CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest Therefore:

Athe public interest will always be served if an accountant complies with his or her employer's corporate ethical policies

Bfrauds which are detected in an audit must be reported to the public

Ca professional accountant's responsibility is not exclusively to satisfy the needs of an individual client or employer

Dprofessional accountants must be prepared to break laws that they consider to be against the public interest

Answer : B

Question 2

An auditor would trace copies of sales invoices lo shipping documents in order to check for which of the following errors?

AGoods which have been invoiced have not been sent to customers

BGoods which were sent to customers have not been recorded in the individual customer's ledger account

CGoods which have been invoiced have not been recorded in the sales ledger.

DGoods sent to customers have not been invoiced

Answer : C

Question 3

Which of the following statements is correct in relation to the ability of a company to contract?

AIf a company has restricted the ability of its directors to contact and the directors ignore the restrictions, then the outsiders may not enforce the contract.

BThe shareholders of a company have the ability to enter into a contract on behalf of the company, irrespective of any restrictions on the directors.

CIf a company wishes to restrict the ability of its directors to enter into particular contracts it may do so by placing restrictions on the directors in its
articles of association

DIf the shareholders learn that the directors are about to ignore the restrictions placed upon their ability to contract by the company the shareholders are unable to prevent the directors from proceeding

Answer : D

Question 4

Which THREE of the following may be external stakeholders in the activities of a nuclear power station?

AThe government

BFinance providers

CEmployees

DEnvironmental pressure groups

ESuppliers

FLocal residents

Answer : A, D, F

Question 5

In relation to offers, which of the following statements is correct?

AAn offer to sell goods can be made to the whole world

BStatements made in early negotiations cannot amount to offers.

CGoods displayed on a supermarket shelf are deemed to be offers to sell

DAn item displayed in a shop window with a price tag is an offer to sell

Answer : A

Question 6

Which of the following options are correct in relation to a contract of employment?

1. The contract must be in writing

2. An employee's duty to act with reasonable care and skill is implied into the contract

3. An employer's duty to provide a inference is implied into the contract

A1 and 2 only

B2 and 3 only

C1 only

D2 only

Answer : D

Question 7

Where a countries' rules protect whistleblowers. they usually only do so where there has been a "qualifying disclosure" Which of the following statements best describes the minimum level of information which a whistleblower needs to have to make a "qualifying disclosure"?

ACertainty that at least one company rule is being breached or has been breached in the past

BKnowledge that company rules are about to be breached

CReasonable grounds to believe that sufficiently serious malpractice is taking place

DA suspicion that serious malpractice has taken place

Answer : A

CIMAPRA17-BA4-1 BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Exam Practice Test