Exam

Raj plc operates supermarkets. The company has identified that it will outperform its rivals if it always has inventory of its 100 top-selling products in its shops. Availability of these items is Raj plcs: A KPI B core competence C target D CSF

D CSF

As a result of reading the Financial statements of ABC, Michaela decided to increase her shareholding in the company. in terms of the IFRS Framework 'Framework for the Preparation and Presentation of Financial Statements' this confirms that the info in ABC's financial statements was: A positive B timely C material D relevant

D relevant

ABC is a charity providing youth services in large cities in the UK. the chief executive is currently involved in preparing an info document outlining the services provided by the charity. In that document the chief executive hopes to stress that in providing its services the charity is always seeking to operate at maximum efficiency. In stressing this aspect of the charities operations, the chief executive is highlighting the charity's: A vision B mission C primary objective D secondary objective

D secondary objective

A german company, ABC, has adopted a dual board structure for its board of directors. This means that the company's supervisory board will have been elected by: A the management board B the company's shareholders C the company's shareholders and directors D the company's shareholders and employees

D the company's shareholders and employees

Market risk is: A the economic loss suffered due to the default of a customer in the market B the risk of choosing the wrong strategy in a particular market C the risk that customers do not buy the company's products in the expected quantities in the market D the exposure to potential loss that would result from changes in market prices or rates

D the exposure to potential loss that would result from changes in market prices or rates

3 basic approaches to performance measures are measures of economy, efficiency and effectiveness. Economy is measured by: A the amount of resources used for the tasks that have been achieved B the success in achieving goals and targets C team member satisfaction and the motivational climate D the success of the team or work group in controlling its costs

D the success of the team or work group in controlling its costs

The process of collecting, preparing, managing, analysing, interpreting and visualising large complex datasets is known as what? A Data science B Big Data C Data analytics D Digital assets

A Data Science

The characteristic that determines whether info is both of good quality and valuable is: A accuracy B accessibility C timeliness D relevance

D relevance

Which of the following are effects of reduced interest rates? 1) consumer spending will increase 2) business investment will be encouraged 3) saving will increase A 1 only B 1 and 2 C 2 and 3 D 1,2 and 3

B 1 and 2

Which 3 of the following attributes are identified by the Institute of business ethics as being typical of ethical business leaders? A Fair mindedness B Honesty C Ability to listen D Empathy E Accountability

A Fair mindedness B Honesty C Ability to listen

What are the Green Bond Principles?

-proceeds must only be used for projects with clear environmental benefits -must be a defined process for project evaluation and selection -proceeds must be kept in a separate account (or tracked by issuer) -use of proceeds should be reported

The specialist services division of ABC uses highly qualified professional staff to provide its government-accredited service to its customers. The company has prepared a draft 5 forces analysis. the following 2 statements are included in the draft analysis: 1: government subsidies for existing providers will be removed, so there will be increased rivalry 2: 2 key customers of the specialist service will merge, so there will be increased rivalry, Identify whether each statement is accurate

1 inaccurate, 2 accurate

ABC is considering applying for an overdraft facility. Its chairman is concerned about this and has made the following statements, which are accurate. 1. I do not want ABC to apply for a large overdraft because interest is paid on the full facility 2. The facility is repayable on demand, which makes it inappropriate as a form of LT finance

1. inaccurate 2. accurate

Which of the following statements about the impact of technology on accounting and auditing is true? 1. automation reduces the amount of transaction-level work accountants need to do, allowing them more time to perform value-adding roles 2. distributed ledgers increase the need for auditors to audit individual transactions and to verify the ownership of assets

1. true 2. false

Identify which of the following statements about an organisation chart for ABC are true? 1 the chart will show the degree of decentralisation of ABC 2 the chart will show the span of control in ABC 3 the chart will show the scalar chain in ABC

2 and 3

ABC aims to comply with the UK Corporate Governance Code. There are to be 6 members of the companies nomination committee, so the number of independent NEDs on the committee must be at least:

4 as there must be more than half

The Professional Standards department of ICAEW is responsible for implementing ICAEW's disciplinary procedures, including the handling of complaints against members. A colleague has stated that complaints are usually that a member or firm: 1) has departed from guidance 2) has brought ICAEW, the profession or themselves into disrepute 3) is in breach of a principle A 1 and 2 B 2 and 3 C 1 and 3 D 1, 2 and 3

A 1 and 2

The following statements concern the role of the Disciplinary Tribunal convened by the FRC under the Accountancy Scheme. 1) To ensure their independence, no member of a Tribunal can be an officer or employee of any of the accountancy professional bodies, or the FRC 2) Tribunal hearings are not normally open to the public, except in exceptional circumstances where the Tribunal decides that this would be in the interests of justice A 1 true, 2 false B both false C both true D 1 false, 2 true

A 1 true, 2 false

Which three of the following are characteristics of management accounting info rather than financial reporting info? A It is both forward looking and historical B It is governed by statute C it is primarily used by shareholders D It is likely to include a statement of cashflows E It is likely to include a cash flow forecast F It is likely to include budgetary information

