BUSINESS AND TECHNOLOGY

(CBE repeated MCQs)

1. Gallium local authority has six directorates each fulfilling a statutory obligation. Recently the
central government has dramatically reduced its funding to the local authority. It has been
decided that there should be a 25% reduction in spending. At a corporate decision-making body
meeting where the proposed reductions were being debated, an argument took place between
the education and transport representatives. Each advocated the relative benefits of their
contribution to the community.
Are the following phrases about the causes of conflict reflective of the situation described?
Yes / No
A. Different priorities YES
B. Insufficient resources YES

2. Which of the following is an advantage of deploying artificial intelligence systems?

A. Reduced software development costs
B. Less reliance on specialist programmers
C. Short program development times
D. More focus on evaluation rather than analysis

3. Which TWO of the following are responsibilities of the external auditor?

A. Detecting material frauds
B. Preventing fraud
C. Reporting on whether frauds affect the true and fair view

4. Cerulean Co operates in an industry characterised by a high proportion of fixed costs but

minimal investment in machinery. There is strong brand loyalty, with customers able to switch
from one supplier to another at no cost. In recent years the market has started to decline.
Which of the following will result in a greater threat of new entrants to the industry?
A. The high fixed costs
B. The declining market
C. The minimal need for investment in machinery
D. The strength of brand loyalty

5. Daisy has the task of checking the accuracy of delivery notes relating to raw materials used in
her company's manufacturing processes. She generates goods received notes and answers
queries from colleagues on the quality standards and availability of raw materials.
In which of the following business functions is Daisy working?
A. Marketing
B. Procurement
 C. Production
D. Accounting

6. Are the following responsible for determining the duties of the internal auditor? Yes / No
I. Shareholders NO
II. Management YES

7. Which of the following is an essential feature of all fraud?

A. Deception takes places
B. Large amounts are involved
C. Personal gain results.

8. Comet Co manufactures pet food. The company is developing a new 'cat treat' product.
In which TWO ways will the production department and the accounting function liaise in respect
of this product?
A. Checking of deliveries from suppliers
B. Purchasing of raw materials
C. Estimation of materials quantities to meet production targets
D. Calculating production costs

9. Which TWO of the following are professional attitudes expected of an accountant?

A. Scepticism
B. Timeliness
C. Social Responsibility
D. Consistency

10. Which of the following contributes to a personal development plan?

(1) The individual employee
(2) The employee's manager
A. 2 only
B. 1 and 2
C. 1 only

11. An individual finds learning difficult when he or she has no time to prepare or feels rushed and is
worried by meeting deadlines. According to Honey and Mumford which style of learning is the
individual adopting?
A. Reflector
B. Theorist
C. Activist
D. Pragmatist
 12. Tyrone is the external auditor of Iceberg 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
A. Checking a sample of invoices for authorisation NO
B. Checking the addition of the purchases day book YES

13. Group members may ignore outside information and feedback, to the extent that decision-
making processes are impaired. Which of the following terms describes the statement above?
A. Group Polarisation
B. Group think

14. Which of the following would normally increase demand for a product?
A. A fall in price of a substitute product
B. An increase in demand for a complementary product
C. An increase in the price of the product
D. Consumers expecting the price of the product to fall in the future

15. Do personal development plans incorporate a wide set of developmental opportunities? YES/NO
 No
 YES

16. An organisation that produces good quality accounting information ensures that it has which
TWO of the following qualities?
A. Timeliness
B. Effectiveness
C. Comprehensibility
D. Detail

17. Do each of the following increase aggregate demand in the economy? Yes / No
 Investment in capital goods YES
 Savings NO

18. Kendra and Vivian are managers at SAWR Co. Since a recent takeover bid they have been
seeking to award themselves better terms and conditions of service and behaving in ways that
are not favourable to shareholders of the company.
Which of the following theories describes the situation above?
A. Governance
B. Agency
C. Stakeholder
D. Stewardship
19. Which TWO of the following actions indicate a breach of the ethical value of honesty?
A. Accepting commission from a supplier for a new contract
B. Exaggerating work experience in a job application form
C. Developing a social relationship with a supplier of the company
D. Inappropriate delegation of a task allocated to the individual

20. Which of the following should NOT be included in a person specification?

A. The qualities of the individual
B. The level of commitment required in the role
C. The past experience of the candidate
D. The personality of the applicant

21. Which TWO of the following are examples of safeguards against ethical threats created by the
work environment?
A. Quality control procedures
B. Corporate governance codes
C. Ethics and conduct programmes

22. Aphrodite Co has an accounting department with four staff. There is a high turnover of staff so
many staff are new, with the exception of Stanislav. Stanislav, an unqualified accountant, has
been with the company for five years. During that time he has dedicated himself to his job and
never taken any holidays. He is mainly responsible for maintaining receivables and also acts as
the cashier.
23. What features of Aphrodite Co increase the risk of fraud?
1. High staff turnover
2. Stanislav is unqualified
3. Stanislav has never taken holidays
4. Lack of segregation of duties (receivables and cashier)
A. 2 and 4 only
B. 1, 2 and 3 only
C. 1, 3 and 4 only
D. 1, 2, 3 and 4

24. Which of the following is a distinctive feature of a not-for-profit organisation?

A. It is publically owned and controlled
B. It will never budget to make a financial surplus
C. It has only social and ethical objectives
D. It does not have making a financial surplus as a primary objective

25. Two approaches to leadership are situational and functional.

Match the theorist to the approach to leadership with which they are associated.
Situational Functional
 Fiedler ✓
 Adair ✓

26. Which statement about management by committee is TRUE?

A. A committee can do more work than individuals working in isolation
B. Committees exist so they can react quickly to changes
C. Decision-making is faster when people are working in a committee
D. Each committee member is personally responsible for all decisions agreed

27. Which of the following statements are true for an internal management information system?
(1) It focuses on recording transactions
(2) It supports decisions at operational level
(3) It reports on the organization’s current performance
A. 1 and 3
B. 1 and 2
C. 2 and 3

28. Which of the following is an example of Honey and Mumford's learning types?
A. Realist
B. Theorist
C. Idealist

29. If an ACCA member fails to comply with the fundamental principles of the IFAC (IESBA) Code of
Ethics, which of the following bodies should take action against him/her?
(1) IFAC (IESBA)
(2) ACCA
A. 2 only
B. 1 and 2
C. 1 only

30. Country Z has a falling birth rate which is now lower than the stable death rate. The level of
emigration is higher the level of immigration. What is the long-term consequence of this
situation for the working population of Country Z?
A. The working population will decrease
B. No impact on the working population
C. The working population will increase

31. Director of Violin Co is an ACCA member. He has been asked to pay a bribe to secure a contract
in a country in which bribery is common place.
A. Which of the following statements is correct?
B. The bribe should be paid because it is in the interests of the company
C. The bribe is unacceptable because it distorts business efficiency
 D. The bribe is acceptable because it is normal business practice in the country

32. Which of the following is an ADVANTAGE of decentralization?

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

33. A business consists of autonomous units, where management has control over a range of products
or services, and is responsible for all its own costs and revenues, and for capital asset purchasing.
Which of the following organizational structures is being described in the above statement?
A. Segmented
B. Divisionalized
C. Geographical
D. Diversified

34. A company has recently encountered major problems through lack of coordination between its
departments in the making of decisions. Specifically, there have been criticisms of a lack of
coordination between the finance and production departments it is now conducting appraisal
of its financial decision making.

Which TWO of the following areas of financial information is the exclusive concern of the finance
department?

A. Determination of costs
B. Payment of suppliers
C. Carrying out reconciliations of suppliers' invoices
D. Setting the budget

35. A simple communication model considers the interaction between a sender and a receiver
through which the sender conveys a message and the receiver gives feedback.
In relation to this simple communication model, which of the following statements is true?

A. The receiver encodes the message

B. The sender decodes the feedback

36. Which TWO of the following are recommended as best practice with regard to remuneration
committees?
A. They should be staffed by executive directors who know about the day to day running of the
business
B. They should determine specific remuneration packages as well as general policy
C. They should have no related interests other than as shareholders
37. Hofstede describes various characteristics of national culture. Which TWO statements
concerning Hofstede's model are correct?
A. Cultures with high power distance prefer a top-down chain of command
B. Cultures with low uncertainty avoidance prefer less structure and rules
C. Cultures with low masculinity maximize the difference between gender roles
D. Cultures with high individualism view organizations as a family

38. Which of the following bodies is responsible for the issue of international ethical guidance for
the accountancy profession?
A. Standards Advisory Council (SAC)
B. International Federation of Accountants (IFAC)
C. International Accounting Standards Committee Foundation (IASCF)

39. Which of the following requires companies to keep financial records and prepare accounts?
A. National legislation
B. GAAP
C. IFRS

40. Which of the following is a benefit of sustainability?

A. The needs of future generations are not compromised
B. Resources are directed to their most effective use
C. The needs of the present are prioritized over those of the future
D. Scarce resources are allocated efficiently

41. Which of the following is a characteristic of coaching?

A. It broadens skills and gives a wider picture of the organisation
B. It offers career development on a wide range of activities
C. It is not usually performed by the immediate supervisor or manager
D. It is a specialized learning programme used to improve skills

42. Which TWO of the following are characteristics of a perfectly competitive market?
A. There are no barriers to entry or exit from the market
B. Full Information is available to all of those who operate in the market
C. Each producer's output is different from that of other producers in the market
D. A small number of consumers and producers operate in the market

43. Which of the following describes a rating scale used for performance assessment?
A. Employees being assessed on the basis of a report delivered by the manager
B. Employees being ranked on the basis of their overall achievements
C. Employees being assessed on the basis of a report delivered by colleagues
D. Employees being judged from poor to excellent
 44. From the following list which statement BEST describes the concept of equal opportunities?
A. All employees should have access to potential promotion
B. There should be an equal number of people of different race
C. There should be a quota of women in promoted positions
D. The number of men and women employed are equal

45. Ed, the external auditor appointed to review SFGD Co's financial statements, has detected a
misstatement in the year-end accounts. Ed is required to do which TWO of the following?

A. Detect the extent of fraud and error in the organization

B. Express an opinion on the true and fair view of the financial statements
C. Document his findings and report them to management
D. Ensure that the company's assets are safeguarded

46. Is each of the following statements in relation to the impact of the informal organization on the
business true or false?
A. The grapevine can often convey inaccurate information (true)
B. The grapevine can carry morale-damaging rumor’s (true)
C. Informal networks have lengthy communication channels (false)
D. Informal work practices may cause health and safety problems (true)

47. In many organizations the most important decisions regarding operations are made by
committees. Which TWO of the following describe the benefits of a committee?
A. Improved decision-making
B. Provides faster decisions
C. Responsibility is shared
D. All members contribute to all decisions

48. Which of the following are directly concerned with the concept of ethics?
(1) The study of morality and philosophy
(2) The study of choice and action
(3) The study of the environment and sustainability
A. 2 and 3 only
B. 1 and 2 only
C. 1 and 3 only
D. 1, 2 and 3

49. What is the MAIN purpose of an organizational code of ethics?

A. To guide moral behavior in situations employees are likely to encounter in work
B. To specify the rules of etiquette in dealing with customers and suppliers
C. To specify policies which apply to an organization’s operations
D. To identify charitable activities and causes supported by the organization
50. Which TWO of the following would indicate a strong control environment?
A. Good communication of ethical values
B. High turnover of staff at all levels
C. Frequent changes of organization structure
D. Participation by those charged with governance.

