Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

Required: 
Identify which of the statements relate to A (management accounting) or B 
(financial accounting). 
(i) 
Preparation of the statement of profit or loss 
(ii) 
Recording of business transactions 
(iii) 
Preparation of statements for K Co’s internal use 
(iv) 
No legal formats used 
(0.5 marks each, total = 2 marks) 
(b) 
K’s treasury function has released a report into a number of key finance areas: 
A Debt 
B Equity 
C Tax 
mitigation 
D Tax 
avoidance 
The following sentences from K’s treasury department report contain gaps. 
‘_1_ is the best way of raising external finance for K, as it never has to be repaid by 
the company.’ 
Required:
(i) 
Select the term that appropriately fills gap 1 above; i.e. select A, B, C or D. 
‘K has recently entered into a scheme that will reduce its tax bill significantly. It is 
believed that, while legal, it is designed to defeat the tax laws laid down by the 
Government. As such, it is classified as a _2_ scheme.’ 
Required: 
(ii) 
Select the term that appropriately fills gap 2 above; i.e. select A, B, C or D. 
 
 
(1 mark each = 2 marks in total) 
(Total: 4 marks) 
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PRACTICE MULTI-TASK QUESTIONS : 
S E CTI ON 2
K APLA N PUBLISH ING 
95 
21
(a) GBF is a small, newly formed company that is preparing its annual financial 
statements for the first time. GBF is owned and run by one person, J. She has limited 
financial knowledge and has therefore employed a firm of chartered accountants to 
produce the financial statements for her. J’s accountants have now sent her a set of 
financial statements, which includes GBF’s: 
A 
Statement of profit or loss (SOPL) 
B 
Statement of financial position (SOFP) 
C 
Statement of cash flows (SOCF) for the year 
J has a list of figures that one of her friends told her she should try and find from the 
financial statements, but she is uncertain.