A It is both forward looking and historical E It is likely to include a cashflow forecast F it is likely to include budgetary information

Which of the following characteristics do all organisations have in common? A Pursuing controlled performance B Pursuing profit C Pursuing complete integration with the environment D Pursuing individual goals

A Pursuing controlled performance

Detailed inquiries into the regulation of major industries are conducted by: A The competition and markets authority B the financial conduct authority C the london stock exchange D the financial reporting council

A The competition and markets authority

The recession phase of the business cycle will normally be accompanied by all of the following except: A a rise in the rate of inflation B a fall in the level of national output C an improvement in the trade balance D a rise in the level of unemployment

A a rise in the rate of inflation

ABC is a relatively new company operating in a complex and ever-changing environment. It offers high technology project management expertise to the construction industry. The company has 5 senior managers who are functional specialists, alongside whom work project managers, each responsible at any one time for a specific contract. In terms of organisational structure, ABC would be classified as: A an adhocracy B a machine bureaucracy C divisonalised D a professional bureaucracy

A an adhocracy

Potatoes are a Giffen good. An increase in the price of potatoes will cause: A an increase in demand for potatoes B a decrease in demand for substitutes for potatoes C a decrease in demand for potatoes D an increase in demand for substitutes for potato

A an increase in demand for potatoes (giffen goods are goods that increase in demand when price rises)

ABC manufactures pieces of class furniture. ABC predicts that 'if people's incomes rise next year, then the demand for my furniture will increase'. The accuracy of ABC's prediction depends on whether the pieces of furniture he produces: A are normal goods B have few substitutes C have many complements D have few complements

A are normal goods

ABc produces chairs. An economist predicts that, if average incomes rise next year, demand for the chairs will increase in direct proportion to the rise in incomes (assuming all other factors remain unchanged). The accuracy of the economist's prediction depends on whether the chairs: A are normal goods B have many complementary goods C have few complementary goods D have few substitutions

A are normal goods

Intervention by the government legally to enforce standards of hygiene in the food industry is an example of business regulation motivated by the wish to address market failure caused by: A asymmetric info B economies of scale C public goods D externalities

A asymmetric info

Which 2 of the following are principles in the Wates Principles? A Board composition B board committees C Director of responsibilities D protection of minority shareholders E reporting and transparency

A board composition C Director responsibilities

A company has automated production and this resulted in redundancies of some employees paid on an hourly basis. The company borrowed heavily to finance the purchase of the machinery needed. The effects of these changes on the company's financial risk are that: A both changes (machinery and borrowing) increase the company's financial risk B automation increases financial risk, borrowing decreases it C automation decreases financial risk and borrowing increases it D both changes decrease the company's financial risk

A both changes (machinery and borrowing) increase the company's financial risk

The country of Zooland has a bank-based system. Its financial system will be characterised by: A comparatively more government regulation than a market-based system B comparatively less close relationships between banks and businesses than in a market-based system C comparatively less integration of banking and non-banking services than in a market-based system D households with greater access to investment in physical assets than in a market based system

A comparatively more government regulation than a market-based system

The directors of ABC state in the annual report that they comply with the requirements of the UK corporate Governance Code. This is because they believe that the aim of the company is to maximise the wealth of its shareholders, provided the business's activities are conducted legally. The directors of ABC have adopted the: A corporate perspective on corporate governance code B public policy perspective on corporate governance C stewardship perspective on corporate governance D stakeholder perspective on corporate governance

A corporate perspective on corporate governance code

ABC uses data analytics to enhance transparency. Insights into which of the following are provided for ABC by using data analytics in this way? A customer buying patterns B customer needs C new products and services D risk identification

A customer buying patterns

Harold is an accountant with Farnworth plc. He was asked to join a project team examining the company's compliance with both FRC and IASB standards. It appears, therefore, that Harold has been recruited into his project team to exploit his expertise in: A financial reporting B performance measurement C corporate governance D information systems

A financial reporting

Which 3 of the following are core aspects of South Africa's King Report? A Good corporate citizenship B equality C leadership D sustainability E responsibility

A good corporate citizenship C leadership D sustainability

2 large listed companies recently colluded with each other to fix the price of a product they both sell in the UK market. Collusion of this type is an example of market failure due to: A inequality of resources B external costs C market power D resource immobility

A inequality of resources

The directors of ABC are due to meet with representatives of the company's external auditors. At an informal briefing meeting the company's finance director should stress to his fellow directors that the primary purpose of all external audits is for the external auditors to: A issue an opinion B report on compliance with the UK Corporate Governance code 2016 C detect and prevent fraud and error D certify that the company's financial statements are correct

A issue an opinion

ABC and XYZ have recently formed a new company to exploit the possibilities of a new technology. ABC has taken a 35% stake in the new company with XYZ taking the balance. The companies will contribute in similar proportions to the management of the new company. This arrangement is an example of: A joint venture B licensing agreement C group structure D strategic alliance

A joint venture

The ABC product is an inferior good. the income elasticity of demand for ABC will, therefore, be: A less than 0 B 0 C greater than 1 D between 0 and 1

