Subject Digital Finance(E1)

Lecturer Aqil Sufi Ismail

Lesson Financial Function Transformation

Achievers ®

No. 39, Bauddhaloka Mw, Col-04 Tel: 011 759 0001 | 077 789 5900
 01. Finance function transformation

1. Corporate Governance is best described as:

A. A code for organizational direction, administration and control
B. Stakeholder guidelines
C. A system of penalties for unethical behaviour
D. The relationship between an organization and the government

2. Which of the following is the objective of effective business processes?

A. Creating maximum output
B. Creating value for money
C. Creating the maximum output for minimum input
D. Creating the best quality output from the available inputs

3. A company may seek to improve corporate governance by ensuring that :

A. The chairman and chief executive are the same individual in order to avoid confusion over who has
responsibility for running the company
B. The chairman and chief executive are different individuals in order to prevent one person having too
much power within the company
C. The chairman and chief executive are different individuals in case one dies or becomes incapacitated
due to ill health.
D. The company chairman does not take up outside directorship.

4. Which of the following factor would be identified as a problem with the role of non-executive director?
A. External stakeholder security
B. Time available to devote to the role
C. Objective viewpoint
D. Dual nature of the role, firstly as full board members and secondly, as a strong, independent element.

5. Which TWO of the following are consequences of technological connectedness?

A. Reduced level of competition
B. Faster and easier communication
C. Changes to who stakeholders and competitors are
D. Increased power of stakeholders
E. Rules of business becoming less dynamic

6. The finance function value matrix analyses that finance functions do and why they perform those
activities in terms of creating and preserving value.
Which area of the matrix concerns the finance function acting as a trusted source of management
information?
A. Data integrity
B. Value analysis
C. Stewardship
D. Value enabling

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7. Darlene, a part CIMA qualified analyst, has been asked to replace her manger, who has a tickly cough
and feels poorly. Initially Darlene is excited because her manager deals directly with the client, making
this a prestigious job and giving her a chance to shine. She has realized, however, that her manager is
required to run the job because she is fully CIMA qualified, The CEO of the company has told Darlene
that she worries too much, and should seize this opportunity with both hands.
Which two CIMA ethical guidelines would Darlene be breaking if she went along with the plan?
A. Integrity
B. Objectivity
C. Professional competence and due care
D. Confidentiality
E. Professional Behaviour

8. Which of the following describes the basis of CIMA’s Code of ethics for professional accountants?
A. A framework of fundamental principles
B. A policy document containing strict rules
C. A policy of penalties for non compliance with general guidelines
D. A range of principles for best practice

9. 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 companies should adapt
D. To provide a comprehensive framework for management and administration.

10. Which TWO of the following are examples of conflict between an organization’s stakeholders caused by
differences in their aims and objectives ?
A. Business operations may be prevented by managerial short-termism
B. Owners of small businesses may lose control of the organization when it grows and it becomes
necessary to appoint managers to run the business
C. Mass marketing campaigns may require an increase in the quality of products produced
D. The financial independence of the organization may be reduced when additional shares or loans are
required .
E. Staffing levels are increased as a consequence of increased capital investment .

11. Two of the Sunshine Tours Co’s stakeholder groups are putting the company under pressure to improve
its return on investment .
These are most likely to comprise which TWO of the following groups ?
A. Shareholders
B. Customers
C. Bankers
D. Suppliers
E. Employees

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12. Which of the following statements about insights is correct?
A. Insights are basic financial information
B. Insights are records of what has happened in the past
C. Insights are indications of the drivers of value for an organization
D. Insights are irrelevant to decision making

13. Finance function often embed themselves and work alongside different business areas, rather than just
being a separate business function .
What concept is described above?
A. Strategic partnering for value
B. Business partnering
C. Segregation
D. Outsourcing

14. Successful Business Partnering requires accountants to develop skillsets in certain areas.
Which THREE of the following are skills associated with effective business partnering relationships?
A. Empathy with business
B. Analytical skills
C. Commercial curiosity
D. Compelling communication
E. Preparedness to challenge
F. Professional objectivity

