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Which of the following are primary sources of Shari'ah law?
(i) The Sunnah
(ii) The Qur'an
(iii) Rules agreed unanimously by the disciples of Mohammad
'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?
Which of the following is incorrect in relation to the remedy of damages?
In regards to a claim of misrepresentation, which of the following must be proved to show that the defending party induced the other party into entering the contract?
Select ALL that apply.
Mr X's wife is gravely ill. He accepts money from a client to falsify some accounts. The client is a contractor, being paid by the Government to build a bridge over a river. The accounts now state that more expensive materials were used to build the bridge. The money helps Mr X pay for his wife's medical treatment. Is this an example of a 'victimless crime'?
Seller Ltd is a wholesaler of electrical goods which it sells to retailers only Which one of the following statements is correct in relation to the exclusion of the conditions which are implied into contracts for the sale of goods by sections 12 to 15 of the Sale of Goods Act 1979?
Pablo and Paula are in discussions with a potential buyer over the sale of their house. They tell the potential buyer that if they want to purchase the house for the full amount of £200,000, they'll need to send a letter that
confirms their offer by Friday. If they don't receive such a letter by then, they'll withdraw the house from the market.
Friday comes and no letter arrives. However, it turned out the potential buyer actually posted the letter on the Monday before, and it simply got lost in the post. The letter eventually turns up on the following Monday.
Baring this in mind, are Pablo and Paula legally obliged to sell their house?
How can values become part of a company's DNA? Choose TWO of the following options.
B is a director and shareholder in Cee Ltd. Which ONE of the following is INCORRECT?
Anne, Bill, Chris and Diane are the only directors of ABCD Ltd. Bill is the Chairman of the board and has a casting vote. A board meeting was called to consider a proposal to enter into a contract with EFG Ltd. Which of the following is INCORRECT?
Which of the following is correct?
(i) A contract of guarantee is unenforceable unless it is evidenced in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.
Which of the following remedies is not available for a breach of a contract to provide personal services?
Which of the following sources of law is not binding upon the Supreme Court?
Maintaining professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service demonstrates the CIMA Code of Ethics fundamental principle of:
Which one of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
Which of the following reasons for dismissal are NOT deemed to be automatically unfair?
Which of the following deal with most criminal matters in China?
What is the public function of all accountants?
Although no-one has reason to suspect, you have taken a violent dislike to a particular assurance client. This could severely affect your independence:
B Ltd has an issued share capital of 1,000 ordinary £1 shares. The board of B Ltd has resolved to alter the company's articles of association. Which of the following is correct?
(i) The articles may be altered by board resolution.
(ii) The articles may be altered by a written resolution of the shareholders.
(iii) The articles may be altered by a special resolution of the directors.
A Ltd is under contract to manufacture machinery for B Ltd for £200,000. Which of the following is a valid excuse for A Ltd failing to complete the contract on time?
What is a fundamental attribute of a competent accountant?
Which of the following is an 'interest stakeholder' in an organization?
Which of the following is correct in relation to the control of boards of directors of public limited companies?
i. The boards of public limited companies are under the legal control of the shareholders
ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies
iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.
Which of the following is NOT a personal quality expected of professional accountants by CIMA?
You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?
In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:
Adam, Brian, Charles and David each held 25% of the issued share capital of ABCD Ltd. Adam has recently issued further shares to himself in order to increase his voting power. Which of the following is incorrect?
Members of the accountancy profession are expected to demonstrate certain personal qualities and virtues such as 'respect'
Which of the following is an example of the demonstration of the virtue of respect?
M wrote to A (Accountants), asking if he could rely on the firm's audit report of B Ltd. M told A (Accountants), confidentially, that he was considering making a take-over bid for B Ltd. A (Accountants) advised M that he could rely on the report. As a result, M relied on the report and purchased the entire share capital of B Ltd. M has now discovered that he has paid considerably more for the shares than they were worth, as the company's stock had been negligently over-valued in the audit report.
Which of the following is correct?
Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.
A professional accountant's social responsibility relates to which TWO of the following?
Which of the following is a civil action?
i. An action by a local authority against a restaurant for selling impure food.
ii. An action by a taxpayer against Her Majesty's Revenue and Customs (“HMRC”) in relation to an expenses claim which has been refused by the Inspector of Taxes.
iii. An action by Exe Ltd against Zed Ltd for supplying equipment which was found to be dangerous.
SuperSole is a large shoe company that sells its products all over the world. It has many factories and stores in many different countries, and its yearly revenues often exceed £100 million. The company is also listen on
the stock exchange.