A less than 0

At the AGM of ABC, a major shareholder claimed that the company was suffering from the symptoms of 'satisficing'. In the context of corporate objectives, 'satisficing' means that: A managers seek to make satisfactory profits rather than maximise wealth B managers seek to keep all stakeholders satisfied C owners seek to meet a satisfactory level of corporate responsibility obligations D owners seek to make satisfactory profits

A managers seek to make satisfactory profits rather than maximise wealth

ABC produces 2 complementary products, the Buggle and the Chine. Which of the following describes the cross elasticity of demand between the 2 products? A negative B indeterminate C zero D positive

A negative

ABC plc must have a minimum of: A one shareholder and 2 directors B 2 shareholders and 1 director C 3 shareholders and 2 directors D 2 shareholders and 2 directors

A one shareholder and 2 directors

An analyst with ABC has drawn a supply curve for 1 of the company's major products, the Ledo. The curve is a vertical straight line. This indicates that supply of the Ledo is: A perfectly inelastic B of unitary elasticity C perfectly elastic D one

A perfectly inelastic

Which 3 of the following are characteristics of limited companies? A perpetual succession B separate legal personality C financial statements can remain private D simple withdrawal of capital E the company's liability is limited F regulation under the companies act 2006

A perpetual succession B separate legal personality F regulation under the companies act 2006

Which 3 of the following risks identified by the Task Force on Climate-related Financial Disclosures relating to climate change? A physical risks relating to extreme weather events B measurement risks relating to assets and liabilities not correctly reflecting the impact of climate change C reputation risk relating to loss of reputation among key stakeholders D economic risk relating to greater costs of compliance E cost savings related to greater energy efficiency F technology risks relating to existing products and services being replaced by lower emission options

A physical risks relating to extreme weather events C reputation risk relating to loss of reputation among key stakeholders F technology risks relating to existing products and services being replaced by lower emission options

Which of the following risks faced by ABC should be classified as a business risk? A product risk B event risk C process risk D financial risk

A product risk

In relation to a listed company which is raising new finance, an offer for sale is a form of: A public offer B offer for subscription C placing D retained earnings

A public offer

The appointment of suitably qualified, independent external (statutory) auditors is the decision of a listed company's: A shareholders B audit committee C board of directors D finance director

A shareholders

The directors of ABC have recently decided to establish an extensive management info system within one of its subsidiaries. In arriving at this decision, the directors were likely to have been conscious that the subsidiary's operations were largely characterised by: A structured decisions B unstructured decisions C non-programmable decisions D non-routine decisions

A structured decisions

ABC makes a range of agricultural machines and other agricultural equipment for sale in its home market. ABC has a large share of this market, but it has several competitors who sell similar machinery. Which of the following would normally be classified as an operational risk for ABC? A the risk that the production director will be recruited by a key competitor B the risk that a new type of irrigation system will fail to find a large enough market C the risk of competitors moving their production overseas and being able to cut costs D the risk of resource depletion, meaning that new sources of metal will need to be found

A the risk that the production director will be recruited by a key competitor

If interest rates for consumers fall, the effect on their behaviour will be: A to discourage saving and to encourage spending and borrowing B to encourage saving and to discourage spending and borrowing C to discourage borrowing and to encourage spending and saving D to encourage borrowing and to discourage spending and saving

A to discourage saving and to encourage spending and borrowing

ABC is a multinational company. It has been charged with collusive behaviour in its UK operations. If found guilty, the company could, amongst other sanctions, receive a fine of: A up to 10% of annual worldwide revenues B up to 10% of annual UK revenues C up to 20% of annual worldwide revenues D up to 20% of annual UK revenues

A up to 10% of annual worldwide revenues

Nevin works for ABC. Nevin's manager has asked him to undertake an internal analysis of the company as part of a strategic planning review. Which 3 of the following analytical techniques will be useful in this context? A value chain analysis B porter's 5 forces analysis C BCG matrix D PESTEL analysis E analysis of distinctive competencies F Ansoff's matrix

A value chain analysis C BCG matrix E analysis of distinctive competencies

Identify which 3 of the following are Mintzberg's building blocks of an organisation. A support staff B middle line C functional division D scalar chain E ideology F matrix structure

A, B, E

Which of the following statements about whistle-blowing is true? 1) Whistle-blowing involves the disclosure by an employee of illegal or unethical behaviour in the workplace 2) Employees should always report concerns about unethical behaviour to their line manager in the first instance A neither of them B 1 C 2 D both of them

B 1 only

ICAEW's IC has recently looked into a complaint against ABC, a firm of chartered accountants. The IC has found that there is a case to answer and has offered an unpublicised caution to the firm. The firm does not agree that there is a case to answer. ABC have a right to ask for the case to be considered by the: A Appeal committee B Disciplinary committee C FRC D Prudential Regulation Authority

B DC

Who is responsible for supervising member firms of the ICAEW in respect of anti-money laundering? A FCA B ICAEW C The office of professional body AML supervision D HMRC

B ICAEW (FCA and HMRC are also recognised as anti-money laundering supervisory bodies, but do not supervise members of the ICAEW

