F1/FAB:

Accountant
in Business
Final Assessment 7

Examiner: Sajid Newaz Khan

Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

Part A

ATTEMPT ALL QUESTIONS

1 Which of the following are components of Mintzberg’s organization model?

1. Strategic apex
2. Techno structure
3. Support core
4. Operating staff

A. 1&2
B. 2&3
C. 3&4
D. 2&4
E. 1&3
(2 marks)

2. One of the disadvantages of Geographical departmentation is that it causes duplication and inconsistency
in policy.

A. True
B. False
(1 mark)

3. Successful divisionalisation requires certain key conditions. State which of the following is true/false?

True False
A. Must have properly delegated authority
B. Must be large enough to support the quantity and quality of management its need.
C. Must have limited growth potential in its own area of operation.
D. Should be dependent on central office for decisions regarding expenses and revenues
(2 marks)

4. ……………………………… is a price which gives a company the highest level of profit whereby a company may
enjoy abnormal profit however restricting a lot of people to afford it?

A. Limited time offer

B. Penetration pricing
C. Skimming
(1 mark)

5 Which of the following is/are not objectives of human resource management?

A. To meet the organization’s social and legal responsibilities relating to the human resource.
B. To manage an organization’s relationship with its customers
C. To develop human resources that will respond effectively to change.
D. To obtain and develop the HR required by the organization.
E. To create and maintain a co-operative climate of relationship with the organization
(2marks)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

6 ………………………………….. consist of data analysis models, and may have access to database to extract data
for analysis. It should provide the user with information about a number of different alternatives or
different possible outcome.

A. Management information system

B. Expert System
C. Decision support System
(1 mark)

7. In production management, which of the following is not part of long term decision making?

A. Selection of equipment and process

B. Job design and method
C. Inventory control.
D. Factory location and lay out
E. Ensuring the right no of employee’s.
(2 marks)

8. Process research involves attention to how the goods/services are produced. Process research has the
following aspects. Which is incorrect?

A. Processes
B. Productivity
C. Planning
D. Quantity
E. Quality Management.
(2 marks)

9. Gordon works in the accounts department of a retail business. He and his colleagues are looking at the
sales figures for various types of clothing. The director asks them to use exception reporting to summaries
their findings. Which of the following correctly defines the concept of ‘exception reporting’ within a
business context?

A. The reporting of exceptional events, outside the normal course of events.

B. The analysis of those items where performance differs significantly from standard or budget.
C. The preparation of reports on routine matters on an ‘ad hoc’ basis.
D. The scrutiny of all data as a matter of course saves in exceptional circumstances
(2 marks)

10 Product SK10 and product SR16 have cross elasticity of -1.78. What type of relationship can be inferred
from this information about the two products?

A. They are substitutes

B. They are complements
C. They are unrelated
(1 mark)

11 Country DB is experiencing an ageing population. Which of the following has caused this?

A. Low death rate and high birth rate

B. High birth rate and high death rate
C. Low birth rate and low death rate
(1 mark)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

12 The government of Country S announced subsidy on import of Hybrid cars as opposed to high import
duty on fuel driven vehicles. What impact is this likely going to have on the demand curve and price of
hybrid cars?

A. shift to the right and prices will go down

B. shift to the left and prices will go down
C. shift to the right and prices will go up
D. shift to the left and prices will go up
(2 marks)

13 Allocation work to people and machines is called .............................

A. Task Sequencing
B. Work loading.
C. Time Scheduling
(1 mark)

14 The finance minister of a country wants to tackle inflation. Which TWO of the following policies is he
likely to adopt?

1. increase spending on public works

2. increase tax rates
3. print more money to circulate in the economy
4. raise interest rates
A. 1 & 2
B. 2 & 3
C. 1 & 4
D. 2 & 4
E. 1 & 3
(2 marks)

15 A new legislation introduced by country Z reduced legal marriage age from 18 to 16 for women and from
21 to 18 for men after considering the recent trends in under-aged marriages.

Under what heading would this fall under for a diaper making company considering its impact on their
business?

A. Political
B. Social
C. Cultural
D. Environmental
(2 marks)

16. Following steps are taken the government below. What are they called? Give the best one.

1. Buying government bonds from the public putting money into circulation by paying investors who hold
these bonds.
2. The interest rates will be reducing by 100 basis points.
3. Bank margin on credit will be eased.

