These are ACCA F1 (BT/FBT) Business and Technology MCQs and OTQs for Part-C of the Syllabus “Accounting and reporting systems, technology, compliance and controls”.

These MCQs and OTQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs and OTQs until they have finished the entire F1 (BT/FBT) Business and Technology Part-C “Accounting and reporting systems, technology, compliance and controls”.

All the questions are compulsory, so do not skip any.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA
Fundamental Level: Knowledge, FIA
Subject: Business And Technology
Paper: F1 – BT
Chapter: 10 to 14
Chapter Number: 14 of the Practice and Exam Kit
Syllabus Area: C – Accounting and reporting systems, technology, compliance and controls
Questions Type: MCQs and OTQs
Exam Section: Section B

Number of the Questions

These MCQs Test consist of 23 Questions that covers the Part C of the Syllabus; Accounting and reporting systems, technology, compliance and controls of ACCA F1 (BT) Business and Technology Module.

Time

These MCQs and OTQs has a time deadline. Students have to finish the Test within the given time period so Students can get used to finishing the Exam on time.

As in ACCA Exam, there are 1.8 minutes per mark. So each 2 marks question have 3.6 minutes to complete.

This Test includes some MCQs that worth 2 marks and some worth 1 Mark. We therefore giving an average time to complete the Test.

This Test has 23 questions, so Students have total 46 minutes to complete the Test.

Result

Students can see their result at the end of the test. Further, the correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seems to you correct/ or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

0 votes, 0 avg

F1 - Chapter 14 - Part C Test - MCQs and MTQs

1 / 23

A database does not need updating once it has been set up.

False

True

2 / 23

Scenario

QRT Co has just implemented a new computerised accounting package and also reinforced some of its accounting controls. The new system has the following features

All accounting entries must balance or they cannot be entered.
A module exists so that non-current asset purchases can be authorised by the relevant
member of management.
Users are set up with passwords in order to login to the system.
An audit trail is produced so all transactions can be traced to the time of posting and the
individual who entered them.

QUESTION

From the following controls, identify which are discretionary.

Password access to the system

Authorisation of non-current asset purchase

Balancing of accounting entries

Review of the audit trail

3 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Shareholders ____________ ?

(Why Shareholders will be interested in financial information?)

To assess the ability of the company to pay its debts

To advise clients

Assessing how effectively management is running the company

To assess tax payable by the company

4 / 23

____________ audit is based on testing and evaluating the internal controls of an organisation.

Which of the following correctly fills the blank?

5 / 23

Which TWO of the following are examples of physical access controls?

Physical inspection of inventory

Door locks

Authorisation of purchases

Automatic system back ups

Intruder alarms

6 / 23

The statement of financial position must give _______________ view of the company at the end of the financial year.

Which of the following correctly fills the blank?

7 / 23

Which of the following statements are relating to the 'External audit'?

Enables an opinion to be expressed on the financial statements

Independent of the company and its management

Work relates to the financial statements, and the financial records that underlie them

Report is to those charged with governance

Work relates to the operations of the organisation

Designed to add value and improve an organisation's operations

8 / 23

The external auditor should design audit procedures to have a reasonable expectation of detecting fraud. Everything else is the responsibility of the directors.

Which TWO of the following are advantages of computerised accounting systems over manual systems?

Corrections can be made quicker

The risk of errors is eradicated

Information is less accessible

Processing is faster

9 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Suppliers ____________ ?

(Why suppliers will be interested in financial information?)

To assess tax payable by the company

To assess the ability of the company to pay its debts

Assessing how effectively management is running the company

To advise clients

10 / 23

Scenario

Elyse is transferring amounts of money from business to business to disguise the fact that the money was originally the proceeds from criminal activity.

Laura is in the process of banking several small amounts of illegally obtained money with a variety of banks in order to avoid anti-money laundering requirements.

QUESTION

Which of the following phases of money laundering is being undertaken by Elyse?

Integration

Placement

Layering

11 / 23

Scenario

Stella is an external auditor who has observed some cash transactions that don't have any supporting documentation. Upon further investigation she discovered that these payments are made into bank accounts of the Finance Director's family. She discusses this with the audit manager and they jointly decide not to take any further action.

James is also an external auditor and has discovered a fraud at one of his clients and has decided he will make a report to his nominated officer. At the same time he decides to inform the financial controller of the client about making the report.

QUESTION

Which of the following offences has been committed by James?

Tipping off

Failure to report

No offence has been committed

12 / 23

Scenario

Elyse is transferring amounts of money from business to business to disguise the fact that the money was originally the proceeds from criminal activity.

Laura is in the process of banking several small amounts of illegally obtained money with a variety of banks in order to avoid anti-money laundering requirements.

QUESTION

Which of the following phases of money laundering is being undertaken by Elyse?

Layering

Placement

Integration

13 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Tax authorities ____________ ?

(Why Tax authorities will be interested in financial information?)

To assess the ability of the company to pay its debts

To assess tax payable by the company

To advise clients

Assessing how effectively management is running the company

14 / 23

A ______________ is a program that deals with a particular part of the accounting system.

Which word fills in the blank above?

15 / 23

Check digits, control totals and limit checks are examples of which type of control?

Output control

Processing control

Input control

16 / 23

Scenario

QUESTION

Which of the following offences has been committed by Stella?

Tipping off

No offence has been committed

Failure to report

17 / 23

Scenario

QRT Co has just implemented a new computerised accounting package and also reinforced some of its accounting controls. The new system has the following features

All accounting entries must balance or they cannot be entered.
A module exists so that non-current asset purchases can be authorised by the relevant
member of management.
Users are set up with passwords in order to login to the system.
An audit trail is produced so all transactions can be traced to the time of posting and the
individual who entered them.

QUESTION

From the following controls, identify which are non-discretionary.

Password access to the system

Authorisation of non-current asset purchase

Balancing of accounting entries

Review of the audit trail

18 / 23

Which of these is an example of an 'internal check'?

Safeguarding of assets

Completeness of the accounting records

Use of control totals

Adherence to internal policies

19 / 23

A control system consisting of sufficient controls will be entirely effective.

False

True

20 / 23

______________ controls help an organisation recover in the event of a disaster.

Which word fills in the blank above?

21 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Financial analysts ____________ ?

(Why Financial analysts will be interested in financial information?)

To assess the ability of the company to pay its debts

To assess tax payable by the company

Assessing how effectively management is running the company

To advise clients

22 / 23

Only businesses need to prepare financial statements.

False

True

23 / 23

Which of the following statements are relating to the 'Internal audit'?

Designed to add value and improve an organisation's operations

Independent of the company and its management

Work relates to the operations of the organisation

Report is to those charged with governance

Work relates to the financial statements, and the financial records that underlie them

Enables an opinion to be expressed on the financial statements

Your score is

F1 (BT) – Chapter 14 – PART C – MCQ’s and OTQs – ACCA