A financial system comprises which 3 of the following? A Governance structures B Intermediaries C Securities D Markets E Regulators

B Intermediaries C Securities D Markets (Governance structures and regulators may or may not exist within a particular system, but they are by no means basic elements)

The body responsible for ensuring that self-regulation of the accountancy profession in the UK is effective is the: A Auditing Practices Board B Professional Oversight Board C Accounting Investigation and Discipline Board D Financial Reporting Review Panel

B Professional Oversight Board

Which of the following descriptions is the best definition of the term marketing? A the management process which identifies how to communicate product launches to customers B The management process which identifies, anticipates and supplies customer needs efficiently and profitably C the management process which identifies strategies to maximise revenue D the management process which divides the market into homogeneous groups of potential customers

B The management process which identifies, anticipates and supplies customer needs efficiently and profitably

Which 2 of the following items may be discounted by an exporter so that payment from a customer is received early? A a crossed cheque drawn by the customer B a letter of credit issued by the customer's bank C a bill of exchange drawn by the customer's bank D a bill of exchange drawn by the customer E a letter of credit issued by the exporter's bank

B a letter of credit issued by the customer's bank D a bill of exchange drawn by the customer

The info systems manager of ABC wants all data input into the company's databases to be complete and accurate. As part of his info management role, he makes use of range checks. the use of range checks should help to deliver: A completeness only B Accuracy only C both accuracy and completeness D neither accuracy nor completeness

B accuracy only

Which of the following sequences represents the order in which an organisation should respond to risk? A reduction, avoidance, sharing, acceptance B avoidance, reduction, sharing, acceptance C reduction, sharing, avoidance, acceptance D avoidance, sharing, reduction, acceptance

B avoidance, reduction, sharing, acceptance

Which of the following is a source of economies of scale? A the introduction of a new product B bulk-buying C the use of skills in production D cost savings resulting from new production techniques

B bulk buying

According to the Companies Act 2006, qualification as a chartered accountant qualifies and individual to be appointed as: A company actuary, if it is an insurance company B company secretary, if it is a listed company C company valuer of investment properties, if it is a property company D company liquidator

B company secretary, if it is a listed company

In a market-based financial system, the financial system will be characterised by: A comparatively more government regulation than a bank-based system B comparatively less close relationships between banks and businesses than in a bank-based system C comparatively more risk averse households than in a bank-based system D households with less access to investment in physical assets than in a bank-based system

B comparatively less close relationships between banks and businesses than in a bank-based system (A, C and D are all characteristics of bank-based financial systems)

G is a member of a project team. his colleagues in the team rely on him to read and check complex project documentation. G has a keen eye for detail and often identifies minor details in documents that others miss but may be of significance. Despite this diligent approach, G always meets his deadlines. However, some of G's colleagues feel frustrated when he refuses to involve others. he can hold up progress as he will not agree to the team signing off project documents until all of his concerns are fully discussed. According to Belbin's team roles theory, g is an example of which of the following? A implementer B completer-finisher C monitor-evaluator D shaper

B completer-finisher

Which of the following is regarded by economists as a factor of production? A demand B enterprise C supply D innovation

B enterprise

ABC adopts corporate responsibility as a key element in its strategies. this will mean that the company seeks to: A meet the minimum obligations it owes to stakeholders B exceed the minimum obligation it owes to stakeholders C meet the minimum obligations it owes to shareholders D exceed the minimum obligations it owes to shareholders

B exceed the minimum obligation it owes to stakeholders

Which of the following is an organisation least likely to achieve as a result of using big data and data analytics? A more precisely targeted marketing messages B faster processing of high volume, routine transactions C more effective decision making in relation to inventories and pricing D a better understanding of customers' buying patterns

B faster processing of high volume, routine transactions

ABC is a large, multi-site business. There is a small head office function based just outside London, with authority for day to day decision making delegated to local site managers based at numerous locations throughout the UK. the company is, therefore, likely to experience which 2 of the following disadvantages? A greater development of skill levels in junior management B greater levels of functional co-ordination C greater customer orientation D greater potential for cost savings E greater levels of responsiveness

B greater levels of functional co-ordination D greater potential for cost savings

The manager of ABC's info systems wants all data input into the company's databases to be accurate and complete. As part of her information management role, she makes use of control totals. The use of control totals should help to deliver: A accuracy only B completeness only C both accuracy and completeness D neither accuracy nor completeness

C both accuracy and completeness

ABC has been able to achieve significant external economies of scale. This indicates that the market for the company's only product has been: A static, so forcing the company to achieve economies of scale in production B growing, so enabling the economies of scale to be achieved C contracting, so enabling the company to cut costs in distribution D volatile, meaning that internal economies of scale were unattainable

B growing, so enabling the economies of scale to be achieved

The government of Myland was unhappy with the prices charged to customers for mobile data by mobile phone operators and recently conducted a review into the industry. The review recommended that prices should be regulated and capped at a maximum daily price that is below the market price. The impact of this pricing rule on market failure is best described as : A failing to address market failure because there is no impact on the price changed B influencing the demand for and supply of mobile data C persuading mobile phone operators to reduce their prices D taking control of the mobile phone industry