51. Which of the following BEST describes the concept of delayering in an organisation?
A. Reducing the number of functions
B. Reducing the scalar chain
C. Reducing the number of employees

52. Hofstede devised a framework that describes dimensions of differences/value perspectives

between national cultures. Which cultural dimension is described as "the degree of inequality
among people which the population of a country considers normal?
A. Masculinity versus femininity
B. Power distance
C. Individualism versus collectivism
D. Uncertainty avoidance

53. Is each of the following statements regarding conflict true or false?

A. Conflict can help encourage creativity (true)
B. Conflict is constructive when it polarizes views (false)

54. If a government runs a growing budget surplus, the rate of growth in the economy will fall
Is this statement true or false?
A. True
B. False

55. Are the following control procedures concerned with the prevention or the detection of errors?
A. Producing monthly bank reconciliation statements (detection)
B. Checking invoices from suppliers against goods received notes (prevention)

56. Are the following statements regarding Honey and Mumford's activist learning style true or
false?
A. Activists prefer hands on training with participation and challenge (true)
B. Activists tend to be skeptical rather than open minded (false)

57. What impact will an increase in the proportion of the population aged over retirement age have
on the economy?
(1) An increased demand for full time education
(2) An increased demand for health care
 (3) A potential deficit in the pension’s budget
A. 2 only
B. 1 only
C. 2 and 3 only
D. 1,2 and 3

58. Domeqx Co, a manufacturer of domestic equipment, has changed its service provision by
offering free three-year warranties on all its products. There are no call-out, parts or labour
charges for repairs, provided that the problem diagnosed is not a trivial issue as described in the
user manual (such as routine cleaning of a filter). No other changes have been made to Domeqx
Co's policies or operations.)

Which of the following financial benefits should Domeqx Co obtain from this policy?

A. Increased customer loyalty

B. Cost leadership in product pricing
C. Fewer call-outs by customers
D. Lower production overheads

59. According to Belbin's team roles theory, which of the following statements describes a
coordinator?
A. Someone with lots of energy, challenging others to move forward
B. A respected leader who helps everyone focus on their tasks
C. A person who solves difficult problems with original and creative ideas

60. Which writer is MOST closely associated with differing national perspectives on culture?
A. Handy
B. Schein
C. Hofstede

61. Are the following items included in the profit or loss account or the statement of financial
position?
A. Long-term debt (statement of financial position)
B. Cash in hand (statement of financial position)
C. Operating costs (statement of profit and loss)
D. Corporate taxes incurred (statement of profit and loss)

62. Is each of the following roles responsible for providing information that can be used for
decision- making?
A. Financial accountant (yes)
B. Management accountant (yes)
63. Are the following statements concerning Tuckman’s model of team development true or false?
A. At the forming stage, team members are likely to test the tolerance of the system and the
leader may not have emerged (true)
B. Cliques, factions and power struggles are likely at the storming stage (true)

64. Which of the following statement regarding the statement of cash flows is true?
A. It shows the assets and liabilities at a particular moment in time
B. It shows whether the business has more income than expenditure during a period
C. It shows the return on capital employed
D. It shows how liquidity has changed during a period

65. Honey and Mumford classify four different learning styles. Which of the following statements
accurately describes the 'pragmatists' preferred approach to learning?
A. Prefers to understand principles
B. Prefers to try things "hands-on'
C. Prefers to think things through first
D. Prefers to work with real tasks/preferences

66. Which of the following is involved in the process of obtaining inputs and converting them into
outputs in an organization, according to Mintzberg's organizational configurations?
A. The middle line
B. The strategic apex
C. The techno-structure
D. The operating core

67. Which TWO of the following are examples of government policies designed to deal with an
increasingly ageing population?
A. A reduction in personal taxation
B. Increasing the number of university places
C. Subsidized nursing care
D. Raising the retirement age

68. Which of the following would be convened by a committee to relieve it of routine work?
A. Executive committee
B. Sub-committee
C. Ad hoc committee
D. Joint committee

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

A. Increase in sales value
B. Tax avoidance
C. Return on investment
 D. Increase of market share

69. Which TWO of the following are direct benefits of using information technology as a means of
improving personal effectiveness?
A. Performing routine tasks more quickly
B. Eliminating input errors
C. Prioritizing tasks
D. Minimizing routine work

70. To which of the following cultural types did Handy give the name of Greek god Athena?
A. Power culture (Zeus)
B. Role culture (Apollo)
C. Person culture (Dianysus)
D. Task culture (Athena)

71. Managers at PQR Co make decisions based on what is good for the organisation and its
environment. They have confidence that employees can work effectively without being checked
on a regular basis. Which of the following organizational values is described above?
A. Empowerment
B. Respect
C. Trust
D. Openness

72. To which element of Gartner's four v’s' model do the following descriptions refer?

Velocity /Veracity/ Variety/ Volume?

A. Big data is often made available to an organisation in real time rather than having to be batched
(velocity)
B. In order to add value, big data should be reliable and free from distortions and inaccuracies
(veracity)

73. In relation to artificial intelligence (AI), are the following statements true or false?
A. Al systems deploy algorithms which, once developed, are not modified over time (False)
B. Al systems reduce the time that managers have to spend on routine, highly structured task
(True)
C. AI systems are primarily designed to automate repetitive physical tasks in the workplace (False)

74. 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. Consult CTV on its opinions to maintain their support
C. Involve CTV in its detailed discussions
D. Inform CTV of its intention to change the rules by email

75. Which of the following statements is correct in relation to conflict in the workplace?
A. It will always alienate one or both of the parties to the situation
B. It can have both positive and negative effects on creativity
C. It will always lead to win-lose outcomes
D. It will result in time being wasted on meaningless arguments

76. Analysis is carried out by external auditors which examine 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.

77. Management is primarily responsible for the prevention and the detection of fraud. Which of
the following would assist them in the discharge of this duty?
(1) Whistleblower schemes
(2) Monitoring of the risk environment
(3) Culture of openness and transparency
(4) Delegation of authority
A. 2, 3 and 4
B. 1, 2 and 4
C. 1, 2 and 3
D. 1, 3 and 4

78. What does the term EIS stand for?

A. Electronic Information System
B. Executive Intelligence System
C. Executive Information System

79. Which TWO of the following are ADVANTAGES of off-the-shelf software packages?
A. Shorter lead time from purchase to installation
B. Precisely fits the needs of the organization
C. Cheaper to buy than bespoke packages

80. Which of the following is an ADVANTAGE of a committee as opposed to individual decision-

making?
A. More representative decisions
B. More effective decisions

81. Which TWO of the following are ADVANTAGES of management by committee?

A. Committee membership empowers managers
B. Wide ranging knowledge of members
C. All decisions are considered more widely

82. The production manager of Xed Company, who reports to the operations director, has emailed
the human resources manager, who reports to the administration director, for assistance with a
matter concerning one of their team's contract of employment
This is an example of which type of communication?
A. Horizontal
B. Vertical
C. Diagonal

83. Manager 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. Empowerment
B. Openness
C. Accountability

84. Tall organizations always have a narrow span of control at all levels. Is this statement true or
false?
A. False
B. True

85. The executives of Camouflage Company have observed that their colleagues in country A are
aggressive in the pursuit of their targets, highly competitive with one another and focused on
the material rewards of their work. By contrast, their colleagues in country B are more team
orientated, protective of one another and focused on achieving goals to the mutual benefit of
all. These observations relate to which of Hofstedes cultural dimensions?
A. Masculinity femininity
B. Power-distance
C. Uncertainty-avoidance
86. Which TWO of the following statements about the benefits of an equal opportunities policy are
correct?
A. It reduces the need to interview candidates for employment
B. The workforce is increased and productivity is improved
C. It motivates the workforce to seek development and promotion
D. The organization can benefit from a wide source of talent

87. A large car manufacturing firm has decided to change from a geographical structure to
functional structure. The outcome of this is that each factory, regardless of location, will
produce only one model of car rather than all three, which it does at present. Which of the
following is an ADVANTAGE of this new structure to the car manufacturer?
A. Reduces delivery costs
B. Encourages specialization

88. A systems audit involves tests to check that the figures entered in the financial statement and
supporting documentation are correct. What sort of tests will be used for this purpose?
a. Compliance tests
b. Substantive tests
89.
90. Which of the following are essential characteristics of a good appraisal?
(1) Forward looking
(2) Motivating
(3) Individually focused
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1,2 and 3

91. Which of the following statements relating to time management is correct?

A. Prioritizing of tasks should be determined by their relative importance in achieving
organizational objectives
B. When a plan is made in respect of time allocation, the individual should stick rigidly to this plan
C. When an individual has several tasks, the urgent tasks are the most important

92. Which TWO of the following are included in Fayol's five functions of management?
A. Controlling
B. Communicating
C. Motivating
D. Coordinating
 93. Which TWO of the following are objectives of macro-economic policies?
A. Balance of payments surpluses
B. Stable prices
C. Protection of consumer interests
D. High employment

94. For many individuals, their work is influenced by ethical principles such as customers should be
treated with courtesy and respect
Which of the following documents is MOST likely to contain this principle?
A. A corporate code of ethics
B. A professional code of ethics
C. A mission statement

95. Which type of controls does an integrity-based ethical code rely on?
A. Cultural
B. Bureaucratic

96. Which TWO of the following are fundamental principles of ACCA's Code of Ethics and Conduct?
A. Probity
B. Honesty
C. Objectivity
D. Integrity

97. Which of the following describes the primary responsibility of an ACCA member?
A. To act in the public interest
B. To act in the interests of the whole company
C. To act in the interests of the financial directorate

98. Which of the following is a financial accounting role?

A. Investing surplus funds
B. Monitoring internal control systems
C. Preparing monthly budgets
D. Maintaining the cash book

99. An ACCA member suspects fraudulent activity involving a junior colleague in the finance
department, but does not have sufficient evidence to be sure fraud has been committed.

What immediate action should the ACCA member take?

A. Report the individual to ACCA

B. Confront the individual and request an explanation
C. Report their concerns to the head of the finance department
 D. Report the individual to the police

100. Which of the following actions should be taken to enable compliance with an equal
opportunity policy?
A. Provide parity of pay and conditions
B. Make all job titles gender neutral

101. Which of the following is a characteristic of the second stage of Kolb's learning cycle,
observation and reflection?
A. The person learns something new
B. The person assesses how and when to apply what has been learned
C. A new experience is accepted or rejected
D. An experience is reviewed

102. Khalil is a team leader in the finance directorate of a not-for-profit organization. He

manages a team of three people. He has positive relationships with two of the subordinates. He
does, however, have major problems in relating to the third member of the team. He has tried
several ways of overcoming the conflict. Upon seeking advice from a superior he arranges for
the person to be transferred to another section.