A. Inflationary fiscal policy

B. Deflationary fiscal policy
C. Inflationary monetary policy.

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

D. Deflationary monetary policy (2 marks)

17 The following are the key objectives of Internal Control System? Select which are true/false?

True False
A. Prevention and Detection of Fraud and Error
B. The timely preparation of reliable financial information system
C. The accuracy and completeness of the accounting records
D. The safeguarding of Assets
(2 marks)

18. Mexter Limited has given its sales executives a sales limit of 5000 $ for new client sales promotion. Arif
was a sales executive in Mexter limited. He took an order for 4500 $ from a new client called Kessler traders
which had no previous record with the company. Once Arif left the job, the company later found out that no
such client physically exits and marked 4500 as bad expense. What type of fraud is this................................?

A. Theft of inventory
B. Collusion with customer
C. Fictitious customer
D. Promotion fraud.
E. Teeming and lading
(2 marks)

19. Understating the rate of depreciation will have no impact on the profits and book value of the company
because it does not have any cash flow effect.

A. True
B. False.
(1 mark)

20. As per personnel risk, which of the following are the clues that indicate that a person is engaging in
fraud?

A. Secretive behavior
B. Expensive life styles
C. Democratic management style
(1 mark)

21. The power with disruptive attitude and behavior to stop something from happening is known as
...........power

A. Coercive
B. Referent
C. Negative
D. Physical
E. Reward (2 mark)

22. Putting obstacles in the way of proposal, without offering any alternate is known as……………………………

A. Shutting out behavior

B. Bringing in behavior
C. Blocking / Difficulty Stating
D. Proposing (2 marks)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

23 Which of the following statement about the rights of data subject is not correct?

1 In the case of unauthorized disclosure, destruction or distress caused, data subject cannot claim
compensation in the court of law.

2 S(he) can ask the court to correct the data belonging to him, if the data is incorrect.

3 S(he) can sue the data holder for any damage cause due to his misuse of data causing any damage.

A. 1 only
B. 1 & 2 only
C. 1,2 & 3 only
D. 2 & 3 only
E. 3 only
(2 marks)

24. According to McGregor’s Theory of X and Y, which of the following statement about X theory is not
correct?

A. The average person dislikes work and will avoid having to do any if at all possible.
B. Individuals must be forced to work toward the organization objective, with the threat of punishment
for not working properly.
C. The average person prefers to be directed and wants to avoid responsibility, wants security more
than anything else.
D. Putting effort in work is as natural as play or rest.
(2 marks)

25. The following are purposes of the Vertical Communication:

1To give instruction / direction

2 To delegate responsibilities

3 To control the activities of the Subordinates

4 To coordinate activity of groups and individual

5 To develop and maintain social relationship at work.

Which is correct?

A. 1, 2 and 5
B. 1, 4 and 5
C. 2, 3 and 4
D. 1, 3 and 5
E. 1,2 and 3
(2 marks)

26. The HR manager of Togo Industries and chemicals was considering applications for the post of office
assistance. HR manager offer a female candidate a pay of $3500 per annum while for the same job he
offered a male candidate $ 4250 per annum.

Which of the following statement regarding the above situation act is correct?

A. Justified as per Law

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

B. Positive discrimination which is allowed

C. Discrimination on the ground of sex and unequal pay is unlawful
D. Discrimination is not applicable on pay and sex
(2 marks)

27. JS investment needs an employee in their office who is very sharp in solving logical conditions, who have
the ability to think and answer quickly and should also have a very good memory. In order to judge such
candidate what type of test they should take to find their required person.

A. Competence test
B. Personality test
C. Intelligence test
D. Work Sampling
(2 marks)

28. According to Maslow’s hierarchy of needs, which of the following requirements, if not met, the human
body simply cannot continue to function

A. Love / Social Needs

B. Esteem needs
C. Physiological needs
D. Self Actualization
E. Self Maintenance
(2 marks)

29. Power Culture is best considered for ……………………………. organisation.

A. Public sector companies

B. Large organizations
C. Small size entrepreneurial organisation
(1 mark)

30 Dividex is a limited company. It employs over 500 people. The decision making is more top down and
employees are expected to follow without question. The organisation is task oriented and there is always
competition for places within the organisation.

What TWO types of culture exist at dividex?

