Accounting WAEC

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

A. Fixed deposit
B. Mortgage
C. Bond
D. Debenture

Correct Answer: Option B

B. Mortgage

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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