Do the following phrases properly describe the situation outlined? Yes or No?

A. Conflict avoidance Yes

B. Conflict resolution No

103. Are the following statements about financial statements true or false?
 The statement of profit or loss is used to assess a firm's liquidity False
 The statement of financial position shows the profitability of a business at a point in time False

104. Are the following barriers to effective appraisal? Yes No

 The feedback is subjective, YES
 The appraisal is treated as a one sided process YES

105. A systems audit involves tests to check that the figures entered in the financial statements and
supporting documentation are corred What sort of tests will be used for this purpose?
A. Compliance tests
B. Substantive tests

106. A large car manufacturing firm has decided to change from a geographical structure to a
functional structure. The outcome of this is that each factory, regardless of location, will
produce only one modal of car rather than all three. which it does at present.
Which of the following is an ADVANTAGE of this new structure to the car manufacturer?
 A. Reduces delivery costs
B. Encourages specialization

75. Which of the following is an example of a fiscal policy tool?

A. Changing interest rates

B. Purchasing of domestic government bonds by the central bank
C. Reducing public expenditure

107. According to Schein's theory of organisational culture, a logo is an example of which

element of an organisation's culture?
A. Belief
B. Artefact
C. Value
D. Ritual

108. In relation to Belbin's team roles theory, which team role has the following weakness:
'can be seen as manipulative; offloads personal work'?
A. Plant
B. Co-ordinator
C. Shaper
D. Team worker

109. An individual is working for two clients but by taking an action the consequence is to
benefit one client and harm the other What term is used to describe this ethical dilemma?
A. Misrepresentation
B. Conflict of interest
C. Fraud
D. Breach of duty

77. Which TWO of the following are recognized potential MISTAKES when conducting a selection
interview?

A. Judging candidates on first impressions

B. Allowing the candidates to develop their answers
C. Asking leading questions
D. Being guided by the job description

110. Which of the following statements defines the main purpose of a corporate code of
ethics?
A. To eliminate unethical behavior
B. To prevent conduct that would result in a financial scandal
C. To communicate the organization’s values and beliefs to stakeholders
 D. To provide rules for employees with detailed guidance

111. Which of the following is an advantage of centralization?

A. Gives junior managers more responsibility and supports succession
B. Decision makers gain greater awareness of local problems
C. Senior managers can take a wider view of problems
D. Allows quicker response to changing environments.

112. Which of the following is an important element of internal control?

A. Delegation of authority
B. Autonomous processes
C. Duplication of work
D. Risk assessment

113. Senior managers are considering making changes to the working day. They consult some
of their staff before taking a decision. The staff who are consulted inform their colleagues about
the details of the discussions. This results in a strike being threatened because the working day
is to be extended.

Which type of communication channel is being used when staff talk to their colleagues after being
consulted about changes to the working day?

A. Horizontal
B. Vertical
C. Formal
D. Grapevine

114. David is an accountant. He has not yet read details received yesterday of recent changes
to tax legislation, and is about to visit a client to give some tax advice Which fundamental
principle appears to be compromised in this situation?
A. Objectivity
B. Professional competence
C. Integrity

115. In response to rumors about possible redundancies, the managing director of F Co called
a meeting at which he explained to the staff that a significant decline in sales meant that the
company had to make job cuts in order to reduce its operating costs He explained that the exact
numbers of job losses had not been finalized at this stage, when they would take effect, but he
said that he felt the number would be quite significant, and they would affect all the
departments across the company Which of the following aspects of ethical behavior describe
the managing director's statement at the meeting?
(1) Openness
 (2) Accountability
(3) Respect
A. 2 and 3 only
B. 1 and 3 only
C. 1 and 2 only

116. The management accountant at Salute Carpets Co has prepared manufacturing cost
schedules for each of the 20 types of carpets in the company's product range, Which of the
following can these cost schedules be used for?
(1) Calculating gross profit at different unit sales prices
(2) Comparing manufacturing cost with buy-in cost
(3) Determining which carpets to remove from the range
(4) Issuing credit limits to customers
A. 1 and 2 only
B. 1, 2 and 3 only
C. 3 and 4 only
D. 1,2,3 and 4

117. Which of the following definitions is best mapped with a competency …….?
A. Abilities which the organisation will value
B. Personal characteristics required for each role
C. Strengths and weaknesses of each employee
D. Specific projected career steps for each employee

118. Which TWO of the following are recommended as best practice with regard to
remuneration committees?
A. They should determine specific remuneration packages as well as general policy
B. They should have no related interests other than as shareholders
C. They should be staffed by executive directors who know about the day to day running of the
business

119. Which of the following is used by Blake and Mouton in their leadership grid?
(also known as the managerial grid)
A. Concern for-profit and concern for people
B. Concern for people and concern for production
C. Concern for-profit and concern for production

120. Which of the following examines the workings of an informal group?

A. McGregor's X and Y theory (Focuses on different assumptions about worker motivation.)
B. Mayo's Hawthorne experiment
C. Taylor's scientific management theory (Focuses on optimizing efficiency and productivity
through systematic observation and control.)
 D. Maslow's hierarchy of needs (Focuses on individual needs and motivation.)

121. Are the following statements about financial statements true or false? True False
A. The statement of profit or loss is used to assess a firm's liquidity False
(The statement of profit or loss shows a company’s revenues and expenses over a period, giving
insight into profitability, but it is not used to assess liquidity. Liquidity is assessed using the
statement of financial position (balance sheet) and cash flow statements.)

b. The statement of financial position shows the profitability of a business at a point in time False
(The statement of financial position (balance sheet) provides a snapshot of a company's assets,
liabilities, and equity at a specific point in time, showing financial stability, not profitability.
Profitability is reflected in the statement of profit or loss.)

122. Stephen has to invite ideas from a group of colleagues who work at different locations.
All are under considerable time pressure. Which of the following methods of inviting
contributions will alleviate time pressures most effectively for Stephen and his colleagues?
A. Using the company's bulletin board
B. Personally telephoning each individual
C. Arranging a face to face meeting at a fixed time

123. Which management tool will provide a blueprint for staff development to improve
performance in the future?
A. A person specification (details the qualifications and experience required for a role.)
B. A competence framework (provides a structured blueprint for staff development by outlining
the skills, behaviors, and attributes required to perform effectively in a role. It helps guide
training and development efforts to improve future performance, making it a valuable tool for
both management and employees in enhancing capabilities.)
C. A person profiles (describes the characteristics of an ideal candidate.)
D. A job description (outlines the responsibilities and tasks of a role, but it doesn’t specifically focus
on future development.)

124. Which of the following bodies is responsible for the issue of international ethical
guidance for the accountancy profession?
A. International Federation of Accountants (IFAC)
(It is responsible for issuing international ethical guidance for the accountancy profession. IFAC,
through its International Ethics Standards Board for Accountants (IESBA), develops and
promotes ethical standards, including the International Code of Ethics for Professional
Accountants.)
B. International Accounting Standards Committee Foundation (IASCF)( (now IFRS Foundation)
focuses on global accounting standards.)
C. Standards Advisory Council (SAC) (provides advice on the development of International Financial
Reporting Standards (IFRS).)
125. Are the following cyber security threats examples of malware or phishing? Malware or
Phishing
A. A virus enabling a hacker to record the keystrokes of a computer user Malware
B. A bogus advertisement or fake news site tempting the user to reveal their personal details
Phishing

126. Which of the following writers on management is associated with human relations
theory?
A. Fayol (Classical Approach)
B. Mayo
C. Drucker (Style Theorist)
D. Mintzberg

127. What is the first phase involved in human resource planning?

A. Auditing the current personnel
B. Planning recruitment policy
C. Forecasting future demand for labor
D. Controlling the effective use of human resources

128. Which of the following is a barrier to effective time management for a manager?
A. Only dealing with one task at a time
B. Ineffective delegation
C. Avoiding meetings where their attendance is not essential

129. Which of the following is the key benefit of 360 degree appraisal?
A. Allows manager and staff to assess many ideas
B. More objective view of individual performance
C. Shows management are serious about job rotation

130. Cob Company has made significant investment in new technology, enabling it to manage
big data sets efficiently. In particular, new software has enabled the company to better validate
the data captured, minimizing the adverse effects of errors, while more powerful computing
hardware has facilitated more timely updating. Cob Company will benefit from its investment in
respect of which TWO of the "Your Vs' of big data?
A. Volume
B. Velocity
C. Veracity
D. Variety
131. Tilda is an accountant working for a company which makes heavy engineering
machinery. She is currently costing the participation of the company in a forthcoming trade
exhibition where they will show some new and innovative machines in the hope of gaining new
contracts to supply. With which key business function is the work Tilda is currently doing
associated?
A. Human resources
B. Marketing
C. Procurement
D. Production

132. Which of the following statements is CORRECT in relation to a database system?

A. A database must be stored at a single centralized location
B. A database is never suitable for confidential data
C. A database contains a set of linked records

133. Which of the following is an element in the mentoring process?

A. Mentoring is aimed at giving the mentee the skills they require to fulfill their job role
B. Mentoring is a specific process applicable mainly to new recruits and their induction
C. Mentoring is a programme aimed at providing support to employees to assist them in
developing their capabilities in their job
D. Mentoring is a short-term process where the mentee is assessed and a development plan is
devised to assist in their training

134. A construction company accidentally charges a customer for materials that were not
used. When the accountant discovers this, he does not refund the amount to the customer on
the grounds that the customer has not noticed the discrepancy. Which ethical principle is being
violated by this behavior?
A. Integrity
B. Objectivity
C. Confidentiality
D. Independence

135. Which of the following circumstances are recognised threats to ethical behaviour?
(1) Lack of clarity on expected organisational standards
(2) Pressure to maintain share value in the short term
(3) Employing poorly qualified staff
A. 2 only
B. 1, 2 and 3
C. 1 only
D. 2 and 3 only
136. The theory of the firm analyses profit maximizing business by exploring the behavior of
revenues and costs. Average revenue and average cost are denoted as AR and AC respectively.
Marginal revenue and marginal cost are denoted as MR and MC respectively. At which point will
a producer maximize profit?
A. MR = MC
B. AR = AC
C. NR = AC

137. Which one of the following is NOT included in a typical job description?
A. Occasional duties in the job
B. Purpose of job
C. Job title
D. Qualifications required

138. PLK Co is a large multinational organization.

Which of the following will use externally sourced information to the greatest extent in their
decision taking?
A. The supervisors and team leaders
B. The board of directors
C. Departmental managers
D. Specialists employed at middle management level

