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ACCA APPROVED CONTENT PROVIDER FF ACCA approved content provider Ao Bu /nd BPP Learning Media is dedicated to supporting aspiring business professionals Aa Ct Cio with top-quality learning material as they study for demanding professional An exams, often whilst working full time. BPP Learning Media’s commitment Fs i 1n A to student success is shown by our record of quality, innovation and market c c leadership in paper-based and e-learning materials. BPP Learning Media’s study o u n materials are written by professionally qualified specialists who know from t a n personal experience the importance of top-quality materials for exam success. c y Foundations in Accountancy FAB / ACCA Paper F1 Accountant in Business A This Kit provides material specifically for the practice One of a suite of products supporting Foundations cc o and revision stage of your studies for Foundations in Accountancy FAB Accountant in Business and u n in Accountancy FAB Accountant in Business and ACCA Paper F1 Accountant in Business, for use ta n ACCA Paper F1 Accountant in Business that has been independently or as part of a package, this Kit is t comprehensively reviewed by the ACCA examining targeted at Foundations in Accountancy exams from in B team. This unique review ensures that the questions, 1 September 2016 to 31 August 2017 and contains: u s solutions and guidance provide the best and most in • DO YOU KNOW? Checklists to test your e effective resource for practising and revising for the ss exam. • Akcno bvoaewnrliken dgog ft ehe exo afs mAyl-clascbtoauunsndtaarndt Min CBQussi nweisths taonpsiwcsers, P r • Two mock exams including the FAB/F1 Specimen a c t exam ic e & R e v is io n K it ACCA Approved Free access Practice & Revision Kit to our Exam Success site Foundations in Accountancy FAB / Contact us ACCA Paper F1 Look inside tF BPP House oo 1L4o2n-d1o4n4 W Ux12b r8idAgAe Road 31 Ar exa Accountant in Business um UTT n0+i4t8e44d 5 (K 00i)n72g50d 1 o81m0704 0( U2K2)11 (Overseas) gust 2s from For exams from 1 September 2016 0 E [email protected] 1 1 7 S to 31 August 2017 bpp.com/learningmedia e p t e February 2016 m b £15.00 e r 2 0 1 6 FI31RK16 (HO).indd 1-3 08/02/2016 10:15 ACCA APPROVED CONTENT PROVIDER As the first accredited publisher of ACCA materials, BPP Learning Media has set the benchmark for producing exceptional study materials for students and tutors alike. Our Study Texts, Practice & Revision Kits and i-Passes (for exams on demand) are reviewed by the ACCA examining team and are written by our in-house authors with industry and teaching experience who understand what is required for exam success. EXAM SUCCESS SITE To help maximise your chances of succeeding in your exams, we’ve put together a suite of exclusive ACCA resources. Our Exam Success site provides you with access to a free digital version of this publication, as well as extra resources designed to focus your efforts on exams and study methods. To access the Exam Success site, please email [email protected] with the subject line “Access to Exam Success site - eBook”, including your order reference number and the name of the book you’ve bought (ie ACCA F5 Study Text) for your access code. Once you have received your code, please follow the instructions below: To access the BPP ACCA Exam Success site for this material please go to: www.bpp.com/ExamSuccessSite n Create a user account if you don’t already have one. Make sure you reply to the confirmation email. n Log in using your registered username and password. Select the paper you wish to access. n Enter the code you received when prompted. You will only have to do this once for each paper you are studying. Foundations in P R Accountancy A C T I C E PAPER F1 & FAB R ACCOUNTANT IN BUSINESS E V I S I Welcome to BPP Learning Media's Practice & Revision Kit for FAB. In this Practice & O Revision Kit, which has been reviewed by the ACCA examination team, we:  Include Do you know? Checklists to test your knowledge and understanding N of topics  Provide you with two mock exams including the Specimen Exam June 2014  Provide the ACCA’s exam answers to the Specimen Exam June 2014 as an K additional revision aid I T FOR EXAMS FROM 1 SEPTEMBER 2016 TO 31 AUGUST 2017 FAB/F1 ACCOUNTANT IN BUSINESS First edition May 2011 A note about copyright Fifth edition January 2016 Dear Customer ISBN 9781 4727 4592 7 What does the little © mean and why does it matter? (Previous ISBN 9781 4727 3533 1) e-ISBN 9781 4727 4637 5 Your market-leading BPP books, course materials and e-learning materials do not write and update themselves. British Library Cataloguing-in-Publication Data People write them: on their own behalf or as employees A catalogue record for this book of an organisation that invests in this activity. Copyright is available from the British Library law protects their livelihoods. It does so by creating rights over the use of the content. 