F 1

Accountant in Business
Fundamentals Level – Paper F1

Study Text Edition
April 2007
AH07 – F1
For exams up to June 2008
Dear Student,
A word from BPP
Welcome to your home study guide. This document will guide you through your BPP Learning Media Study Text and
other learning material .
By using this programme you will benefit from using the best possible materials, written by BPP Learning Media, with
clear exam-focussed guidance.
BPP Learning Media would like to take this opportunity to wish you all the best with your studies and exams.
Nicole Edgington Stephen Osborne

BPP Learning Media Sales and Marketing Director ACCA Home Study Materials Manager
STUDY TEXT EDITION: APRIL 2007
1 Introduction
This BPP Home Study Programme will guide you through the April 2007 edition of the BPP Study Text. If your Study
Text does not have that date on the cover, please contact BPP.
Before using this Study Programme, please familiarise yourself with the BPP Study Cycle on page 7. This is a tried and
tested way to study.
2 Using the Home Study Programme

This Home Study Programme is made up of 20 Study Periods, which have been graded as high or medium priority,
based upon guidance from ACCA and the examiners. Each Study Period consists of the following elements.
Exam Guidance
This gives you important information of how
your exam is likely to focus on the particular
area you are studying. It explains the emphasis
that the examiner has placed on the topics
covered in this Study Period on the basis of the
pilot paper and communication with BPP.
Introduction to the session

Here you are introduced to the subject and the
main issues that you should understand when
you have finished your study. You are also
directed to the relevant BPP Learn Online or
i-Learn module.
Guidance through the Study Text

This provides you with important instructions
on how to work through the BPP Study Text.
You must follow the guidance in this table for
time efficient study, as you will be told which
areas of each chapter must be worked through
in detail and which can be skimmed over. It
contains key points, summarising the most
vital areas of the Study Period.
1
BPP i-Pass and Study Text Question Bank

Once you have studied the subject you are
ready to test your understanding and
application skills. Use i-Pass and Study Text
questions as directed. Re-visit any areas
where you are weak.
Quick Quiz
Use the Quick Quiz at the end of the chapter
to see if you have picked up the key technical
knowledge required.
Each Study Period should take about 2½ hours. There is an overview of all Study Periods, on page 10, which can
be used to set up a timetable.
This Study Programme will become a key document in your revision phase.
2
Progress Tests
Some of the Study Periods are 'Progress Tests' which you can use to
assess the work you have done on a limited number of Study Periods.
You should mark the tests yourself using the solutions at the end of
this Study Programme.
Course Exams
(purchasers of Home study courses only)
Your BPP Learning Media material contains two Course Examinations.
These should be attempted at the points suggested within the Study
Programme (they cover all preceding Study Periods).
To gain the greatest benefit from the exams, you must set aside a period of two hours during which you will have no
interruptions.
By submitting these exams, you will increase your chances of passing the real exams by 30%.
3
3 BPP's i-Pass CD Rom

Your Home Study Course may include BPP's i-Pass CD-Rom, which is designed to test knowledge and perfect exam
technique. It enables you to attempt tests, making it an ideal revision tool. If iPass is not included, ask your tuition
provider if you can upgrade your Home Study Course to include it.
i-Pass has two modes (or three for F1, F2 and F3).
The first one is 'Test as you learn'. This allows you to
test yourself on the areas that you are studying at the
time or a combination of different areas. Use the
sliders to choose the number of questions to do to fit
the time you have available.
The second mode provides exam practice by

creating an exam containing questions selected at
random from those within 'Test as you learn' for you
to answer or, if appropriate to your paper, exam
scenarios for you to attempt.
screen shot
Papers examined by Computer Based Exam (F1, F2

and F3) include a third mode, 'Final mock exam'.
The Final mock exam contains questions not included
within 'Test as you learn'. Attempt this to check
you're ready for the real thing.
Each mode gives you comprehensive feedback on the
questions and your performance.
4
To help us answer BPP i-Pass queries you might have quickly and effectively, please follow the steps below. (This
procedure is necessary as question numbers change each time the CD is used.)
Step 1 With the question you wish to query on-screen, push the Print Scrn (Print Screen) button on your
keyboard (usually located to the right of the F12 key). This will copy the image of the question to your
computer's 'clipboard'.
Step 2 Start Microsoft Word. (You can do this while i-Pass is running – click on the start button, then select
Microsoft Word from the programs option.)
Step 3 Paste the image from the clipboard into a new Word document. Do this by selecting Edit, Paste – or by
using the Paste button on the Word toolbar.
Step 4 Save the document with a meaningful name, eg iPass_PaperF1_query.doc.
Step 5 E-mail the document, with details of your query, to learningmedia@bpp.com. If you make contact by
phone, the person dealing with your query will ask you to e-mail or post a copy of the document to them.
4 Learning to Learn Accountancy

Whether you are about to start your studies or continuing them, BPP's Learning to Learn Accountancy will help you
learn efficiently and effectively. It also provides essential guidance on dealing with your exam. If you would like to
obtain a copy e-mail learningmedia@bpp.com with your details.
5 Study Skills
Before you begin your studies, you may want to spend some time thinking about how to approach them. Consider the
following.
(a) The study environment. Studying while working is very different from studying full time. Time management is crucial.
(b) Types of subject. You need to think about the form the exam will take and the skills it will draw on. For example,
does it test knowledge, numerical skills, application of knowledge or application of theory?
(c) What is your learning style? Your learning preferences should affect the way you approach this study material.
(d) You need to think about how to work through the text, how to take notes and how to do examples.
(e) How will you approach your revision?
(f) You need a technique for dealing with common types of question.
(g) You must approach the exam in a methodical manner.
5
6 Getting ready to Study

To get off to the best possible start to your study, you should take time to read the following features in your BPP
Learning Media Study materials.
Approaching F1
You will find detailed guidance for approaching your exam on page 23 of your Study Text. This guidance describes
what the paper seeks to achieve, the skills you are expected to demonstrate and how you can improve your chances of
passing the paper.
Big Picture diagram

The three 'Big picture' diagrams found on pages 11, 23 and 37 in this Home Study Programme help you understand
and visualise the paper from a high level, giving you a clear perspective of the key topics and how they relate to each
other before you study the detail. Keep these pictures in the back of your mind when studying and refer back to them if
you get bogged down, they will help refocus your mind on what is really important.
Pilot Paper analysis

Page 545 of the Study Text provides you with a copy of the Pilot Paper. It is important for you to read this to
understand the style of questions you will be faced with in the exam. Do not let these questions put you off studying –
by the end of the Course you will be able to tackle them!
6
BPP Study Cycle

