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PR A C T I C E

&

R E V I S I O N

K I T

PAPER F1ACCOUNTANT IN BUSINESS

BPP Learning Media is the sole ACCA Platinum Approved Learning Partner content for the FIA suite of qualifications. In this, the only FAB/F1 Practice and Revision Kit to be reviewed by the examiner:

We include Do you know? Checklists to test your knowledge and understanding of topics

We provide you with two mock exams including the Pilot paper

We provide the ACCA examiners answers as well as our own to the Pilot paper as an additional revision aid

BPP's i-Pass product also supports this paper and is a vital tool if you are taking the computer based exam.

FOR EXAMS FROM FEBRUARY 2013 TO JANUARY 2014

FAB

Note FIA FAB and ACCA Paper F1 are examined under the same syllabus and study guide.

FAB/F1 ACCOUNTANT IN BUSINESS

ii

First edition May 2011 Second edition November 2012

ISBN 9781 4453 9976 8 (Previous ISBN 9781 4453 7311 9) e-ISBN 9781 4453 9252 3

British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library

Published by

BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA

www.bpp.com/learningmedia

Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable sustainable sources.

All our rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media.

We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The suggested solutions in the exam answer bank have been prepared by BPP Learning Media Ltd, except where otherwise stated.

BPP Learning Media Ltd 2012

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CONTENTS

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Contents Page

Finding questions Question index .............................................................................................................................. v

Helping you with your revision the ONLY FAB/F1 Practice and Revision Kit to be reviewed by the examiner.............................................................................................. vii

Using your BPP Practice and Revision Kit ......................................................................................viii Passing the FAB/F1 exam.............................................................................................................. ix Approach to examining the syllabus................................................................................................ ix The Computer Based Examination ................................................................................................... x Tackling Multiple Choice Questions................................................................................................. xi Using your BPP products.............................................................................................................. xii

Questions and answers Questions .................................................................................................................................... 3 Answers .................................................................................................................................. 113

Exam practice Mock exam 1 (Pilot paper) Questions ........................................................................................................................ 161 Answers .......................................................................................................................... 173

Mock exam 2 Questions ........................................................................................................................ 179 Answers .......................................................................................................................... 189 ACCA examiners answers.................................................................................................. 197

Review form

FAB/F1 ACCOUNTANT IN BUSINESS

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QUESTION INDEX

v

Question index

Time allocation

Page

Marks Mins Questions Answers

Part A: The business organisation, its stakeholders and the external environment

Business organisations and their stakeholders

Questions 1.1 to 1.8 16 20 5 113

The business environment

Questions 2.1 to 2.17 34 41 6 114

The macro-economic environment

Questions 3.1 to 3.14 28 34 9 115

Micro economic factors

Questions 4.1 to 4.25 50 60 11 117

Part B: Business organisation, functions and governance

Business organisation, structure and strategy

Questions 5.1 to 5.8 16 20 19 118

Organisational culture and committees

Questions 6.1 to 6.20 40 48 20 119

Corporate governance and social responsibility

Questions 7.1 to 7.13 26 32 23 121

Part C: Accounting and reporting systems, controls and compliance

The role of accounting

Questions 8.1 to 8.26 52 62 29 122

Control, security and audit

Questions 9.1 to 9.14 28 34 34 124

Identifying and preventing fraud

Questions 10.1 to 10.16 32 38 36 126

Part D: Leading and managing individuals and teams

Leading and managing people

Questions 11.1 to 11.20 40 48 41 127

Recruitment and selection

Questions 12.1 to 12.18 36 44 44 129

Diversity and equal opportunities

Questions 13.1 to 13.10 20 24 47 131

FAB/F1 ACCOUNTANT IN BUSINESS

vi

Time allocation

Page

Marks Mins Questions Answers

Individuals, groups and teams

Questions 14.1 to 14.17 34 40 49 132

Motivating individuals and groups

Questions 15.1 to 15.17 34 41 52 134

Training and development

Questions 16.1 to 16.17 34 40 55 136

Performance appraisal

Questions 17.1 to 17.13 26 32 58 138

Part E: Personal effectiveness and communication in business

Personal effectiveness and communication

Questions 18.1 to 18.19 38 46 63 139

Part F: Professional ethics in accounting and business

Ethical considerations

Questions 19.1 to 19.18 36 44 69 141

Mixed banks

Mixed bank 1: Questions 20.1 to 20.23 46 56 72 142

Mixed bank 2: Questions 21.1 to 21.24 48 58 76 144

Mixed bank 3: Questions 22.1 to 22.24 48 58 81 147

Mixed bank 4: Questions 23.1 to 23.24 48 58 85 148

Mixed bank 5: Questions 24.1 to 24.24 48 58 89 149

Mixed bank 6: Questions 25.1 to 25.23 46 56 93 150

Mixed bank 7: Questions 26.1 to 26.25 50 60 98 152

Mixed bank 8: Questions 27.1 to 27.50 100 120 103 154

Mock exams

Mock exam 1 (Pilot Paper) 100 120 161 173

Mock exam 2 100 120 179 189

USING YOUR PRACTICE AND REVISION KIT

vii

Helping you with your revision the ONLY FAB/F1 Practice and Revision Kit to be reviewed by the examiner!

BPP Learning Media the sole Platinum Approved Learning Partner - content As ACCAs sole Platinum Approved Learning Partner content, BPP Learning Media gives you the unique opportunity to use examiner-reviewed revision materials for exams from February 2013 to January 2014. By incorporating the examiners comments and suggestions regarding syllabus coverage, the BPP Learning Media Practice and Revision Kit provides excellent, ACCA-approved support for your revision.

Selecting questions We provide signposts to help you plan your revision.

A full question index listing questions t