B influencing the demand for and supply of mobile data

Which 2 of the following are suggested by the National Crime Agency to reduce the risk of cyber attacks? A encourage staff to use the same password for different systems to ensure that they do not forget their password B install updates to software and operating systems regularly C avoid using password management apps D use 2 factor authentication methods at log in E monitor unusual activities on the system using data analytics

B install updates to software and operating systems regularly D use 2 factor authentication methods at log in

Sven, a management accountant, is currently helping to prepare a performance report which uses the balanced scorecard technique. Sven is calculating measures of product quality and product failure rates. The measures calculated by Sven will be included in the final balanced scorecard's: A financial perspective B internal business process perspective C innovation and learning perspective D customer perspective

B internal business process perspective

Marcus is employed in the finance function of ABC. His duties involve determining the precise unit cost of a range of products manufactured in the company's horticultural division. From time to time, he also prepares reports on variances from the standard cost per unit that he has calculated. It is clear, therefore, that Marcus is employed by ABC in its: A financial reporting section B management accounting section C treasury management section D financial transaction recording section

B management accounting section

The Braddin is a basic and homogeneous product. Competitors on its market do not compete through price, but instead spend a lot on raising consumer awareness of branding and product availability. Only a small number of large companies compete in the market. It would appear that the market for the Braddin product is characterised by: A monopolistic competition B oligopoly C perfect competition D monopoly

B oligopoly

The IFRS Framework 'framework for the preparation and presentation of financial statements' states that, to support the effective working capital markets for the benefit of business, financial statements must have which 2 fundamental qualitative characteristics? A understandability B relevance C faithfulness of representation D comparability E timeliness F verifiability

B relevance C Faithfulness of representation

Paul is a member of a project team currently working on the implementation of a new annual staff feedback exercise for a major international bank. The other team members are conscious that Paul rarely offers innovative contributions of his own but is very good at taking other people's ideas and improving them, often by liaising closely with his wide range of contacts throughout the bank. In terms of Belbin's team roles, Paul is clearly a: A shaper B resource-investigator C team worker D finisher

B resource investigator

A project will yield either a profit of £100000 or a loss of £50000. The profit will arise with a probability of 0.8 and the loss will arise with a probability of 0.2. The project contains A uncertainty only B risk only C both risk and uncertainty D neither risk nor uncertainty

B risk only

ABC analysed a risk faced by its Scarborough division on a risk map. It concluded that the matter has a low impact but there is a high probability of its occurrence. Which of the following risk responses is most appropriate? A risk avoidance B risk reduction C risk transfer D risk acceptance

B risk reduction

Government intervention in a market economy can lead to an increase in economic welfare if: A it sets a good's maximum price above its equilibrium price B the market mechanism has failed to allow for externalities C it sets a good's minimum price above its equilibrium price D the demand for inferior goods rises as incomes increase

B the market mechanism has failed to allow for externalities

Which 2 statements about the Wates Principles are true? A They are mandatory for all private companies with a turnover of £200mil or more B They use a 'apply or explain' approach C The code requires the board to establish oversight for the identification and mitigation of risks D they consist of 5 principles E they can be used by companies with a premium listing instead of the Uk corporate governance code

B they use a 'apply or explain' approach C the code requires the board to establish oversight for the identification and mitigation of risks

A major airline, ABC, has been drawing up a mission statement. Which 3 of the following items could be expected in it? A we will double profits in 3 years B we will encourage diversity in the workplace C we intend to be the best airline in the world D we aim to give excellent customer service E we intend to take over XYZ airlines F we intend to have a 30% market share on the London to New York route

B we will encourage diversity in the workplace C we intend to be the best airline in the world D we aim to give excellent customer service

The following statements concern the regulation of the accountancy profession. 1. government agencies may regulate the profession via delegated legislation 2. the profession can regulate itself to a degree

Both accurate

According to the report produced by ICSA solutions- Building a resilient organisation- which of the following are potential problems to successfully building a resilient organisation? 1 directors delegate delivery of resilience policies and procedures to operational managers 2 business functions focus specifically on resilience programmes for their own areas

Both of them

ABC is considering the re-appointment of its external (statutory) auditors. Which of the following is responsible for appointing the external auditors? A the nomination committee B the remuneration committee C the board of directors D the audit committee

C board of directors

ABC has securitised some of its mortgages and sold them as a package to another bank. In respect of this action, which of the following statements is correct? A ABC has improved its liquidity by replacing its long term assets with short term assets B ABC has reduced its liquidity by replacing its short term assets with long term assets C ABC has improved its liquidity by replacing its short term assets with long term assets D ABC has reduced its liquidity by replacing its long term assets with short term assets

C ABC has improved its liquidity by replacing its short term assets with long term assets

Which 2 of the following encourage organisations to improve reporting of their economic, environmental and social impact? A IASB B TCFD C GRI standards D CDSB E the triple bottom line approach