We recommend you follow this Study Cycle each time you study.
Step 5
Try the questions from the BPP i-Pass disk and any questions
recommended in the Home Study Programme.
Step 1
Read the Exam Guidance in the Home Study Programme and the
Introduction to the session.
Step 4
Test yourself out on the Quick Quiz at the end of the chapter, looking
back to the chapter detail for anything you are unsure on.
Step 2
Look at the chapter introduction in the Study Text and think what
you know about this area or what is likely to be in the chapter.
With Home Study Plus, Learn Online or if using the i-Learn disk,
use the BPP i-Learn module to get you started on the subject.
Tips for using Learn Online can be found at
www.bpp.com/acca/learnonline and selecting FAQs.
Step 3
Read the Guidance in the Home Study Programme and then read
the Study Text chapter, looking out for these points. Try any
examples as you go along.
7
7 Revising
Familiarise yourself with BPP's Revision Cycle below.
For your revision phase, your Home Study Course includes the following.
(a) The BPP Practice & Revision Kit, which contains exam standard questions and other useful practice questions..
(b) The Home Study Programme, where the Exam Guidance and Key Points will serve as a reminder of the work
you did in each Study Period.
(c) The BPP Passcards, which give short summaries of the content of each chapter of the Study Text.
Revision should not start until you have completed your second course examination.
BPP Revision Cycle
Step 1
Look back to the Home Study
Programme as you start revising
each subject to remind you of
that subject.
Step 4 Step 2
For a change, test yourself Look at the appropriate
on i-Pass. Passcard chapter to make
sure you are aware of the
full scope of the knowledge
needed.
Step 3
You should spend most of your time on this
step. Do the suggested questions from the
Question Plan in the Revision Kit and make sure
you leave time to review your performance, both
the contents and the timing. Think what you
could do better next time and if you need to
brush up on any knowledge or techniques.
8
8 BPP's Big Picture

The 'Big Picture' diagram provides you with an overview of the subject and builds up a framework containing the key
techniques and knowledge that you need to be confident of performing well in the exam.
You will find a 'Big Picture' at the start of the course followed by a written summary of the scope and contents of the
subject.
There are also 'Big Pictures' situated before the point at which you take Course Exams 1 and 2 to help consolidate what
you have learnt so far and to help you revise.
You will find the first 'Big Picture' on page 11, the second on page 23 and the third on page 37.
9
Study Period Planner

Use this schedule and your exam timetable to plan the dates on which you will complete each Study Period. The letters
'H' and 'M' tell you whether the topic is high or medium priority.
Detailed guidance and prioritisation of each Study Period begins on page 13.
BIG PICTURE 1
Study Study
Period Topic Due Date Period Topic Due Date
1 Business organisation H 10 Control, security and H
and structure audit
2 Information M 11 Identifying and M
technology and preventing fraud
systems 12 Leading and H
3 Influences on H managing people
organisational culture 13 Individuals, groups M
4 Ethical considerations M and teams
5 Corporate governance M 14 Motivating individuals M
and social and groups
responsibility 15 Personal effectiveness H
6 The macro-economic H and communication
environment 16 Recruitment and H
7 The business H selection
environment 17 Diversity and equal M
8 The role of accounting H opportunities
9 Progress Test 1 H 18 Training and H
development
19 Performance H
appraisal
20 Progress Test 2 H
BIG PICTURE 2 BIG PICTURE 3
COURSE EXAM 1 (if purchased) COURSE EXAM 2 (if purchased)

A practice exam covering Study Periods 1-9. A mock exam covering the whole syllabus.
REVISION PHASE
Your revision, using the questions and guidance in the BPP Learning Media Passcards and the BPP Learning Media
Practice & Revision Kit, will begin when Course Exam 2 is complete. This should, at the latest, be four weeks before the
final exam.
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Big Picture Diagram 1
(F1)
Understanding the business and its Objectives

environment
Environmental influences on the Business structure and culture

business
Regulation and the accounting

profession Recruitment and developing How to manage individuals and
effective employees teams
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The ACCA F1 syllabus, Accountant in Business, acts as an introduction to the topics that an accountant in business
should be aware of and how the accountant’s role fits into the running of the business. An accountant must
understand the business, what its objectives are and its internal and external environment.
The way a business is run may be very different depending on what type of organisation it is. For example,
organisations such as public sector, not-for-profit, co-operatives and non-governmental organisations may have
different goals and business structures from a commercial business.
Environmental influences on the business
The way a business operates is influenced by its external environment and its internal environment. The external
environmental influences include the macro-economic environment, PEST (political, economic, social and technological
changes), Porter’s five forces and legal frameworks.
Porter’s five forces are the competitive forces which influence the state of competition in an industry, and these
determine the profit potential of the industry as a whole.
Legal frameworks such as equal opportunities, health and safety and discrimination acts affect the way a business
recruits, develops and treats its employees.
Regulation and the accounting profession
The accounting profession regulations are another external influence on the business but they deserve a separate
section due to their importance.
Corporate governance involves risk management, internal control, accountability to stakeholders and conducting
business in an ethical and effective way. The latest report on corporate governance is the 2003 Combined Code. The
ACCA also has a code of ethics and conduct.
Businesses must conform to company law and accounting standards. GAAP (Generally Accepted Accounting Practice)
exists for further guidance.
Business structure and culture
The internal environment, such as the organisational hierarchy and the culture of the organisation will also influence
how the business operates. Handy’s ‘gods of management’ describe four different types of culture.
The structure and culture of the business will influence the recruitment and development of employees and how
individuals and teams are managed.
Recruitment and developing effective employees
The process of recruitment is about obtaining candidates. The process of selection is about deciding which of the
applicants is the right candidate. These processes are vital to ensuring the business has the human resources it needs,
when it needs them. Personal effectiveness is also covered here.
How to manage individuals and teams
Managers do not just manage activities, processes and resources: they also manage people. People can mean
individuals, groups or teams and managers need to understand something of what makes them 'tick'. Motivation and
leadership are important topics for managing people.
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Study Period 1
Business organisation and structure High Priority
Step 1 Exam Guidance Step 5 BPP i-Pass and Study Text Question Bank
The material contained within this long chapter forms the basis i-Pass Module 1 contains questions on business organisation
for your study of this whole syllabus. It covers the subject and structure.
matter behind seven of the questions on the Pilot Paper. Now attempt questions 1, 2, 5, 6, 23, 26 and 46 from the Pilot
Future papers are very likely to contain an equally significant Paper, and questions 1 and 2 from the Question Bank.
number of questions from this syllabus area.
Step 2 Introduction to the session Step 4 Quick Quiz

This chapter lays the foundation for an understanding of what Please attempt the Quick Quiz at the end of the Study Text
organisations are, what they do and how they do it. Chapter to test your understanding of this very long and
Business organisation and structure is covered in module 1 of important chapter.
i-Learn. Wait until you have covered study period 3 before
looking at this.
Step 3 Guidance through the Study Text