139. Which TWO of the following are features of an informal organization?

A. Social networks
B. Structure
C. Spontaneity
D. Stability

140. On a recent business trip abroad, Denise was given an expensive gift of value from the
company she was working with. She was concerned that accepting this may be both unethical
and unprofessional; however in the country she was working in this was seen as normal
business practice. She understands that to refuse it may offend both the individual and the
company who has presented this gift. Which of the following actions should Denise take?
A. Accept the gift and then give something of similar value back to the individual
B. Reject the gift explaining that it is unacceptable to accept it
C. Accept the gift and formally declare the receipt of the gift to her senior manager
D. Accept the gift and give it to a friend rather than keep it for herself

141. Which of the following would be classified as TACTICAL management under Anthony's
hierarchy?
A. Efficient allocation of business resources
B. Routine activities of supervisors and operatives
C. Policy making and crisis handling

142. Which of the following is a benefit of having a corporate code of ethics?

(1) Gives guidance on acceptable standards of behavior
(2) Promotes consistency in behavior across the organization
(3) Specifies rules for individual conduct
A. 2 and 3
B. 1 and 2
C. 1 and 3

143. Which of the following are money laundering offences?

(1) Failure to report fraud to the police
(2) Investing funds knowing they are criminal property
(3) Concealing the source of criminal property
(4) Accepting large amounts of cash from customers
A. 1, 2, 3 and 4
B. 2 and 3 only
C. 1, 2 and 3 only
D. 1 and 4 only

144. According to Kotter, leadership is primarily about which of the following?

A. Choice
B. Complexity
C. Change
D. Challenge

145. Which group bears the financial risk in a private limited company?
A. Directors
B. Employees
C. Managers
D. Shareholders

146. What are the six basic elements of communication?

A. Sender, receiver, information, message, direction and code
B. Sender, message, channel, receiver, noise and feedback
C. Information, message, decode, sender, receiver and channel
D. Direction, information, sender, code, noise and feedback

147. It is argued that team development requires a number of stages. One of these stages
tests interpersonal behaviours and sets the ground rules. What is the name given to this stage of
team development?
A. Forming
B. Norming
C. Dorming

148. Appraisal systems are often misunderstood and mismanaged. Are the following
statements about managing the appraisal process true or false?
A. Criticism should be avoided at all costs (False)
B. Only poor performance should be discussed (false)

149. Which of the following is a part of a competence framework?

A. What an employee should be able to do
B. What an employee actually knows
C. A record of an employee's qualifications

150. In the communication process, which of the following is an example of the psychological
noise?
A. Technical words and phrases used
B. Preconceptions of the receiver
C. Timing of the message
D. Status or position of the sender

151. Who, in companies, is usually ultimately responsible for determining broad financial
policy matters?
A. Management accountant
B. Finance director
C. Treasurer

152. A new computer system has been purchased to deal with order processing. Since it can
process orders much more quickly than the old system, the organisation has been able to make
75% of its order processing stall redundant. Which of the following describes this type of
reduction in staff?
A. Delayering
B. Downsizing
C. Outsourcing
D. Subcontracting

153. A management consultant has recently visited XYZ. Go and has made a number of
observations about the company. Of the observations listed below, which TWO are liable to lead
to conflict arising at XYZ Co?
A. Resources are scarce, especially capital funding for new projects
B. Goals are aligned between individuals and teams
C. Work methods and working styles vary significantly between departments
D. Staff do not appear to be excessively busy
154. Which of the following can be improved by applications of artificial Intelligence and
machine learning?
A. The quality of the raw data available for capture
B. More accurate forecasting
C. Structured decision making
D. Job enrichment for operational roles

155. Which basic step in work planning involves allocating work to people and machines?
A. Activity scheduling
B. Time scheduling
C. Task sequencing
D. Task loading

156. Team members vie for position and compete as they attempt to establish themselves in
relation to other team members and the leader, who might be challenged by certain individuals.
Clarity of purpose increases. Which stage in the 'Tuckman team-development model' is
described by this statement?
A. Forming
B. Performing
C. Norming
D. Storming

157. According to Maslow's hierarchy of needs, which level of need is immediately below
self-actualization?
A. Safety
B. Social and belonging
C. Security
D. Esteem

158. Cassius 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 Cassius 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. Integrity
C. Professional competence
D. Professional behavior

159. Which of the following is a fundamental principle in the IFAC (IESBA) code of ethics?
(1) Integrity
(2) Empowerment
A. 1 only
B. 1 and 2
C. 2 only

160. According to best practice in corporate governance, should the remuneration

committee be constituted mainly of the following?
A. Executive directors (no)
B. Non-executive directors (yes)

161. Matthew manages a team of four people. Two are qualified accounting technicians and
two are unqualified but experienced employees. He has to work overtime regularly but his staff
complains behind his back that he is unapproachable and fails to give them sufficiently
challenging work. More than half their time is spent talking amongst themselves about non-
work issues. In which of the following activities does Matthew demonstrate INEFFECTIVENESS?
(1) Delegation
(2) Communication
(3) Work ethic
(4) Motivation
A. 1,2,3 and 4
B. 2, 3 and 4 only
C. 1 and 3 only,
D. 1,2 and 4 only

162. Which TWO of the following statements are CORRECT?

A. Monopolistic competition involves many producers selling goods which are NOT perfect
substitutes
B. A monopoly is a situation where market entry is restricted due to financial or other factors
C. An oligopoly is the situation where just one supplier comprises the whole industry
D. Perfect competition is characterized by fixed prices which are unaffected by supply and demand

163. Country A increases its exports to the rest of the world and its imports remain
unchanged. What will be the effect on the exchange rate of the country?
A. The value of the currency will be unaffected
B. The value of the currency will appreciate
C. The value of the currency will depreciate

164. Which of the following principles is usually recommended for inclusion in legislation on
data protection?
A. The data user should provide the data subject with regular and detailed information on the data
held
B. All personal data held by data users should be reviewed regularly and automatically deleted
after a specified period of time
C. All personal data held by data users should be updated by checking this data with the subject at
regular intervals
D. All personal data held by data users should be adequate for the purposes of the data user but
not excessive

165. Which of the following is a characteristic of an informal group?

A. Common purpose
B. Affinity or common interests
C. Complementary skills
D. Focused on organizational objectives

166. Which of the following documents is it essential to be aware of during an appraisal

interview?
A. Employee handbook
B. Job description
C. Person specification

167. Peter is a director of a limited liability company. Jane is a supplier to the same company.
Which TWO of the following statements are CORRECT?
A. Jane is an external stakeholder
B. Jane is a connected stakeholder
C. Peter is a connected stakeholder
D. Peter is an internal stakeholder

168. Governments in many countries are encouraging improved standards of corporate

governance, focusing mainly on public companies whose securities are listed on recognised
capital markets. Why are best practices in corporate governance of special importance to these
companies?
A. Public companies have institutional Investors and have greater ethical responsibilities to these
investors than to personal investors
B. Public companies are subject to less strict regulation than other types of commercial
organization
C. All other types of business organizations are already subject to and fully implement high
standards of corporate governance
D. Public companies are subject to a greater degree of separation between those who manage
the company and those who own it.

169. Which TWO of the following are DISADVANTAGES of a tall organization?

A. Decision making and responses tend to be slow
B. Rigid supervision may block employee initiative
C. Managers only have limited time to supervise each employee

170. Teeming and lading is a type of corporate fraud that involves which of the following?
A. Incorrect descriptions of items
B. Theft of cash or cheques

171. Which TWO of the following items could appear in a company's statement of cash
flows?
A. Interest expense paid
B. Accruals
C. Depreciation of non-current assets
D. Repayment of share capital

172. Claude has just been appointed as marketing manager at Canvas Co, a supermarket.
What accounting Information will be required by Claude to be successful in his new role?
(1) Prices charged in the past and by competitors
(2) Salaries of checkout staff
(3) Customer demographics
(4) Profitability by product
A. 3 only
B. 1 and 4 only
C. 1, 3 and 4 only
D. 1, 2, 3 and 4

173. Which of the following statements concerning external audit is CORRECT?

A. External auditors are often employees of the company
B. External auditors report to shareholders on the stewardship of directors
C. External audit is designed to add value and improve an organization’s operations

174. Do the following statements characterize an effectively functioning group?

A. Communication is leader-centered (no)
B. Members adapt to a role that works for them and the group (yes)

175. A professional accountant has encountered a situation at work which he feels places
him in an ethical dilemma, but he is not sure who he could seek advice from about the dilemma.
Which of the following could the accountant consult?
(1) The board of directors or the audit committee in his own organization
(2) His professional body
(3) A legal adviser
A. 2 only
B. 1 and 2 only
C. 1 and 3 only
D. 1.2 and 3

176. Which TWO of the following are connected stakeholders to an organisation?

A. Employees
B. Suppliers
C. Managers
D. Customers

A. Which of the following measures might a government introduce to increase consumer demand
in the economy?
B. A policy of high interest rates
C. Strict credit controls
D. Reduced levels of taxation

177. Ethical standards of behavior within accountancy are mainly promoted by which of the
following?
A. Regulations issued by government departments and agencies
B. Rules established by education committees
C. Laws implemented by central governments
D. Codes of conduct implemented by professional bodies

178. What is the impact of applying just-in-time information technology to a manufacturing

process?
A. The amount of work in progress will be maximized
B. Components will be purchased in larger batches
C. Only the finished product needs to be quality controlled
D. Short purchasing lead times

179. Senior managers are considering making changes to the working day. They consult some
of their stall before taking a decision. The staff who are consulted inform their colleagues about
the details of the discussions. This results in a strike being threatened because the working day
is to be extended. Which type of communication channel is being used when staff talk to their
colleagues after being consulted about changes to the working day?
A. Horizontal
B. Vertical
C. Formal
D. Grapevine

180. When a transaction is made on a blockchain, which of the following is correct?

A. Only the party making the transaction can access its details
B. All of the participants in the chain update their ledgers
C. Once updated and confirmed, it is impossible to modify the transaction
D. The transaction is verified by one central computer

181. If a member of the accounts team sends a report directly to the head of human
resources, what type of communication is this?
A. Diagonal
B. Horizontal
C. Vertical

182. Which of the following tests measures an individual's current ability to perform a
specific task or operation?
A. Intelligence test
B. Aptitude test
C. Proficiency test

183. Different types of communication media have varying levels of information richness
Which communication medium has the highest level of information richness?
A. Telephone
B. Email
C. Face-to-face
D. Memos

184. Publish Co produces study material for a professional examination. In order to meet
urgent demand for finished texts, it must recruit five typists at short notice. The typists must be
able to perform the required tasks Immediately and the company has to be totally confident
that they have the ability to do the job. Which of the following selection methods is most
appropriate for Publish Co?
A. Psychometric test
B. One-to-one interview
C. Panel interview
D. Proficiency test

185. David is an accountant. He has not yet read details received yesterday of recent changes
to tax legislation, and is about to visit a client to give some fax advice. Which fundamental
principle appears to be compromised in this situation?
A. Objectivity
B. Professional competence
C. Integrity

