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A loan to a company under the company’s seal is

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Accounts - Principles of Accounts WAEC 2016

A loan to a company under the company’s seal is

  • Fixed deposit
  • Mortgage checkmark
  • Bond
  • Debenture

The correct answer is: B

Explanation

Some common uses of company seals include:

– Company resolutions
– Important Contracts and Deeds
– Property transfer (landed in most cases) and execution of land contracts.
– Execution of loan documents, mortgages, and guarantees.
– Occasions where a document will be utilized outside the country.

In this case a loan to a company under the company seal is a mortgage

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