This study period covers Chapter 1 of the Study Text, Business organisation and structure.
Organisations develop out of the need to co-ordinate work, but this can be achieved in different ways. Skim read Section 1 as
introductory material to the different types of organisation that exist.
There are various influences upon organisational structure, as described in Section 2. This is an important section as many of the
concepts and terms within it are specifically itemised in the syllabus.
Section 3 demonstrates the way in which most firms have some sort of organisation hierarchy, which reflects the levels of strategy-
making.
Firms which employ many staff need to group them into departments on some basis: this involves choices as to departmentation.
Section 4 has a lot of important detail on organisational functions – make sure that you have a full understanding of the main features
and role of each, particularly marketing and finance.
Section 6 concludes the chapter with a discussion of the work of committees. Skim read this section.
This session is reflected in the Business structure and culture section of the 'Big Picture' diagram.
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Study Period 2
Information technology and systems Medium Priority
This topic did not appear on the Pilot Paper, but the choice of a i-Pass Module 2 contains questions on information technology
system to fulfil a given business information need could be the and systems.
subject of a question in future sittings. Now attempt questions 5 and 6 from the Question Bank.

Information takes many forms and has many uses within the Please attempt the Quick Quiz at the end of the Study Text
organisation. Organisations require different types of system to Chapter to test your understanding.
provide different levels of information, supporting the distinction
between strategic, tactical and operational decision making. A
range of technologies has been developed to assist businesses
with their information needs.
Module 2 of the i-Learn covers information systems.

This study period covers Chapter 2 of the Study Text, Information technology and systems.
Section 1 shows how the role of information has become central and strategic, fulfilling a range of purposes. Designing information
systems to produce good information from available sources (Section 2) is a challenge faced by all businesses. The qualities of
information are specifically mentioned in the Study Guide, so these are important sections.
A range of systems are available to support businesses with their decision making. These are described in Section 3. It is useful to be
aware of the wide range of technologies, but do not become stuck in all of the details of the various systems.
The principles of information security (Section 4) form an important practical area of study that could well come up in exam questions.
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Study Period 3
Influences on organisational culture High Priority
Examined: Pilot Paper
Cultural influences provide a good source of potential exam i-Pass Module 2 contains questions on organisational culture.
questions. There is such a question on the Pilot Paper. Now attempt questions 4, 7 and 8 from the Pilot Paper, and
Stakeholders too are very important – worth four marks on the questions 7, 8 and 9 from the Question Bank.
Pilot Paper. Every exam is likely to have at least one question on
stakeholders.

Culture may be identified as ways of behaving, and ways of Please attempt the Quick Quiz at the end of the Study Text
understanding, that are shared by a group of people. Different Chapter to test your understanding.
countries have different ways of doing business, and different
cultural values and assumptions which influence business and
management styles. Culture impacts on other topics, such as
motivation, leadership and teams, which you will study later in
the programme. i-Learn module 1 covers culture.

This study period covers Chapter 3 of the Study Text, Influences on organisational culture.
Sections 1 and 2 of this chapter demonstrate how organisation culture is, broadly, the distinctive way an organisation does things.
Make sure that you study these sections to appreciate what this means for the way that an organisation ‘works’.
Particular structures suit particular cultures (Section 3): Handy's model should be learned in detail. The impact of national culture on
organisational culture outlined by Hofstede is also important.
Section 4 examines the importance of informal networks in shaping organisational culture. This is good background information which
you should skim read.
Section 5 examines the different stakeholder groups, which have different degrees of power and interest, and which require various
approaches from management. As noted above, stakeholders are a key topic and so this section must be read carefully.
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Study Period 4
Ethical considerations Medium Priority
Ethics has an increased focus in this syllabus, but there are no i-Pass Module 3 contains questions on ethics.
questions on ethics on the Pilot Paper. This is perhaps Now attempt question 11 from the Question Bank.
surprising, given that the F1 syllabus is concerned with the key
themes of business management. The ethical management of
modern business is an important topic. Organisations are, after
all, part of society and must respond to public concerns,
including notions about social responsibility (see Study
Period 5).
What all of this means is that questions on ethics are bound to
arise on future papers, so be prepared for them by studying this
chapter carefully!

The observance of ethical codes is of relevance to all Please attempt the Quick Quiz at the end of the Study Text
professionals working within organisations. The study text Chapter to test your understanding.
chapter contains quite a bit of detail on the theory behind ethical
decisions, but do not get bogged down in it. Make sure that you
appreciate the practical implications of ethics for you in your
role as an accountant and a future manager.
Ethics is covered in i-Learn module 3 but wait until you have
been through Study Period 5 before going through it.

This study period covers Chapter 4 of the Study Text, Ethical considerations.
This chapter begins by considering why society developed a framework of rules, in Section 1. Skim read this section for an
understanding of the context within which ethical ‘rules’ operate.
Section 2 looks at the idea of managerial accountability and responsibility. The most important point to take from this section is that
managers are always responsible to someone for their actions. Ethical considerations thereby affect managers directly.
Section 3 widens its focus by giving some background to ethical behaviour. Skim read this section.
Section 4 is about the practical ways that organisations manage ethical problems, and how any response to ethical dilemmas reflects a
prevailing culture. This is an important section.
Sections 5 and 6 consider why ethics are relevant to accountants – this is directly applicable to you and your studies. You need to be
familiar with the ACCA ethical code.
This session is reflected in the Regulation and the accounting profession section of the 'Big Picture' diagram.
16
Study Period 5
Corporate governance and social
responsibility Medium Priority
As we saw in the previous study period, ethics are those i-Pass Module 3 contains questions on corporate governance
principles that society expects companies to follow. Laws are and social responsibility.
rules that a company must follow. Now attempt questions 3 and 9 from the Pilot Paper, and
Corporate governance requirements and social responsibility questions 12, 13 and 14 from the Question Bank.
form additional rules and guidance for companies. They bridge
the gap between what the law requires and what society
expects.
‘Best practice’ in corporate governance features in a question on
the Pilot Paper. The increased role for non-executive directors is
also the subject of a question.

Corporate governance and social responsibility is an issue for all Please attempt the Quick Quiz at the end of the Study Text
companies. Since the management and owners of companies Chapter to test your understanding.
are not necessarily the same people, it is important for
management to be encouraged to act in the best interests of the
owners and other stakeholders.
Most corporate governance reports are based around the
principles of integrity, accountability, independence and good
management, but there is disagreement on how much these
principles need to be enshrined in detailed and prescriptive
rules. Governance, ethics and social responsibility are covered
in i-Learn module 3.

