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Worksheetsmôn F1
Total questions: 40
Worksheet time: 21mins
In a very large company managing the total level of working capital would probably be the responsibility of the:
Finance director
Chief accountant
Treasurer
Management accountant
2 Financial accountants usually produce information for the organisation’s external stakeholders. Is this statement TRUE or FALSE?
True
False
Internal check is defined as:
(1) ensuring that no single task is executed from start to finish by only one person.
(2) providing reasonable assurance about the achievement of the organisation’s objectives.
Which of these options is/are correct?
1 only
2 only
2 only
Neither
3 There is no legal requirement for companies to have a management accounting function. Is this statement TRUE or FALSE?
True
False
A is a small owner‐managed company employing 20 staff and having a revenue of 300,000 Euro a year. It decided not to appoint external auditors to review its financial statement. Such a decision:
is in line with the requirements of current legislations
will be criticised by governmental authorities
will allow the company to strengthen its financial controls
Which of the following would be classed as a book of prime entry?
Bank statement
Trial balance
The journal
Statement of profit or loss
Gabriella is considering creating a financial accounting department within her business, but is unsure of what such a department would actually do. Which of the following would usually be prepared by a financial accounting department?
Cost schedules
Statement of cash flows
Variance analysis
Tax calculations
Angelo decided to record the purchases made on the 2nd of April 200X in tax year ending 31st of March 200X. The authorities will likely classify this as tax ____________. Which of the following words correctly fill this gap?
evasion
minimisation
avoidance
Tax mitigation involves which of the following?
Taking all legal steps to reduce one’s tax liability
Agreeing to pay a financial penalty to avoid prosecution
Moving businesses and funds offshore to reduce liability to UK tax
Reducing tax liabilities without frustrating the law makers’ intentions
An important advantage of using loans to finance investment is:
loan interest payments can usually be suspended if profits are low
the timing of loan payments is often at the company’s discretion
loan interest is tax deductible
banks will often not require security for loan advances
VDF Co is planning to raise finance to fund the launch of a new product. It is planning to do this via an issue of new shares to the public. Which of the following is an issue that VDF may face if it proceeds with its plans to raise equity finance?
It will be forced to pay higher dividends in the future – even if the new product launch is a failure
The share issue may dilute the control that the existing shareholders have over the company
C VDF will require good quality assets to offer as security for the new issue
The issue of shares is likely to reduce VDF’s corporation tax liability
Working capital is calculated as:
the excess of current assets over current liabilities
the excess of bank borrowings over current assets
the excess of long‐term liabilities over short‐term liabilities
the excess of fixed assets over current assets
Which of the following statements regarding management accounting reports is correct
Budgets show the revenues and expenditure for the last accounting period
Cost schedules are often also referred to as standard cost cards
Variance reports compare the original budgets to revised budgets
Management accountants will usually be responsible for creation of the statement of financial position
Which of the following statements regarding integrated reports is correct?
They involve the merging of the other financial statements to produce an overall view of company performance
They are designed to show the organisation’s profitability more clearly
They include information on anything that is felt to be of interest to the users of the financial statements
They include only relevant financial information for the users of the financial statements
Which of the following is NOT one of the purposes of budgets?
responsibility for expenditure
motivation of employees
co‐ordination of staff
costing of units
Which of the following is NOT one of the “capitals” used in integrated reporting?
Intellectual capital
Environmental capital
Natural capital
Human capital
Daniel is trying to find certain key figures from the financial statements of HGF Co. He is unsure about whether to look at the Statement of Financial Position (SOFP) or the Statement or profit or loss (SOPL) for each one. Which section of the financial statements will the following information be found?
1. SOFP shows the assets, liabilities and capital of the company
2. SOPL shows the income and expenses(and therefore the profit or loss)
The net assets of HGF(SOFP)
HGF’s gross profit for the year(SOPL)
này thì để ý 1 với 2 là giải thích định nghĩa á
còn lại là đáp án
7 E Co has a large marketing department. In which of the following ways would this department co‐ordinate with E’s accounting department?
Decisions on the quantity of raw materials required
Establishing credit terms for customers
Calculating pay rises for staff
Decisions on the selling price of the product
Which of the following is NOT a way in which an organisation’s production department would co‐ordinate with its accounting department?
Calculating charge out rates for services provided by the organisation
Calculating the budgets for the number of units to be produced
Estimation of the costs of the raw materials required for production
Decisions on the quality of raw materials that the organisation can afford to use
Which of the following is a feature of services provided by an organisation?
Permanence
Innovation
Variability
Separability
HGF is a company that operates taxis within several cities in country U and has received a number of complaints regarding the behaviour of its drivers towards passengers. One of HGF’s marketing executives has pointed out that even if the customer’sjourney isfast, cheap and reliable, customers will still see the service offered by HGF as poor if the driver behaves poorly.
