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

P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
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KA P LA N P UBL I SH IN G 
ACCOUNTING AND FINANCE FUNCTIONS WITHIN BUSINESS 
161 In a very large company managing the total level of working capital would probably be 
the responsibility of the: 
A Finance 
director 
B Chief 
accountant 
C Treasurer 
D Management 
accountant 
(2 marks)
162 
Financial accountants usually produce information for the organisation’s external 
stakeholders. 
Is this statement TRUE or FALSE? 
A True 
B
False 
(1 mark)
163 
There is no legal requirement for companies to have a management accounting function.
 
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark)
164 A is a small owner-managed company employing 20 staff and having a revenue of 
300,000 Euro a year. It decided not to appoint external auditors to review its financial 
statement. Such a decision: 
A 
is in line with the requirements of current legislations 
B 
will be criticised by governmental authorities 
C 
is likely to increase the agency problem
D 
will allow the company to strengthen its financial controls
 (2 
marks)
165 Which of the following would be classed as a book of prime entry? 
A Bank 
statement 
B Trial 
balance 
C The 
journal 
D 
Statement of profit or loss 
(2 marks) 
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PRA CTICE OBJE CTIVE TEST QUESTIONS : 
SECTION 1 
K APLA N PUBLISH ING 
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