This study period covers Chapter 5 of the Study Text, Corporate governance and social responsibility.
Sections 1 and 2 of this chapter cover the main areas of corporate governance. Please note that the examiner regards an understanding
the underlying principles of corporate governance as far more important than knowing with the detailed provisions laid down in each
report.
Section 3 and 4 discuss the role of the board, and how it communicates with shareholders. These are important sections in
understanding the practical application of corporate governance recommendations.
Sections 5 and 6 discuss corporate social responsibility. Some argue that business has a social responsibility for the cost of its
activities, and there does seem to be widespread acceptance that commercial organisations need to pursue wider social aims to some
extent. An outline understanding of these sections is required.
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Study Period 6
The macro–economic environment High Priority
The detail contained within the Chapter that supports this study i-Pass Module 4 contains questions on macro economic
session lends itself to the type of questions which are set under environmental factors.
this examination. Make sure that you study it carefully. Now attempt questions 11, 12, 16, 24 and 27 from the Pilot
On the Pilot Paper there are nine marks available for questions Paper, and questions 15, 16 and 17 from the Question Bank.
covering macro-economics topics! They tend to have a practical
focus: questions on monetary policy, for example, might
concern its impact upon the business sector.

This study session deals with an overview of the goals of Please attempt the Quick Quiz at the end of the Study Text
macroeconomic policy, concentrating on fiscal policy and Chapter to test your understanding.
monetary policy. All modern governments are expected to
manage their national economies to some extent. Electorates
generally look to them for effective policies. i-Learn module 4
covers the macro-economic environment.

This study period covers Chapter 6 of the Study Text, The macro economic environment.
Sections 1 to 4 look at government policy in overview, and go on to look at the business cycle and national income. In
macroeconomics we are concerned with spending, investment, price levels, employment and output in the economy as a whole. Make
sure that you have a good grounding in the material in these sections.
Sections 5 and 6 examine inflation and unemployment, two of the key targets of government policy. There are differing ideas about
how full employment can be achieved and what are the causes of inflation, and the effectiveness of government measures to stimulate
the economy. These sections are likely sources of examination questions as there is a lot of detail and the examiner can set questions
with a practical focus.
Fiscal policy (Section 7) provides a method of managing aggregate demand in the economy.
Monetary policy (Section 8) uses money supply, interest rates or credit controls to influence aggregate demand.
The balance of payments (Section 9) is a statistical 'accounting' record of a country's international transactions.
This session is reflected in the Environmental influences on the business section of the 'Big Picture' diagram.
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Study Period 7
The business environment High Priority
The topics covered in this large chapter are heavily tested on the i-Pass Module 4 contains questions on factors in the business
Pilot Paper, featuring in five questions, so clearly it is a very environment.
important one. Now attempt questions 10, 13, 14, 15, and 17 from the Pilot
Questions on the Pilot Paper cover population trends, Paper, and questions 18, 19 and 20 from the Question Bank.
environmental factors and scanning, data protection legislation
and employment legislation.

As noted at the beginning of the Chapter: ‘no organisation is Please attempt the Quick Quiz at the end of the Study Text
likely to achieve its aims if it fails to take into account the Chapter to test your understanding.
characteristics of the environment in which it operates.’ This is a very long and very detailed chapter which contains
PEST analysis is a key framework to employ as an initial survey some important topics. There are several key frameworks here
of the business environment. This model forms the bulk of the and it is very important both that you know them and that you
material for this study session. i-Learn module 5 covers the can apply them.
business environment.

This study period covers Chapter 7 of the Study Text, The business environment.
As covered in Section 1, the aim of environmental analysis is to review the environment for opportunities and threats. Skim read this
section to gain a good general understanding of the importance of the business environment.
Section 2 summarises the PEST model, which is then broken down into its component elements in Sections 3 to 8. A good general
knowledge of the factors within the PEST model is strongly recommended.
External competitive forces, as identified by Michael Porter, are covered in Section 9. These are important for the business to analyse
and you should be familiar with them too.
The internal capabilities of the organisation are analysed in the value chain framework in Section 10. Another fundamental model, it is
important to learn the activities contained within it.
This session is reflected in the Environmental influences on the business section of the 'Big Picture' diagram.
19
Study Period 8
The role of accounting High Priority
The specifics, and the overall role, of accounting systems (both i-Pass Module 5 contains questions on the role of accounting.
manual and computerised) are highly likely to be examined, as Now attempt questions 19, 20, 21, 25, and 29 from the Pilot
they were on the Pilot Paper. Paper, and questions 21 and 22 from the Question Bank.
You may be asked about what information would be needed by
managers, employees or shareholders.
You should be able to outline the factors which have shaped the
development of financial accounting. Be aware that the form and
content of company accounts can be influenced by international
developments. The IASB is the subject of a question on the Pilot
Paper.

It is vitally important for this syllabus to understand both why Please attempt the Quick Quiz at the end of the Study Text
and how accounts are prepared. It is also important that you Chapter to test your understanding.
understand the distinction between management and financial You need to have a wide understanding of what accounting is
accounting. The accounting statements drawn up by a about. Your job is likely to be in one area of accounting, but you
management accountant are often prepared and presented very must understand the breadth of work which an accountant
differently from those of the financial accountant. This topic is undertakes. Attempting the Quick Quiz will show you where you
covered in module 6 of i-Learn. need to improve your knowledge.

This study period covers Chapter 8 of the Study Text, The role of accounting.
Sections 1 and 2 of this chapter introduce some ideas about accounts, and describe their purpose. The factors that make for good
accounting information are important, and should be learnt.
Section 3 outlines the standard setting process. Skim read this material to ensure that you have an overview.
Sections 4 and 5 examine the main transactions and financial systems undertaken by a business. These are important sections, as the
material contained within them is likely to be used for exam questions due to its detailed and practical nature.
It is important to understand the differences (and similarities!) between manual and computerised financial systems in Section 6. There
is a question on the Pilot Paper on this very topic.
Section 7 discusses databases and spreadsheets. The examiner is unlikely to require a detailed technical knowledge here, but it is
worth being aware of their uses in the management of business information and accounting applications.
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Study Period 9
Progress Test 1 High Priority
In order to reinforce what you have learnt so far, answer the following questions. Try to answer them without
referring to your Study Text or notes. The test should take you no longer than 30 minutes and covers Study Periods
1–8. Solutions are at the back of this Study Programme.
1 Which of the following is a feature of a limited company?