Should SuperSole have its own internal auditing department?
Which of the following are fundamental characteristics of useful information? Select ALL that apply.
Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.
Which of the following is correctly stated to be an advantage of carrying on business via a company limited by shares?
(i) The liability of the company is limited.
(ii) In general the directors are not liable for the debts of the company.
(iii) The liability of the shareholders is limited.
Which of the following terms can be defined as follows?
"...the generic way that organizations are run"
Miss K is a newly qualified accountant working in a highly respected local accountancy firm headed by Mr R, who is a pillar of the community. One night, Miss K is at an out of town bar with friends, when she spots Mr R with Mrs E, a client of the firm. It is obvious they are having a secret affair. Is this an ethical issue?
Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?
Company C got rid of a director because his interests failed to align with the shareholders'.
They've recently hired a new director, and they are keen to avoid a repeat scenario.
Which of the following could the company do to ensure the new director works with the best interests of shareholders in mind?
Select ALL that apply.
Which of the following statements is incorrect in relation to the Memorandum of Association of a company which is registered after the Companies Act 2006 is fully in force?
How might a company ensure that the roles and responsibilities of its board and management are made clear and publicly known?
Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?
(i) Both a partnership and a company are formed by registration with the Registrar of Companies.
(ii) All partners are agents of the firm and all directors are agents of the company.
(iii) All partners are fully liable for the firm’s debts and the company is fully liable for its own debts.
Which of the following statements is correct?
Which of the following statements is correct?
(i) The written statement of particulars of employment is the contract of employment and every employee with one month's service is entitled to receive a copy.
(ii) The written statement of particulars of employment is not the contract of employment.
(iii) The written statement of particulars of employment may be the best evidence of the terms of the contract and every employee with one month's service is entitled to receive a copy.
Exe Ltd was under contract to deliver goods by road to London for Wye Ltd for £2,000. After part of the journey was completed the lorry broke down and Wye Ltd was forced to arrange for Zed Ltd to complete the delivery. Subject to the contract not providing for this situation, which of the following is correct?
Which of the following does the CIMA Code of Ethics fundamental principle of integrity NOT involve?
Exe Ltd has five members. A has 90% of the shares and the other four members holds 2.5% of the shares each.
Which of the following is correct in relation to the calling of a general meeting on short notice?
You are at a conference. The finance director of one of your competitors is boasting about top secret plans that she says will give her company market dominance. As she walks into a conference session, she accidently drops a folder marked "private and confidential". No one else notices and you are left alone in the room with the folder. Which of the following would be an ethical course of action and why?
Why should accountants be up-to-date with developments in the profession?Choose TWO options.
To which of the following contracts does the Supply of Goods and Services Act 1982 apply?
(i) A contract with a joiner for the manufacture and supply of a cabinet.
(ii) A contract for the hire of a car.
(iii) A contract with a builder to construct an extension to a house.
Which of the following statements is correct in relation to equity?
(i) Equity was developed by the Court of Chancery
(ii) Equitable maxims were developed by lawyers
(iii) In the event of a conflict between equity and the common law, equity prevails
Which of the following statements suggests that A is an employee in relation to the work he carries out for BCD Ltd?
i. He is required to provide his own tools.
ii. He is required to carry out his work personally and is not free to send a substitute.
iii. He is in receipt of pay after income tax has been deducted under PAYE.
You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?
Which of the following statements is incorrect in relation to a public company limited by shares?
Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?
Which of the following would be paid last by a company which had been placed in insolvent liquidation?
Which of the following is INCORRECT in relation to Shari'ah law?
i. Shari'ah law is intended to provide for a person's spiritual well-being but is not concerned with secular matters.
ii. The Sunnah is one of the primary sources of Shar'iah law.
iii. The salat (daily prayers) is one of the Five Pillars of Islam.
In which of the following countries are employees represented at board level?
i. Germany.
ii. United States of America
iii. France.
Which of the following is not financial assistance for the purchase of a public company's own shares?
Which of the following is correct in relation to international relations?
(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.
(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.
(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states
Which of the following is INCORRECT in relation to business names?
Cameron runs his own chain of ice cream shops. However, his business recently accrued a lot of debt due to a sharp rise in the price of milk, and he is now forced to shut the whole operation down.
Who is liable for the debt?
Which ONE of the following is NOT contained within form IN01 which must be submitted to the Registrar of Companies in order to register a company limited by shares?
Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?
Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?
Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:
In relation to contractual performance, which of the following is incorrect?
