BUSINESS AND TECHNOLOGY PAPER F1 MOCK EXAM (9)

QUESTION 1

Are the following terms stages of Tuckman's model of team development?

Yes No

Consolidating

Experimenting

QUESTION 2
Which of the following levels of management is the primary user of operational information?
A) Team leader
B) Senior
C) Middle
QUESTION 3
Which of the following is an ADVANTAGE of decentralisation?
A) Greater speed of decision-making, and response to changing events
B) Better economy due to lower costs of overheads
C) Policies, procedures and documentation can be standardized

QUESTION 4

To which of the following groups of ACCA members does the ACCA Code of Ethics apply?

A) All fully qualified members

B) Only members with a practising certificate
C) All members and registered students

QUESTION 5
Which accounting technique or function is MOST useful to a purchasing department when
making decisions about capital equipment purchases?
A) Ratio analysis
B) Receivables analysis
C) Investment appraisal
D) Treasury management
QUESTION 6

Information has been gathered concerning the potential effects on sales of expected changes in
prices over the next 12 months

At which level of the organisation would this information be required?

A) Operational
B) Tactical
C) Strategic

QUESTION 7

Which writer is MOST closely associated with differing national perspectives on culture?

A) Handy
B) Schein
C) Hofstede

QUESTION 8

Are the following statements true or false in relation to boundaryless organisations?

True False
Boundaryless organisations are always virtual organisations
Boundaryless organisations may adopt the hollow organisational approach

QUESTION 9

Indicate if each of the following would typically be included in a corporate code of ethics.

YES NO
1) A statement explaining the organisation's long term strategy
2) A statement explaining how suppliers are chosen and the standards to which
they must adhere

3) The names, background and qualifications of the organisation's senior

management team

4) A statement explaining the organisation's employment practices in relation to

equal opportunities and diversity
QUESTION 10

In analysing its macro-environment, a business is anticipating that a new government will be

elected in the next year. It has noticed that its main product appeals to the older generation, and
that this segment of the population is shrinking. The development of new equipment means that
its product will soon be able to be produced at half the current cost, but much of this saving will
be invested to deal with new health and safety legislation

Which of the following is a socio-cultural environmental factor?

A) The anticipated change in government

B) The development of the new equipment
C) The new health and safety legislation
D) The shrinking segment of the older generation

QUESTION 11

Andy is the external auditor of KT Co. He is performing two tests in relation to purchases. The first
involves taking a sample of purchase invoices to make sure they have all been authorised. The
second involves checking the addition of the purchases day book

Are the following substantive tests?

Yes No
Checking the addition of the purchases day book
Checking a sample of invoices for authorization

QUESTION 12

Which of the following are general controls in relation to IT systems?

(1) Passwords to login to the system

(2) Format checks
(3) Locking the door to the computer room
(4) Sequence checks

A) 1, 2 and 3
B) 2 and 4 only
C) 1 and 3 only

QUESTION 13
The secretary of a committee is responsible for signing off the minutes of each committee
meeting as a true and accurate record of proceedings

Is this statement true or false? A) True B) False

QUESTION 14

Which of the following accountancy activities may involve ethical decisions?

(1) Preparing a statement of financial position

(2) Auditing a small business
(3) Submitting a client's tax return

A) 2 and 3 only
B) 1, 2 and 3
C) 2 only
D) 3 only

QUESTION 15
Big data orginating from public sector sources such as government statistics is classified as
which of the following?

A) Human-sourced data
B) Secure data
C) Machine generated data
D) Open data

QUESTION 16

Ahmed has placed an advertisement in his local newspaper promoting his services as an
accountant. The advertisement makes reference to lengthy experience in taxation despite the
fact that Ahmed has little practical experience in this area. He made the statement in the hope
that it would bring in more taxation work to give him the experience

Which of the fundamental principles from the IFAC (IESBA) code of ethics is NOT threatened by
the advertisement?

A) Objectivity
B) Professional behaviour
C) Professional competence
D) Integrity

QUESTION 17
Which of the following are responsibilities of the internal audit function?

