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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. 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

A) (i), (ii) and (iii)
B) (i) and (ii) only
C) (i) only
D) (i) and (iii) only

2. Which of the following statements is correct in relation to the "maintenance of capital" principle?

A) A company cannot use its share capital, and may only return it to its members with the permission of the court.
B) In general, a company is not able to freely return its share capital to its members.
C) In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.
D) A company cannot use its share capital which must be set aside as a fund for creditors.

3. Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A) Professional conscience and due care
B) Professional competence and due care
C) Professional consideration and due care
D) Professional cooperation and due care

4. What is a fundamental attribute of a competent accountant?

A) Ability to communicate effectively
B) Ability to calculate correctly
C) Ability to exercise good judgment
D) Ability to be efficient

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

A) 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
B) It provides an exhaustive list of all circumstances experienced by a professional accountant that may create threats to compliance with the fundamental principles
C) It defines all relevant safeguards
D) It requires a professional accountant to identify, evaluate and address threats to compliance with the fundamental principles

Solutions: