Monitoring Test 2

Accountant in
Business
F1AB-MT2-Z08-Q

Time allowed 1 hour

Attempt ALL questions

5 questions at 1 mark each

20 questions at 2 marks each

Total 45 marks

Do NOT open this paper until instructed by the supervisor.

Accountancy Tuition Centre Ltd

ATC
INTERNATIONAL
ALL 25 questions are compulsory and MUST be answered. 1 hour allowed

1 Which of the following best describes marketing?

A Ensuring people will buy your product

B Convincing a targeted customer to identify with a targeted product
C Customer analysis, buying, pricing, distribution and selling
D Identifying, anticipating and supplying customer needs (2 marks)

2 The concept of a “marketing mix” was first defined by Kotter. True or False?

A True
B False (1 mark)

3 Which of the following contains three of the identified Boston Consulting Group (BCG)
marketing matrix elements?

A Dog, cash cow, star child

B Cat, problem cow, star
C Cash cow, problem child, black hole
D Dog, cash cow, problem child (2 marks)

4 As part of their audit procedures, an internal audit department of an organisation carries out
checks to see if adequate controls and other risk management measures are in place and are
effective to enable the business to achieve its objectives. What type of audit are they carrying
out?

A Financial process audit

B Functional audit
C Operational audit
D Value for money audit (2 marks)

5 Which of the following would best be considered to be a substantive audit test?

A Inspecting a non-current asset to see if it exists

B Inspecting a goods received note to see if it has been authorised
C Reading through a procedures manual to help in understanding a system
D Discussing changes made to controls with the directors (2 marks)

6 A typical external auditor’s report on financial statements is addressed to whom?

A Directors
B Shareholders
C Employees (1 mark)

7 A business has established an audit committee and an internal control department. Under
which component of internal control would these best be classified?

A Control environment
B Risk assessment
C Information systems
D Control activities (2 marks)

 Accountancy Tuition Centre (International Holdings) Ltd 2008 2

8 What type of fraud involves changing the timing and cut-off of key transactions to improve a
financial position?

A Long-firm
B Teeming and lading
C Window dressing
D Ponzi (2 marks)

9 Through the correct use of application and general controls, control risk can be reduced to
zero. True or False?

A True
B False
(1 mark)

10 Who considered management to be “a practice rather than a science or a profession so there

are no precise solutions”?

A Fayol
B Adair
C Drucker
D Fiedler (2 marks)

11 Which of the following relates to Mintzberg’s managerial roles?

A Objective setting, job measurement, motivating

B Social structures, job satisfaction, leadership style
C Standardising, motivating, co-operation
D Interpersonal, informational, decisional (2 marks)

12 According to Warren Bennis, what is the difference between managers and leaders?

A Managers do things right, leaders do the right things

B Managers manage, leaders lead
C Managers maintain disatnce from their subordinates, leaders are people centred
D Managers tell, leaders consult (2 marks)

13 Olga believes that her job as a senior manager is to achieve the assignment, regardless of the
feelings or needs of her team. Whatever decision she makes, she expects her subordinates to
follow her instructions without question. Which of the following combination of the Blake
and Mouton dimensions and the Ashridge Management College behaviours best describes
Olga’s management style?

A 1,9 and tells

B 9,9 and sells
C 9,1 and tells
D 5,5 and sells (2 marks)

 Accountancy Tuition Centre (International Holdings) Ltd 2008 3

14 Contingency leadership theories are based on the view that leadership is an interpersonal
process, emphasising the functions of leaders. True or False?

A True
B False (1 mark)

15 Next Saturday morning you are scheduled to take a mock examination on your ACCA studies.
However, your young son has asked you to attend a “parents’ day” at his school on the same
Saturday morning. Which of the following best describes this situation using role theory?

A Role ambiguity
B Role incompatibility
C Role behaviour
D Role conflict (2 marks)

16 What type of skills are required by members of a team?

A Personal
B Complementary
C Effective
D Managerial (2 marks)

17 Extrinsic rewards include salary, bonus and promotion. True or False?

A True
B False (1 mark)

18 A key member of a work team resigns. The organisation decides to advertise for their
replacement, suggesting that all the remaining members of the team apply for the position.
Which one of Tuckman’s team development stages will best describe the team’s subsequent
behaviour?

A Norming
B Forming
C Storming
D Performing (2 marks)

19 Because of the re-organisation and downsizing within a firm, all senior managers have been
informed that they must re-apply for their positions and that only 75% of them will be offered
a new job. At what stage within Maslow’s hierarchy of needs will the managers most likely
be after they have been informed of the re-organisation?

A Self-actualisation
B Physiological
C Safety and security
D Ego and esteem (2 marks)

 Accountancy Tuition Centre (International Holdings) Ltd 2008 4

20 An organisation is looking to replace their current chief financial officer (a key member of the
management team) upon her retirement. Which approach is most likely to provide the best
candidates?

A Internal promotion
B Recommendation of current chief financial officer
C Professional recruitment consultants
D Media advertsing (2 marks)

21 What impact should a diversity policy have on the operational environment within an
organisation?

A Only a very limited impact

B A workforce that reflects the diversity of the environment that the organisation
serves
C Equal opportunities for all employees
D A workforce that is aware of its environment (2 marks)

22 A key implication of learning theory is that individuals will learn more effectively if:

A Training and development is geared towards their preferred learning style

B Their trainer/manager is enthusiastic
C Their employer has an employee training and development strategy
D They are allowed to do what they want (2 marks)

23 An organisation’s employees tend to work in teams, lead by a manager, on individual

projects. Each project usually lasts between 2 and 5 weeks. After the completion of a project,
each employee joins a different team to start a new project. It is important that the
performance of each employee is assessed for each project and over a period of time. Which
appraisal method would be the most suitable?

A Open assessment
B Rating scales
C Peer comparison
D Self-appraisal (2 marks)

24 Which communications arrangement would be best at solving complex problems??

A Wheel
B All channel
C Y
D Circle (2 marks)

25 Which of the following best describes the counseling process where the counselor takes the
initiative and suggests how to solve a problem?

A Non-directive counselling
B Employee counselling
C On-demand counselling
D Directive counselling (2 marks)

End of Question Paper

 Accountancy Tuition Centre (International Holdings) Ltd 2008 5