1、Accountant in Business (2)Fundamentals Pilot Paper Knowledge moduleAccountant in BusinessTime allowed: 2 hoursALL FIFTY questions are compulsory and MUST be attempted.Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall.The Assoc

2、iation of Chartered Certified AccountantsPaper F1ALL FIFTY questions are compulsory and MUST be attemptedPlease use the Candidate Registration Sheet provided to indicate your chosen answer to each multiple choice question.1 Span of control is concerned with the number of levels of management in an o

3、rganisation. Is this statement true or false? A True B False (1 mark)2 Which of the following is the main function of marketing?A To maximise sales volumeB To identify and anticipate customer needsC To persuade potential consumers to convert latent demand into expenditureD To identify suitable outle

4、ts for goods and services supplied (2 marks)3 Which one of the following has become an established best practice in corporate governance in recent years?A An increasingly prominent role for non-executive directorsB An increase in the powers of external auditorsC Greater accountability for directors

5、who are in breach of their fiduciary dutiesD A requirement for all companies to establish an internal audit function (2 marks)4 According to Charles Handys four cultural stereotypes, which of the following organisations would adopt a task culture?A The cost accounting department of a large steel pro

6、ducing companyB The consulting division of a big four accountancy firmC A civil service departmentD A small clothes and design fashion house (2 marks)5 At what stage of the planning process should a company carry out a situation analysis?A When converting strategic objectives into tactical plansB Wh

7、en formulating a mission statementC When validating the effectiveness of plans against outcomesD When formulating strategic objectives (2 marks)6 Which one of the following is potential advantage of decentralisation?A Greater control by senior managementB Risk reduction in relation to operational de

8、cision-makingC More accountability at lower levelsD Consistency of decision-making across the organisation (2 marks) 7 Which one of the following is an example of a internal stakeholder?A A shareholderB An non-executive directorC A managerD A supplier (2 marks)8 According to Mendelow, companies must

9、 pay most attention to the needs of which group of stakeholders?A Those with little power and little interest in the companyB Those with a high level of power but little interest in the companyC Those with little power but a high level of interest in the companyD Those with a high level of power and

10、 a high level of interest in the company (2 marks)9 What is the responsibility of a Public Oversight Board?A The establishment of detailed rules on internal audit proceduresB The commissioning of financial reporting standardsC The creation of legislation relating to accounting standardsD The monitor

11、ing and enforcement of legal and compliance standards (2 marks)10 The ageing population trend in many European countries is caused by a increasing birth rate and an increasing mortality rate. Is this statement true or false? A True B False (1 mark)11 Which one of the following is consistent with a g

12、overnments policy objective to expand the level of economic activity?A An increase in taxationB An increase in interest ratesC An increase in personal savingsD An increase in public expenditure (2 marks)12 Which of the following is the name given to unemployment arising from labour in the market pla

13、ce being of the wrong type or available in the wrong place?A Structural unemploymentB Cyclical unemploymentC Frictional unemploymentD Marginal unemployment (2 marks) 13 When an organisation carries out an environmental scan, it analyses which of the following?A Strengths, weaknesses, opportunities a

14、nd threatsB Political, economic, social and technological factorsC Strategic options and choiceD Inbound and outbound logistics (2 marks)14 Which of the following is data protection legislation primarily designed to protect?A All private individuals and corporate entities on whom only regulated data

15、 is heldB All private individuals on whom only regulated data is heldC All private individuals on whom any data is heldD All private individuals and corporate entities on whom any data is held (2 marks)15 Which of the following types of new legislation would provide greater employment opportunities

16、in large companies?A New laws on health and safetyB New laws to prevent discrimination in the workplaceC New laws making it more difficult to dismiss employees unfairlyD New laws on higher compensation for employer breaches of employment contracts (2 marks)16 The total level of demand in the economy

17、 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 (1 mark)17 Which set of environmental factors does a lobby group intend to directly influence?A PoliticalB Te

18、chnologicalC DemographicD Economic (2 marks) 18 The use of advanced technology solutions in order to maximise the productivity and effectiveness of call centre operations is an application of the principles established by which school of management thought?A Human relationsB EmpiricalC ScientificD A

19、dministrative (2 marks)19 The original role of the accounting function was which one of the following?A Providing management informationB Recording financial informationC Maintaining financial controlD Managing funds efficiently (2 marks)20 Tax avoidance is a legal activity whilst tax evasion is an

20、illegal activity. Is this statement true or false? A True B False (1 mark)21 The system used by a company to record sales and purchases is an example of which of the following?A A transaction processing system.B A management information systemC An office automation systemD A decision support system

