2009.Jun.ACCA.F1_saa_GE_mock_questions
Accountant in Business
1. Which of the following correctly explain the responsibilities of non-executive directors related
to “people”?
a. Non-executive directors should constructively challenge and contribute to the
development of strategy.
b. Non-executive directors are responsible for determining appropriate levels of
remuneration of executive directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning.
c. Non-executive directors should satisfy themselves that financial information is accurate
and that financial controls and systems of risk management are robust and defensible.
d. Non-executive directors should scrutinise the performance of management in meeting
agreed goals and objectives and monitoring, and where necessary removing, senior management and in succession planning.
(2 marks) 2. Staffs in organisations that observe this type of culture form teams to solve particular
problems.
Which TWO of the following correctly describe the feature of organisations that observe the type of culture described in the above statement?
a. Power derives from expertise as long as a team requires expertise
b. Power derives from a person's position and little scope exists for expert power
c. All individuals believe themselves superior to the organisation
d. These cultures often feature the multiple reporting lines of a matrix structure
(2 marks)
3. Which of the following refers to bodily factors that influence communication?
a. Physical noise
b. Semantic noise
c. Psychological noise
d. Physiological noise
(2 marks)
4. The following refers to the extent to which people are expected to stand up for themselves
and to choose their own affiliations, or alternatively act predominantly as a member of a life-long group or organisation?
a. Individualism
b. Collectivism
c. Masculinity
d. Femininity
(2 marks)
5. Which TWO of the following are correct about the Hawthorne effect?
A. An experimental effect in the direction expected but not for the reason expected; i.e., a
significant positive effect that turns out to have no causal basis in the theoretical motivation for the intervention, but is apparently due to the effect on the participants of knowing themselves to be studied in connection with the outcomes measured.
B. It is the confounding that occurs if experimenters fail to realise how the consequences of
subjects' performance affect what subjects do.
C. People singled out for a study of any kind may improve their performance or behavior
because of specific condition being tested
D. People will respond negatively to any novel change in work environment.
(2 marks) 6. Which of the following are correct about Psychological noise?
1. It is results from preconceived notions we bring to conversations, such as racial
stereotypes, reputations, biases, and assumptions.
2. When we come into a conversation with ideas about what the other person is going to
say and why, we can easily become blinded to their original message.
3. It is possible that we can free ourselves from the psychological noise most of the time
when we converse with others.
4. We must simply strive to recognise that psychological noise exists and take those
distractions into account when we converse with others.
a. 1, 2 and 3
b. 1, 2 and 4
c. 1, 3 and 4
d. 2, 3 and 4
(2 marks)
7. Which TWO of the following are correct about internal control?
A. Effective internal control implies the organisation generates reliable financial reporting
and substantially complies with the laws and regulations that apply to it.
B. Whether an organisation achieves operational and strategic objectives may depend on
factors outside the enterprise, such as competition or technological innovation which are within the scope of internal control
C. Effective internal control provides not only timely information or feedback on progress
towards the achievement of operational and strategic objectives in order to guarantee their achievement.
D. Internal control involves human action, which introduces the possibility of errors in
processing or judgment.
(2 marks) 8. The primary focus area of internal auditing as it relates to corporate governance is helping
the Audit Committee of the Board of Directors (or equivalent) perform its responsibilities effectively. Which of the following are included within the scope of internal auditing?
1. Reporting critical internal control problems
2. Informing the Audit Committee privately on the capabilities of key managers
3. Suggesting questions or topics for the Audit Committee's meeting agendas
4. Coordinating carefully with the external auditor and management to ensure the
Committee receives effective information
a. All
b. 1, 2 and 3
c. 1, 3 and 4
d. 1 and 4
(2 marks)
9. According to Warren Bennis managers accept the status-quo, leaders challenge the status-
quo.
Is the above statement true or false?
a. False
b. True
(1 mark)
10. According to Elton Mayo’s work, the need for recognition, security and sense of belonging is
more important in determining workers' morale and productivity than the physical conditions under which he works.
Is the above statement true or false?
a. True
b. False
(1 mark)
11. “Understand the effects in the particular instance so that if the same action was taken in the
same circumstances it would be possible to anticipate what would follow from the action”.
Which step of the learning cycle does this statement refer to?
a. Step 1
b. Step 2
c. Step 3
d. Step 4
(2 marks) 12. The following shows the features people that adopt a type of learning style
?Immerse themselves fully in new experiences
?Enjoy here and now
?Open minded, enthusiastic, flexible
?Act first, consider consequences later
?Seek to centre activity around themselves
Which type of learning style according Honey and Mumford does the above refer to?
a. Theorist
b. Pragmatists
c. Activists
d. Reflectors
(2 marks)
13. The term commonly refers to behaviour intended to disturb or upset, and, when the term is
used in a legal sense, it refers to behaviours which are found threatening or disturbing.