C GRI standards E the triple bottom line approach

ABC is a client of XYZ, a firm of chartered accountants. The company has made a complaint to ICAEW in regards to the service it has received from XYZ. After a review, the ICAEW passed on the complaint to the IC. The firm responded to the complaint by agreeing that it is valid. Which of the following options are available to the IC? A take no further action against XYZ B Escalate the matter by making a formal complaint to the DC about XYZ C Issue a fine to XYZ D offer XYZ an unpublicised caution

C Issue a fine

ABC wishes to expand abroad. It has agreed with a foreign manufacturer of a complementary product to market both products jointly in both countries. what method of expansion has ABC adopted? A a group structure B a joint venture C a strategic alliance D a licensing agreement

C a strategic alliance

The Tempo product has experienced a significant improvement in its production technology in the past quarter. Against this background, it can be expected that there will be: A an expansion in supply and a shift to the right in the demand curve B a contraction in supply and a shift to the left of the demand curve C an expansion in demand and a shift to the right of the supply curve D a contraction in demand and a shift to the left of the supply curve

C an expansion in demand and a shift to the right of the supply curve

Royston is the Information Systems Manager of ABC. he is constructing a system for use by the company which includes both a 'knowledge base' and an 'inference engine'. What is Royston constructing? A TPS B MIS C an expert system D A relational database

C an expert system

Digital contracts and technology that records transactions are of great relevance to the modern day accountant. Statement 1) Self-verifying smart contracts involve the automatic execution of defined rules to securely hold and transfer legal title to an asset and how to account for it Statement 2) Distributed ledger technology and triple entry bookkeeping allow every transaction recorded by an entity to be posted to a public ledger A 1 accurate, 2 inaccurate B both inaccurate C both accurate D 1 inaccurate, 2 accurate

C both accurate

There are several sources of big data available to business organisations. Statement 1: Open data is data primarily sourced from public sector data, such as transport data and government financial data. Statement 2: Human-sourced data is primarily from social networks, emails and text messages. Identify whether each statement is accurate. A 1 accurate, 2 inaccurate B both inaccurate C both accurate D 1 inaccurate, 2 accurate

C both accurate

For many years, ABC's main source of revenue was the sale of 8mm colour films for cameras. this source of revenue fell sharply after the introduction of digital cameras. In relation to the success of digital cameras, ABC was the victim of: A operational risk B financial risk C business risk D market risk

C business risk

ABC is a small premium listed company. As a consequence, the company: A must comply with all the requirements of the UK Corporate Governance Code B is governed by other corporate governance regulations than the UK Corporate Governance Code C can be flexible in how it applies the UK Corporate Governance Code D is not affected by the requirements of the Corporate Governance Code

C can be flexible in how it applies the UK Corporate Governance Code

Last year ABC invested in a new info system to collect and analyse big data in regards to the sale of one of its products. once collected and analysed, the info was then reported to the BOD. The directors were so happy with the system that it was expanded to report on all the company's products. However, for one of the products, an error in the system meant that a pattern in regards to sales was identified that did not actually exist. As a consequence, the directors made a business decision that made a substantial loss. Which of the following risks of big data does this describe? A information overload B Workforce skills C data dependency D data security

C data dependency

Under the requirements of the UK Corporate Governance Code, who is responsible for monitoring a company's risk management and internal control systems? A executive directors B NEDs C entire board of directors D audit committee

C entire board of directors

ABC is a firm providing advice on all aspects of personal finance. their industry is heavily regulated. A newspaper article predicts that private medical insurance, a further area of the firms business, may become subject to new regulatory requirements from next year. this possibility is an example of: A business risk B financial risk C event risk D market risk

C event risk

Sheila is a NED ABC, a premium listed company. According to the Corporate Governance Code, which of the following statements about her remuneration is correct? A her remuneration should reflect her expertise B Sheila should decide her remuneration in conjunction with the remuneration committee C her remuneration should reflect her time commitment and responsibilities D her remuneration is negotiated with the remuneration committee and may include performance related elements and share options

C her remuneration should reflect her time commitment and responsibilities

ABC aims to pursue a differentiation strategy for its Portex sliding door product. Which 3 of the following will form part of this strategy? A action to minimise labour and overhead costs B action to improve productivity C improved product features and benefits D promotion of the Portex brand E use of higher quality materials in the manufacturing process

C improved product features and benefits D promotion of the Portex brand E use of higher quality materials in the manufacturing process

Which of the following issues are key in relation to information processing in a company's accounting systems? Issue 1: completeness Issue 2: non-repudiation Issue 3: verifiability A issues 1 and 2 B issues 2 and 3 C issues 1 and 3 D issues 1,2 and 3

C issues 1 and 3

ABC manufactures washing machines. It has a 20% share of the UK market. The company wants to increase its revenues so has decided to add tumble dryers to its range of products. In terms of Ansoff's matrix, this represents a growth strategy of: A market penetration B market development C product development D diversification

C product development

David Mattock is the strategy development director of ABC. He believes that the core competencies of the staff of ABC are creativity, project management and knowledge of the internet advertising market. he therefore analyses the environment constantly to find opportunities for ABC to exploit these sources of competitive advantage. It is clear from this that David adopts the: A emergent-based view of strategic planning B positioning-based view of strategic planning C resource-based view of strategic planning D gap analysis view of strategic planning

