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Last Updated: Jun 05, 2026
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1. The United Kingdom (UK) uses a principle based approach to corporate governance which means:
2. WX is considering an investment in ST.
At 31 December 20X2 ST had the following balances in its statement of financial position:
Which of the following would cause ST to become an associate investment of WX?
A) WX purchases 15,000 of ST's $1 equity shares and 20,000 of ST's $1 preference shares.
B) WX purchases 75,000 of ST's $1 equity shares.
C) WX purchases 50,000 of ST's $1 preference shares.
D) WX purchases 25,000 of ST's $1 equity shares.
3. There are two main approaches to corporate governance: rules-based and principle-based.
Which THREE of the following are correct?
A) Sarbanes Oxley Act (SOX) is a principle-based approach to corporate governance.
B) Rules-based corporate governance applies to the USA and principle-based corporate governance applies to the UK.
C) Best practice will use a rules-based approach to corporate governance and will have appropriate penalties for transgression.
D) Sarbanes Oxley Act (SOX) is a rules-based approach to corporate governance.
E) Rules-based corporate governance applies to the UK and principle-based corporate governance applies to the USA.
F) A principle-based approach will mean the entity must comply or explain and a rules-based approach will have appropriate penalties for transgression.
4. Which THREE of the following are principles identified by the Code of Ethics?
A) Professional competence and expertise
B) Neutral
C) Understandability
D) Professional behavior
E) Professional competence and due care
F) Confidentiality
5. Which TWO of the following are implications of employee income tax being paid to the tax authority through a Pay-As-You-Earn scheme?
A) The tax authority deals directly with the employees rather than the employers.
B) The tax is paid after the employee completes a tax return.
C) The risk of employees defaulting on the payment of tax due is reduced
D) Most of the administrative costs of collecting the tax are borne by the tax authority
E) The government can budget its cash flows more easily.
Solutions:
| Question # 1 Answer: Only visible for members | Question # 2 Answer: D | Question # 3 Answer: B,D,F | Question # 4 Answer: D,E,F | Question # 5 Answer: C,E |
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