Which of the following term does the above refer to?
a. Direct discrimination
b. Indirect discrimination
c. Victimisation
d. Harassment
(2 marks)
14. Staffs in X Ltd does not like performance appraisal and one of its staffs commented that “it
is just a waste of time, other than a form filling exercise to satisfy the human resource department, its underlying purpose of improving individual and organisational performance is often forgotten!’. What can we conclude based on this?
a. Staffs in X Ltd see appraisal as bureaucracy
b. Staffs in X Ltd see appraisal as confrontation
c. Staffs in X Ltd see appraisal as chat
d. Staffs in X Ltd see appraisal as annual event
(2 marks)
15. Which TWO of the following statements are correct?
A. Deflation is the reduction of general economic activity, including lower prices and a
reduced supply of money and credit.
B. Deflationary fiscal policy is a fiscal policy for demand reduction designed to reduce the
aggregate demand in an economy.
C. Deflationary monetary policy is a macroeconomic policy to reduce aggregate supply in
an economy by adjusting interest rates and other monetary policies.
D. Deflationary gap is a recessionary phenomenon in which a country's national income at
a the level above what its economy is capable of producing.
(2 marks)
16. Which TWO of the following can be used for job enrichment?
A. Combine work activities to provide a more challenging and complex work assignment.
B. Significantly increase "task identity" by allowing staff to be involved in a job from
beginning to the end.
C. Move staffs through a variety of jobs that allow them to see different parts of the
organisation, learn different skills and acquire different experiences.
D. Increase the scope of a staff’s job through extending the range of his or her job duties
and responsibilities through horizontal loading.
(2 marks)
17. Which TWO of the following are social needs according to Maslow hierarchical needs
theory?
a. Intimacy
b. Sex
c. Sense of acceptance
d. Loneness
(2 marks)
18. “Any act or experience that has a formative effect on the mind, character, or physical ability
of an individual”. Which of the following term does the statement refer to?
a. Training
b. Education
c. Development
(1 mark)
19. This test aims to measure attributes like intelligence, aptitude and personality. They provide
a potential employer with an insight into how well you work with other people, how well you
handle stress, and whether you will be able to cope with the intellectual demands of the job.
What kind of test is this?
a. Psychometric test
b. Aptitude test
c. Competence test
(1 mark)
20. These are aspects of or conditions in a workplace that interfere with effective exchange
of ideas or thoughts. Which of the following terms does this statement refer to?
a. Communication noise
b. Communication barriers
c. Communication distraction
(1 mark) 21. The expectancy theory says that individuals have different sets of goals. Based on the
expectancy theory, which TWO of the following beliefs will motivate an individual?
A The desire to satisfy the need is strong enough to make the effort worthwhile
B The reward will not satisfy an important need
C There is no correlation between efforts and performance
D Favourable performance will result in the desirable reward
(2 marks)
22. What TWO are included as part of the accounting control in an organisation?
A. Authorise transactions
B. Monitor adherence of management policy
C. Monitor disbursements
D. Ensure the accuracy and validity of information.
(2 marks) 23. “Net exports fall because imports increase while exports decrease.” Which of the following
can cause this situation to happen?
a. Aggregated demand decreases
b. Interest rate increases
c. Exchange rate rises
d. Deflation
(2 marks)
24. The following show the feature of a particular type of organisation structure
?Narrow span of control
?Clear progression and promotion ladder
?High management costs
?Clear lines of responsibility and control.
Which TWO of the following organisation structures observe the above features?
a. Functional structure
b. Tall structure
c. Centralised structure
d. Product structure
(2 marks)
25. Which TWO of the following are correct about the basic insights of utilitarianism?
a. The purpose of morality is to make the world a better place.
b. The focus of morality is about producing good consequences, not having good
intentions.
c. We should do whatever will bring the minimum benefits to all of humanity.
d. We should always do the minimum for the as a way to produce a better world.
(2 marks)
26. Which of the following are tools used by a government in its monetary policy?
1. Changing the reserve requirement ratio of banks
2. Changing the discount rate
3. Executing open market operations
4. Changing the tax rate
a. 1, 2 and 3
b. 1, 2 and 4
c. 1, 3 and 4
d. 2, 3 and 4
(2 marks)
27. Internal control can provide reasonable, not absolute, assurance that the objectives of an
organisation will be met.
Is the above statement true or false?
a. True
b. False
(1 mark)
28. Which of the following is the setter of the IFRS?
a. International Accounting Standards Committee Foundation
b. International Accounting Standards Committee
c. International Accounting Standards Board
d. International Accounting Standards Council
(2 marks)
29. Which TWO of the following are correct about training that is planned, organised, and
conducted at the employee's worksite?
a. A mentor is required for this type of training.
b. It is particularly appropriate for developing proficiency skills that are unique to an
employee's job especially jobs that are relatively easy to learn and require locally-
owned equipment and facilities.
c. It is effective only for short-term.
d. Morale, productivity, and professionalism will normally be high in those organizations
that employ this type of training.