186. Aqua Food Fishing Co operates a fleet of ships in the western oceans. Which of the
following are ADVANTAGES of sustainable fishing to shareholders in Aqua Food Fishing Co?
(1) It will provide long-term benefits for future investors
(2) It provides good public relations for Aqua Food Fishing Co
 (3) It increases profits in the short-term
(4) It increases business efficiency within the fleet
A. 3 and 4
B. 1 and 4
C. 1 and 2
D. 2 and 3

187. 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?
 True
 False

188. Which TWO of the following are recognised money laundering offences?
A. Tipping off
B. Integration
C. Failure to report

189. In relation to big data, which TWO of the following are examples of human-sourced
data?
A. Website logs
B. Blogs
C. Government statistics
D. Emails

190. Which TWO of the following are benefits of the informal organisation for managers?
A. Creation of networks to facilitate team working and coordination
B. Broader knowledge sharing giving employees a wider perspective
C. Increased accuracy of information communicated via the grapevine
D. Elimination of harmful cliques and unofficial networks in the organization

191. Which of the following is characteristic of a multi-disciplinary team?

A. The team is empowered since it cuts across the barriers of job descriptions
B. Individuals with different skills are brought together to exchange experience
C. Each member of the team can perform any of the team's tasks
D. Individuals who each have a similar range of skills are brought together

192. An organisation is in a highly competitive market, where technology is changing rapidly.

The organisation is mainly run by technological experts and a high degree of co-ordination needs
to take place between teams and departments in order to achieve objectives and to maximise
flexibility.
Which of Handy's cultural stereotypes is MOST appropriate within the above organisation?
A. Task culture
B. Role culture
C. Existential culture

193. Which of the following describes the first stage of Kolb's experiential learning cycle?
A. The review of a situation
B. The person is learning something new
C. The assessment of how and when to apply what has been learned

194. Which of the following result(s) from implementing a just-in-time purchasing strategy?
(1) Less reliance on suppliers
(2) Delivery frequency is reduced
(3) Inventory holding costs are minimize
 1 and 3 only
 3 only
 1, 2 and 3
 1 and 2 only

195. Natasha works as a team leader in a busy accounts office. She has three assistants
working for her who are very capable and professionally qualified. Natasha supports her team
fully, getting involved in all of the tasks they perform and giving regular guidance on how to deal
with problems they encounter in the last three months, Natasha has been under severe
pressure to deliver results that were subject to strict deadlines. Despite writing a daily 'to do' list
and defining the most important outcomes, she has found great difficulty in completing these
tasks on time, as she was not only busy on three special projects but also wanted to make sure
that her colleagues were completing their own work to a satisfactory standard The team
members, and especially her three assistants, are very committed and welcome the challenges
they face, but feel that they could contribute much more to the department

Natasha's time management problems can be attributable to which of the following?

A. Failure to prioritise her work
B. Lack of co-operation from colleagues
C. Too little attention to her supervisory role
D. Failure to adequately delegate to her subordinates

196. Margot currently works for Chasm Co as head of internal audit. She has been recruited
by Circle which is an audit partnership that will be performing an external audit of Chasm Co in
the near future. In recruiting Margot, Circle is compromising her independence on which of the
following grounds?
a. Self-review
b. Familiarity
c. Advocacy
d. Intimidation
197. The hierarchy developed by Robert Anthony suggests that business control is exercised
primarily by managers at which level of the organisation?
A. Strategic
B. Tactical
C. Divisional
D. Operational

198. The employee appraisal system considers and measures a number of differing factors
When evaluating the effectiveness of an appraisal system which TWO of the following factors
should be considered?
A. Relevance
B. Validity
C. Economy
D. Fairness

199. Sleigh is a private company, 90% of the shares are owned by Maresa, who is also an
executive with the company. Yoshi owns 1% of the shares and plays no part in management.
However, he attends every annual general meeting and is enthusiastic about the company
affairs. Polly is the representative of the trade union, In recent times the trade union has taken
frequent industrial action. Jared, the finance director, is highly valued by the company but is
about to retire and plays little part in management
According to Mendelow's framework, which of the stakeholders should be "kept informed"?
A. Polly
B. Jared
C. Maresa
D. Yoshi

200. Which of the following is an instrument of monetary policy?

A. Increasing government borrowing
B. Increasing government expenditure
C. Decreasing the personal tax rate
D. Reducing the rate of interest

201. PQR Co is a company selling, installing and servicing air-conditioning units. Service
customers are charged a rate for each hour PQR Co staff spends at their premises. Which TWO
of the following should be considered in determining the 'charge-out' rate per hour?
A. Manufacturing cost of the air-conditioning units
B. Hourly wage
C. Service staff overhead costs
D. Number of hours the job will take
202. A threat to ___________ may arise if is professional accountant in public practice
performs services for clients whose interests are in conflict. Which word correctly completes this
sentence?
A. Integrity
B. Objectivity
C. Confidentially

203. As John starts the audit of ABC Company, he tells a colleague that he is very short of
money. Overhearing this, the finance director of ABC Company offers him a short term loan, on
very favorable terms. Which of the principles from the IESBA (IFAC) Code of Ethics is threatened
here?
A. Objectivity
B. Trust
C. Professional behavior

204. Which of the following is a characteristic of the informal organization?

A. Communication flows are mainly upward and downward
B. It is made up of individuals at the same level in the organization
C. Information flows more slowly than through the formal organization
D. It evolves over time and can change rapidity

205. Which TWO of the following are characteristics of a perfectly competitive market?
A. Large number of suppliers
B. No product differentiation
C. Different cost structures of firms
D. High barriers to entry

206. What do the first two letters of 'SMART' or 'SMARTER' represent?

1. Standard
2. Specific
3. Motivational
4. Measureable
A. 2 and 4
B. 1 and 4
C. 1 and 2
D. 3 and 4

207. What is the term for the difference between required skills and available skills?
A. Training gap
B. Training needs assessment
208. James received a memorandum asking him to complete a task by 15 April.
Unfortunately be missed this deadline, because he did not receive the memorandum until 17
April. This was despite the fact that the memorandum was sent on 12 April
What type of communication problem is this?
A. System
B. Misunderstand
C. Personality

209. George's preferred learning style is to form opinions based on what should work in
practical situations He dislikes management concepts, finding it difficult to relate them to real
life experiences and his personal Situation. Which of Honey and Mumford's learning styles does
George demonstrate?
A. Reflector
B. Analyst
C. Theorist
D. Pragmatist

210. Which type of goods has a cross-elasticity of demand of -1?

A. Homogenous goods
B. Unrelated goods
C. Perfect complements
D. Perfect substitute

211. Aphrodite Co operates a chain of supermarkets. Which of the following are standard
controls over sales at Aphrodite Co?
(1) Barcode readers on cash registers
(2) Inventory counted weekly
(3) Refunds to customers authorized by supervisor
(4) Sequentially numbered goods dispatch notes
A. 1 and 2
B. 1 and 3
C. 2 and 4
D. 1 and 4

212. Daniel is a trainee manager with his company. In the medium-term, he plans to remain
with the company and develop his knowledge and skills as much as possible. Is each of the
following statements true or false?
A. The short-term objectives in Daniel's personal development plan should be consistent with
those in his performance appraisal report TRUE
B. Daniel's personal development plan should be confined to objectives that are achievable in his
current role FALSE
213. Which of the following are financial accounting tasks?
(1) Classifying
(2) Summarizing
(3) Communicating
A. 2 and 3 only
B. 1 and 2 only
C. 1 and 3 only
D. 1,2 and 3

214. Is the external auditor responsible for preventing and detecting fraud?
 No
 Yes

215. Terri is carrying out a performance appraisal interview with Kazım, her assistant Term
started off the interview by giving Kazım her view of how he has performed during the year.
Kazım has then described his views on the job and the responsibilities it entails and has given
opinions on how he would like to progress in the future. Term has acknowledged Kazım's views
and has prompted further input by asking open questions and noting the responses given. The
approach to performance appraisal adopted by Terri is which of the following?
A. Tell and listen
B. Tell and Sell
C. Joint problem solving
D. 360 degree appraisal

216. Which of the following describes a proactive strategy for corporate social responsibility?
A. Recalling faulty products, before customers become aware of the faults
B. Dealing with situations after the public become aware of them
C. Looking to minimize additional obligations arising from faults reported by customers

217. Which of the following is an organisational feature of a co-operative business?

A. Distribution of surplus profits in proportion to purchases
B. Finance from grants of contracts
C. Staffing by volunteers as well as full time employees

218. Hiroto recognizes that as a chief executive officer a large part of his time is spent as the
company figurehead at dinners, conferences, etc. Which of Mintzberg's managerial roles is
being described by Hiroto?
A. Interpersonal
B. Informational
C. Decisional
219. An organization is controlled by a key central figure, owner or Founder. Which of the
following the culture of the above organization is as recognized by handy?
A. Authority
B. Power
C. Dominance

220. Which TWO of the following are objectives of a connected stakeholder?

A. Career progression
B. Protecting rights
C. Payment for goods
D. Reducing pollution

221. A manager seeks the views of an appraisee's colleagues, associates, clerks, customers
and subordinates are making an assessment of his performance and effectiveness in the
previous quarters. Which type of appraisal is being undertaken above?
A. 360 degree feedback
B. Peer review
C. Multi-person comparison
D. Upward appraisal

222. Tony is a newly appointed departmental head. He is aware that one of his subordinates
applied been acting in that capacity unofficially for a few months. Tony finds that the individual
concerns and obstructive towards him. He realizes that this conflict is adversely affecting the
organization. What are the TWO BEST ways for Tony to deal with this situation?
A. Discipline the individual
B. Find ways to reduce these inter-personal conflicts
C. Consult a senior colleague or his manager
D. Recognise this conflict as inevitable and do nothing about it.

