Which of the Following Is Not True Regarding a Charge

question 42

Multiple Choice

Which of the following is not true regarding a Charge and Mortgage?

• A) The remedy for a default under a Charge is the sale of the land that is charged.
• B) Under the land titles system, mortgages are called charges.
• C) A Charge is a lien upon the land.
• D) A Charge is conveyance of the legal title.
• E) A mortgage is the conveyance of the legal title as security for a debt.

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Definitions:

Voucher System

An accounting system that involves preparing and approving vouchers before transactions are recorded and payments made, to ensure financial controls.

Control Procedures

Measures and policies implemented by a company to ensure the integrity of financial and accounting information and compliance with laws and regulations.

Cash Equivalents

Temporary investments which can quickly be converted into specific cash sums and have a negligible risk of value fluctuation.

Petty Cash Fund

A petty cash fund is a small amount of cash kept on hand by a business for making immediate payments for minor expenses, managed through a petty cash system.