(2 marks)
30. _________________________refers to a cognitive bias whereby the perception of a
particular trait is influenced by the perception of the former traits in a sequence of interpretations. Which of the following word(s) is the most suitable to fill in the blank?
a. Favouritism
b. Halo effect
c. Hawthorne effect
d. Discrimination
(2 marks)
31. Which TWO of the following are examples of indirect discrimination?
a. You are an Aboriginal woman wanting to rent a house. When you arrive to inspect a
house you’re told it’s already been taken. You arrange for a non-Aboriginal friend to
enquire about the house. She rings, is told it’s still available, looks at the house and is
offered a lease. This is the third time you’ve tried to rent a house through this agency.
In spite of the fact you have a good tenancy record, each time you phone, you’re told a
house is available, and each time you meet one of the agents, you’re told it’s been
rented already.
b. You are asked at a job interview whether you have children. When you tell the
interviewer that you have four children, she makes a remark about you needing a lot of
time off work if they’re sick, and says you won’t be suitable for the position.
c. A public building, while fitted with lifts, has a set of six steps at the front entrance. Entry
for those needing to use the lift is through the back entrance near the industrial bins.
d. All information about workplace health and safety in a factory is printed in English.
(2 marks)
32. Which TWO of the following are challenges of diversity in workplace?
A. Improved decision-making
B. Assimilation
C. Innovation and creativity
D. Miscommunication within the organisation
(2 marks)
33. High exchange rate of a country will cause trade deficit.
Is the above statement true or false?
a. True
b. False
(1 mark) 34. Hyperinflations are very large taxation schemes.
Is the above statement true or false?
a. False
b. True
(1 mark)
35.
(Source: https://www.sodocs.net/doc/5014431410.html,/library/Enc/Hyperinflation.html)
The above shows the Real Quantity of Money during the German Hyperinflation from the beginning of 1919 until April 1923. Which TWO of the following are the appropriate actions that the government of a country should take if such large scale inflation takes place?
a. The government should drive its citizens away from monetary transactions and toward
barter.
b. The government should adjust its fiscal policy by reducing the countries expenditure.
c. The government has to borrow money from the International Monetary Fun
d.
d. The government has to make a credible commitment to halting the rapid growth in the
stock of money.
(2 marks)
36. Which TWO of the following are responsibilities of non-executive directors?
A. Challenge and contribute to the development of strategy.
B. Scrutinise the performance of management in meeting agreed goals and objectives and
monitoring, and where necessary removing, senior management and in succession planning.
C. Satisfy themselves that financial information is accurate and that financial controls and
systems of risk management are robust and defensible.
D. Determine appropriate levels of remuneration of all directors.
(2 marks)
37. Travel One is a travel agent that sells holiday packages to the public through its outlets
nationwide. Other than generating revenue through selling holiday packages, Travel One also sells air tickets of several airlines to the public and the sales from air tickets accounts for 40% of its total revenue. Due to the recent economic crisis, most of its customers seek alternate ways of getting cheaper air tickets through online booking websites. Which of Travel One’s marketing mix is the most directly affected by the online booking websites?
a. Product
b. Price
c. Promotion
d. Place
(2 marks)
38. Which TWO of the following are responsibilities of a manager in the individual element of
the action centred leadership?
A. Where appropriate reward individuals with extra responsibility, advancement and status.
B. Identify, develop and utilise each individual's capabilities and strengths.
C. Establish, agree and communicate standards of performance and behavior.
D. Establish responsibilities, objectives, accountabilities and measures, by agreement and
delegation.
(2 marks)
39. Which of the following is correct about a pragmatist’s learning style?
A. Gregarious, seeks challenge and immediate experience, open-minded, bored with
implementation.
B. Gathers data, ponders and analyses, delays reaching conclusions, listens before
speaking, thoughtful.
C. Thinks things through in logical steps, assimilates disparate facts into coherent theories,
rationally objective, rejects subjectivity and flippancy.
D. Practical, down-to-earth, enjoys problem solving and decision-making quickly, bored
with long discussions.