223. Teneille currently works for BGR Co as head of internal audit. She has been recruit by
xyz 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. Familiarity
B. Self-review
C. Intimidation
D. Advocacy

224. In the context of the accountancy profession, the concept of public interest is concerned
with which of the following?
A. Taking responsibility for the collective wellbeing of clients and other stakeholders
B. Ensuring that all decisions and achieve, are compared with relevant codes of practice
C. Meeting clients’ needs with due regards with law, regulations and accepted best practices.
225. Which TWO of the following are capitals included in the international framework for
integrated reporting system?
A. Manufactured
B. Human
C. Intangible
D. Economic

226. JKL Co is a restaurant chain. Are the following statements about JKL Co true or false?
1. Buying locally grown organic produce will reduce JKL Co's impact on the environment TRUE
2. Limiting JKL Co's damage to the environment is likely to improve its efficiency TRUE

227. According to Drucker, a manager has one basic function. Which of the following is
Drucker's basic function of a manager?
A. Information dissemination
B. Economic performance
C. Resource allocation
D. Entrepreneurial input

228. When a company suspects it has encountered a case of money laundering, informing
following is NOT appropriate?
A. The suspected party
B. The regulatory authorities
C. Shareholders
D. Company board of directors

229. Which of the following are general controls?

(1) Passwords required al login
(2) Security locks
(3) Sequential numbering
A. 2 and 3
B. 1 and 2
C. 1 and 3

230. Both financial and non-financial security are established by management to each
management policies, to property safeguard assets and to ensure complete and accurate
records. To which of the following do the above refer?
A. Internal control
B. Internal check

231. Which TWO of the following are advantages of a one-to-one selection interview over a
panel interview?
A. Greater objectivity in evaluating responses to questions
B. Greater flexibility in changing the structure of the interview
C. Easier and quicker to establish report
D. Less questions nave to be answered by the candidate

232. Which TWO of the following are examples of EXTERNAL barriers to effective time
management?
A. Employee personal problems
B. Poor individual attitudes
C. Excessive workload on the employee
D. Inadequate training of the employee

233. Which TWO of the following are typically included in a corporate code of ethics?
A. Terms of employment
B. Statements of ethical principles
C. Corporate value statements
D. Lists of acceptable and unacceptable conducts

234. A good appraisal system should include which TWO of the following?
A. Comparisons made between performances of colleagues
B. Employee involvement in setting targets or tasks
C. Clear attainable goals for the employee

235. Fisher is a director of a limited liability company. Aletta is a supplier to the same
company. Which TWO of the following statements are CORRECT?
A. Fisher is an internal stakeholder
B. Aletta is a connected stakeholder
C. Fisher is a connected stakeholder
D. Aletta is an external stakeholder

236. Which of the following is an example of an inventory management process made

possible through the use of new technologies?
A. Flexible Manufacturing Systems (FMS)
B. Just-in-Time (JIT)

237. Sustainability reporting is concerned with measuring, disclosing and being accountable.
To who does the word 'accountable' refer?
A. External stakeholders only
B. Internal stakeholders only
C. Shareholders only
D. Both internal and external stakeholders
 238. Raoul is the purchasing manager of Porcelain Co, a biscuit manufacturing company. The
company is about to use a new supplier of flour. On which matters will Raoul need to consult
with the accounting department in this situation?
1. Setting up a payables account
2. Arranging payment terms
3. Placing orders
4. Negotiating delivery days
A. 1, 2, 3 and 4
B. 2 and 3 only
C. 1 and 2 only
D. 3 and 4 only

239. Which TWO of the following principles of classical management theory are challenged
by adopting a matrix structure?
A. Decentralization of decision-making
B. Subordination of individual interests
C. Unity of direction
D. Unity of command

240. Which of the following is a problem associated with the informal organization?
A. Communicates only negative information
B. Increases the likelihood of inaccurate information
C. It reduces the level of staff morale.

241. The introduction of new organisation in order technology in Sapphire Co has enabled
management to simplify and flatten the structure of the to improve efficiency. What is the name
of this strategy?

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

242. Cannon is an auditor. Her husband, Ashton, is an employee in the accounting department of one
of her client. Which of the following ethical threats arise from this relationship?
(1) Professional behaviour
(2) Self-interest
(3) Familiarity
(4) Confidentiality
 1,2 and 4
 3 and 4 only
 1,2 and 3
 2, 3 and 4
243. Flexzi Co. operates a performance appraisal scheme. Appraisals are treated as an
interactive problem-solving activity between appraisers and appraisees. Appraisers are given
time and encouragement to prepare for the appraisal so that they can contribute constructively.
Senior management requires appraisers to be trained and to link appraisees' performance to
reward. Criteria for assessment are determined locally by individual appraisals. The results of
appraisal feed into the company-wide performance-related pay scheme. The thoroughness of
the appraisal processes makes the scheme costly to administer in comparison to the value of its
outcomes.
Which TWO of the following criteria for effective performance appraisal are met in the above
scenario?
A. Cooperation
B. Efficiency
C. Serious Intent
D. Economy

244. An organization expects to undertake numerous different projects Projects groups will
be set in drawn to the various departments, and then disbanded once the project is complete.
What type of organizational structure is this?
A. Functional
B. Departmental
C. Matrix

245. A problem cannot be solved with existing knowledge and skills, it requires people to
make a shift in their values expectations, attitudes, or habits of behavior. How does Heifetz
define this type of change?
A. Reactive charge
B. Technical change
C. Adaptive change

246. Which of the following are attributes of good quality information?

(1) Abundance
(2) Comparability
(3) User-orientation
(4) Relevance
A. 2, 3 and 4
B. 1, 2 and 3
C. 2 and 4 only
D. 1, 3 and 4

247. Emit is Afreen's supervisor, and is about to conduct her appraisal interview. He is hoping
that he motivate Afreen to improve her performance and also identify the areas where further
 professional trainings and learning growth. Which of the following is another purpose of the
appraisal?
A. Teaching afreen how to perform an unfamiliar task
B. Following up afreen staff development opportunities
C. Communicating the company's mission to afreen
D. Familiarizing afreen with the safety rules of the organization

248. Country P is a major importer of goods and services with a demand curve that is price
inelastic. Demand for exports is unaffected by any exchange rate changes. What is the effect on
individuals within Country P who consume imported goods of a fall in the exchange rate for
Country P's currency against those of its trading partners?
A. An increase in the cost of living
B. An increase in the standard of living
C. No effect
D. A decrease in the cost of living

249. Porter suggested that the profit potential of an organization can be analyzed by its
ability to manage a number of forces relevant to its competitive environment. Which of the
following is part of his analysis?
A. Politics
B. Geography
C. Employees
D. Suppliers

250. Kolb's leaning cycle emphasized the cyclical nature of learning. Which stage of Kolb's
learning cycle is described as the "beginning of internalization?
A. Abstract conceptualization
B. Concrete experiences
C. Observation and reflection
D. Active experimentation

251. What impact would a stronger British pound relative to the US dollar have on an
organization that solely imports into the UK from the USA?
A. Decrease the cost of imports
B. No effect on the cost of imports
C. Increase the cost of imports

252. How should auditors initially report money laundering to the authorities?
A. In the financial report
B. In the audit report
C. In a suspicious transaction report
D. In the management letter
253. Which of the following communications patterns would result in the quickest decision
for an organization?
A. Wheel
B. Circle
C. Y shape

254. Which of the following is normally part of the work of the management accountant in an
organization?
A. Investment appraisal
B. Preparing financial statements

255. Which of the following accountancy activities may involves in ethical decisions.
(1) Preparing a statement of Financial Position
(2) Auditing a small business
(3) Submitting a client's tax
A. 2 only
B. 2 and 3 only
C. 1, 2 and 3

256. Cecil is a cyber-criminal. He set up a fake website designed to impersonate a well-known

chain of hotels and restaurants When users logged in to Cecil's website he was able to
intercepts the personal data, including user’s IDs and passwords while they were making
legitimate bookings with the chain. Cecil's actions are an example of which technique for
committing cyber-crime?
A. Denial of services
B. File hijacking
C. Malware
D. Man in the middle

257. Annual budgets and reports on how employees and machinery will be deployed for the
year ahead are examples of which type of information?
A. Strategic
B. Tactical
C. Operational

258. There are many different methods of analyzing organizational culture. Trait theory care
about from the study of human personality and patterns of behavior. Which of the following
authors describes trait theory across different national cultures?
A. Mintzberg
B. Adair
C. Handy
 D. Hofstede

259. To whom is the external auditor responsible?

A. The shareholders
B. The board of directors
C. The audit committee
D. The government

260. Which of the following is an input to the sales ledger system?

A. Discounts received
B. Credit notes
C. Aged accounts receivable list
D. Sales analysis reports

261. Which TWO of the following are features of all business organizations?
A. They exist to make a profit
B. They have boundaries separating them from their environment
C. They process physical inputs into physical outputs
D. They control their own performance

262. The competitive environment is structured by five forces.

(1) Barriers to entry
(2) Substitute products
(3) The bargaining power of customers
(4) The bargaining power of suppliers
(5) Competitive rivalry

In a situation where the switching costs are low, what level of power is a buyer most likely to have?

A. High
B. None
C. Low

263. Which TWO of the following accurately describe the relationship between the informal
organisation and the formal organisation?
1. Informal organisations replace formal ones.
2. Behavioural norms by-pass formal procedures
3. The grapevine follows formal reporting channels
4. Informal relationships indicate who people trust
264. The following diagrams show demand curves for two products. One of these products is necessity
and the other one is discretionary purchase.

Are the following statements true or false?

 The elasticity of demand in diagram A exceeds the elasticity of demand in diagram B FALSE
 Diagram A represents the demand curve for the discretionary purchase FALSE

264. In relation to fraud prevention, which of the following statements is correct in respect of
the role of the external auditor?
1. The external auditor has primary responsibility for preventing and detecting fraud and is
accountable to the shareholders for this
2. The work of the external auditor has nothing to do with fraud prevention, so the external
auditor has no responsibility in this respect
3. The external auditor's procedures should provide reasonable assurance that misstatements
arising from fraud will be detected
4. The external auditor must ensure that all eternal systems are capable of detecting every type of
fraud

265. In the country of Arcadia all adults are classified as employable. Children are ineligible
for employment The death rate for children is very low and may be ignored for demographic
purposes Birth rates and death rates are quoted as per thousand of the population as a whole
Which of the following will yield the largest increase in the number of employable people in the long
term?

1. A birth rate of 10 per thousand and a death rate of 12 per thousand

2. A birth rate of 9 per thousand and a death rate of 10 per thousand
3. A birth rate of 10 per thousand and a death rate of 9 per thousand
4. A birth rate of 12 per thousand and a death rate of 10 per thousand

266. An organization is aiming to keep stakeholder satisfied. According to Mendelow’s grid,

what level of interest and power does this stakeholder have?
Low Level High Level
 Interest Yes ---
 Power --- Yes

267. Analysis of costs and revenues of different products would assist the marketing
department in respect of which activity?
A. Determining production bonuses to be paid
B. Targeting sales efforts towards the most appropriate socio-economic groups
C. Calculating the maximum discounts that sales personnel are permitted to offer
D. Differentiating the technical features of products from those of competitors

268. Which of Handy's cultural typologies are typified by each of the following organisations?
Role culture / Task culture
 An organisation where a team-based approach is followed to get the job done TASK
CULTURE
 An organisation with a strong hierarchy and clearly defined job descriptions ROLE CULTURE

269. Which approach to leadership suggests that group performance is a result of the
interaction of leadership style and contextual favorableness?

