: ACCA F1 / FIA FAB Accountant in Business - SAA

Mock Examination

:

ACCA F1 / FIA FAB Accountant in Business

Session

: December 2013

Set by

:

Ms Laksha Mehta

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Your Contact Number : ______________________________________

I wish to have my script marked by the lecturer and 

collect the marked script at the SAA-GE Reception Counter



have the marked script returned to me by mail

(Please submit your script latest by 8th November 2013 for marking)

SAA GLOBAL EDUCATION CENTRE PTE LTD Company Registration No. 201001206N 20 Aljunied Road, #01-04, CPA House, Singapore 389805 Tel: (65) 6744 9700 Fax: (65) 6744 9796 Website: www.saage.edu.sg Email: [email protected]

Accountant in Business (F1/FAB) MOCK EXAM 1 Why can conflict between stakeholders be quite common? Different shareholders will have different risk/return profiles B Managers do not need to take their views into account C Their interests will generally be widely different D All of the above (2 marks) 2. In country P the government is keen to manage the economy to promote economic growth. Recently however, there has been a difficulty in matching workers to the jobs available in the financial services sector. Car manufacturers have also moved overseas to make use of cheaper labour sources. At the same time country P imports a large volume of goods from country Q which has high inflation. A recent government report showed that the increase in the PRI was relatively high. What type of inflation does the above describe? A Demand pull B Cost push C Stagflation D Deflationary (2 marks) 3. The usefulness of information is reduced if it does not appear until long after the period to which it relates.’ To which feature of good accounting information does this sentence relate? Reliability B Objectivity C Timeliness D Relevance (2 marks) 4. How is ‘true and fair view’ generally defined for practical purposes? Managers have promised that the accounts are correct B The accounts have been produced with the best intentions C All statements are honest and unlikely to deceive D The accounts are accurate and not misleading (2 marks) 5. Which of the following is a correct definition of the term ‘span of control’? A The number of employees reporting to one manager B The number of managers to whom one employee reports C The number of levels in the hierarchy D The number of employees at each level of the organization. (2 marks) 6. Who was responsible for developing the ‘Situational Leadership’ model? A Blake and Mouton B Katz and Kahn C Hersey and Blanchard D Tannenbaum and Schmidt (2 marks)

7. Which TWO of the following are examples of ‘on the job’ training 1 Formal training course 2 Mentoring by a colleague 3 Self-study courses 4 Secondments to other departments A 1 and 2 B 2 and 3 C 3 and 4 D 2 and 4 (2 marks) 8. Public sector engages in commercial and industrial activities, with the objective of making a profit. A True B False (1 mark) 9. Accordingly to Schein, the way in which a company is managed, such as the style of its management, is its: A corporate culture B work group culture C work ethics (2 marks) 10. “Delaying” means removing a level in the organization structure. A True B False (1 mark) 11. Drucker agreed with the views of Fayol that general principles of management apply to all types of organization whether profit making or not. A True B False (1 mark) 12. Janet is a member of a project group. She is highly knowledgeable and considered by her colleagues to be rather intellectual and strategic in her approach. Janet demonstrates great intuition when dealing with problems, sometimes adopting unorthodox but effective methods. However, some of the team regards her as detached and uncommunicative, and she can sometimes disregard practical details without explanation. According to Belbin’s team roles theory, Janet is an example of which of the following? A Monitor-evaluator B Plant C Shaper D Resource investigator (2 marks)

