CIMA BA4 Exam Questions Free Practice Test

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Questions # 61:

M's client has asked her to 'leave out' a few figures as he is applying for a bank loan and he wants his management accounts to, in his words, 'look better'. If M does as he asks, he promises to pay her double her fee when the loan money comes through. M is tempted by his offer, her mother has been ill and she would love to take her away on holiday. What should she do?

Options:

Tell the client she is unable to do as he asks, but she would be happy to write a letter to the bank explaining his financial position

Tell the client she is unable to do as he asks, but that she knows another accountant who is happy to do that kind of thing

Do as the client asks, after all the banks can afford it

Do as the client asks; her mother's health is more important than her professional standing

Expert Solution

Questions # 62:

Which of the following statements is incorrect in relation to a public company limited by shares?

Options:

The company must have at least one director.

The company must have at least one shareholder.

The company must have issued at least £50,000 of shares.

The company must ensure that its company secretary is properly qualified whereas a private company need not have a company secretary.

Expert Solution

Questions # 63:

Which of the following are situations involving conflicts of interest? Select ALL that apply.

Options:

Nina - Receives a large boxful of chocolate delivered to her house from the chocolate factory she is due to audit

Shannon - A department manager at an IT firm who regularly goes out drinking with her team members.

Ben - Regularly works two hours later than he should because his boss constantly gives him large amounts of work to do.

Tyrone - Works standard hours, though is usually unable to do any overtime due to family commitments.

Tina - A personal accountant who actively tries to build a rapport with her clients, though doesn't engage with them outside working hours.

Expert Solution

Questions # 64:

Which of the following statements is correct regarding dismissal?

Options:

An employee who has been unfairly dismissed may claim compensation

An employee who has been dismissed because of membership of a trade union has been wrongfully dismissed

An employee who has been wrongfully dismissed may claim damages and reinstatement

An employee who is dismissed without the correct notice has been unfairly dismissed

Expert Solution

Questions # 65:

C recently purchased some goods at an auction sale. Which of the following is correct?

(i) The contract was concluded by the fall of the Auctioneer's hammer.

(ii) The Auctioneer's call for bids was an invitation to treat.

(iii) Once the bidding had started, the Auctioneer was unable to withdraw the goods from the sale.

Options:

(i) only

(i) and (ii) only

(ii) and (iii) only

(i), (ii) and (iii).

Expert Solution

Questions # 66:

How can a company help employees make the right decision when faced with a difficult situation?

Options:

Offer guiding values and principles to underpin decision-making

Threaten them with disciplinary procedures

Give them a rule book

Have a strong rules-based culture

Expert Solution

Questions # 67:

Which ONE of the following is NOT a personal consequence of unethical behavior?

Options:

Loss of reputation

Loss of earnings

Loss of job

Loss of life

Expert Solution

Questions # 68:

Which of the following can consideration take the form of?

Options:

Money + Goods + Services

Money

Goods

Services

Money + Goods

Money + Services

Expert Solution

Questions # 69:

Which of the following is not financial assistance for the purchase of a public company's own shares?

Options:

A loan by a company outside the ordinary course of business

Allowing the use of a company's assets as security for a loan

The payment of a dividend which has the effect of putting a shareholder in funds and enabling him to purchase the company's shares

Releasing a shareholder from a debt owed to the company

Expert Solution

Questions # 70:

Which of the following is the superior source of law?

Options:

A decision by the Supreme Court.

A provision in an Act of Parliament

A Regulation issued by the European Council of Ministers.

A Statutory Instrument.

Expert Solution

Questions # 71:

Ethical dilemmas can arise where there is tension between:

Options:

Societal and professional values

Professional and corporate values

Corporate and personal values

All of the above

Expert Solution

Questions # 72:

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

"A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments"

Options:

Integrity

Objectivity

Professional competence and due care

Professional behavior

Expert Solution

Questions # 73:

Which ONE of the following in INCORRECT in relation to a Limited Liability Partnership (“LLP”)?

Options:

An LLP, like a company limited by shares, is a separate legal entity.

Outsiders contract with the LLP and not with the partners, just as outsiders would contract with the company and not the directors or shareholders of the company.

An LLP must have “designated members” which are the LLP equivalent of the board of directors of a private company.

In return for Limited liability, an LLP, like a company, is required to submit an annual return.

Expert Solution

Questions # 74:

Which of the following might a company experience if they were to implement internal control measures?

Select ALL that apply.

Options:

Reduced risk

More control

A requirement to hire external auditors

Less paper work

Less bureaucracy

Expert Solution

Questions # 75:

Which of the following statements is INCORRECT?

i. A contract is a voluntary agreement whereas obligations in the tort of negligence are imposed by the state.

ii. Damages are only available for breach of contract and breach of the tort of negligence if damage, injury or loss has been suffered by the claimant.

iii. A contract breaker is liable whether or not he is at fault whereas to be liable in the tort of negligence the defendant must have been at fault.

Options:

(i) only

(ii) only

(iii) only

(ii) and (iii) only

Expert Solution

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