2013acca.taobao Goma LEARNINGMEDIA ACCA - F1 Accountant in Business Suggested Mock Exam Answers 2013 1. The correct option is B. ‘At the Forming stage individual members responsibilities. They are dependent upon their | ‘example Nelson's new employees are not aware of fon Nelson to guide and direct them. fe usually unsure of unclear about their roles and der to guide and direct their activities. In the above cir job responsibilities and roles. They are dependent 2. The correct option is D. People prefer leaming from group workshops and discussions. James is learning singing by watching! listaning to other singers. 3. The correct option is C. ‘The ‘stag’ part of the term relates to stagnant or declining GDP whilst the “inflation” segment refers to rising prices of goods and services. 4, The correct option is C. Organisations arrange counselling for their employees by professional counsellors. The fees of the counsellor are paid for by the organisation, and not charged. to the employees. It can be an expensive afar. 5, The correct option is B. ‘MeGregor’s theory Y is a participative style of managemant and is based on the assumption that the average person is ready to work. The average person is capable of assuming selfdirection and control without any threat of punishment. 6. The correct option is A. Transaction processing systems (TPS) record and process the routine transactions of an organisation, Sales and purchases are the routine transactions recorded by the system at Quality Ltd, hence its classification. 7. The correct option is B. Doing their jobs, commitment and performing suitable jobs will not be independent factors which will increase productivity. Itis only when an employee enhances his performance that productivity increases. 8, The correct option is B. Price, place, prometion and product are the four Ps of marketing 9. The correct option is D. By obtaining eco — labels, businesses can convince customers that their products have been produced in an environmentally friendly manner and the same can be used without harming the environment. 10. The correct option is B. ‘Many new regulations such as the Sarbanes Oxley Act have increased the accountability of the non executive directors of an organisation. 11, The correct option is A. ‘Cash management: this accounting function allways ensures that an organisation has sufficient funds to ‘conduct its day to day operations. 12. The correct option is A. Without a good credit policy an organisation is likely to suffer losses since customers might take undue advantage of the credit given to them. Some conditions for payment need to be imposed so that inflow of money is not affected. HKCA PASS! iuRPe7 08370 «= 2 13. The correct option is A. Recording transactions without their monetary effects would produce incomplete information; hence ‘monetary effects need to be given. 14, The correct option is A. ‘As an external auditor Nishi should check the truth and fairness of an orgnaistion’s financial statements. Hence it is her duty to verify whether all the records are complete and accurate and that there is no possibilty of fraud, 15, The correct options are A and D. Physically checking and matching the inventory with the stores ledger and cross checking the invoices is an ‘accounting control function. The others refer to improvements in production, sales and marketing functions. 16. The correct option is C. [By segregating the ordering, receiving, storing and recording of the material an effective internal check is ‘established since no single person can tamper or pilfer with any item, 17, The correct option is C. Under oligopoly market conditions, the average revenue (AR) curve (which is also the demand curve, DD1) is a kinked demand curve. As can be seen in the graph, the demand curve is formed of two parts, having a “kink” at point T. 18. The correct option is B. ‘Openness means exchange (receiving as well as sending) of information as well as ideas at al levels of the organisation 19, The correct option is C. ‘A normal good is one which has a direct relationship with level of income, ie., aS income of a consumer Increases, the demand for the product would also increase. 20. The correct option is A. (~The cashier may record and deposit enly $1,000 hence there is @ possibilty of fraud. ll) = itis a type of fraud where store incharge has recorded an excess issue of materials from stores. The store supervisor may use that material for personal purposes. {ll)= tis type of fraud where over recording cash is done by the accountant, He may use $10,000 ($15,000 ~ $5,000) for personal purpose 21. The correct option is B. Lateral communication represents the way employees (holding the same rank) communicate with other ‘employees from different departments. In the above example the production manager coordinated with the purchasing manager. 22. The correct option is C. ‘Although Mitali is an extemal auditor and needs to report to the shareholders, she should suggest any improvements to the management, since they are handling the operations. However she should report these weaknesses to the shareholders, 23. The correct option is €. Expectancy represents the belief of an individual that his extra efforts will translate into results. In the above ‘example Merry is expects to be head of her department, and she is ready to work hard fort HKCA2013acca.taobaoGona LEARNINGMEDIA 24, The correct option is A. ‘An external auditor is appointed by the shareholders. He needs to assure shareholders about the accuracy Of the information published in the financial statements of the organisation, 25, The correct option is D. Psychometric tests measure the candidate's personality, abiities and motivation levels. In the above ‘example though Nickson Ltd is satisfied with the academic qualifications of the candidates, they want to test their abilities, motivational levels and personalities 26. The correct option is A. Financial accounting will provide an overview ofthe financial condition and performance of an organisation. Hence it helps to provide useful information for external users. 