13. In order to promote proper and complete dialogue between the company registration body and a company, and to ensure that essential administrative requirements laid down by the company registration body come to the attention of the board, which of the following positions should be segregated? A Company Secretary and Chief Executive Officer B Chief Executive Officer and Chairman C Company Secretary and Chairman D Director and Company Secretary (2 marks) 14. In most countries, what is the usual purpose of codes of practice on corporate governance? A To establish legally binding requirements to which all companies must adhere B To set down detailed rules to regulate the ways in which companies must operate C To provide guidance on the standards of best practice that company should adopt D To provide a comprehensive framework for management and administration (2marks) 15. Research has indicated that workers in country A display characteristics such as toughness and the desire for material wealth and possessions, while workers in country B value personal relationships, belonging and the quality of life. According to Hofstede’s theory, these distinctions relate to which of the following cultural dimensions? A Masculinity-femininity B Power-distance C Individualism-collectivism D Uncertainty avoidance (2 marks) 16 Which TWO of the following would be described as tactical information? 1. Purchasing requirements 2. Budgetary control and variance reports 3. Profi tability of business segments 4. Prospects for present and potential markets A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4 (2marks) 17 Which of the following motivation theories did Victor Vroom develop? A Achievement motivation theory B Expectancy theory C Theory X/Theory Y D Equity theory (2marks) 18 A transactions audit is the same as an operational audit Is this statement true or false? A True B False (1 mark)

19.Fred works in retail and uses an IT system to pool both internal data and external data into an easy to use format for the senior executive team on future sales trends. Tom is a GP and uses a computer program to help with patients consultations. The program has captured medial experience. Alex works for a travel company and uses a computer system to book flights when people phone in. Which of the following correctly names the systems each of them use? A Fred uses a management information system, Tom uses an expert system and Alex uses a transaction processing system. B Fred uses an expert system, Tom uses a decision support system and Alex uses a transaction processing system. C Fred uses an executive support system, Tom uses an expert system and Alex uses a transaction processing system. D Fred uses an executive support system, Tom uses a knowledge work system and Alex uses an office automation system. (2 marks) 20. What is ‘fiduciary responsibility’? A A duty of faithful service B Compliance with financial reporting standards C A specific duty to look after the finances of the organisation D The monitoring and enforcement of all legal obligations (2 marks) 21. BCD Co is a large trading company. Steve is the administration manager and is also responsible for legal and compliance functions. Sheila is responsible for after sales service and has responsibility for ensuring that customers who have purchased goods from BCD Co are fully satisfied. Sunny deals with suppliers and negotiates on the price and quality of inventory. He is also responsible for identifying the most appropriate suppliers of plant and machinery for the factory. Sam is the information technology manager and is responsible for all information systems within the company. According to Porter’s value chain, which of the managers are involved in a primary activity as opposed to a support activity? A Steve B Sheila C Sunny D Sam (2marks) 22. According to Mintzberg, as a decision-maker, a manager needs to: A initate B accept responsility C act as spokesperson D liaise with others (2marks) 23. Process theories of motivation place strong emphasis on financial rewards. True or False? (1 mark) 24. In order for work to be delegated effectively, there must be efficient: A vertical communication B lateral communication C all-channel communication (2 marks)

25. Moving an individual regularly from one job to another, often within the same department, to enable him or her to gain experience of a wide range of tasks is called: A job enlargement B secondment C job enrichment D job rotation (2 marks) 26. Sometimes news at work gets around much more quickly ‘through the grapevine’. The grapevine is an example of: A formal communication B informal communication C circle communication (2 marks) 27. In a higher education teaching organisation an academic faculty is organised into courses and departments, where teaching staff report both to course programme managers and to subject specialists, depending on which course they teach and upon their particular subject specialism. According to Charles Handy’s four cultural stereotypes, which of the following describes the above type of organizational structure? A Role B Task C Power D Person (2 marks) 28. At what stage of the planning process should a company carry out a situation analysis? A When converting strategic objectives into tactical plans B When formulating a mission statement C When validating the effectiveness of plans against outcomes D When formulating strategic objectives (2 marks) 29. According to Mendelow, companies must pay most attention to the needs of which group of stakeholders? Those with little power and little interest in the company B Those with a high level of power but little interest in the company C Those with little power but a high level of interest in the company D Those with a high level of power and a high level of interest in the company (2 marks) 30. When an organisation carries out an environmental scan, it analyses which of the following? Strengths, weaknesses, opportunities and threats B Political, economic, social and technological factors C Strategic options and choice D Inbound and outbound logistics (2 marks)

