Last Attempt BA4 Questions

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Question 36

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.

Options:

(i) only

(i) and (iii) only

(ii) and (iii) only

(i), (ii) and (iii)

Question 37

Which TWO of the following are true of CIMA's conceptual framework approach to ethics?

Options:

It provides an exhaustive list of all circumstances experienced by a professional accountant that may create threats to compliance with the fundamental principles

It defines all relevant safeguards

It requires a professional accountant to identify, evaluate and address threats to compliance with the fundamental principles

It is not sufficient for a professional accountant in public practice merely to comply with the examples presented; rather, the framework should be applied to the particular circumstances faced

Question 38

Which of the following is correct in relation to financial assistance for the purchase of its own shares provided by a private company?

Options:

Financial assistance is a criminal offence on the part of the company

The directors may be fined if they allow the company to provide financial assistance

In general the existing prohibition has been removed for private companies

Financial assistance cannot be used where a majority shareholder is retiring

Question 39

S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.

Which ONE of the following would it be appropriate for S to do?