A. High power distance

B. Low masculinity
C. High uncertainty avoidance
D. Collectivism
E. Individualism (2 marks)

31 Which of the following statement about power culture is incorrect?

A. The organization is capable of adapting quickly to changes.

B. Personal influence decrease as the size of the organisation grows.
C. This type of organization has strict bureaucratic rules and regulations.
D. Decision making generally is made bottom up
(2 marks)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

32. In Deny Corporation, the human resource manager tells the Quality control manager that he has to bring
improvement in his work and in his department’s performance in the next 3 months; the appraisee is also
criticized on his current behaviour and been set new targets to meet in the allotted time. What kind of
appraisal style is this?

A. Tell and listen style

B. 360 degree style
C. Tell and sell style
(1 mark)

33. A technique in which the manager uses his judgments about the appraisee and there is no consistency of
the criteria and area of assessment. In this method the managers do not clearly convey effective judgments
in writing. What type of appraisal method is this?

A. Grading
B. Behavioral method
C. Overall assessment.
(1 mark)

34. …………………………………. maximizes transfer of learning by incorporating it into ‘real’ work.

A. Off the job Training

B. On the job Training
C. Induction training
(1 mark)

35 Individuals learn by observing and thinking about what he has seen. They prefer to avoid jumping in to a
task, and prefer to watch from sideline as well as need to work at their own pace. They find learning difficult
if forced into a hurried program.

Which of the following best describes such individuals?

A. Theorists
B. Reflectors
C. Pragmatists
D. Activists
(2 marks)

36. The following as part of their human resource management was undertaken by Rockwell Corporation
Select whether they are positive action or positive discrimination

Positive action Positive

discrimination
1. Rockwell Corporation gave an ad in the Chinese newspaper for the job
of support worker in English / Chinese language. The objective of the
company was to encourage minority Asians to apply for this post.
2. The same company arranges special awareness training for women in
management skills.
(2 marks)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

37. Which Two of the following are the centralized patterns of communication?

A. Wheel.
B. Chain
C. Circle
D. The Y
(2 marks)

38. A yawn, applause, clenched fists, fidgeting and firm handshakes are the example of which of the
following?

A. Interpersonal skills
B. The grapevine
C. Non verbal communication or body language.
(1 mark)

39. Which of the following best describes job enlargement?

A. Widen jobs by increasing no of operation in which a job holder is involved.

B. Job which have to complete with lots of Product processing
C. A job with additional responsibilities delegated by a superior.
(1 mark)

40. ………………………………… is a dismissal when the employee quits the job due to the employer’s conduct
breaching the employment contract.

A. Wrongful dismissal
B. Unfair dismissal.
C. Constructive dismissal
D. Redundancy
(2 marks)

41. Below are few factors that influenced the control environment. Which one of the following is incorrect?

A. Management attitude toward control.

B. Organization Structure.
C. Stakeholder perception
D. Values and ability of employees
(2 marks)

42. Which one of the following statements regarding a project is incorrect?

A. Have specific start and end points

B. Have unlimited time to complete.
C. Have a well defined objectives, cost and schedules
(1mark)

43. Trade Unions despite their lack of formal authority are able to influence industrial decision making as
they are capable of causing disruptions. Which of the following types of power do trade unions possess?

A. Coercive power
B. Negative power
C. Referent power (1 mark)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

44 Which of the following is not an advantage of a limited company?

A. Separate legal personality

B. No restrictions on size.
C. Limited Liability
D. Ownership is legally separate from control.
E. Compliance cost. (2 marks)

45 Which of the following is an international body representing all the major accountancy bodies across the
world. Its mission is to develop high standards professional accountants and enhance the quality of services
they provide.

A. IFAC
B. GAAP
C. EU
D. ACCA
E. WTO
(2 marks)

PART B

ATTEMPT ALL QUESTIONS

Question 1

The following diagram shows the demand and supply curve for stadium tickets. The initial demand and
supply is shown by D and S.

Price S

D1
D

Quantity

1. From the diagram above, what can be inferred about the supply curve?

A. Totally inelastic
B. Totally elastic
(1 mark)

2 Which of the following would cause the demand curve to shift from D to D1?

A. Rise in disposable income

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

B. Fall in the price of tickets

C. Fall in the price of cinema hall tickets
(1 mark)

3 From the curve above, what will happen to the price and quantity of stadium tickets if demand curve shifts
from D to D1?

A. Price and quantity will rise

B. Price will rise quantity will fall
C. Price will remain the same and quantity will rise
D. Price will rise but quantity will remain the same
E. Both price and quantity will remain the same
(2 marks)

Question 2

Hugo Corporation wants to automate its office system. The organisation has decided install the following
systems that achieve its goals.