21、(2 marks)22 The implementation of a budgetary control system in a large organisation would be the responsibility of the internal auditor. Is this statement true or false? A True B False (1 mark)23 Which type of organisation would have the retail prices it charges to personal consumers subject to clo

22、se scrutiny by a regulator?A A multinational corporationB A multi-divisional conglomerateC A national utilities companyD A financial services provider (2 marks) 24 The central bank has announced a 2% increase in interest rates. This decision has the most impact on which department in a large company

23、?A MarketingB TreasuryC Financial accountingD Production (2 marks)25 The major purpose of the International Accounting Standards Board (IASB) is to ensure consistency in _. Which two words complete this sentence? A Financial control B Corporate reporting C External auditing (1 mark)26 X Co has a fin

24、ancial accountant and a management accountant. Which group of activities would fall within the responsibility of the financial accountant?A Payroll, purchase ledger, sales invoicingB Inventory valuation, budgetary control and variance analysisC Fraud avoidance, segregation of duties, internal review

25、 and controlD Funds management, risk assessment, project and investment appraisal (2 marks)27 In an economic environment of high price inflation, those who owe money will gain and those who are owed money will lose. Is this statement true or false? A True B False (1 mark)28 To whom is the internal a

26、uditor primarily accountable?A The directors of the companyB The company as a separate entityC The shareholders of the companyD The employees of the company (2 marks) 29 Which one of the following is a DISADVANTAGE of a computerised accounting system over a manual accounting system?A A computerised

27、system is more time consuming to operateB The operating costs of a computerised system are higherC The computerised system is more costly to implementD A computerised system is more error prone (2 marks)30 The identification, evaluation, testing and reporting on internal controls is a feature of whi

28、ch of the following?A Operational auditB Transactions auditC Social responsibility auditD Systems audit (2 marks)31 What is the primary responsibility of the external auditor?A To verify all the financial transactions and supporting documentation of the clientB To ensure that the clients financial s

29、tatements are reasonably accurate and free from biasC To report all financial irregularities to the shareholders of the clientD To ensure that all the clients financial statements are prepared and submitted to the relevant authorities on time (2 marks)32 Which of the following are substantive tests

30、used for in the context of external audit of financial accounts?A To establish whether a figure is correctB To investigate why a figure is incorrectC To investigate whether a figure should be includedD To establish why a figure is excluded (2 marks)33 In the context of fraud, teeming and lading is m

31、ost likely to occur in which area of operation?A SalesB Quality controlC Advertising and promotionD Despatch (2 marks) 34 In order to establish an effective internal control system that will minimise the prospect of fraud, which one of the following should be considered first?A Recruitment policy an

32、d checks on new personnel.B Identification of areas of potential risk.C Devising of appropriate sanctions for inappropriate behaviour.D Segregation of duties in critical areas (2 marks)35 The leadership style that least acknowledges the contribution that subordinates have to make is _. Which word co

33、rrectly completes this sentence? A Authoritarian B Autocratic C Assertive (1 mark)36 The Blake and Mouton managerial grid examines the relationship between concern for production and which of the following?A concern for peopleB concern for salesC concern for qualityD concern for service (2 marks)37

34、Jackie leads an established team of six workers. In the last month, two have left to pursue alternative jobs and one has commenced maternity leave. Three new staff members have joined Jackies team. Which one of Tuckmans group stages will now occur?A NormingB FormingC PerformingD Storming (2 marks)38

35、 Richard is a valuable member of his team. He is enthusiastic and curious, highly communicative and has a capacity for contacting people and exploring anything new. Which of Belbins team roles does Richard fulfil?A Monitor-evaluator.B PlantC Resource-investigatorD Company worker (2 marks) 39 Which o

36、ne of the following statements is correct in relation to monetary rewards in accordance with Herzbergs Two-Factor theory?A Pay increases are a powerful long-term motivatorB Inadequate monetary rewards are a powerful dissatisfierC Monetary rewards are more important than non-monetary rewardsD Pay can

37、 never be used as a motivator (2 marks)40 Which one of the following is a characteristic of a team as opposed to a group?A Members agree with other membersB Members negotiate personal roles and positionsC Members arrive at decisions by consensusD Members work in cooperation (2 marks)41 According to

38、Victor Vroom: Force (or motivation) = _ x expectancy Which of the following words completes Vrooms equation.A NeedsB ValenceC Opportunity (1 mark)42 According to Handys shamrock organisation model, which one of the following is becoming progressively less important in contemporary organisations?A Th

39、e permanent, full-time work forceB The part-time temporary work forceC The role of independent sub-contractorsD The role of technical support functions (2 marks)43 Which pattern of communication is the quickest way to send a message?A The circleB The chainC The YD The wheel (2 marks) 44 Poor quality