A Management accountability is limited to areas within its immediate control
B The shareholders cannot normally be sued for the debts of the business
C The minimising of costs is a primary goal
D The business is owned by the employees, who share the profits
2 What is the ‘middle line’ in Mintzberg’s diagram of organisational components?
3 Good information has a number of specific qualities: the mnemonic ACCURATE is a useful way of remembering
them. What does the second ‘C’ in the mnemonic stand for, and what does it mean?
4 Mendelow suggests that stakeholders may be positioned on a matrix which will help define the type of
relationship the organisation should seek with its stakeholders. What are the axes on this matrix?
5 What is a ‘compliance-based’ approach to ethics?
6 Which of the following is not necessarily a feature of poor corporate governance?
A Lack of involvement of the board
B Lack of contact with shareholders
C Large salary increases for board members
D Misleading accounts and information
7 ‘A progressive tax takes a lower proportion of income in tax as income rises’. True or false?
8 Which of the following is an advantage of outsourcing?
A It is cheaper than maintaining in-house facilities
B Long term contracts can lock parties in for many years
C High quality is guaranteed
D New skills and knowledge can become available
9 Why might the general public be interested in the financial statements of a company?
10 A bank reconciliation should be done at least once a month, whereby the cash book is reconciled to the bank
statement. There will always be differences. Which of the following is NOT a difference that could be expected
on a bank reconciliation?
A Amounts paid out of petty cash for staff expenses
B Timing differences due to unpresented cheques
C Standing orders and direct debits not entered in the cash book
D Funds received by transfer not recorded in the cash book
You will find the answers to this test at the end of this Study Programme. If you answer more than 5 questions
correctly, your performance is satisfactory; if you answer more than 7 correctly, you are doing well. Once you have
reviewed how you have performed, go back over topics where you feel your understanding is poor.
21
Study Period 9
Progress Test 1 (con't) High Priority
22
(F1)

environment
Stakeholders [3]

business
Macro-economic environment [6] Organisational hierarchy [1]

PEST model [7] Departmentation [1]
Porter's five forces [7] Information and information
systems [2]
Handy's gods of management [3]
Value chain [7]
Accounting system/function [8]

Ethics [4]
Accountability [4]
ACCA code [4]
Corporate governance [5]
Company law [8]
Accounting standards [8]
GAAP [8]
Control systems [8]
23
24
Study Period 10
Control, security and audit High Priority
The syllabus regards internal control as a specific and very i-Pass Module 6 contains questions on control, security and
important business function, supported by effective and secure audit.
management information. This is evident by the number of Now attempt questions 22, 28, 30, 31 and 32 from the Pilot
questions in this topic area that appear on the Pilot Paper. The Paper, and questions 23 and 24 from the Question Bank.
work of internal and external audit features in questions carrying
a total of nine marks!

This session considers the main elements of internal control Please attempt the Quick Quiz at the end of the Study Text
systems that organisations operate. You should appreciate that Chapter to test your understanding.
it is a very significant syllabus area that merits detailed study. To reiterate, this is a hugely important area of the syllabus and it
i-Learn module 7 covers control, audit and fraud. is very important that you have understood it completely.

This study period covers Chapter 9 of the Study Text, Control, security and audit.
Section 1 looks at key internal control systems and as such is an important section in introducing the rest of the Chapter.
Study Section 2 carefully. Controls need to be linked to organisational objectives, and the risks that organisations face. Note the key
importance of the overall control environment, which is influenced by management and employee attitudes and organisational
structure.
Sections 3 and 4 examine internal and external audit. These are a key part of the control system and a very important topic that you
must study fully.
Sections 5 and 6 focus on computerised information systems. Make sure that you understand the various reasons as to how important
it is that such systems remain secure.
25
Study Period 11
Identifying and preventing fraud Medium Priority
As noted in the Study Text, and in common with other syllabus i-Pass Module 6 contains questions on identifying and
areas, it is the practical aspects of fraud (where it might actually preventing fraud.
occur how it can be detected) which are the most likely topics to Now attempt questions 33 and 34 from the Pilot Paper, and
be examined. This is certainly the case on the Pilot Paper, which questions 26 and 27 from the Question Bank.
contains questions on ‘teeming and lading’ and the devising of
internal control systems which will minimise the prospect of
fraud.

In a corporate context fraud can fall into one of two categories: Please attempt the Quick Quiz at the end of the Study Text
removal of funds or assets from a business, or the intentional Chapter to test your understanding.
misrepresentation of its financial position.
Keeping a practical focus, remember that every business is
unique in its own way, and offers different opportunities for
fraud to be committed. Bear this in mind as you study the
chapter in detail.
Fraud is covered in module 7 of i-Learn.

This study period covers Chapter 10 of the Study Text, Identifying and preventing fraud.
Section 1 considers the various types of fraud that an organisation may be prone to. The material in this section provides a good initial
overview and puts what follows into context.
Section 2 identifies the signs of fraud in different circumstances. Recognising the potential for fraud to be carried out is an important
practical application of the theory within this chapter and an area that could be tested in exam questions.
Sections 3, 4 and 5 explore some important issues. You need to have a good knowledge of how fraud is both detected and prevented.
Continuing the practical application of the knowledge you gain from this chapter, it is important to recognise that although there may
be significant costs involved in implementing a system of fraud prevention, the consequences of fraud are likely to be very serious.
These need to be weighed up.
26
Study Period 12
Leading and managing people High Priority
You need a thorough knowledge of the theories contained within i-Pass Module 7 contains questions on leading and managing
this chapter. Even simple models could come up in the exam, people.
and topics such as the differences between management and Now attempt Pilot Paper questions 18, 35 and 36, and questions
leadership, or specific leadership style models, could be tested. 29 and 30 from the Question Bank.
The Pilot Paper contains questions on leadership styles, the
Blake and Mouton managerial grid and management theory.
You really need to understand the difference between trait
theories, style theories and contingency approaches. It is the
latter which is most commonly accepted today.

The main theme of this study period is to emphasise the detail Please attempt the Quick Quiz at the end of the Study Text
contained within this topic. It is this detail which is specifically Chapter to test your understanding.
outlined in the study guide for the syllabus. This will help to reinforce your knowledge of this mainly theory-
Module 8 of the i-Learn covers leading and managing based, but highly examinable, syllabus area. The theories
individuals and teams. It covers study periods 12, 13 and 14. discussed in this Chapter are useful as a framework for
understanding management in general. As you will appreciated,
the major challenge of this topic is learning the detail of the
various theories.

This study period covers Chapter 11 of the Study Text, Leading and managing people.
Section 1 needs to be studied to get an overview of what a manager does. Ask yourself questions such as: ‘What is management?’
‘What do the managers that I know actually do?’
Section 2 traces the development of management theory - you should be able to appreciate the modern view, ie that there is a variety
of factors at work when undertaking a thorough analysis of what a manager does.
Section 3 analyses the difference between a manager and a supervisor - the interface between managerial and non-managerial levels of
the organisation and a possible source of exam questions.
Sections 4 and 5 examine leadership and are probably the most important sections in the Chapter in terms of the level of detail that you
need to take on board.
This session is reflected in the How to manage individuals and teams section of the 'Big Picture' diagram.
27
Study Period 13
Individuals, groups and teams Medium Priority
The Pilot Paper features a 2 mark question on Tuckman’s i-Pass Module 8 contains questions on groups, teams and
stages, and another on Belbin’s roles. individual behaviour.
Teamwork is one of the hottest concepts in modern Now attempt Pilot Paper questions 37 and 38, and questions 32
management. Fortunately, there are some useful models which and 33 from the Question Bank.
can be learned, and which will almost certainly be examined.

