Online Access Free BA4 Exam Questions

Which THREE of the following statements are correct in relation to the essential elements of a contract?

• A.Once an offer has been made it does not exist forever but will lapse after a reasonable time
• B.A conditional offer cannot be accepted until the condition has been satisfied
• C.Even if the parties are fully in agreement, the agreement will be unenforceable unless at least one of the parties has provided consideration
• D.A revocation of an offer is only valid when it is received by the offeree, unless it is sent by post in which case it is valid as soon as it is posted
• E.If an offer is rejected it can only be revived by the person who made the offer
• F.A request for further information in relation to an offer has the effect of cancelling the offer

Independence of mind allows a professional accountant to:

• A.Exercise objectivity
• B.Act with integrity
• C.Exercise professional skepticism
• D.All of the above

The Articles of Association of Dee Ltd state that the company has power to borrow money and that the directors have authority to borrow up to £200,000 on behalf of the company. The board has resolved to purchase a piece of land for £300,000. The Midwest Bank plc has agreed to make a loan of £250,000 to Dee Ltd to acquire the land. Which of the following statements is correct?

• A.As the directors have resolved to obtain the loan they have acted in accordance with the company's constitution.
• B.As the directors have exceeded their authority, the bank cannot enforce the loan against Dee Ltd.
• C.The loan is void as Dee Ltd has acted ultra virus.
• D.The loan is ultra virus the directors who will be personally liable for any loss caused to the company, unless their actions are ratified by the shareholders.

Which of the following does the IFAC Code of Ethics establish?

• A.Standards of behavior for professional accountants
• B.Legal requirements for professional accountants
• C.Judicial requirements for professional accountants
• D.Standards of commitment for professional accountants

Which of the following statements is correct in relation to private and public companies limited by shares?

• A.A public company cannot commence trading until it has satisfied minimum share capital requirements
• B.A public company is required to have at least one director
• C.A private company must have a qualified company secretary
• D.A private and public company are required to hold an AGM