1. Assuming a company is unable to pay all its debts, which of the following statements are correct regarding the order in which creditors are paid? i. there is an order of repayment for preferential unsecured creditors; ii. there is an order of repayment for ordinary unsecured creditors; iii. all ordinary unsecured creditors rank equally; iv. deferred creditors debts rank after all unsecured creditors. b. I and IV c. I, II and III d. I, III and IV e. I, II and IV 2. The party with the highest priority in a court ordered winding-up is: a. The liquidator b. Creditors secured via a floating charge c. Workers compensation insurers d. Employees 3. For a Finance lease, the amount recorded initially by the lessee as a liability should normally a. Exceed the total of the minimum lease payments. b. Exceed the present value of the minimum lease payments at the beginning of the lease. c. Equal the total of the minimum lease payments. d. Equal the present value of the minimum lease payments at the beginning of the lease 4. Which of the following is a characteristics of a finance lease? a. The lease term is substantially less than the estimated economic life of the leased property. b. The lease contains a bargain-purchase option c. The present value of the minimum lease payments at the beginning of the lease term is 75% or more of the fair value of the property at the inception of the lease. d. The future obligation does not appear in the balance sheet of the lessee. 5. Pre incorporation loss may be treated as goodwill and debited to --------------------- -account a. Goodwill b. Loss c. Income statement d. none of the above 6. Loss prior top incorporation is to be shown in the assets side of the balance sheet under the heading --. a. fixed assets b. loans and advances c. current assets d. Miscellaneous expenditure 7. Which of the following statement is false: a. A company is a legal entity quite distinct from its members. b. A company can buy its own share c. A shareholder is the agent of the company d. Same person can be an agent and creditor of the company 8. Which of the following is true with regard to LLC, SAOC and SAOG companies in Oman. a. Limited liability b. At least three members required to start. c. 10% profit for legal reserve. d. Both a and c 9. Which organizations primary objective is to organize and control the issue and trading of financial securities in Sultanate of Oman. a. Ministry of Commerce and Industry b. Capital Market Authority c. Muscat Securities Market d. None of the above

10. Which of the following are the characteristics of a company a. Liability of the members is limited up to the face value of shares held by them b. It is a voluntary association of persons. c. A company is a separate body can sue and be sued in its own name d. All of the above