40、 lateral communication will result in which of the following?A Lack of directionB Lack of coordinationC Lack of delegationD Lack of control (2 marks)45 Role playing exercises using video recording and playback would be most effective for which type of training?A Development of selling skillsB Regula

41、tion and complianceC Dissemination of technical knowledgeD Introduction of new processes or procedures (2 marks)46 In the context of marketing, the four Ps are price, place, promotion and _. Which word correctly completes this sentence? A Processes B Production C Product (1 mark)47 In relation to em

42、ployee selection, which type of testing is most appropriate for assessing the depth of knowledge of a candidate and the candidates ability to apply that knowledge?A Intelligence testingB Personality testingC Competence testingD Psychometric testing (2 marks)48 A company has advertised for staff who

43、must be at least 1.88 metres tall and have been in continuous full-time employment for at least five years. Which of the following is the legal term for this unlawful practice?A Direct discriminationB Indirect discriminationC VictimisationD Implied discrimination. (2 marks)1049 Which one of the foll

44、owing is most appropriate for the purpose of supporting the individual through the learning process with a 6view to promoting career development?A BuddyB CounsellorC MentorD Instructor (2 marks)50 Gils is conducting an appraisal interview with his assistant Jill. He initially invites Jill to talk ab

45、out the job, her aspirations, expectations and problems. He adopts a non-judgmental approach and offers suggestions and guidance. This is an example of which approach to performance appraisal?A Tell and sell approachB Tell and listen approachC Problem solving approachD 360 degree approach (2 marks)E

46、nd of Question Paper111 Answers1 Pilot Paper F1 AnswersAccountant in Business1 B 26 A2 B 27 A3 A 28 A4 B 29 C5 D 30 D6 C 31 B7 C 32 A8 D 33 A9 D 34 B10 B 35 B11 D 36 A12 C 37 B13 B 38 C14 B 39 B15 B 40 C16 C 41 B17 A 42 A18 C 43 D19 B 44 B20 A 45 A21 A 46 C22 B 47 C23 C 48 B24 B 49 C25 B 50 BRationa

47、le for answers1 B The span of control is concerned with the number of subordinates reporting directly to one person. The scalar chain concept relates to the number of levels in the management structure.2 B The basic principle that underlies marketing is that it is a management process that identifie

48、s and anticipates customer needs. The other distractors in the question refer to specific activities undertaken by a marketing function.3 A Successive reports on corporate governance (Cadbury, Higgs, etc.) have highlighted the increasingly prominent role that non-executive directors should take in l

49、arge organisations. This has become an established best practice.4 B The task culture is appropriate where organisations can accommodate the flexibility required to adjust management and team structures to address the tasks that must be fulfilled. This is very common in large consultancy firms.5 D A

50、 situation analysis is carried out when deciding on strategic objectives. The organisation will have already decided on its mission statement and goals.1 6 C Greater accountability at lower levels will lead to greater empowerment of those taking decisions and hence greater motivation and commitment.

51、7 C A manager is employed by the organisation and is therefore a constituent part of it. All the others are known as connected stakeholders.8 D The organisation must constantly be aware of the needs of stakeholders with a high level of power and the ability to influence the organisation profoundly.

52、Management decisions must therefore take most account of the needs of this group of stakeholders.9 D The primary aim of a public oversight board is to eliminate or minimise any actual or potential breaches of legislative requirements and to ensure compliance with regulations applicable to organisati

53、ons within their terms of reference.10 B The ageing population trend is caused by decreasing birth rate and a decreasing mortality rate. 11 D An increase in public expenditure should increase the level of consumer demand and hence the level of economic activity. This would also be achieved by other

54、measures, such as a reduction in taxation or a reduction in interest rates.12 C Frictional unemployment arises even when there are unfilled vacancies in the economy. It is because there is never a perfect match between the types of job available and their location with the skills of those seeking wo

55、rk and where they live.13 B Any environmental scan analyses the external factors that affect an organisation, often categorised as political, economic, social and technological factors.14 B Data protection legislation is formulated to protect the interests of data subjects who are private individual

56、s. Not all data is regulated.15 B Diversity policies are intended to reduce recruitment and selection policies and processes that enable discrimination to arise on the basis of gender, race, lifestyle and age.16 C The components of effective demand in the economy are consumer spending, investment by

57、 enterprises, central and local government expenditure and the net gains from international trade.17 A Lobby groups are primarily established to influence political decision takers, such as the government and individual lawmakers.18 C Scientific management principles consider the ways in which the factors of production (land, labour, capital and the entrepreneurial function) can be combined to maximise efficiency in production. The founding principles are based on the work of Frederick Winslow Taylor.19 B The accounting function originated from the need to record transactions completely