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 )
: A CCOU N TAN T IN B US INES S
 
150 
KA P LA N P UBL I SH IN G 
218 C 
The Nominated Officer is responsible for investigating any large or unusual transactions. 
They would only be reported to the appropriate authorities if there were sufficient grounds 
for suspicion. 
219 B – FALSE 
Money laundering legislation can be applied to any assets obtained by criminal means. 
220 B – FALSE 
The offences recognised are laundering, failure to report and tipping off. Placement, 
layering and integration are the stages of money laundering itself. 
221 D 
Effective teeming and lading requires access to both parts of a control cycle such as sales 
and receipts or purchases and payments. 
222 D 
This is a classic example of a Ponzi scheme (or a pyramid scheme). 
223 C 
Management authorisation will increase the chances of fraudulent and inaccurate 
payments being made to non-existent payables. 
LEADERSHIP, MANAGEMENT AND SUPERVISION
224 C 
Contingency theory sees effective leadership as being dependent on a number of variable 
or contingent factors – in Adair’s case these variables are task needs, individual needs and 
group needs. Adair’s model looks at leadership in relation to the needs of the task, 
individual and group. 
225 D 
Jared’s position is clearly unfavourable, with little power and a poor relationship with his 
staff. Psychologically distant leaders favour formal roles and relationships, judge 
subordinates on the basis of performance and are primarily task oriented. This would best 
for Jared. 
In contrast psychologically close leaders do not seek to formalise roles and relationships 
and are more concerned with maintaining good relationships at work. Their style works 
best when the situation is moderately favourable. 
226 C 
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ANSWERS TO PRA C TICE O BJECTIVE TEST QUESTIONS :