C resource-based view of strategic planning

Jane's job description at ABC states that her role is part of the company's technostructure. According to Mintzberg, a technostructure: A ensures that an organisation follows its mission B provides ancillary services C standardises work processes D controls the work of the operating core

C standardises work processes

Moody plc is reviewing its internal control system. It's control activities should be directed at controlling: A threats to its operations B it's operations C threats to achievement of its objectives D achievement of its objectives

C threats to achievement of its objectivies

Tom works in the finance function of Bateman Ltd, which trades with many companies around the world. His duties involve managing the company's foreign exchange requirements. From this it can be seen that Tom is employed by bateman in its finance function's: A financial reporting section B management accounting section C treasury management section D financial transaction recording section

C treasury management section

Justin works for ABC. he is part of a project team developing a large construction site. the team has a matrix structure with employees from many different departments working on this project. Which of the following management principles set out by Fayol is necessarily contravened by this type of structure? A authority and responsibility B subordination of individual interests C unity of command D espirit de corps

C unity of command

ABC is considering a number of business structures to market a new product with XYZ's help. Which of the following business structures is a joint venture? A buy XYZ and market the product through that company B form a project team with employees of both companies and market the product through that team C with XYZ as an equal partner, for ABYZ and market the product through that company D sell XYZ the right to market the product in return for a percentage of the revenues

C with XYZ as an equal partner, for ABYZ and market the product through that company

What does corporate governance comprise of?

Comprises the practices and procedures for ensuring that a company is run in such a way that it sets its objectives and achieves them

Distributed ledger technology and advanced accounting systems may have impacts on the work of the auditor. 1) The rate of technological change, such as with distributed ledger technology, is so fast that auditing regulations in regards to the audit of transactions are now irrelevant 2) The use of advanced accounting software reduces the need for auditors to audit transactions and verify the ownership of assets A 1 accurate, 2 inaccurate B both inaccurate C both accurate D 1 inaccurate, 2 accurate

D 1 inaccurate, 2 accurate

The following statements concern the role of the ICAEW. 1) The CCAB has delegated the responsibility for determining the eligibility to practice of all accountants to the ICAEW 2) The ICAEW is only responsible for discipline in respect of ICAEW members A 1 accurate, 2 inaccurate B both inaccurate C both accurate D 1 inaccurate, 2 accurate

D 1 inaccurate, 2 accurate

ABC is planning its forthcoming AGM. What proportion of the directors of the company is, under the UK Corporate Governance Code, required to attend the meeting? A at least 50% B at least 75% C at least 90% D 100%

D 100%

The following statements concern the role of the FRC's Disciplinary Tribunal under the Accountancy Scheme 1 A Tribunal hearing is less formal than court proceedings but is subject to the same restrictions as a court in accepting evidence 2 The accountant or firm which is the subject of the complaint is entitled to attend and be legally represented at the Tribunal hearing, and will have full opportunity to defend any complaints, present evidence and challenge any evidence against them. A 1 true, 2 false B both false C both true D 1 false, 2 true

D 1 false, 2 true

Limited companies in the UK must file their annual financial statements with the A financial services authority B department for business, innovation and skills C accounting standards board D registrar of companies

D registrar of companies

ABC is a small listed company. It does not have premium listing and is currently considering a new issue of shares. Which if the following rules, relating to the potential share issue, must ABC comply with? A The FCA's Listing Rules B The FCA's Disclosure and Transparency Rules C The FCA's UK Corporate Governance Code D The FCA's Prospectus rules

D The FCA's Prospectus Rules (This relates to the issue of new securities such as shares and applies to all companies)

The board of directors of ABC, a premium listed company, is considering the membership of its remuneration committee. In this regard, which statement is true? A The chair of the board must be one of the members of the remuneration committee B The chair of the board may be both a member and chair of the remuneration committee C The chair of the board cannot be a member of the remuneration committee D The chair of the board may be a member but cannot chair the remuneration committee

D The chair of the board may be a member but cannot chair the remuneration committee

Which of the following elements is least likely to characterise a profession? A Restrictions on membership to ensure the skill and competence of members B A high degree of autonomy and independence C Core values are established which members are expected to maintain D The profession's rules and regulations are established solely by government legislation

D The profession's rules and regulations are established solely by government legislation

ABC is in financial difficulties and has been approached by a commercial organisation offering to give ABC loan finance and insurance in respect of its receivables ledger so that, even if a customer does not pay, ABC does not have to repay the loan. this commercial organisation is seeking to act as: A a lessor B a clearing bank C an underwriter D a non-recourse debt factor

D a non-recourse debt factor

The basic economic problem facing all national economies is: A maximising economic growth B unemployment C inflation D allocating scarce resources

D allocating scarce resources

A system that aims to increase the productivity of data and information workers is: A an expert system B an executive support system C a decision support system D an office automation system

D an office automation system

ABC provides exclusive scuba diving holidays for people over 60 years of age. In terms of Michael Porter's generic competitive strategies, this represents a strategy of: A differentiation B cost leadership C cost focus D differentiation focus