(1) Testing the accuracy of financial and operating data

(2) Assessing the strategic risks facing the company
(3) Ensuring the company's policies and procedures are being followed
(4) Preparing the year-end accounts

A) 2 and 4 only B) 1, 2 and 3 C) 1 and 3 only

QUESTION 18

Honey and Mumford classify four different learning styles.

Which of the following statements accurately describes the 'pragmatists' preferred approach to
learning?

A) Prefers to think things through first

B) Prefers to work with real tasks/preferences
C) Prefers to understand principles
D) Prefers to try things 'hands-on

QUESTION 19

A manager qualifying a statement with the words 'Is that instruction clearly understood?' would
be displaying which of the Ashridge leadership styles?

A) Tells
B) Consults
C) Sells
D) Joins

QUESTION 20

Which of the following indicates the possibility of a high risk of fraud in an organisation's
accounts department?

A) Staff are highly motivated and morale is high

B) Senior management are closely involved in monitoring activities
C) All employees are required to take regular holidays
D) One person is responsible for placing orders and settling invoices

QUESTION 21

An organisation expects to undertake numerous different projects. Project groups will be set up
drawn from the various departments, and then disbanded once the project is complete

What type of organisational structure is this?

A) Departmental B)Matrix C)Functional

QUESTION 22

Which of the following can be improved by applications of artificial intelligence and machine
learning?

A) Job enrichment for operational roles

B) Structured decision making
C) The quality of the raw data available for capture
D) More accurate forecasting

QUESTION 23
JKL Company, a retailer, has introduced a policy through which all its divisions must employ PPP
Company, a specialist human resources company, to recruit and select executives MNO Company
offers medical services through autonomous divisions in four regions. It has set up a unit through
which all divisions will meet their data processing requirements. POR Company manufactures
cosmetics and has set up a training division which will provide services across all of its
departments, paid for through a transfer pricing system

Which of the following utilise(s) the shared services organisation approach?

A) MNO Company only

B) POR Company only
C) MNO Company and PQR Company
D) JKL Company and MNO Company

QUESTION 24
When designing an appraisal system what should be the first consideration?

A) The objectives to be achieved

B) The costs to be considered
C) The rewards to be offered
D) The method to be used

QUESTION 25
Analysis is carried out by external auditors which examines the reasonableness of relationships
between items in the financial statements in order to uncover the unusual variations from trends.
The procedure is applied to overall financial information

What type of analysis is being described in the above statement?

A) Analytical review B) Substantive test
QUESTION 26

Is the external auditor responsible for preventing and detecting fraud? A) Yes B) No

QUESTION 27

The premier football league in a country in Europe is considering changing its rules on the use of
technology. The games from the league are shown on television across the world. The league's
revenue has increased by over ten times in the last five years. 70% of this increase in revenue has
come from the money injected by a television company, CTV. The rest of the revenue comes from
admission fees and sponsorship. The league is considering changing its rules on the use of
technology to help refereeing decisions.

Using Mendelow's power-interest matrix what should the league do in its dealings with CTV on
this issue?

A) Make sure CTV is regularly informed of the discussions

B) Inform CTV of its intention to change the rules by email

C) Consult CTV on its opinions to maintain their support

D) Involve CTV in its detailed discussions

QUESTION 28

A service organisation has a managing director based at its head office. The three divisional
managers and the remaining staff who are regionally based domestic engineers, work from their
sales divisions

What structure should the above organisation be described as having?

A) A matrix structure
B) A geographic structure
C) A functional structure
D) A product structure

QUESTION 29
Which management tool will provide a blueprint for staff development to improve
performance in the future?

A) A competence framework
B) A person specification
C) A job description
D) A person profile
QUESTION 30

For which of the following is horizontal communication used?

A) Task coordination between departments

B) To direct subordinates
C) To clarify operational goals
D) Feedback to management from employees

QUESTION 31

Danny is the accounts manager in a company trading in legitimate activity, established by a

person to receive funds acquired by the same person from illegal sources

The person who manages but does not own the legitimate company may be guilty of which
TWO categories of money laundering?

