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

 
(2 marks) 
 
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
50
KA P LA N P UBL I SH IN G 
222 
H has been offering investors in his company a 15% per annum return on their investment. 
In order to fund this return, H has been using money raised from newer investors to pay the 
15% returns demanded by early investors. 
What type of fraud is H committing? 
A 
Manipulation of revenue recognition 
B 
Advance fee fraud 
C 
False billing fraud 
D Ponzi 
scheme
 
(2 marks) 
223 BNG Co has recently discovered that it has been the victim of a false-billing fraud. Which 
of the following controls could BNG put in place to prevent this from occurring in the 
future? 
A 
Segregation of duties within the accounts department 
B 
Regular receivables ledger reconciliations
C 
Authorisation of payments by management 
D 
Maintenance of a regular trial balance
 
(2 marks) 
LEADERSHIP, MANAGEMENT AND SUPERVISION 
224 Adair’s action-centred leadership model can be considered to be part of which of the 
following schools of thought? 
A 
Human relations school 
B Classical 
school 
C Contingency 
school 
D Scientific 
school 
(2 marks) 
225 Jared is a manager at GHF Co. He does not get on well with the employees who report to 
him and has little real power to punish or reward the staff for their behaviour. Which of 
the following management styles does Fiedler suggest would work best for Jared? 
A Psychologically 
close 
B Psychologically 
open 
C Psychologically 
committed 
D Psychologically 
distant