AUE1601 Latest exam pack questions and answers and summarized notes for exam preparation. Updated for October November 2023 exams . For assistance Whats-App.0.6.7..1.7.1..1.7.3.9 . All the best on your exams!!
, 1. How long does a company have to ratify a contract, that was entered into. before the
company was incorporated? TOPIC 1
A) Within one month after the date on which the company is incorporated
B) Within two months after the date on which the company is incorporated
C) Within three months after the date on which the company is incorporated
D) Within six months after the date on which the company is incorporated
ANSWER: C
2. Which document is known as the founding document of a company? TOPIC 1
A) Articles of association
B) Memorandum of Incorporation
C) Companies Act
D) Companies Regulation
ANSWER: B
3. How long does a company have to satisfy the Commission that it should be allowed
to continue operating its business, after being issued with a notice that there is
reason to believe that the company is conducting its business recklessly? TOPIC 1
A) within 10 business days
B) within 15 business days
C) within 20 business days
D) within 21 business days
ANSWER: C
4. How long does a company have to prepare its annual financial statements after
year-end? TOPIC 2
A) 12 months
B) 6 months
C) 4 months
D) 3 months
ANSWER: B
5. In terms of section 29 and Regulation 27 which of the following statement is not
applicable with respect to the company’s financial statements? TOPIC 2
A) The financial statement should be in English
B) The financial statement should indicate whether or not the statements have been
audited/independently reviewed
,C) The financial statement should satisfy financial reporting standards
D) The financial statement should state the name and designation of the preparer of the
statements
ANSWER: A
6. Which of the following companies would not require an audit? TOPIC 2
A) Public companies
B) Private companies with public interest scores of at least 100 but less than 350 whose
financial statements are compiled independently
C) Non-profit companies
D) Private companies with public interest scores of at least 100 but less than 350 whose
financial statements are internally compiled
ANSWER: B
7. Which of the following metrics are not used to calculate a company’s public interest
score? TOPIC 2
A) Turnover in millions
B) Number of employees
C) Number of shareholders
D) Payroll expense in millions
ANSWER: D
8. In terms of the Companies Act, how long should the accounting records of a
company be kept? TOPIC 2
A) For the current year and the seven years prior to the current year
B) For the current year and the eight years prior to the current year
C) For the current year and the nine years prior to the current year
D) For the current year and the ten years prior to the current year
ANSWER: A
9. Calculate the public interest scores for Campus (Pty) Ltd, using the following
information: TOPIC 2
Non-current assets: R122 000 000
Loan: R135 000 000
Debtor: R105 000 000
Revenue: R156 000 000
Number of COVID-19 cases: 400
Number of employees: 40
Number of shareholders: 25
A) 984
B) 583
, C) 465
D) 356
ANSWER: D
10. Solvency and liquidity tests are NOT considered for: TOPIC 3
A) Issue of dividends
B) Share buyback
C) Financial assistance to directors or related persons
D) Determining the name of the company
ANSWER: D
Please select one option
Incorrect option
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