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

157 D 
All four are possible consequences. 
158 C 
The IASB’s aims are to develop a single set of high quality, understandable and enforceable 
global accounting standards and to co-operate with national accounting standard-setters to 
achieve convergence in accounting standards around the world. 
 
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ANSWERS TO PRA C TICE O BJECTIVE TEST QUESTIONS :
S EC T I O N 3
K APLA N PUBLISH ING
143 
159 B 
Options A and D are the responsibility of the IFRS Advisory Council (AC), while option C is 
the role of the IASB. 
160 B 
FRSs in the UK are written by the ASB (Accounting Standards Board). They largely replaced 
SSAPs, although any SSAPs which have not yet been replaced by an FRS will still be in force. 
ACCOUNTING AND FINANCE FUNCTIONS WITHIN BUSINESS 
161 C 
The treasurer would also be responsible for debt strategy, currency management, banking 
forecasting and risk management. 
162 A – TRUE
Management accounting would focus on internal stakeholders.
163 A – TRUE
While it is recommended, it is ultimately up to the organisation itself.
164 A 
Small companies do not have to be audited. As the company is owner-managed the agency 
problem will not be relevant. 
165 C 
The books of prime entry include sales, payables ledger, cash and petty cash books and 
appropriate journals. 
166 B 
Financial accountants would usually prepare the external financial statements, including 
the statement of cash flows, the income statement and the statement of financial position. 
A and C would normally be the responsibility of management accountants, while D would 
usually be undertaken by the treasury function.