(2 marks)
40. Mike is finance manager who is results-driven and deadline-driven, to the exclusion of
everything else in his job. He issues deadlines and ultimatums when he assigns responsibilities to his staff. His staff commented that he is aloof and arrogant, does not invite or welcome suggestions and he takes criticism badly and likely to retaliate if the suggestions and criticisms are from below or peer group. Besides he is poor at proper delegating - but believes that he delegates well. Which TWO of the following kinds of manager will he most probably be?
a. Psychologically distant manager
b. Theory X manager
c. Task management manager
d. Action centred manager
(2 marks)
41. Many people dread appraisals, they say that appraisals are based on yesterdays
performance and not on the whole year, that there is lack of agreement on performance levels, and that feedback given by the appraiser is subjective where the appraiser allows personality difference to come in the way of actual performance. Which of the following barriers to effective appraisal does the above to?
a. Appraisal as judgement
b. Appraisal as bureaucracy
c. Appraisal as confrontation
(1 mark)
42. Which of the following role of a manager according to Minztberg carries out the activities of
identifying new ideas and initiating improvement?
a. Spokesperson
b. Liaison
c. Leader
d. Entrepreneur
(2 marks)
43. Which TWO of the following are suitable for application of theory Y?
a. Shop floor
b. Professional services
c. Knowledge work
d. Mass manufacturing
(2 marks)
44. ‘Team members adjust their behavior to each other as they develop work habits that make
teamwork seems more natural and fluid. Team members often work through this stage by agreeing on rules, values, professional behavior, shared methods, working tools and even taboos. During this phase, team members begin to trust each other.'
In the team development model according to Tuckman, which of the following terms would be used for this stage of the team’s development?
a. Forming
b. Norming
c. Adjourning
d. Dorming
(2 marks)
45. Sheila recently reports to work in a newly set up organisation that is full with young and
energetic staff. The organisation operates in the advertising industry and the organisation bids for advertisement contract. In order to win the contract, staff in the organisation will form a team to produce proposal that will be presented to client in order to win the contract.
Sheila actively takes part in the team work and she plays the role as a sober, strategic and discerning member, who tries to see all options and judge accurately. She contributes a measured and dispassionate analysis and, through objectivity, stops her team committing itself to a misguided task. Which of the following team role is she playing?
a. Plant
b. Shaper
c. Finisher
d. Monitor-evaluator
(2 marks)
46. Which of the following is an example of unfair dismissal?
A. The employer dismisses a poor performing employee after several trainings are given to
the employee.
B. The employer dismisses an employee due to insubordination; the dismissal is done
following the proper procedures.
C. The employer dismisses an employee due to serious disciplinary problem after giving
several oral warnings.
(1 mark)
47. The following shows details of extract of an recruitment advertisement of an organisation :
Reporting to the Managing Director, your responsibilities will include:
1. Preparation of statutory accounts under IFRS
2. Consolidation of group accounts
3. Managing a team of staff and ensuring robust financial across the group
4. Preparation of management accounts including budgeting, forecasting and variance
analysis
5. Providing meaningful management information to aid the board with decision making.
The role requires a self starter with previous experience of working in a similar role, ideally within an international manufacturing business.
Experience of SAP, Sage and Excel would be advantageous, however is not essential.
(https://www.sodocs.net/doc/5014431410.html,/jd15.asp?ID=147394) Which position is the organisation recruiting for?
a. Financial accountant
b. Financial controller
c. Treasurer
d. Management accountant
(2 marks) 48. General controls review attempts to gain an overall impression of the controls that are
present in the environment surrounding the information systems. Which TWO of the following are parts of the general control?
A. Proper internal control related to business transactions that involve sales and
purchases.
B. Organisational and administrative structure of the IS function, the existence of policies
and procedures for the day-to-day operations, availability of staff and their skills and the overall control environment.
C. Review of the data center or information processing facility should cover the adequacy
of air conditioning, power supply and smoke detectors, a conducive clean and dust free environment, protection from floods and water seepage as well as neat and identifiable electrical and network cabling
D. Review of financial data to ensure accuracy and completeness of financial records.
(2 marks)
49. Which the following are correct about output control?
1.Output should be balanced to input. There should be adequate
separation of duties for the reconciliation process.
2.Output should be reviewed for general acceptability and completeness, including
any control totals.
3.There should be either error reports or a log kept of output errors. These should
contain information such as a description of problems/errors and date identified and corrective action taken
4. Record retention and backup schedules for output files should be established.
a. All
b. 1, 2 and 3
c. 1, 3 and 4
d. 2, 3 and 4
(2 marks)
50. The following shows personal specification of a position in an organisation.
Job Requirements:
1. Bachelor degree or above in Electrical Engineering.
2. 8 to 10 years working experiences in filter design for various wireless systems,
especially for large volume commercial products.
3. Familiar with the different filter design methodology and techniques
4. Familiar with the design software such as ADS, HFSS, Microwave Office etc.
5. Knowledge or experiences on advanced technologies or design techniques such as
ceramic filter, polymer filter, MEMS, tunable filter, will be desirable and preferred.
6. Experiences on product/manufacturing transfer will be definitely a plus.
7. Possessing project management skills and be able to run the project pilot.
Which of the following is department that the person holding the above position will be working in?
a. Production
b. Research and development
c. Engineering
d. Maintenance
(2 marks)
End of question paper