15. Aggra Co has a supercomputer on site. This computer is capable of a great deal of work. Aggra Co has
connected the computer to the internet. It has started charging companies who wish to do scientific
analysis for use of the supercomputer by the minute. Companies find this agreeable because their typical
usage doesn’t justify owning a supercomputer. They put complex inputs into the supercomputer, which
comes up with an easy to understand output. This arrangement is described as:
A. Cloud service
B. WAN
C. Expert system
D. Grid computing

16. Which of the following statements concerning big data analytics is correct?
A. Big data analytics relies on digital information
B. Big data analytics relies on written information
C. Big data analytics relies on verbal information
D. Big data analytics relies on confidential information

17. Which of the following statements concerning big data analytics is NOT correct ?
A. Big data analytics enables large quantities of data to examined quickly
B. Big data analytics improves organizational decision making
C. Big data analytics enables cost reduction
D. Big data analytics shifts organizational focus on individual customers to groups of customers.

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18. Which of the following is a key feature of big data ?
A. Accessibility
B. Volume
C. Complicated
D. Redundancy

19. Which TWO of the following are changes or dynamics of 4th industrial revolution?
A. Increased transportation and communication cost
B. Fewer opportunities to enhance existing products
C. Jobs being replaced by automation
D. Greater customer expectations for products and services provided
E. Reduced scope for collaboration and innovation between businesses.

20. The ability to perform routine activities without the input of human is known as :
A. Artificial intelligence
B. Data analytics
C. Process automation
D. Data visualization

21. The ability of a computer system to assist a human operator to make decisions and solve problems is
known as:
A. Internet of things
B. Process automation
C. Distributed ledger technology
D. Artificial intelligence

22. Which method of data visualization provides a summary of four or five relevant drivers that give an
overview of business areas ?
A. Tables
B. Line charts
C. Dashboards
D. Waterfall charts

23. Which feature of blockchain refers to the fact that there are are many copies of a blockchain ledger, but
no master copy ?
A. Progammability
B. Prevalence
C. Propagation
D. Permanence

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24. Which of the following statements concerning blockchain is correct ?
A. There is a master version of the blockchain that propagates out through all existing copies
B. New transactions cannot be added to the blockchain
C. Blockchains cannot be used to create so called ‘smart contracts’
D. Past transactions on a blockchain can only be edited with the consent of the majority of other holders
of the same blockchain.

25. Short Message Service (SMS) and Multimedia Messaging Service (MMS) are examples of early uses of
which of the following technologies ?
A. Internet of Things
B. Blockchain
C. Mobile Technology
D. Process Automation

26. Devices that can transfer data over the internet without requiring human to human or human to computer
interaction are known as :
A. Distributed Ledger Technology
B. Mobile Technology
C. Internet of Things
D. Artificial Intelligence

27. Hayley Porter is an accountant with Worricker Co. Hayley was recently asked to join a project team
analysing data to provide information that will be used as the basis of a management decision .
It appears , therefore, that she has been recruited into this project team in order to exploit her expertise
in;
A. Financial reporting
B. Treasury
C. Internal Audit
D. Management Accounting

28. The central bank has announced a 2% increase in interest rates.

This decision has the most direct impact on which component of the finance function?
A. Management Accounting
B. Treasury
C. Financial reporting
D. Internal Audit

29. Which TWO of the following are key aspects of a digital mindset?
A. Learning knowledge for life
B. Dealing with complexity
C. Letting others take responsibility for your digital literacy
D. Working in a creative and agile way
E. Being sceptical of change in the digital environment

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30. Which two of the following technologies might be used where an organization’s finance manager views
insights created by their team on a tablet while working away from the office?
A. Data visualization
B. 3D printing
C. Process automation
D. Blockchain
E. Mobile Technology

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 Knowledge Check

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