D differentiation focus

ABC has recently established a standby procedure at one of its coal-fired power stations. this ensures that some level of electricity generation would occur if normal levels of activity were to be disrupted. this is part of ABC's: A operational planning B contingency planning C crisis management D disaster recovery planning

D disaster recovery planning

Big Data analytics typically involves the analysis of unstructured data. Which of the following is an example of unstructured data for a company that operates a chain of coffee shops? A spreadsheet analysis of the purchase of new chairs for store refurbishments B data tables showing monthly sales figures at each store C A table of supplier names and addresses D email communications between a customer and the marketing department

D email communications between a customer and the marketing department

ABC recently failed to supply raw materials in line with the terms of its contract with XYZ. As a result, XYZ has had to delay the delivery of products to a major customer. For XYZ, the failure of ABC to meet its contractual obligations is an example of: A financial risk B product risk C business risk D event risk

D event risk

ABC manufactures and sells fabric roller blinds for use in domestic homes. XYZ manufactures and sells wooden venetian blinds for use in domestic homes. ABC and XYZ are: A brand competitors B industry cometitors C generic competitors D form competitors

D form competitors

Which of the following would lead to demand pull inflation? A rising import prices B increase in wages C increases in indirect taxation D high consumer expenditure such that aggregate demands exceeds aggregate supply

D high consumer expenditure such that aggregate demands exceeds aggregate supply

The UK minimum wage legislation is an example of government intervention to address market failure caused by: A market imperfection B externality C asymmetric info D inequality

D inequality

Collinson plc is a medium-sized group operating at 4 locations in the UK. It operates a centralised finance function and is concerned that the function as a whole is not performing well. Centralisation of this finance function is least likely to be effective in: A external reporting to shareholders B recording financial transactions C managing cash D internal reporting to operational managers

D internal reporting to operational managers

The audit committee of ABC is considering its recommendation to the board about re-appointing XYZ as the company's external auditors. Under the requirements of the UK Corporate Governance Code, the committee is concerned with the past effectiveness of the audit process. It should also be concerned with which of the following pairs of characteristics of the audit firm? A its integrity and independence B its value for money and integrity C its objectivity and value for money D its independence and objectivity

D its independence and objectivity

Which statement about CSFs for a business is true? A low costs will always be a CSF; high sales revenue will always be a CSF B low costs will always be a CSF; high sales revenue will not always be a CSF C low costs will not always be a CSF; high sales revenue will always be a CSF D low costs will not always be a CSF; high sales revenue will not always be a CSF

D low costs will not always be a CSF; high sales revenue will not always be a CSF

ABC is a wholesaler of coffee. The business has contracts with all the major coffee chains to supply coffee beans and fixes the price it charges them every month. ABC buys the coffee beans on the international market for which it pays the market price on the day of purchase. The process of buying and selling coffee beans presents which of the following risks to ABC? A credit risk B strategy risk C product risk D market risk

D market risk

In the banking system, secondary banks may also be known as A clearing banks B commercial banks C retail banks D merchant banks

D merchant banks

Kennedy plc wants to introduce control activity within its finance function to address a recent problem. The figure shown for TPs in their interim financial statements, taken from the total TPs account in the nominal ledger, was understated by a large amount. This was an invoice entered in a major supplier's account in the purchase ledger only. The required control activity is: A reconciliation B security of assets C segregation of duties D review of operating performance

Kennedy plc wants to introduce control activity within its finance function to address a recent problem. The figure shown for TPs in their interim financial statements, taken from the total TPs account in the nominal ledger, was understated by a large amount. This was an invoice entered in a major supplier's account in the purchase ledger only. The required control activity is: A reconciliation B security of assets C segregation of duties D review of operating performance

ABC is a large supermarket chain which manages all its distributions internally. Each of the 120 stores is a profit centre. As part of its strategy development process, ABC has identified the following 2 strategies: 1 offer its distribution capability from warehouse to stores as a service to toher supermarkets 2 train some store staff in the handling of personal safety issues Identify whether each strategy is a corporate strategy or not

Neither are a corporate strategy

J manages a team of workers within her department. She has recently sat in on a team meeting during which the team had started discussing which roles each team member would take on. Which of Tuckman's stages of group development does J's team appear to have reached?

Norming

What are the risks specified by TCFD?

Policy and legal Technology Market Reputation Physical

According to the UK Corporate Governance Code, which of the following is responsible for making recommendations in regard to the appointment, reappointment and removal of the external auditors?

The Audit committee

What is the primary focus of shareholders on an entities financial statements?

The entities risk vs return

What is the primary focus of suppliers on an entities financial statements?

The entities solvency

Which models would be most useful for performing a product portfolio analysis? i. 9M's ii. value chain analysis iii. BCG matrix iv. Ansoff's ,atrix v. Product lifecycle

iii, v

In the market for the Optica product competitors do not compete through price. Instead they spend substantial sums of money on raising consumer awareness through advertising. There is some differentiation between products, often achieved through branding. There are many buyers and sellers in the market for the product. The market for the Optica product is characterised as: A monopolistic competition B oligopoly C perfect competition D monopoly

monopolistic competition