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
 
38
KA P LA N P UBL I SH IN G 
171 Working capital is calculated as: 
A 
the excess of current assets over current liabilities 
B 
the excess of bank borrowings over current assets 
C 
the excess of long-term liabilities over short-term liabilities 
D 
the excess of fixed assets over current assets 
(2 marks) 
172 Which of the following statements regarding management accounting reports is correct? 
A 
Budgets show the revenues and expenditure for the last accounting period 
B 
Cost schedules are often also referred to as standard cost cards 
C 
Variance reports compare the original budgets to revised budgets 
D 
Management accountants will usually be responsible for creation of the statement of 
financial position 
(2 marks) 
173 Which of the following statements regarding integrated reports is correct? 
A 
They involve the merging of the other financial statements to produce an overall 
view of company performance 
B 
They are designed to show the organisation’s profitability more clearly 
C 
They include information on anything that is felt to be of interest to the users of the 
financial statements 
D 
They include only relevant financial information for the users of the financial 
statements 
(2 marks) 
174 Which of the following is NOT one of the purposes of budgets? 
A 
responsibility for expenditure 
B 
motivation of employees 
C 
co-ordination of staff 
D costing 
of 
units 
(2 marks) 
175 Which of the following is NOT one of the “capitals” used in integrated reporting? 
A Intellectual 
capital 
B Environmental 
capital 
C Natural 
capital 
D Human 
capital