What aspect of the nature of service provision is HGF’s marketing executive referring to?
Intangibility
Perishability
Variability
Inseparability
The key purpose of internal auditing is to:
detect errors and fraud
evaluate the organisation’s risk management processes and systems of control
give confidence as to the truth and fairness of the financial statements
give confidence as to the truth and fairness of the financial statements
Internal check is defined as:
(1) ensuring that no single task is executed from start to finish by only one person.
(2) providing reasonable assurance about the achievement of the organisation’s objectives.
Which of these options is/are correct?
1 only
2 only
Both
Neither
Internal auditors have an unavoidable …………… problem, as they report to those people whose activities they are reporting on. Which word correctly completes this sentence?
Integrity
Independence
Independence
It is considered to be best practice for the internal auditors of a large company to report directly to:
the board of directors
the board of director
the shareholders
the audit committee
Emma is preparing a seminar for the Board of Directors of the company she works for regarding internal and external audit and the differences between the two.
Which TWO of the following points are correct with regards to internal and external audit?
(2đa)
The scope of the internal auditors’ work is determined by the management of the company, while external auditors determine the scope of their own work
Internal auditors test the organisation’s underlying transactions, while external auditors test the operations of the organisation’s systems
Internal audit and external audit are usually both legal requirements
Internal auditors can be employees of the company they audit, while external auditors must not be
Consider the following two statements:
(1) There is greater flexibility in how internal audit work is done relative to external audit work, since external audit work is controlled by the law and audit standards.
(2) To practice as an internal auditor, the person must be a qualified accountant.
Which of these options is/are correct?
(1) only
(2) only
Both
Neither
The fact that managers are not aware of problems a company isfacing,such as not knowing that a major incident of fraud has recently taken place, would weaken which of the following components of internal controls?
Control environment
Risk assessment process
Control activities
Monitoring of controls
A retail company operates a transaction processing system (TPS). Which component of internal control would this be a part of?
Risk assessment process
Monitoring of controls
Control environment
Information systems
Consider the following statements regarding control activities:
(1) The primary purpose of the segregation of duties between individuals within the organisation is to locate and identify frauds that employees have perpetrated.
(2) ‘General’ computer controls include physical controls to prevent unauthorised access to computer equipment, such as door locks and card entry systems.
Which of these options is/are correct?
(1) only
(2) only
Both
Neither
Jana is the payables clerk in a large manufacturing organisation. One of her duties is to write up the purchase ledger butshe is not authorised to make paymentsto suppliers. This is an example of the important general principle known as:
controlled record access
segregation of duties
dual control
initiation control
Marc is preparing a receivables ledger reconciliation to check for any errors or frauds that may have occurred the month. What type of control is this an example of?
Preventive
Detective
Corrective
Physical
2 Lucas is entering customer details onto a computer system. The system requires him to log in and checks that he is allowed to enter customer details. The system also checks that he has entered all the required information about the customer.
These computer system controls will NOT ensure which of the following?
Completeness
Authorisation
Validity
Identification
Which TWO of the following are examples of general controls within IT systems? nhiều đáp án
Physical – such as protection against power surges.
Logical – such as password systems
Forensic – such as audit trails for all transactions
Which of the following would be most likely to be classed as a preventive control?
Having a supervisor present on the shop floor at all times
Conducting regular receivables statement reconciliations
Year‐end inventory checks
Establishing procedures for irrecoverable debt collection
Consider the following two statements:
(1) Responsibility for the internal controls is shared between management and the internal auditors.
(2) The internal auditor’s role often includes helping to set corporate objectives and the design and monitoring of performance measures.
Which of these options is/are correct?
(1) only
(2) only
Both
Neither
Which of the following statements are correct with regards to external audit?
(i) Due to their in‐depth examination of the business, external auditors are often able to provide advice to management on possible improvements to the business.
(ii) External auditors often have an independence problem as they report to management and yet are also expected to give an objective opinion on them.
(iii) External audits can help to resolve management disputes, such as disagreements over company valuations or profit‐sharing agreements.
(iv) External auditors have little or no interest in the internal controls of the organisation as these are the responsibility of the internal auditors.
(i) and (iii)
(i), (ii) and (iv)
(i), (iii) and (iv)
(ii) and (iv)
Every evening the last person leaving the office premises needs to switch on the security alarm. This control belongs to which of the following categories?
Authorisation
Computer
Reconciliation
Physical
Controls that are fully automated and are designed to ensure that the data input into a system is complete and accurate are known as:
General controls
Application controls
9 External auditors have no interest in the internal controls of the organisation they are auditing. Is this statement TRUE or FALSE?
True
False
