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FAC1602 ASSESSMENT 3 SEMESTER 1 2024
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FAC1602 ASSESSMENT 3 SEMESTER 1 2024
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4/28/24, 5:49 PM Assessment 3 (page 1 of 4)UNISA 2024 FAC1602-24-S1 Welcome Message Assessment 3
QUIZ
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Question 1
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Since the Companies Act 71 of 2008, what significant change affected new close corporations in South Africa?
a. Close corporations are now required to have a minimum share capital.
b. Compulsory conversion of close corporations to public companies.
c. The number of members allowed in a close corporation was increased.
d. Discontinuation of the registration of new close corporations.
e. Mandatory auditing of all close corporations.
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Question 2
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When accounting for the payment of provisional tax by a close corporation, what are the correct journal entries?
a. Debit income tax expense and credit Bank.
b. Debit SARS (income tax) and Credit Bank.
c. Debit Bank and credit SARS (income tax).
d. Debit income tax payable and credit Bank.
e. Debit Bank and credit income tax expense.
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https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=18426275&cmid=886585 1/2
,4/28/24, 5:49 PM Assessment 3 (page 1 of 4)
Question 3
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Which one of the following alternatives is correct?
a. The liability of a member for the obligations of the close corporation is limited to the extent of the member's
contribution to the close corporation less distributions already paid to the members.
b. The liability of a member for the obligations of the close corporation is limited to the extent of the member's
contribution to the close corporation.
c. The liability of a member for the obligations of the close corporation is limited to the extent of the member's
contribution to the close corporation and members’ loans advanced to the business.
d. The liability of a member for the obligations of the close corporation is limited to the extent of the member's
contribution of the least active members in the close corporation.
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Question 4
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How many natural persons are allowed to be members of a close corporation?
a. 10
b. 15
c. 20
d. No limit as long as all are natural persons.
e. 5
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,4/28/24, 5:49 PM Assessment 3 (page 2 of 4)
UNISA 2024 FAC1602-24-S1 Welcome Message Assessment 3
QUIZ
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Question 5
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A close corporation is a legal entity, which implies that it is not liable to pay for obligations and can acquire assets in its own
name.
a. False
b. True
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Question 6
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Which one of the following alternatives is correct journal entry to record income tax expense for a close corporation?
a. Debit “Income tax expense” profit or loss and Credit “SARS (income tax)” liability
b. Debit “Bank” asset and Credit “SARS (income tax)” liability
c. Credit “Income tax expense” profit or loss and Debit “SARS (income tax)” liability
d. Credit “Bank” asset and Debit “SARS (income tax)” liability
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Question 7
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Which statement accurately describes the taxation of close corporations?
a. A close corporation is taxed separately from its members.
b. Close corporations pay double the tax rate compared to companies.
c. Close corporations are exempt from all forms of taxation.
d. Members of a close corporation are taxed on the CC's income.
e. Taxation of a close corporation is at a fixed rate irrespective of income.
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https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=18426275&cmid=886585&page=1 1/2
, 4/28/24, 5:49 PM Assessment 3 (page 2 of 4)
Question 8
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Which one of the following alternatives is correct?
a. A close corporation is taxed separately from its members
b. A close corporation is not taxed separately from its members as members are liable for the entity’s tax in their
individual capacity based on the balance of individual loans they owe to the entity
c. A close corporation is taxed separately from its members only during its last year of operation
d. A close corporation is taxed 50% of the profits separately from its members and the other half is taxed directly on
the members in their personal capacity
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Question 9
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Which one of the following alternatives is incorrect?
a. A close corporation continues to exist under its registered name irrespective of a change in its membership.
b. A close corporation can have up to ten natural persons as members.
c. A close corporation can enter into contracts and cannot be sued as a legal person in its own right.
d. A close corporation may give financial assistance to a person to acquire an interest in the close corporation.
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https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=18426275&cmid=886585&page=1 2/2
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