Cima itexams cima Certificate Ba4 Dumps Pdf by Asma q302 vce pdf

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Exam Name:	Fundamentals of Ethics, Corporate Governance and Business Law
Exam Code:	BA4 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	661 Q&A's	Shared By:	asma

Question 48

Which one of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

Options:

Integrity

Objectivity

Confidence

Professional behavior

Discussion

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Question 49

X Ltd has entered into a number of contracts with Y Ltd. In which of the following situations could the directors be held personally liable for the debts contracted with Y Ltd?

(i) X Ltd has continued to trade at a time when insolvency appeared inevitable

(ii) X Ltd has become insolvent and is unable to pay its debts to Y Ltd

(iii) X Ltd has contracted for a purpose not specified in its articles of association

Options:

(i) only

(i) and (ii) only

(ii) only

(iii) only

Discussion

Question 50

The majority of developed countries require publicly quoted companies and large companies to produce annual financial statements which are then audited by an external auditor.

Which of the following statements regarding the requirement for external audit is Incorrect?

Options:

Independent external audit gives confidence in the financial statements which is required as the directors have incentives to manipulate the financial statements presented to the shareholders

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and this needs to be guaranteed by independent external audit.

Independent external audit gives confidence in the financial statements by including the auditor's opinion on whether or not they show a true and fair view.

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and there is a need for this to be assured by independent external audit

Discussion

Question 51

Which of the following have made an error of principle? Select ALL that apply.

Options:

Svetlana - Recorded a payment of £530 in the company's expenses account rather than its sales account.

Jim - Recorded a payment of £1,000 in both the company's expenses account and the sales account.

David - Forgot to record a payment of £50 in the company's sales account.

Jean - Recorded a customer payment as £120 when they actually paid £150.

Janet - Recorded the payment made by one customer in another customer's account.

Discussion

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