Before embarking on this session it is useful to bear in mind that Please attempt the Quick Quiz at the end of the Study Text
perhaps above all, managers manage people. Organisations are Chapter to test your understanding.
made up of individuals, groups and teams with their own
characteristics and ways of working. In your own working life
you will generally find yourself working as part of a group or
team. If you are a supervisor or a manager, you may direct one.
Look at i-Learn module 8 when you have finished Study Period
14.

This study period covers Chapter 12 of the Study Text, Individuals, groups and teams.
Section 1 looks at some useful concepts for understanding the behaviour of individuals at work, and how it can be managed. Skim read
this section.
In Sections 2-7 the subject matter is developed further as we consider how people behave, both in groups and in the more structured
environment of teams. The creation and maintenance of effective teams in the work environment is a key management topic, and it is
important that you get to grips with this part of the Chapter. Teams need to get their job done, but in doing so they must make sure
that team members can stick together and work well as a unit. These are the two ‘sides’ of the study of teams that you need to
appreciate.
28
Study Period 14
Motivating individuals and groups Medium Priority
The Pilot Paper features a 2 mark question on Herzberg’s two i-Pass Module 8 contains questions on motivation.
factor theory, and a 1 mark question on Victor Vroom’s Now attempt Pilot Paper questions 39 and 41, and questions 34
‘expectancy equation’. and 35 from the Question Bank.
Many theories try to explain motivation and why and how people
can be motivated. Remember that not all the incentives that an
organisation can offer its employees are directly related to
monetary rewards.
Motivation is likely to appear regularly in the exam, since it is an
essential aspect of managerial responsibility. As with your
studies of groups and teams, leaders and managers, it is vital
that you understand the theories and authorities.

Motivation is a useful concept, despite the fact that the impact of Please attempt the Quick Quiz at the end of the Study Text
motivation, job satisfaction and morale on performance are all Chapter to test your understanding.
difficult to measure.
The ability to ‘motivate’ people is a key skill of leadership, as we
have already seen in Study Period 12. Remember all the time
that money is by no means the only incentive to higher levels of
performance.Motivation is covered in i-Learn module 8.

This study period covers Chapter 13 of the Study Text, Motivating individuals and groups.
Section 1 explores motivation, and its impact on performance.
Sections 2-4, in, we go on to look at a range of key motivational theories in. This needs to be studied in detail as this is where the
examiner is very likely to look for potential examination questions.
Sections 5 and 6 examine a range of financial and non-financial rewards that may be used to motivate people. The job itself can be
used as a motivator. Job design refers to how tasks are organised to ‘create’ jobs for individuals. Key terms to understand here are ‘job
enrichment’, ‘job enlargement’ and ‘job rotation’. Pay is clearly also an important factor, but in reality it is ambiguous in its effect on
motivation. Make sure that you understand why this might be the case.
29
Study Period 15
Personal effectiveness and
communication High Priority
Many of these topics – such as barriers to communication, i-Pass Module 9 contains questions on personal effectiveness
qualities of effective communication– may be set as questions. and communication.
This is mainly because they are of direct practical importance to Now attempt Pilot Paper questions 43, 44 and 49, and questions
the role of the accountant in business. Such criteria are very 37 and 38 from the Question Bank.
important to the examiner when setting questions. The Pilot
Paper features questions on mentoring as well as
communication patterns.
You could be faced with questions involving time management.
Some of its principles reflect basic common sense, but do not
ignore it. The specifics of time management could form the
subject of an exam question.

This study session integrates a number of topics that relate to Please attempt the Quick Quiz at the end of the Study Text
the way that people do their jobs, both the routine activities and Chapter to test your understanding.
those non-routine tasks that may require a bit more flexibility This is a very long and detailed Chapter, drawing together many
and creativity. strands of material. Completing the quiz will ensure that you
Communication is fundamental, since it is only via have managed to keep on top of them all!
communication that we know what is to be done, by whom and
how. It is also important in motivating people.

This study period covers Chapter 14 of the Study Text, Personal effectiveness and communication.
Section 1 focuses on personal development plans. Understand the main principles behind their purpose and preparation.
Section 2 covers time management, a very necessary skill for all busy people. Note the key principles of time management.
The role of information technology in improving personal effectiveness is discussed in Section 3. Make sure that you understand the
basic principles, but avoid getting bogged down in too much detail. Technical terms will not be examined.
Section 4 covers coaching, mentoring and counselling as tools in personal development. This was examined on the Pilot Paper and so
can be regarded as an important topic area, but restrict yourself to an overview of the key principles and make sure that you are clear
as to definitions of each term.
Sections 5–9 are principally concerned with communication. This is the heart of the Chapter and where the bulk of the examinable
material is likely to be found. For example, make sure that you are very familiar with the barriers to communication, and that you
understand a good range of communication methods that are likely to be used by a modern business.
This session is reflected in the Recruiting and developing effective employees section of the 'Big Picture' diagram.
30
Study Period 16
Recruitment and selection High Priority
Some aspects of recruitment and/or selection will inevitably i-Pass Module 10 contains questions on recruitment and
come up in the exam, which is why this study session has been selection.
given a high priority. This topic provides a very rich source of Now attempt Pilot Paper questions 42, 47 and 48, and questions
questions for the examiner. 40, 41 and 42 from the Question Bank.
The Pilot Paper contains questions on the modern workforce,
the advertising of vacancies and selection tests. These questions
all indicate how the examiner expects practical application of
theoretical knowledge.

The aim of recruitment and selection processes is to obtain the Please attempt the Quick Quiz at the end of the Study Text
quantity and quality of employees required to fulfil the objectives Chapter to test your understanding.
of the organisation. This is a very detailed and quite demanding chapter, forming the
As a first step, make sure that you are completely clear on the basis of several questions on the Pilot Paper, so it is very
distinction between the terms ‘recruitment’ and ‘selection’. important that you are familiar with it.
Recruitment and selection is covered in module 9 of the i-Learn.