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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 2016 ii CONTENTS Contents Page Finding questions Question index..............................................................................................................................v Helping you with your revision.......................................................................................................viii Using your BPP Practice & Revision Kit...........................................................................................ix Passing the FAB/F1 exam...............................................................................................................x Approach to examining the syllabus................................................................................................xi The Computer Based Examination.................................................................................................xii Tackling Multiple Choice Questions................................................................................................xiii Using your BPP products..............................................................................................................xiv Questions and answers Questions....................................................................................................................................3 Answers..................................................................................................................................115 Exam practice Mock exam 1 – Specimen Exam June 2014  Questions........................................................................................................................167  Answers..........................................................................................................................183 ACCA’s exam answers...............................................................................................................191 Mock exam 2 – Specimen Exam June 2014  Questions........................................................................................................................197  Answers..........................................................................................................................211 Review form iii FAB/F1 ACCOUNTANT IN BUSINESS iv QUESTION INDEX Question index Time Page allocation 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 13 16 5 115 The business environment Questions 2.1 to 2.17 29 35 6 116 The macro-economic environment Questions 3.1 to 3.14 23 28 8 117 Micro-economic factors Questions 4.1 to 4.25 42 50 11 119 Section A MTQs Questions 5.1 to 5.6 24 29 14 120 Part B: Business organisation structure, functions and governance Business organisation, structure and strategy Questions 6.1 to 6.10 16 19 20 121 Organisational culture and committees Questions 7.1 to 7.20 33 40 21 122 Corporate governance and social responsibility Questions 8.1 to 8.12 19 23 25 124 Section B MTQs Questions 9.1 to 9.6 24 29 27 125 Part C: Accounting and reporting systems, controls and compliance The role of accounting Questions 10.1 to 10.26 43 52 32 126 Control, security and audit Questions 11.1 to 11.14 23 28 37 128 Identifying and preventing fraud Questions 12.1 to 12.16 27 32 39 130 Section C MTQs Questions 13.1 to 13.6 24 29 41 131 v FAB/F1 ACCOUNTANT IN BUSINESS Time Page allocation Marks Mins Questions Answers Part D: Leading and managing individuals and teams Leading and managing people Questions 14.1 to 14.20 33 40 47 132 Recruitment and selection Questions 15.1 to 15.18 30 36 50 134 Diversity and equal opportunities Questions 16.1 to 16.10 16 19 52 136 Individuals, groups and teams Questions 17.1 to 17.17 28 34 54 137 Motivating individuals and groups Questions 18.1 to 18.17 28 34 57 138 Training and development Questions 19.1 to 19.17 28 34 60 140 Performance appraisal Questions 20.1 to 20.13 22 26 63 142 Section D MTQs Questions 21.1 to 21.6 24 29 65 143 Part E: Personal effectiveness and communication in business Personal effectiveness and communication Questions 22.1 to 22.19 31 37 71 145 Section E MTQs Questions 23.1 to 23.6 24 29 74 146 Part F: Professional ethics in accounting and business Ethical considerations Questions 24.1 to 24.20 33 40 79 147 Section F MTQs Questions 25.1 to 25.6 24 29 82 148 vi QUESTION INDEX Time Page allocation Marks Mins Questions Answers Mixed Banks Mixed Bank 1: Questions 26.1 to 26.23 38 46 84 150 Mixed Bank 2: Questions 27.1 to 27.24 40 48 88 152 Mixed Bank 3: Questions 28.1 to 28.24 40 48 92 155 Mixed Bank 4: Questions 29.1 to 29.24 40 48 96 155 Mixed Bank 5: Questions 30.1 to 30.24 40 48 100 156 Mixed Bank 6: Questions 31.1 to 31.23 38 46 104 158 Mixed Bank 7: Questions 32.1 to 32.25 42 50 108 159 Mock exams Mock exam 1 (Specimen Exam June 2014) 100 120 167 183 Mock exam 2 100 120 197 211 vii FAB/F1 ACCOUNTANT IN BUSINESS Helping you with your revision BPP Learning Media – ACCA Approved Content Provider As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use revision materials reviewed by the ACCA examination team . By incorporating the ACCA examination team’s comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Practice & 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 Attempting mock exams There are two mock exams that provide practice at coping with the pressures of the exam day. We strongly recommend that you attempt them under exam conditions. Mock exam 1 is the Specimen Exam June 2014. Mock exam 2 reflects the question styles and syllabus coverage of the exam. viii