Which TWO of the following are features of a compliance-driven framework?
Wye has borrowed £10,000 from Exe and the loan has now become repayable in full. Exe has received a cheque from Wye for £9,000 stated to be “in full and final settlement of the loan.” What is the position if Exe cashes the cheque?
(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other £1,000 from Wye.
(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.
(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt.
Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.
Which of the following is correct?
(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.
(ii) This is a consumer sale and the clause excluding liability is void.
(iii) This is a non-consumer sale and the clause is void unless reasonable.
Which of the following statements is correct?
(i) A term may be implied into a contract by statute.
(ii) A term may be implied into a contract on the ground that it is a trade custom.
(iii) A term may be implied into a contract by a court in order to give the agreement "business efficacy".
Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?
Which of the following is CORRECT in relation to a Limited Liability Partnership (“LLP”)?
(i) An LLP is formed by registration with the Registrar of Companies
(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection
(iii) An LLP is liable to pay corporation tax on its profits
Which of the following is incorrect?
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"
Paschal has just passed his CIMA certificate exams and on doing so joined Un-Ethi-Cal Ltd for his first accountancy role.
Upon arrival he was been asked to do his company's corporation tax return, and not wanting to seem as if he was not keen in his first week, tells them he knows what to do and so goes online to find out how to do it.
He's got to go to a party that night, so although he can't work it out properly he fills in the form as best he can so he can get out on time.
Unfortunately, Paschal has breached CIMA's five fundamental ethical principles.
Which of the following has Paschal breached?
Select ALL that apply.
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession"
The body responsible for reviewing the operations of the accounting profession worldwide is:
Which of the following are situations involving familiarity threats? Select ALL that apply.
The distinction between an employee and an independent contractor is important because only an employee:
i. is given statutory protection in relation to employment rights.
ii. is subject to the deduction of income tax and national insurance under the PAYE system.
iii. can make the employer vicariously liable for his/her torts.
Tee Ltd has contracted to use Vee Ltd's "Grand Hotel" for a business conference. Which of the following would not be regarded as a valid excuse for Vee Ltd for the unavailability of the hotel on the agreed date?
(i) The hotel was closed due to flood damage.
(ii) The hotel was double booked.
(iii) The hotel manager had arranged to have the hotel redecorated; the decorators had failed to complete the work by the agreed date.
Which of the following statements is correct in relation to the "maintenance of capital" principle?
Which of the following are likely advantages of being a sole trader? Select ALL that apply.
Which of the following statements is correct?
Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006?
(i) The action may be brought by a single shareholder.
(ii) The action may be brought in relation to an act of negligence by the directors.
(iii) The action cannot be brought in respect of a proposed act by the directors.
B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.
Which of the following statements is correct?
If a business trades as “Exe and Co (Office Furniture)” which of the following is CORRECT?
(i) The business could be owned by a partnership
(ii) The business could be owned by a sole trader
(iii) The business could be owned by a private company limited by shares
Which of the following statements is correct?
(i) An employer may rely on information discovered after an employee's dismissal to justify a wrongful dismissal.
(ii) An employer may rely on information discovered after an employee's dismissal to justify an unfair dismissal.
(iii) An employment tribunal will take into account the employee's conduct when determining how much compensation for unfair dismissal to award.
Which of the following courses of action is NOT part of the process that the CIMA Code of Ethics expects of professional accountants in resolving an ethical conflict?
The International Accounting Education Standards Board has published a document titled "Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs'", which provides guidance about the personal qualities needed by accountants to meet the expectations of the public
The particular qualities which it identifies are
Which TWO of the following are true of the CIMA Code of Ethics?
ABC Ltd has contracted with DEF Ltd. If ABC Ltd acts in breach of a warranty, which of the following is correct?
(i) DEF Ltd may terminate the contract and sue for damages.
(ii) DEF Ltd may sue for damages but may not terminate the contract.
(iii) DEF Ltd may ignore the breach and continue with the contract.
Which of the following is presumed not to be intended to create legal relations?
Which THREE of the following statements are correct in relation to the essential elements of a contract?
Which THREE of the following statements are correct regarding the CIMA Code of Ethics for Professional Accountants?
XYZ plc has recently acted in breach of its contract with ABC Ltd. The breach caused ABC Ltd to lose several thousand pounds. The board of ABC Ltd has resolved not to proceed against XYZ plc, as it believes that the time and expense involved would be disadvantageous to the company. A number of ABC Ltd shareholders are dissatisfied with the board's decision.
Which of the following is INCORRECT?