CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

Advocacy threats to compliance with fundamental principles are described as threats that may occur

Aas a result of the financial or other interests of a professional accountant or of an immediate or close family member

Bwhen a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment

Cwhen a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised

Dwhen, because of a close relationship, a professional accountant becomes too sympathetic to the interests of others

Answer : C

Question 2

Zed plc wishes to issue 500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?

AOrdinary shares

BRedeemable ordinary shares

CPreference shares

DRedeemable preference shares

Answer : D

Question 3

Which of the following is correct?

(i) A contract for the sale of land must be in writing.

(ii) A consumer credit agreement must be in writing.

(iii) A contract of employment must be in writing.

A(i) only

B(i) and (ii) only

C(i) and (iii) only

D(i), (ii) and (iii)

Answer : B

Question 4

Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?

AIntegrity

BObjectivity

CConfidence

DOpenness

Answer : C

Question 5

Which of the following statements is true?

AThe CIMA Code of Ethics is based on the IFAC Code of Ethics

BThe IFAC Code of Ethics is based on the CIMA Code of Ethics

CThe CIMA and IFAC codes take a very different approach

DThe CIMA Code of Ethics is compliance based while the IFAC Code of Ethics is principles based

Answer : A

Question 6

Which of the following statements is correct?

(i) As a general rule the acceptance of an offer is only effective when it has been communicated to the offeror.

(ii) A person must know of an offer before he or she can accept it.

(iii) A request for further information has the effect of destroying the original offer.

A(i) and (ii).

B(ii) and (iii).

C(i) and (iii).

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

Answer : A

Question 7

The IFAC Code of Ethics applies:

ATo accountants by law

BTo accountants around the world

CTo those accountants whose employers sign up to the principles of acting ethically

DTo all professionals, including accountants

Answer : B

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