2 (a) Explain the term ‘backflush accounting’ and the circumstances in which its use would
2 (a) Explain the term ‘backflush accounting’ and the circumstances in which its use would be appropriate.
(6 marks)
2 (a) Explain the term ‘backflush accounting’ and the circumstances in which its use would be appropriate.
(6 marks)
In relation to the law of contract, distinguish between and explain the effect of:
(a) a term and a mere representation; (3 marks)
(b) express and implied terms, paying particular regard to the circumstances under which terms may be implied in contracts. (7 marks)
Directions:
In your essay, you should
1) describe the drawing briefly,
2) explain its intended meaning, and then
3) give your comments.
You should write neatly on ANSHWER SHEET 2. (20 points)
(ii) Explain whether or not Carver Ltd will become a close investment-holding company as a result of
acquiring either the office building or the share portfolio and state the relevance of becoming such a
company. (2 marks)
In relation to company law:
(a) explain the meaning of limited liability. (3 marks)
(b) Explain and distinguish between:
(i) unlimited companies; (2 marks)
(ii) companies limited by guarantee; (2 marks)
(iii) companies limited by shares. (3 marks)
In relation to the law of tort explain:
(a) the neighbour principle; (4 marks)
(b) remoteness of damage; (4 marks)
(c) liability for economic/financial loss. (2 marks)
(a) Explain the concept of TRUE and FAIR presentation. (4 marks)
(b) Explain the status of International Standards on Auditing. (2 marks)
(c) ISA 230 Audit Documentation deals with the auditor’s responsibility to prepare audit documentation for an audit of financial statements.
Required:
State FOUR benefits of documenting audit work. (4 marks)
2 An important part of management is understanding the style. of leadership.
Required:
(a) Explain what Blake and Mouton’s Managerial Grid measures. (5 marks)
In relation to the Contract Law of China:
(a) explain the term ‘liquidated damages’, and state the legal nature of them; (2 marks)
(b) state the rules relating to the award of liquidated damages; (6 marks)
(c) state the rule relating to the award of liquidated damages for delay in performing the contractual obligation. (2 marks)
In relation to the law of contract:
(a) defi ne an offer; (5 marks)
(b) explain the specifi c meaning and effect of
(i) a counter-offer; (3 marks)
(ii) a unilateral offer. (2 marks)
In relation to company law, explain:
(a) the limitations on the use of company names; (4 marks)
(b) the tort of ‘passing off’; (4 marks)
(c) the role of the company names adjudicators under the Companies Act 2006. (2 marks)