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ACCA's wording of questions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › ACCA's wording of questions

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • August 4, 2017 at 10:32 am #400368
    iloveaccountancy
    Member
    • Topics: 119
    • Replies: 111
    • ☆☆☆

    Hi Mike.

    I am find some ACCA questions are badly (ambiguously) worded. I wanted to ask your opinion, as I may be mistaken and it may be due to poor knowledge when I look at a question. For example:

    “Ali, Sam and Fred are in partnership running a small office supply business. Their partnership agreement states that the firm will only supply items of stationery. The partners have specifically agreed not to purchase large items, such as printers and photocopiers, for resale”

    “One evening Fred met Bob, a photocopier salesman, at a charity dinner. Bob had previously tried, unsuccessfully, to sell photocopiers to the firm. The partners told Bob that their business did not involve selling photocopiers. However, at the charity dinner, Bob persuaded Joe to buy two photocopiers.”

    “What authority did Fred have to buy the photocopiers?

    Express
    None
    Ostensible
    Implied”

    “Correct Answer:
    None
    In this scenario Fred has no authority to bind the firm, as Bob was aware of this in his previous dealings with the firm as clearly stated in the partnership agreement.”

    As far as Bob was aware, 2 photocopiers could have been for office use.

    Also, I am surprised as I thought the third party would still be innocent as the partner has an authority like a director has an authority.

    Would a bank also not be able to claim repayment if they gave Fred money to buy photocopiers in the name of the partnership even though they had been told their business does not do that?

    Thank you.

    August 4, 2017 at 10:41 am #400369
    iloveaccountancy
    Member
    • Topics: 119
    • Replies: 111
    • ☆☆☆

    Hi Mike here is another example:

    which one can be priced below nominal value: debentures or shares?

    the answer is given as debentures. however shares brought from the stock exchange may fall under their nominal value. this question does not say the shares are brought directly from the company.

    August 4, 2017 at 12:51 pm #400383
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    In the Fred and Bob question, yes, I suppose that the copiers could be for use within the office

    But why 2? Why not just 1 copier?

    I think that common sense should have pointed you in the right direction with this question!

    Wrt the debentures / shares question, are you sure that the question says ‘priced’ and not ‘issued’?

    If it really does say ‘priced’ the I can sympathise with you and agree that a better word would have been ‘issued’

    Ok?

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  • The topic ‘ACCA's wording of questions’ is closed to new replies.

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