Goal 1 Have its database accessible through the internet and connected networks. Employees will be given a
password and a username and they can connect to the official network from any computer within and
outside the organisation.

Goal 2 Have an automated system that will record all the sales, purchases, receipts and payments so that all
the information is updated and easily accessible.

Goal 3 Have an IT system where the data from all the records into information for tactical decision making
and to monitor the performance and co-ordinate operational activities.

Goal 4 Have a system for corporate decision making that combines many types of data from relevant
information within and outside the organisation

The following are IT systems that Hugo Corporation is considering:

A. Extranet
B. Intranet
C. Management Information System
D. Executive Support System
E. Decision Support System
F. Transaction Processing System

Match the correct IT system that suits the Goals of Hugo Corporation

Goal 1
Goal 2
Goal 3
Goal 4
(4 marks)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

Question 3

Fantamix is a new organisation and its HR department head Jeremy is responsible for putting up
advertisement for various posts to attract the right candidates. He is considering the following channels.

A. Television advertisement
B. Local newspaper
C. National newspaper
D. Specialist magazine
E. Company notice board
F. Recruitment consultant

Select the suitable channels from the options above that Jeremy should use for each of the following types
of employees:

800 low skilled, low pay for its operations generally easy to find
1 It specialist whose skills are rare to find
8 security guards who are local residents
1 assistant manager for HR department with hardly any induction time
(4 marks)

Question 4

The three basic ways in which conflicts can be resolved are:

A. Win-Lose
B. Lose-Lose
C. Win-Win

Consider the following scenarios and select the appropriate resolution for each of the following solutions:

1 Two of your team members are arguing over who gets the office car to come to the office, they both want
it.

Both members gets to use the car on alternate days

One member is given the car and the other is paid the cost of his coming to
the office
(1 mark)

2 You and your colleague both need to meet the CEO regarding a project that needs to be submitted
tomorrow. There is only two hours left and each of you need two hours to discuss the matter.

Your colleague gets the appointment and you don’t

Both of you get appointment but for one hour each

(1 mark)

3 Which TWO of the following are outputs from a Finance system for strategic decision making?

A. Key ratios
B. Variance analysis
C. Invoicing
D. Exception reports

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

E. Market analysis (2 marks)

Question 5

Ethics in business is an important concept. Various viewpoints exist on ethics. Government and relative
authorities have their own takes on how to enhance ethical behaviour of companies. There are two wider
viewpoint and approach: one which believes that a person should be bred and taught while the other is
based on reward and punishment.

However the behaviour of the business toward society varies from organisation to organisation:
…………...1………… that only own existence, survival and benefit should be the priority of decision makers as
opposed to the ……………2……………view that an agreement can be had for the greater benefit of society
despite alternative point of views. These are known as ethics based on consequences.

There exists two alternative views on ethics based on duty. One which believes that there should be
objective, universally accepted norms known as ……………3……………. , while the other belief is that the ethics
that are most appropriate on the situation that exists at that time known as ………4………….

The following are ethical principles:

A. Egoism
B. Relativism
C. Pluralism
D. Absolutism

Select the appropriate principles that match each gap

Gap 1
Gap 2
Gap 3
Gap 4
(4 marks)

Question 6

Fahim is a manger of a sales team. He has identified that he has to play various roles to meet the needs.
According to John Adair, select the correct heading under which each of the roles fall into

Roles Task Need Group need Individual need

Diagnosing
Standard seeking
Goal setting
Counseling
Decision making
Feedback
Recognition
Evaluating
(4 marks)

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

Part A

1 2 3 4
5 6 7 8
9 10 11 12
13 14 15 16
17 18 19 20
21 22 23 24
25 26 27 28
29 30 31 32
33 34 35 36
37 38 39 40
41 42 43 44
45

PART B

Question 1
1 2 3

Question 2
Goal 1
Goal 2
Goal 3
Goal 4

Question 3
800 low skilled, low pay for its operations generally easy to find
1 It specialist whose skills are rare to find
8 security guards who are local residents
1 assistant manager for HR department with hardly any induction time

Question 4
1 2 3

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Final Assessment 7 F1/FAB: ACCOUNTANT IN BUSINESS

Question 5
Gap 1
Gap 2
Gap 3
Gap 4

Question 6
Roles Task Need Group need Individual need
Diagnosing
Standard seeking
Goal setting
Counseling
Decision making
Feedback
Recognition
Evaluating

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