This study period covers Chapter 15 of the Study Text, Recruitment and selection.
Section 1 gives an overview of recruitment and selection. Together, they seek to ensure that the organisation has the human resources
that it needs. Make sure that after reading this section you can appreciate their overall importance.
Sections 2 and 3 cover the process of recruitment, which is all about obtaining the right candidates.
Advertising a vacancy is the rather specialist subject of section 4. It forms the subject of a question on the Pilot Paper, so it can be
considered an important area.
Section 5 covers selection - a systematic process to ‘home in’ on those who are most suitable for the job. This is an introductory
section to the greater supporting detail that follows in the rest of the chapter.
Sections 6 to 9 examine a range of selection tools. Interviews are the most popular, and should be studied closely, but organisations
might also use other methods, such as competence tests. The limitations of the interview as a selection method is a particularly
pertinent issue, which would lend itself to an exam question.
Section 10 covers the evaluation of the effectiveness of the recruitment and selection process – a very important control!
31
Study Period 17
Diversity and equal opportunities Medium Priority
This topic area is of great relevance to all organisations and their i-Pass Module 10 contains questions on diversity and equal
recruitment policies, so do not be tempted to regard it as opportunities.
peripheral. It is important to have a good level of awareness of Now attempt Pilot Paper question 48 and questions 43 and 44
the purpose of, and benefits to be gained from, an effective from the Question Bank.
diversity and equal opportunities policy.
On the Pilot Paper there is a 2-mark question on this topic area,
in the context of discriminatory recruitment advertising.

The main theme of this study period is to emphasise the Please attempt the Quick Quiz at the end of the Study Text
practical nature of this topic. The modern workforce is diverse, Chapter to reinforce your understanding.
and all organisations have to manage their employment policies This will help to reinforce your knowledge of this highly practical
accordingly. topic for recruitment and selection policy and practice.
As well as the need to comply with the legal framework in this
area, there are ethical and business arguments which support
eliminating discrimination of any type.
This is covered in i-Learn module 9.

This study period covers Chapter 16 of the Study Text, Diversity and equal opportunities.
Section 1 is a general introduction to the theme of discrimination and equal opportunity. Section 2 on equal pay contains some material
on specific UK legislation – be aware of this as a ‘best practice’ overview only, as detailed legislative provisions will not be tested in the
exam.
In Section 3, note the various types of discrimination identified by the legal framework.
Section 4 covers the practical reality of an effective equal opportunities policy, and as such is probably the most important section in
the chapter. The examiner enjoys translating material into practical scenarios to test in the exam.
In Section 5, note Ingham’s framework for a diversity policy as representing best practice, but the examiner has stated that it will not
be examined in detail.
This session is reflected in the Recruiting and developing effective employees and the Environmental influences on the
business section of the 'Big Picture' diagram.
32
Study Period 18
Training and development High Priority
Training and development links in with appraisal and i-Pass Module 11 contains questions on training and
performance management. development.
While it is important to understand the theory in this topic area, Now attempt Pilot Paper question 45 and questions 45, 46 and
exam questions are equally likely to test practical aspects and 47 from the Question Bank.
present mini-scenarios that require you to apply your
knowledge.
On the Pilot Paper, there is a 2-mark question on types of
training methods and in what circumstances they might be
suitable.

After a consideration of how people learn, the key focus of this Please attempt the Quick Quiz at the end of the Study Text
session is to understand the importance of a systematic Chapter to reinforce your understanding.
approach to training. This will help to identify those knowledge areas where you might
It is very important to realise that training needs to be firmly be weak.
applied in the work context, and this is the emphasis for the F1
syllabus. Personal development is a wider topic, but it also
looks forward to the study of performance appraisal in the next
study period.
Training development and appraisal are covered in i-Learn
module 10. Wait until you have finished study period 19 before
looking at this.

This study period covers Chapter 17 of the Study Text, Training and development.
Section 1 is an important one on the significance of learning in the workplace, and the basic theories concerning learning styles that
will underpin training should be fully understood. The theories of Honey & Mumford and Kolb are specifically mentioned in the syllabus
Study Guide.
In Section 2, note the distinctions between ‘development’, ‘training’ and ‘education’, and the benefits of training both for the
organisation and the individual employee. The systematic approach to training, and in particular the detail behind training needs
analysis (Section 3), is worth learning.
Section 4 covers the variety of training methods that are available – make sure that you are aware of the main types as these could
easily be the subject of an exam question. Skim read Sections 5 and 6 on responsibility for training and development and training
programme evaluation.
Section 7 on development provides a good introduction to the next study period on performance appraisal. Note the various categories
of development – management, career, professional and personal.
33
Study Period 19
Performance appraisal High Priority
Performance appraisal is a key people management topic. The i-Pass Module 11 contains questions on performance appraisal.
purpose, process and problems of appraisal, and the techniques Now attempt Pilot Paper question 50 and questions 48, 49 and
that can be used, both traditional and more recent (such as 50 from the Question Bank.
upward appraisal), provide a rich source of possible exam
questions.
On the Pilot Paper, there is a 2-mark question testing your
knowledge of the features of particular approaches to appraisal,
in which you need to examine the small scenario and decide
which approach is being used.
For these reasons, the detail in this Chapter of the Study Text is
worth learning.

As indicated in Step 1, the main focus of this topic is for you to Please attempt the Quick Quiz at the end of the Study Text
understand the purpose of performance appraisal, its process Chapter to reinforce your understanding.
and the likely problems (or barriers) that may need to be You might find it beneficial to do this after a break, to see how
overcome. much of the detail has been absorbed!
Performance assessment for the F1 syllabus is concerned
largely with its benefits for the organisation, through setting
goals and monitoring performance towards them.

Please read Chapter 18 after reading the guidance below.
This study period covers Chapter 18 of the Study Text, Performance appraisal. It outlines the purpose of performance appraisal and
emphasises how it is firmly rooted in the broader process of managing overall organisational performance. It is important that you
understand what ‘performance management’ means (Section 1).
Carefully read through the Chapter, making sure that you fully understand the distinction between the purposes and the processes
associated with appraisal (Sections 2 and 3). Maier’s framework for appraisal interviews is worth learning.
Barriers to effective appraisal (Section 4) and the evaluation of the appraisal scheme (Section 5) could also be a source of future exam
questions for a couple of reasons. Barriers to appraisal can be set out in an easy-to-learn (and therefore easy-to-test!) list, and the
evaluation of appraisal schemes is an important part of the overall organisational context: ensuring that individuals are performing to
the best of their ability and developing their potential properly, so that organisational objectives are met. This latter point is an
important area of syllabus knowledge, and links with Training and development in the previous study period.
34
Study Period 20
Progress Test 2 High Priority
In order to reinforce what you have learnt so far, answer the following questions. Try to answer them without
referring to your Study Text or notes. The test should take you no longer than 30 minutes and covers Study Periods
10-19. Solutions are at the back of this Study Programme.
1 Which of the following is NOT an example of a ‘prevent control’?