 Functional
 Contingency
 Situational

270. Can each of the following be delegated by a manager? Yes / No

Accountability NO
Authority YES

271. Do each of the following businesses typify Handy’s power culture? YES / NO
 One in which a funding family member exerts significant influence at strategic management
level Yes (POWER CULTURE)
 One that relies on specialist expertise at different levels of management No
272. Colm is employed as a professional accountant in public practice. His team has been asked to
audit Shore Co, a company managed by his brother Involvement in the audit may threaten Colin's
compliance with the fundamental principle of objectivity. How could Colin safeguard against this
threat?
(1) Sign a confidentiality agreement
(2) Discuss the issue with senior management
(3) Withdraw from the engagement team
 2 only
 2 and 3 only
 1, 2 and 3
 1 only

273. The ACCA code of ethics applies to the individual behaviour of accountants. Which of the
following is a purpose of the ACCA code of ethics?
 To remove subjectivity in the solving of ethical dilemmas
 To provide detailed guidance on how to respond to any ethical conflict
 To require accountants to identify, evaluate and address threats to ethical behaviour
 To ensure that accountants adhere strictly to the letter of the law

274. Which of the following is described by the scalar chain concept?

 Decisions are pushed down to the lowest possible level in an organization
 No one in an organization reports to more than one supervisor
 New culture decisions are taken at the top level of management
 The number of levels in the organization structure

275. In which theory of organisational culture is masculinityffemininity a dimension?

 Adair's action-centred leadership
 Handy's cultural stereotypes
 Schein's determinants
 Hofstede's international perspectives

276. Which TWO of the following are leadership qualifies according to Warren Bennis?
 Superiority
 Integrity
 Dedication

277. Are the following statements true or false?

 Providing quality service is more important where competition is not based on price TRUE
 Quality of service can improve customer retention which will reduce marketing costs TRUE

278. Henri Fayol identified five functions of management. Four of these are: to organize, to co-
ordinate; to control and to plan. Which of the following is the fifth function of management?
  To discipline
 To order
 To remunerate
 To command

279. In relation to micro-economic theory, which TWO of the following statements are
correct?
 In the short-term, the marginal cost curve is horizontal
 In the long-term, the marginal cost curve will rise less steeply than the short-term marginal
cost curve
 In the short-term, the supply curve is the upward-sloping section of the average cost curve
 At equilibrium, the marginal cost curve intersects the average cost curve at its lowest point

280. The employee appraisal system has five stages, the final of which is the follow-up stage. What is
the final process in this follow-up stage of the appraisal Interview?
 Obtain employee feedback in writing
 Agree plan of action
 Prepare report on appraisal outcome

281. Hofstede described four dimensions on which international cultures differ, power/distance,
uncertainty/avoidance, individuality/collectivity and masculinity/femininity.

Which of the following is related to the uncertainty avoidance dimension?

 Assertiveness and decisiveness vs modesty and consensus

 Autonomy and initiative vs interdependence and reciprocal obligation
 Task structure and written rules vs flexibility and creativity

282. Which of the following reflect communications through which a comparry Internal
auditor Interacts with company accountant?
(1) Cross-functional
(2) Lateral
(3) Downwards
 1 and 2
 2 only
 1 only
 2 and 3

283. Owen, Vesta, Grace and Lysander are team leaders in a production department. At the
end of the month Owen's team achieved their individual targets and announced a low
absenteeism rate. Vesta's team reported low labour turnover but many interruptions to the
 work flow. Grace's team reported high absenteeism, high labour turnover and low productivity.
Lysander's team did not achieve its targets, had a low accident rate and low labour turnover

Whose team displayed the highest level of ineffectiveness?

 Owen's
 Vesta's
 Grace's
 Lysander's

284. Paul runs a pressure group campaigning against the polluting activities of Jazz Co. His friend
Konstantin is a shareholder in Jazz Co. Are Paul and Konstantin internal, connected or external
stakeholders? Internal / Connected / External
 Paul EXTERNAL
 Konstantin CONNECTED

285. For which of the following is horizontal communication used?

 To clarify operational goals
 To direct subordinates
 Task coordination between departments
 Feedback to management from employees

286. Tanner works in the HR department of a manufacturing company. The company recently
encouraged its product assembly team to undertake more personal development with the goal
of making the team more productive. Tanner has been asked to review the results.

Which of the following would Indicate to Tanner that employees in the product essembly them have
become more productive through personal development?

Productivity Improved Productivity NOT Improved

 The number of products that fail to meet specifications has reduced. IMP
 The total number of hours that a team has worked in a month has reduced Not IMP
 Employee turnover rate in the team has increased Not IMP
 The number of products assembled per hour has increased IMP

287. Which TWO of the following are steps within the coaching process?
 Plan a systematic learning and development programme
 Take into account the strengths and limitations of the trainee
 Reward individuals for the successful achievement of goals
 Only set objectives that can be achieved easily and quickly
288. Perfect competition and oligopoly are two types of competition analysed using the theory of the
firm. Are the following characteristics of perfect competition or oligopoly?
Oligopoly / Perfect Competition
 Few producers Oligopoly
 Horizontal demand curve Perfect Competition

289. Are the following statements about money laundering true or false?
 The prevention of money laundering is a responsibility of management TRUE
 The detection of money laundering is the duty of an auditor TRUE

290. Brandon is a departmental manager. He is concerned about rumours that he has heard through
informal channels relating to possible redundancies in his own department. The rumours are untrue,
but they are having a negative effect on productivity and staff morale. Which of the following is the
MOST appropriate response?
 Respond through the same informal channels
 Issue a formal response explaining the true situation
 Inform the audit committee of the rumours

291. Which TWO of the following are attributes of good quality information?
 Detailed
 Prediclable
 Timely
 Reliable

292. Which principle of the IFAC (IESBA) code of ethics does an accountant transgress when
he unknowingly fails to apply a legal regulation?
 Professional competence
 Objectivity
 Integrity

293. Are the following used for recording inventory? Yes / No

 Management information system YES
 Transaction processing system YES

294. In relation to the use of telephone references in the selection process, is each of the
following statements true or false? True / False
 The person giving information over the telephone cannot be held legally accountable for the
information FALSE
 Telephone references should only be used in addition to written references, and never
instead of them TRUE
295. Ramone is a quality controller in a textile factory. He has discovered that some of his colleagues
are bypassing safely checks on machines on a regular basis in order to finish work early. He has
 raised this concern twice with his manager and nothing has been done about the problem. The
safety checks are mandatory under the health and safety laws in the country in which the company
operates. To whom should Ramone report this matter, if anyone?
 No one, as long as he has documented his concerns somewhere
 A manager who is senior to his own manager
 The police
 The government body responsible for health and safely

296. Which TWO of the following describe the specific roles of non-executive directors?
 To determine the employment practices of the business
 To determine the social and environmental objectives of the business
 To determine the pay of executive directors
 To serve on the audit committee

297. Are the following statements about a flat organisational structure true or false?
 The structure is more adaptable to a participative form of management TRUE
 The supervisor tends to have a more personal relationship with employees TRUE

298. Lily is the newly appointed chief executive of a governmental organisation. A television station
has recently run a series of exposés detailing examples where senior managers of the organisation,
although complying with established legal practice, could have been accused of action protecting
their own interests. Which TWO of the following actions should Lily recommend the organisation
takes?
 Employ public relations consultants and ask them to conduct a vigorous campaign
questioning the motives of the television station
 Employ public relations consultants and ask them to emphasise that all actions taken have
been legal, but do not accuse the station of bias
 Develop a code of practice which advocates not just legality of action but also the moral
authority of organisational behaviour

299. In which parts of a PEST analysis will 'new patents and products" and "changes in
lifestyle' be listed?
 Economic and social
 Social and technological
 Political and economic
 Technological and political

300. Which TWO of the following are benefits of a corporate code of ethics to an employee?
 Promotion on merit
 Protection from unfairness
 Enhanced customer loyally
 Elimination of legal risks
 301. Which of the following statements about good quality information is TRUE?
 Information should be predictive
 Information should be timely
 Information should be detailed

302. Which of the following are responsible for taking positive steps to detect and prevent
fraud in a company?
 The shareholders
 The external auditors
 The executive directors

303. Which of the following is the first stage in drafting a personal development plan?
 Draw up an action plan
 Analyse strengths and weaknesses
 Carry out a skills audit
 Sel out possible goals

304. Nasir purchases 20% of Boca Co's output. Boca Co is only one of many companies who
supply Nasir. Nasir always maintains a degree of competition between suppliers As far as Boca
Co is concerned, how should Nasir be categorised under Mendelow's framework?
 High power, low interest
 High power, high interest
 Low power, low interest
 Low power, high interest

305. Carve Company is recruiting a technology specialist with advanced skills. The company wishes to
ensure that the appointment remains confidential, as if it becomes public knowledge it will make
competitors aware of the direction of Carve Company's IT strategy. Which of the following methods
of recruitment is most appropriate?
 Newspaper advertisement
 Internet (e-recruitment)
 Technical journal or magazine
 Recruitment consultant

306. Almond Co manufactures ladies clothes Fabric is purchased from approved suppliers
and then clothes are produced to customers' (retailer's) order. Which TWO of the following
would be application controls in Almond Co's purchasing system?
 Sequence checks are made as documents are entered into the system
 Orders over $10,000 in value are authorised by an executive
 Passwords are required to log onto the computer system
 Exception reports are produced showing employees working more than 50 hours per week.
307. Are the following statements ethical propositions? Yes / No
 Most people are honest No
 People should be truthful YES

308. Delilah likes to maintain the status quo and avoids problems. She wants a focus on
productivity, but not at the expense of the morale of her team. On the Blake and Mouton
management grid, the leader's style is plotted at the 5.5 coordinate. Which leadership style is
being demonstrated according to the Blake and Mouton leadership grid?
 Middle of the road 5.5
 Authoritanan
 Impoverished (1.1)
 Team leader (9.9)

309. Which one of the following statements defines 'organisational culture'?

 The values, norms and practices that shape society
 The accepted way of behaving and working
 Social relationships and informal communication networks
 The system by which activities are directed and controlled

310. In Kolb's learning cycle, which stage immediately precedes the active experimentation
stage?
 Observation and reflection
 Abstract conceptualisation
 Concrete experiences

311. Which of the following are accepted qualities of a counsellor?

(1) Empathy
(2) Impartiality
(3) Discretion
 2 and 3 only
 1,2 and 3
 1 only

312. Which of the following describes the agency relationship in business?

 Stakeholders have no influence over business objectives
 Stakeholders are the representatives of managers
 Managers must accept the objectives set by stakeholders
 Managers must consider the views of stakeholders when setting objectives

313. In relation to using distributed ledger technology for managing assets and making
transactions in these assets, what is the meaning of the term 'mining'?
 Identifying fraudulent or suspicious transactions
 Testing the authenticity of transactions made in the chain
 Investigating long-term trends in the value of assets
 Creating and recording new assets in the chain

314. Which of the following levels of management is the primary user of operational
information?
 Middle
 Team leader
 Senior

315. Which of the following are business organisations?

(1) Members of an online community
(2) A flower shop
(3) A charitable trust
(4) A health authority
 1,2 and 3
 3 and 4 only
 1 and 2 only
 2,3 and 4

316. Which TWO of the following are time management tasks?

 Scheduling
 Analysing
 Prioritising

317. Which of the following is NOT a feature of macro-economic policy?

 Balance of payments
 Aggregate demand for goods and services
 Cost behaviour of the firm
 Interest rate movements

318. Which of the following is the overriding consideration in the work of a professional
accountant?
 Public interest
 Environmental interest
 Employer's interest
 Client's interest

