CHAPTER 1 MA1

Which of the following is a potential advantage of decentralisation?

• Less control by senior management

• Duplication of services can be avoided

• Local office are more self sufficient

• Consistency of decision making across the organisation

Which of the following is a potential disadvantage of having business policies?

• It may lead to inflexibility

• Personnel follow best practices

• Procedures are formalised

• It acts as a form of control over activities of employees

Which of the following personnel in an organisation would NOT be involved in the sale of goods on credit?

• Credit controller

• Payables ledger clerk

• Sales Person

• Warehouse operative

What is the CORRECT accounting equation?

• Assets + liabilities = Capital + Profit-Drawings

• Assets + Liabilities = Capital - Profit - Drawings

• Assets - Liabilities = Capital + Profit + Drawings

• Assets - Liabilities = Capital + Profit - Drawings

Which of the following is INCORRECT function in computerized system?

• General ledger - for all assets, liability, income and expense account)

• Receivables ledger - for customers

• Payable ledger - for debtors

• Cash books - including the main cash book