A) Failure to disclose knowledge or suspicion of money laundering

B) Assisting another to retain the benefit of crime
C) Concealing or transferring proceeds to avoid prosecution
D) Acquisition, possession or use of criminal proceeds

QUESTION 32

What is the prime interest of the shareholders of the organisation?

A) Increase in sales value

B) Return on investment
C) Tax avoidance
C) Increase of market share

QUESTION 33

Teneille currently works for BGR Co as head of internal audit. She has been recruited by XYZ
which is an audit partnership that will be performing an external audit of BGR Co in the near
future.
In recruiting Teneille, XYZ is compromising her independence on which of the following
grounds?

A) Intimidation B) Advocacy C) Self-review D) Familiarity

QUESTION 34
A team distinguishes itself from a group in which of the following ways?

A) Team members hold themselves mutually accountable

B) Teams help to generate creative ideas
C) Teams contain people who possess a range of skills

QUESTION 35
The introduction of new technology in Company A has enabled management to simplify and
flatten the structure of the organisation in order to improve efficiency

What is the name of this strategy?

A) Franchising
B) Downsizing
C) Outsourcing
D) Delayering

QUESTION 36
The government of Arcadia has imposed a maximum price on basic foodstuffs in order to protect
consumers

Which TWO of the following are potential consequences of this measure?

A) Black market
B) Wastage of basic foodstuffs
C) Increased tax revenues
D) Excess demand

QUESTION 37
The role of the external auditor is that of an independent expert who obtains
financial statements, on behalf of______________

Which pair of words correctly complete this sentence?

A) assurance management
B) evidence, directors
C) evidence, shareholders
D) assurance, directors
QUESTION 38

Which of the following is a basic principle of data protection?

A) Data subjects should be advised of all information stored by the organisation from which they
can be identified

B) Personal data should not be kept for longer than necessary for its purposes

C) The organisation should formally confirm all changes made to personal data to the data subject

QUESTION 39

An employee has been identified as very good at trying out ideas to see if they work in practice,
and aiming to find improved methods

Which of Honey and Mumford's learning styles is represented by this employee?

A) Reflector
B) Theorist
C) Pragmatist

QUESTION 40

XYZ, an IT company, has been criticised by its employees who believe that the level of
remuneration it pays to its non-executive directors is too high

Which of the following is a suitable way of calculating the remuneration package for non-
executive directors?

A) A fixed daily rate for the amount of time they commit

B) A fixed fee plus share options up to the value of the fixed fee
C) A fixed percentage of the profits of the organisation
D) A fixed fee which steps up incrementally each year

QUESTION 41

A good appraisal system should include which TWO of the following?

A) Comparisons made between performance of colleagues

B) Employee involvement in setting targets or tasks
C) Clear attainable goals for the employee
 QUESTION 42

Movements in trade between country X and country Y have been persistently one-sided causing
an unfavourable balance of payments for country X.

Which of the following steps could the government of country X take to correct the
disequilibrium in the long run?

A) Increase the money supply

B) Increase the exchange rate
C) Impose import quotas
D) Borrow money from abroad

QUESTION 43
Which of the following types of goal is an ESSENTIAL feature of every organisation?

A) Individual
B) Collective
C) Profitability

QUESTION 44
Which one of the following statements defines ‘organisational culture’?

A) The accepted way of behaving and working

B) The values, norms and practices that shape society
C) Social relationships and informal communication networks
D) The system by which activities are directed and controlled

A) QUESTION 45

GGG Company values the integrity and ability of its sales managers highly, and the board has
decided to provide them with greater discretion in offering discounts to customers and extending
lines of credit in respect of accounts receivable.

The decision of the board of GGG Company reflects a commitment to which of the following
organizational values?

A) Accountability

B) Empowerment

C) Openness
QUESTION 46

Angus is the manager of a sales department. A large part of his job is spent resolving conflict in
the workplace. The most recent incident involved a long-standing dispute between two members
of staff.

Which of the following methods of conflict resolution should Angus encourage in this situation?

A) Acceptance
B) Motivation
C) Training
C) Mediation

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