d$)$ The purchase of a member's interest by the $CC$ of which she is a member

Company financial statements do not include which of the following:

$($a$)$ Directors' report

$($b$)$ Auditors' report

$($c$)$ Earnings

$($d$)$ Income statement

The following current liability should be disclosed on the face of the balance sheet

$($a$)$ Current portion of interest$-$bearing borrowings

$($b$)$ Mortgage bond

$($c$)$ Property, plant and equipment

$($d$)$ Trade receivables