WorksheetsKaplan - BT Mock 5 (chap 11-14)
Total questions: 40
Worksheet time: 39mins
Name
Class
Date
1.
The situation where directors operate the business for their own interest rather than the interest of shareholders is
a)
Conflict of interest
b)
Management dispute
c)
Shareholder conflict
d)
Agency problem
2.
'Separation of ownership and control' refers to the fact that owners are always different people to the directors
a)
True
b)
False
3.
Those involved in day to day running of an organization are
a)
Board of directors
b)
Non executive directors
c)
Executive directors
d)
Chief executive officer
4.
Non executive directors are responsible for determining remuneration of executives
a)
True
b)
False
5.
Joseph, a veteran in Unilevers with over three decades experience retired last year. Can he be appointed as an NED?
a)
Yes
b)
No
6.
What can an NED accept as remuneration from a company?
a)
Shares, either ordinary or preference shares
b)
Equity options
c)
Pension payments
d)
A fixed payment for their time
7.
Reviewing accounting policies and financial statements of a company is the responsibility of
a)
Audit committee
b)
Finance commitee
c)
Board of directors
d)
None of the above
8.
Which of the following is not a type/category of committee?
a)
Ad hoc commitee
b)
Standing committee
c)
Non executive committee
d)
Executive committee
9.
A committee is formed to investigate a one-off failure which had resulted in massive wastage. This is a type of
a)
Ad hoc commitee
b)
Standing committee
c)
Sub commitee
d)
Executive committee
10.
What would reduce the agency problem in a listed/quoted company?
a)
Paying directors a fixed salary
b)
Paying directors a bonus of shares on the reported profit
c)
Employing directors in a rolling five year contract
d)
Offer directors large compensation at the time of dismissal
11.
What is the primary role of a public oversight board?
a)
Oversight of internal audit functions
b)
Creation of accounting standards
c)
Monitoring corporate compliance with key rules and regulations
d)
Writing legislation to target poor corporate behavior
12.
Which is not a major purpose of committees?
a)
Gathering of information about a particular issue
b)
Speeding up the decision making process
c)
Overseeing a function or procedure
d)
Co-ordination
13.
The situation when there is a large number of external shareholders who play no role in running a business, is called
a)
Detached corporate ownership
b)
Uninvolved external ownership
c)
Dividend based shareholding
d)
Separation of ownership and control
14.
Which of the folowing would render an NED less suitable for this post?
a)
The person worked for the company six years ago
b)
The person served as a non executive for the last six years
c)
The person ownes the company shares
d)
None of the above
15.
An audit committee should
a)
Consist of independent NEDs only
b)
Include at least one senior member of the internal audit firm
c)
Include one member of the external audit firm
d)
All of the above
16.
Which of the following would normally be included in the role of a commitee chairperson?
a)
Making administrative arrangements
b)
Dealing with correspondence
c)
Issuing the agenda
d)
Ensuring correct procedures are followed
17.
Committees may fail to recommend decisive action where needed due to the need for compromise between members
a)
True
b)
False
18.
When submitting annual financial statements to be available for third party inspection, a company should send them to
a)
Stock exchange
b)
Tax authorities
c)
Shareholders
d)
Companies house
19.
The preparation and filing of accounts by companies each year is normally required by
a)
Codes of corporate governance
b)
National legislation
c)
International accounting standards
d)
IFAC
20.
The key aim of IASB is to
a)
Improve standards of financial reporting worldwide
b)
Develop worldwide auditing standards
c)
Develop a single set of high quality global accounting standards
d)
Represent UK interests effectively in financial reporting matters
21.
Which of the following is a prime entry book?
a)
Bank statement
b)
Trial balance
c)
The journal
d)
Statement of profit or loss
22.
Which of the following is usually prepared by a financial accounting department?
a)
Cost schedules
b)
Statement of cash flows
c)
Tax calculations
d)
All of the above
23.
A company recorded purchases made on April 2, 2022 in he tax year ending 31st March 2022. This will be identified by as
a)
tax evasion
b)
tax minimization
c)
tax avoidance
d)
none of the above
24.
Which of the following is legally required to be prepared by a listed company
a)
Management accounting
b)
Financial accounting
c)
All of the above
25.
Which of the following has a pre-designed format when preparing?
a)
Management accounting
b)
Financial accounting
c)
All of the above
26.
Which of the following contains both financial and non financial information
a)
Management accounting
b)
Financial accounting
c)
All of the above
d)
None of the above
27.
Working capital managament is the responsibility of the .................... function
a)
Management accounting
b)
Financial accounting
c)
Treasury
d)
None of the above
28.
Working capital can be computed as
a)
Current asset - Current liability
b)
Total asset - Total liability
c)
Total asset / Total liability
d)
Current asset / Current liability
29.
Use of illegal means to reduce one's tax liability is known as
a)
tax evasion
b)
tax avoidance
c)
tax minimization
d)
tax transfer
30.
Which is not prepared by the management accounting function?
a)
budgets
b)
investment appraisals
c)
business tax calculations
d)
none of the above
31.
Which is following regarding the management accounting reports is correct?
a)
budgets show the revenues and expenditures for the last accounting period
b)
cost schedules are often also referred to as standard cost cards
c)
variance reports compare the original budgets to revised budgets
d)
management accountant is responsible for creation of statement of cashflows
32.
Which is not a purpose of budgets?
a)
Responsibility of expenditure
b)
Motivation of employees
c)
Co-ordination of staff
d)
Costing of units
33.
Which is not a 'capital' used in integrated reporting?
a)
Intellectual capital
b)
Environmental capital
c)
Nature capital
d)
Human capital
34.
Which is not a purpose of control systems in an organization?
a)
safeguarding company assets
b)
prevention of errors
c)
increased profitability
d)
increased efficiency
35.
What would ensure that the sales cycle would result in prompt payment?
a)
Orders are processed by qualified personnel only
b)
Checking the goods are in inventory before dispatching them
c)
Each item has its own unique code
d)
Checking the credit worthiness of the customer
36.
The most secure and easy way to verify payments to our own staff is by
a)
sending company cheques
b)
using BACS (Bankers Automated Clearing) transfers
c)
paying in cash
d)
asking the staff to visit the accounts office to receive their wages
37.
To increase security, cheques issued for a large amount of money will often involve
a)
a faster clearing process in the bank
b)
the approval of a senior member of the accounts department
c)
two signatories
d)
automated checks on signatures
38.
An employee is paid by the hours worked. His wage is underpaid due to errorneous data on hours worked. The fault lies in
a)
cash system
b)
sales system
c)
payroll system
d)
none of the above
39.
The extract "The clerk multiplies the hours worked by the hourly rate to determine the gross pay" describes
a)
a system
b)
a policy
c)
a procedure
d)
a guideline
40.
Reducing the incidence of fraud is primarily an issue of
a)
security arrangements
b)
system procedures
c)
recruiment procedures
d)
organizational control
100 %
