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budget which is an organisation's  plan



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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

budget
which is an organisation's 
plan
or 
target
for a forthcoming period and a 
forecast
which is a 
prediction

(Chapter 8)
41 Contribution 
Contribution refers to how much each product contributes to fixed costs and profit. 
(Chapter 8)
42 
(a) 
Aged receivables listing
Supplier statements would be sent from the supplier, the aged payables listing is an 
output from the purchases ledger system, and the list of bankings is an output from the 
cash system. 
(b)
 
Yes 
No 
Income 

Assets 

Expenses 

Liabilities 

Sources of cash generated and spent 

The statement of financial position gives details of assets owned and liabilities owed by 
the business. Details of income and expenditure would be included in the statement of 
profit or loss and the sources of cash generated and spent appear in the statement of cash 
flows. 
(Chapter 8)
43 
Prevent controls
Prevent controls are designed to prevent errors (in this case, wrong payments) from happening. 
Detect controls are designed to detect errors once they have happened; correct controls to 
minimise or negate the effect of errors; and accounting controls to provide accurate accounting 
records. 
(Chapter 9)
BPP Tutor Toolkit Copy


PRACTICE QUESTION AND ANSWER BANK 
 
538
 
44 
Access control
Access controls involve physical and network procedures to restrict access to a system. The other 
options are purely software-based security methods.
(Chapter 9)
45 
Backing up
Backing up is making separately stored duplicate copies of data for this purpose. The other three 
options are other forms of integrity control: verification involves ensuring data entered matches 
source documents, while validation involves ensuring that it is not incomplete or unreasonable. 
(Chapter 9)
46 Organisation 
Organisation in this context means identifying reporting lines, levels of authority and responsibility 
to ensure that everyone is aware of their control responsibilities. The full mnemonic stands for: 
Segregation of duties; Physical; Authorisation and approval; Management; Supervision; 
Organisation; Arithmetical and accounting; and Personnel. 
(Chapter 9)
47 Veracity 
Veracity concerns the trustworthiness or accuracy of big data. 
(Chapter 9)
48 (a)

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