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 statements is TRUE in relation to ethical dilemmas?

AThey can be difficult to spot, since they are not always obvious

BInaction or silence is often the best way of dealing with them

CProfessional accountants can be disciplined for encountering them

DThey can relate to someone's personal life, or professional life, but not both at the same time

Answer : D

Question 7

Which of the following statements regarding companies limited by shares and general partnerships is correct?

AUnlike a general partnership, a private company limited by shares may create a floating charge as security for a loan

BPrivate companies limited by shares and general partnerships are required to disclose financial information regarding the operation of the business to the general public

CIn the event of insolvency both a private company limited by shares and a general partnership may be placed in insolvent liquidation

DBoth a private company limited by shares and a general partnership are established by registration

Answer : A

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