319. The payroll function for an organisation is often a high risk for fraud. Which of the
following payment system weaknesses will make fraud MORE likely?
(1) Inadequate timekeeping arrangements
 (2) No independent personnel function
(3) Poor wage distribution procedures
(4) Wide management span of control
 2,3 and 4
 1,2 and 3
 1, 2 and 4
 1, 3 and 4

320. Schein identified three levels of culture in organisations. At which level of culture does
each of the following belong? Artefacts / Espoused values / Basic assumptions and values
 All staff must wear a uniform ARTFACTS
 Brand style and colour scheme ARTFACTS
 Compliance with ethical business practice Espoused values
 A stated commitment to excellent customer service Espoused value

321. Which of the following is an example of a political influence within the PEST framework?
 Public concern about environmental issues
 A decision by a supra-national body (e.g., the United Nations, European Union)
 The prevailing rate of interest
 Decisions by strategic managers

322. Dalal uses a computer in the finance department She has a password to access the
payroll package, which is not accessible by everyone in the department. The payroll package
requires authorisation from Dalal's supervisor before any new employees are added. If Dalal
tries to process wages having missed an employee's pay for the month, the programme displays
a warming message. Each night, a virus check is run on the system before shutting down. Which
TWO of the following are general systems controls?
 Warning for missed employees
 Password protected access
 Authorisation requirement for new employees
 Nightly virus check

323. Which of the following is the MOST appropriate type of behaviour a person should
adopt when attempting to reduce conflict with another person in the workplace?
 Aggression
 Submission
 Assertiveness

324. What is the term given to a situation when an individual's behaviour changes in order to
be consistent with the group norm?
 Obedience
 Conformity
 Compliance

325. Which TWO of the following are major barriers to communication?

 Psychological noise
 Information overload
 Informal networking
 Facial expressions

326. An employee has accepted a role as a permanent member of staff in a company as a

professional accountant. What is the next stage in the employment process after an employee
has been successfully recruited?
 Debriefing
 Appraisal
 Induction
 Counselling

327. Kinsey is a highly intelligent member of a team. He is creative and makes an essential
contribution to achieving the team's objectives. He is valued by his manager and his efforts have
come to the notice of senior executives. However, it has become apparent that Kinsey is a
disruptive influence in the team as he lacks patience with less skilled colleagues and is extremely
argumentative. He also has a bizarre sense of humour which comes to the fore at inappropriate
times during serious business discussions. Kinsey's manager is conscious that the other team
members are becoming resentful and has heard rumours that some are even considering asking
to be transferred to other duties. Which of the following is the MOST appropriate action for
Kinsey's manager?
 Ask the human resources department to issue a formal warning to Kinsey and inform him
that such behaviour will not be tolerated in future
 Accept that nobody is indispensable and ask the human resources department to transfer
Kinsey to another department
 Discuss the issue with Kinsey on a private basis, define the problem and secure
commitment to a change in behaviour
 Do nothing for the time being, as it is inevitable that the more assertive members of the
team will deal with the matter.

328. Which TWO of the following are duties of a committee secretary?

 Issuing documents before committee meetings
 Giving rulings on disputes during committee meetings
 Communicating decisions after committee meeting

329. In relation to distributed ledger technology, are the following statements true or false?
 Blockchains may provide an incomplete record as transactions can be deleted. FALSE
 Blockchains facilitate greater clarity when transactions are posted to a public ledger TRUE
330. Pomegranate Co sales staff carry confidential personal data on laptops. The company
wishes to review compliance with the following data protection principle:
'Appropriate technical and organisational measures shall be taken against unauthorised
disclosure of personal data
Which TWO of the following data security measures are relevant to Pomegranate Co's
compliance review?
 Training of the laptop users
 Off-site, back-up copies of data files
 Encryption of the laptop data
 Segregation of duties

331. Which of the following can be categorised as an organisation?

(1) A university
(2) An amateur football club
(3) A private company
 3 only
 1 and 2 only
 1 and 3 only
 1, 2 and 3

332. Which of the following are ADVANTAGES of having a formal procedure for recording
sales?
(1) Transactions will be recorded consistently
(2) Staff can refer to information if they have doubts
(3) New staff can be trained more quickly
 2 only
 1, 2 and 3
 1 and 3 only
333. Which of the following are ways in which an organisation could recognise ethical issues?
(1) Appoint ethical champions
(2) Embrace ethics in its value statements
(3) Include ethical dimensions in human resource management
(4) Include ethical values in its mission statement
 1 and 3 only
 1, 2 and 4 only
 1, 2, 3 and 4
 2 and 4 only

334. Which of the following is an argument in favour of corporate social responsibility?

 People have responsibilities rather than businesses
 Businesses have significant resources which bring responsibility for their use
  Managers are responsible to business owners, by whom they are employed
 Owners' money should only be spent on activities authorised by the owners

335. Which TWO of the following marketing-related functions require input from the
accounting department?
 Monitoring actual sales expenditure against budget
 Deciding on promotional strategies
 Deciding on advertising strategies
 Deciding on price

336. Which TWO of the following are purposes of a sustainability report?

 To identify potential improvements in business processes
 To ensure that the organisation is financially solvent
 To provide assurances to investors regarding environmental issues
 To comply with international accounting standards

337. Which TWO of the following are potential advantages of outsourcing?

 Ability to focus on core competencies
 Greater control over business processes
 Elimination of strategic and operational risks
 Utilising the specialist skills of other organisations

338. Which of the following is responsible if the financial statements of a company do not
show a true and fair view of the financial performance of a company?
 The company chairman only
 The board of directors
 The external auditor only
 The finance director only
339. Learning activities are sometime categorised as education, training and development. How
should the following be categorised?
Education / Training / Development
 Chebesa is an experienced manager. She has been selected to attend a management
programme at a prestigious business school. The programme is open to those will high potential
for career advancement. There is no examination. D
 Kieler is a teller in a foreign exchange bureau and is learning about new anti-money laundering
legislation which requires him to pass a multiple choices assessment E
 As a newly appointed team leader, Channing is attending a two-day event to increase his
awareness of leadership skills T
 Sandhra works abroad. She is learning the language in order to do her job better, and at the end
of the programme, her skills will be assessed by examination and a certificate awarded E
340. In relation to a competence framework, which TWO of the following statements are
correct?
 The content of the competence framework should be determined by the employee
 The framework should include measurable objectives reflecting required skills
 The framework should be capable of being monitored by the employer and employee
 The requirements of the employee’s current job should reflect the learning objectives in the
framework

341. Which TWO of the following BEST describes the concept of acting in the public interest?
 Recognising that there are a variety of groups affected by organisational action
 Ensuring that all organisational activity receives due public attention and scrutiny
 Ensuring that government is adequately informed about the impact of organisational activity
 Ensuring that behaviour is beneficial to most, if not all, stakeholders

342. In a national economy an initial increase in expenditure will lead to a much larger final
increase in national income. Which of the following defines this outcome?
 Multiplier
 Aggregate demand
 Inflation
 Accelerator

343. Denis is employed as the accounts manager in a company that is trading in a legitimate
activity. The company was established to receive funds that were acquired from illegal sources.
Denis may be guilty of which TWO money laundering offences?
 Assisting another to retain the benefit of crime
 Acquisition, possession or use of criminal proceeds
 Concealing or transferring proceeds to avoid prosecution

344. Failure to disclose knowledge or suspicion of money laundering

Which of the following actions reflect professional competence and due care in the IFAC (IESBA)
code of ethics?
1) Ensuring all staff attend professional update training
2) Keeping due client confidentiality when asked to reveal client information
3) Ensuring that only fully qualified staff work on projects
 1 and 2 only
 1, 2 and 3
 1 and 3 only
 2 and 3 only

345. Are the following statements True or False?

 If price falls, supply will increase (all other factors being held constant) FALSE
 If price falls, demand will increase (all other factors being held constant) TRUE

346. According to Honey and Mumford (building on the work of Kolb), the learning process
involves which TWO of the following?

 Sharing knowledge
 Recognising mistakes
 Planning the next steps
 Having an experience

347. Which communication direction is being described when a supervisor speaks to the
middle manager of another department?
 Upwards
 Diagonal
 Horizontal
 Lateral

348. Which of Belbin's team types is described as an over-optimistic extrovert, is enthusiastic

and a communicative person who picks up other people's ideas and adds to them?
 Finisher
 Team worker
 Chairman
 Resource investigator

349. Which TWO of the following information technology developments are key components
of e-marketing?
 Mobile phones
 Continuous speech recognition
 The internet
 Optical character recognition

350. ABC Co buys identical storage boxes from two suppliers. Rary Co is a large limited
company with customers all over the word whilst Hanna & Son is a small partnership serving the
local area. In which TWO of the following respects do Riley Co and Hanna & Son differ?
 Legal status
 Profit motive
 Relationship between ownership and control
 Activity

351. Retailers in the country of Zeeland have suggested that the population no longer has
confidence the central government to solve current economic problems. As a results consumers
have reduced their spending preferring to save money for the difficult times ahead.
How will this reduction in spending affect the equilibrium national income and price level?
Increase / Decrease
 Equilibrium national income DECREASE
 Equilibrium price level DECREASE

352. Which TWO of the following are benefits of counselling?

 It may help reduce time lost due to personal problems
 It may help solve issues that can hinder productivity
 It removes the need for mentoring and coaching
 It allows management to solve employee problems

353. Which TWO of the following are advantages of internal recruitment?

 The employees are already accustomed to the organisational culture
 It could bring new ideas and thinking to the organisation
 It helps prevent internal conflict
 It is cost-effective

354. When internal controls in an accounts receivables system are weak, which TWO of the
following may occur?
 Invoices may be issued and go unrecorded
 Invoices may be issued for wrong amounts
 Invoices may be paid for goods never delivered
 Invoices may be paid to wrong suppliers

355. In the context of motivation theories, Vroom's expectancy equation may be stated on
which of the following?
 V= E x F
 F= V x E
 E= F x V

356. economy which has led to a rapid increase in aggregate demand. All the same
time national wages have increased significantly. Country A imports a large proportion of its raw
materials requirement, and its currency has strengthened against others. Economists expected
that the increase in demand is a short-term effect.
Which TWO of the factors described above will lead to inflation?
 Strengthening currency
 Increase in average wages
 Economists' expectations
 Increase in aggregate demand

357. Ella, Jack, Chen and Naima have been working on a job for the same customer. Ella
failed to meet her deadline resulting in Jack having less time to do his work. Jack did not
communicate the problem to his supervisor but worked overtime in order to meet his own
deadline. Chen misread the job specifications meaning that the final product did not perform as
required. Naima gave incorrect instructions to the delivery driver meaning that the delivery
deadline was missed.
Which TWO employees have been ineffective at work in a way that will harm the relationship with
the customer?
 Ella
 Naima
 Chen
 Jack

358. A new employee requires training in the specific tasks previously performed by his
supervisor.
Which approach is appropriate here?
 Job rotation
 Counselling
 Mentoring
 Coaching