A Checking invoices from suppliers against goods received notes before paying the invoices
B Regular checking of delivery notes against invoices, to ensure that all deliveries have been invoiced
C Signing of overtime records to confirm that overtime was actually authorised and worked.
D Regular checks of physical inventory against records of inventory
2 What are the three broad pre-requisites or 'pre-conditions' that must exist in order to make fraud a possibility?
3 What are Fayol’s five functions of management?
4 Which of the following characteristics do you associate with Blake and Mouton’s managerial grid?
A Psychologically close and psychologically distant
B Short term versus long term
C Concern for task; concern for people
D Tells; sells; consults; joins
5 What is a ‘group think’?
6 Who identified the ‘hierarchy of needs’?
A Handy
B Maslow
C Bennis
D Herzberg
7 What is ‘coaching’?
A Any form of in-house training
B An interpersonal interview, the aim of which is to identify and work through any problems
C A relationship in which an experienced person fosters another's personal/career development
D An approach whereby a trainee is put under the direct guidance of an experienced employee
8 A current approach to job design is the development and outlining of ‘competences’. What is a ‘competence’?
9 What is the key characteristic of a ‘learning organisation’?
10 Which of the following is NOT an advantage of self-appraisals?
A It saves the manager time
B People may deliberately underestimate their performance
C It gives greater flexibility in terms of the timing and relevance of the appraisal
D It offers increased responsibility to the individual, which may improve motivation
You will find the answers to this test at the end of this Study Programme. If you answer more than 5 questions
correctly, your performance is satisfactory; if you answer more than 7 correctly, you are doing well. Once you have
reviewed how you have performed, go back over topics where you feel your understanding is poor.
35
Study Period 20
Progress Test 2 (con't) High Priority
36
(F1)

environment
Stakeholders [3]

business
Macro-economic environment [6] Organisational hierarchy [1]

PEST model [7] Departmentation [1]
Porter's five forces [7] Information and information
Legal frameworks systems [2]
• equal opportunities [16] Handy's gods of management [3]
• discrimination acts [16] Value chain [7]
Accounting system/function [8]

Ethics [4]
Accountability [4] Selection methods [15] Effective teams [12]
ACCA code [4] The recruitment process [15] Leadership styles [11]
Corporate governance [5] The recruitment policy [15] Groups [12]
Company law [8] Communication [14] The managerial grid [11]
Accounting standards [8] Training [17] Motivation [13]
GAAP [8] Appraisals [18] Management theories
Control systems [8] • Fayol [11]
Internal and external audit [9] • Taylor [11]
• Mayo [11]
• Mintzberg [11]
Fraud [10] • Drucker [11]
Security [9]
37
38
Solutions
Progress Test 1
1 B Option A relates to managerial performance measurement; Option C describes a not for profit
organisation; Option D describes a co-operative society
2 It translates the aims of the strategic apex into the work done by the operating core, by a process of
delegation and the issuing of instructions.
3 “Cost-beneficial” It should not cost more to obtain the information than the benefit derived from
having it.
4 (i) Power held, and (ii) likelihood of showing an interest in the organisation’s activities.
5 A compliance-based approach is primarily designed to ensure that the company acts within the letter of
the law, and that violations are prevented, detected and punished
6 C The others are features of poor corporate governance.
7 False. A progressive tax takes a higher proportion of tax as income rises.
8 D Options A and C are not necessarily true, and Option B is a possible disadvantage of outsourcing,
because it reduces organisational flexibility.
9 Company activities affect members of the public in a variety of ways. For example, enterprises may make
a substantial contribution to a local economy by providing employment and using local suppliers. The
financial statements are likely to give at least a general indication as to how far this can be expected to
continue in the future. Another significant factor for many observers is the effect of an enterprise on the
environment.
10 A The petty cash system is generally separate from the cash book/bank statement.
39
Solutions
Progress Test 2
1 A Prevent controls are controls that are designed to prevent errors from happening in the first place.
Option D is an example of a ‘detect control’.
2 Dishonesty, motivation and opportunity
3 Planning; organising; commanding; co-ordinating; controlling
4 C Option A is associated with F E Fiedler; Option B is not specifically associated with leadership theory;
Option D is associated with the Ashridge studies
5 Group think is the process whereby team consensus and cohesion may prevent consideration of
alternatives or constructive criticism, leading the team to make risky, ill-considered decisions.
6 B
7 D Option A is inaccurate and too general; Option B describes ‘counselling’; Option C describes ‘mentoring’
8 A person's competence is 'a capacity that leads to behaviour that meets the job demands within the
parameters of the organisational environment and that, in turn, brings about desired results'. (Boyzatis)
Some take this further and suggest that a competence embodies the ability to transfer skills and
knowledge to new job situations. Different sorts of competences include behavioural/personal
competences (underlying personal characteristics and behaviour) and work-based/occupational
competences (expectations as to workplace performance and standards)
9 The learning organisation is one that facilitates the learning of all its members by gathering and sharing
knowledge, tolerating risk and failure and solving problems analytically.
10 B Self-appraisals occur when individuals carry out their own self-evaluation as a major input into the
appraisal process. If people deliberately underestimate their performance, perhaps in order to conform to
group norms, this harms the appraisal system.
40

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Accountant in Business

Fundamentals Level – Paper F1

A word from BPP

Nicole Edgington Stephen Osborne

2 Using the Home Study Programme

Introduction to the session

Guidance through the Study Text

BPP i-Pass and Study Text Question Bank

3 BPP's i-Pass CD Rom

The second mode provides exam practice by

Papers examined by Computer Based Exam (F1, F2

4 Learning to Learn Accountancy

6 Getting ready to Study

Big Picture diagram

Pilot Paper analysis

BPP Study Cycle

BPP Revision Cycle

8 BPP's Big Picture

Study Period Planner

BIG PICTURE 2 BIG PICTURE 3

COURSE EXAM 1 (if purchased) COURSE EXAM 2 (if purchased)

Big Picture Diagram 1

Understanding the business and its Objectives

Environmental influences on the Business structure and culture

Regulation and the accounting

Business organisation and structure High Priority

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

Information technology and systems Medium Priority

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

Influences on organisational culture High Priority

Examined: Pilot Paper

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

Ethical considerations Medium Priority

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

Examined: Pilot Paper

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

The macro–economic environment High Priority

Examined: Pilot Paper

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

The business environment High Priority

Examined: Pilot Paper

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

The role of accounting High Priority

Examined: Pilot Paper

Step 2 Introduction to the session Step 4 Quick Quiz

Step 3 Guidance through the Study Text

Progress Test 1 High Priority

1 Which of the following is a feature of a limited company?

Progress Test 1 (con't) High Priority

Understanding the business and its Objectives

Environmental influences on the Business structure and culture

Macro-economic environment [6] Organisational hierarchy [1]

Regulation and the accounting

Control, security and audit High Priority

Step 2 Introduction to the session Step 4 Quick Quiz