31. The total level of demand in the economy is made up of consumption, ____________, government expenditure and net gains from international trade. Which of the following correctly completes the sentence above. A Savings B Taxation C Investment (2marks) 32. Which set of environmental factors does a lobby group intend to directly influence? A Political B Technological C Demographic D Economic (2 marks) 33. Farrah, Gordon, Helene and Ian work in the finance department of X Co, which has separate financial accounting and management accounting functions. Farrah deals with payroll, the purchase ledger and sales invoicing. Gordon’s duties involve inventory valuation, budgetary control and variance analysis. Helene deals with fraud prevention and detection, and internal control. Ian carries out risk assessments, investment appraisals and assists in project planning. Which member of the department works in the financial accounts function? A Farrah B Gordon C Helene D Ian (2 marks) 34 The preparation and filing of accounts by limited companies each year is required by which of the following? A Codes of corporate governance B National legislation C International Accounting Standards (2 marks) 35. What is the latest stage at which a new recruit to a company should first be issued with a copy of the company’s health and safety policy statement? A On accepting the position with the company B As early as possible after employment C After the first few weeks of employment D During the final selection interview (2 marks) 36 In a higher education teaching organisation an academic faculty is organised into courses and departments, where teaching staff report both to course programme managers and to subject specialists, depending on which course they teach and upon their particular subject specialism. According to Charles Handy’s four cultural stereotypes, which of the following describes the above type of organisational structure? A Role B Task C Power D Person (2 marks)

37. To whom is the internal auditor accountable? A The directors of the company B The employees of the company C The shareholders of the company D The external auditors of the company (2 marks) 38. Which of the following is an acronym used to describe the key elements of an organisation’s external environment? A PERT B PEST C SWOT D SPAM (1 mark) 39. Which one of the following is an example of a internal stakeholder? A A shareholder B An non-executive director C A manager D A supplier (2 marks) 40. Which of the following is not used by Mintzberg in his description of organizational structure? A Strategic Apex B Support base C Operating core (2 marks)

41. Which of the approach to ethical decision-making which results in the greatest good to the greatest number of people? A Utilitarianism B Deontology C Values (2 marks) 42. Which theory is related to management of assets. A Agency Theory B Stakeholder Theory C Stewardship Theory (2 marks) 43. The initial disposal of the proceeds of an illegal activity into apparently legitimate business activity is known as __________________. A Placement B Layering C Integration D Tipping off

44. What is direct discrimination? A Less favourable treatment of a protected group B Being penalised for giving information or taking action C The use of threatening, intimidatory, offensive or abusive language or behaviour D When a policy or practice is fair in form, but discriminatory in operation (2 marks) 45. An employee interviews a customer for the first time observing the situation and the responses to his questions. Afterwards he reflects on his own performance to understand why the customer did not buy the product. He comes to the conclusion that he had failed to listen to the customers needs and had been trying to sell the wrong product. This is an example of the experiential learning cycle, who devised it? A Honey and Mumford B Kolb C Armstrong D Belbin (2 marks) 46. What characterises the ‘problem-solving style’ of appraisal interview? A The manager tries to gain acceptance of the evaluation and the improvement plan B The manager dominates the interview throughout C The appraise is encouraged to devise his/her own solutions D The appraisee is motivated to alter his/her behavior (2 marks) 47. The ‘Y’ pattern of communication was proven by Leavitt to be the fastest at problem solving.’ Is this statement true or false? A True B False (1 mark) 48. How does communication flow in an organisation? (i) Upwards (ii) Downwards (iii) Sideways (iv) Diagonally A (i), (ii) and (iii) B (i) and (ii) C (ii), (iii) and (iv) D All of them (2 marks) 49. According to Honey and Mumford, what type of person learns best by watching others at work and having time to think about what they have seen? A Reflector B Activist C Pragmatist D Theorist (2 marks) 50. ABC is a firm of accountants that provides bookkeeping services to XYZ and prepares their financial statements. XYZ now want ABC to audit their financial statements. What threat could arise in this situation? A Self –interest threat B Self –review threat C Advocacy threat