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

Required: 
Identify which of the following figures could be found, or calculated from A (the 
SOPL), B (the SOFP) or C (the SOCF). 
(i) Shareholders 
equity 
(ii) 
Total cash spent purchasing non-current assets 
(iii) Gross 
margin 
(iv) Administrative expenses 
(0.5 marks each, total = 2 marks) 
(b) 
J was also told by her accountants that she should consider undertaking a number of 
internal management accounting functions to help her make important business 
decisions for the company. 
The accountants suggested she needed to: 
A 
Estimate GBF’s total income and costs for the coming year to help her identify 
any opportunities or threats to the business 
B 
Compare her expected results to her actual results at the end of the year to 
identify any areas GBF needs to improve on 
C 
Calculate the cost per unit for GBF’s products to help decide on appropriate 
pricing strategies 
D 
Estimate the level of overdraft that GBF will need each month for the coming 
year 
Required: 
Identify the description above which is associated with each of the following 
management accounting reports, by writing A, B, C or D. 
(i) Cash 
budget 
(ii) Variance 
report 
(iii) 
Standard cost card 
(iv) 
Profit and loss budget 
(0.5 marks each, total = 2 marks) 
(Total: 4 marks) 
 
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
96
KA P LA N P UBL I SH IN G 
22
 
(a) 
TGD offers life insurance through a team of door-to-door salesmen in country P. This 
is a highly regulated industry in country P – the salesmen must ask specific questions 
and make specific statements to ensure that the policies they sell are legally binding. 
Any failure to do this can void the insurance policy and could in some cases lead to 
prosecution of TGD by the Government of country P. TGD has regular audits of its 
practices and records by the Government. 
Currently TGD relies on a training programme for its salesmen which teaches them 
the rules and regulations they have to follow. However, in recent months TGD has 
discovered that a number of policies have been sold without all of the appropriate 
rules being followed. TGD is therefore considering the launch of a series of formal 
procedures that all salesmen must follow. This will be written into a set of documents 
that the salesman must go through with the customer to ensure that all legal 
requirements have been met. 
Consider the following statements:
 
A 
Slower training for new salesmen. 
B 
Sales staff have formal documents to refer to if they are in doubt as to the 
correct procedure. 
C 
Easier for Government auditors to check TGD’s compliance with appropriate 
regulations. 
D 
Reduced risk of fines and legal action by the Government. 
E 
Cases where the correct procedures have not been followed are easier to 
identify. 
F 
It will improve the ease with which salesmen can deal with non-standard 
transactions. 
G 
It reduces TGD’s overall cost of administration. 
H 
It allows all transactions to be recorded in different ways, increasing flexibility.