27. The correct option is A. ‘Synthetic industies involve the mixing of to or more products in order to produce new products 28, The correct options &. Femando is engaging in competitive style as he vents to “win at ell costs” 20 The corrct option is Cases of alleged non-compliance with the code of ethics are referred to the disciplinary committee for investigation, 30, The correct option is B. An individual brings success to the organisation by performing their functions effectively and efficiently 31. The correct option is B. AA team represents a collection of people who have been brought together by the organisation for a very specific activity or to solve a very specific problem. ‘32, The correct option is A. ‘The main difference between a group and a team is that groups only share a common purpose whereas teams have a specifi goal to achieve 33. The correct option is C. ‘The Mayo theory suggests that social dynamics and group interactions directly affect the productivity and efficiency of employees. This theory is based on three principles > Individuals want more than just @ paycheck from the organisation they work for > Individuals perform better when empowered and > Individual behaviour is shaped and influenced by the work group or department they belong to In the above example Zara knows that if she makes her team members responsible for their work and gives them some authority to make decisions they vill defintely perform to the best oftheir ebilties, 34. The correct option is A. In the short run, the average fixed cost falls as the output units increase, 35. The correct option is A Belbin’s Team roles theory describes the types of behaviour patterns among individual team members ‘working towards achieving goals. HKCA PASS! 13RPe7 08370 «= 2 36, The correct option is A. Operational level decisions are taken at the lowest level of the organisation hierarchy. Hence they relate to the day to day activites of an organisation, 37. The correct option is A. ‘The classical thoory of management by Fayol covers how the management should organise large group of ‘employees into the overall structure of an organisation so that the efficiency and productivity of each group 38, The correct option is A. Coaching represents a common version of “on the job” training. In the above case Jackson is providing taining to James about his role and responsibilities 39, The correct option is A. The motivator factor represents the area where an organisation recognises an employee's efforts and ‘echievements. An organisation always tries to increase the motivational levels of its employees and provide hygiene factors to avoid employees’ dissatisfaction. 40, The correct option is A. Downward communication follows the lines of authorty of an organisation. In the above example James, the regional manager has communicated with the area sales managers about the company's strategy and objectives. It fllows the lines of authority. The information passes from top to bottom. 41, The correct option is B. Connected stakeholder is an individual or group that meets the definition of a stakeholder and has a financial link with the organisation, 42. The correct option is C. A higher interest rate provides people with a greater incentive to save money. It also makes it more ‘expensive for organisations to borrow capital to finance expansions. This in turn leads to the decrease in the demand as well as the output of goods and services and thereby decreases inflation. 43. The correct option is D. ‘According to Herzberg's Two-Factor theory pay is a basic set of expectations employees typically have from the organisation they work for. 44, The correct option is B. Theorists represent people who enjoy academic based learning. They leam from text books or by taking ‘academic courses, 45, The correct option is A. Strategic decision making involves setting the long term direction and objectives of an organisation. ‘Therefore it requires information on the external environment of the organisation, 48, The correct option is C. In the case of the isolation effect, the reviewers tend to base the whole appraisal on a single incident rather than the overall performance of an employee. 47. The correct option is B. ‘A tisk committee assesses and reports the risks faced by an organisation on an on going basis for every activity undertaken by an organisation. Hence its an example of a standing committee. HKCA2013acca.taobaoGona LEARNINGMEDIA 48, The correct option is B. Development is a term used to describe an individual's self development which helps him on his future growth. it will help him to achieve a better position in his career. 49, The correct option is C, Taste is the factor which is describing the impact of change, in the taste of the customer. Restaurants are changing their menus and including more salads and other healthier foods in their menu, 50, The correct option is C. Technological factors: online trading in the case of Diamond has helped it reach distant markets without cctualy having to expand geographically. - End of Answers - HKCA All jor you ts... PASS! | 15