This is ACCA F1 (BT/FBT) Business and Technology multiple-choice questions (MCQs).

These multiple-choice questions (MCQs) are designed to help ACCA F1 students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have finished the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F1 (BT/FBT) exam.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA
Fundamental Level: Knowledge, FIA
Subject: Business And Technology
Paper: F1 – BT/FBT
Chapter: The role of accounting
Chapter Number: 10 of the Practice and Exam Kit; and 14 and 15 of the Study Text
Syllabus Area: C – Accounting and reporting systems, technology, compliance and controls
Questions Type: MCQs
Exam Section: Section A

Number of the Questions

There are 27 Questions in this Online F1 MCQ Test that cover Chapter 10, The role of accounting of ACCA F1 (BT/FBT) Business and Technology Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F1 CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all answers that seem correct or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)”.
Dropdown: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F1 - Chapter 10 - Part C Test - MCQs and MTQs

1 / 27

....................................... Systems pool data from internal and external sources and make information available to senior managers, for strategic, unstructured decision-making.

Which word or phrase correctly completes this sentence?

2 / 27

Which of the following is NOT part of the regulatory system?

The European Union

GAAP

IFAC

International financial reporting standards

3 / 27

Joseph has just started his first job in an accountancy department. A qualified senior member of staff explains to him what the main aim of accounting is.

Which of the following options is the correct aim of accounting?

To provide financial information to users of such information

To maintain ledger accounts for every asset and liability

To produce a trial balance

To record every financial transaction individually

4 / 27

A small company's computer system comprises five desktop personal computers located in separate offices linked together in an intranet within the same building. The computers are not connected to the Internet and employees are not allowed to take storage media into or out of the building. Information which the business' owner wishes to keep confidential to herself is stored in one of the computers.

Which of the following statements can be concluded from this information?

This company's computer system does not need a back-up storage system

This company's computer system does not need a password access system

This company's computer system does not receive email from customers or suppliers

5 / 27

Which of the following does company law require a statement of financial position to give?

A true and fair view of the statement of affairs of the company as at the end of the financial year

An unqualified (or 'clean') report on the statement of affairs of the company as at the end of the financial year

A true and fair view of the profit or loss of the company for the financial year

6 / 27

Which of the following is an aim of the control system relating to accounts payable and purchases?

To ensure that potentially doubtful debts are identified

To ensure that all credit notes that have been issued are recorded in the general and receivables ledgers

To ensure that goods and services are only supplied to customers with good credit ratings

To ensure that all credit notes received are recorded in the general and payables ledger

7 / 27

All the following statements, except one, are examples of the advantages that a computer-based accounting system used by a management accountant has over a manual system.

Which statement is the exception?

Financial calculations can be performed more quickly and accurately

A computer-based accounting system will always reject inaccurate financial information input to the system's database

A computer-based accounting system is easier to update as new information becomes available

The management accountant can more readily present financial information to other business departments in a variety of forms

8 / 27

All of the following, with one exception, are areas in which an integrated accounting software package has advantages compared to a series of separate (stand-alone) dedicated programs. Which is the exception?

Specialised capabilities

Data integrity

Flexibility in preparing reports

Efficiency in updating data

9 / 27

Which of the following statements, in the context of computerised accounting systems, is NOT true?

A database is a structured, centralised pool of data which can be accessed by a number of applications.

Computerised systems reduce the risk of errors in financial calculations.

Information and Communication Technology (ICT) systems are more efficient than manual systems for any task an accountant may have to perform.

A spreadsheet is particularly useful for creating financial models.

10 / 27

In a typical finance function, preparation of budgets and budgetary control would usually be the responsibility of which of the following roles?

The Financial Controller

The Treasurer

The Management Accountant

11 / 27

The preparation and filing of accounts by limited companies each year is required by which of the following?

International Accounting Standards

National legislation

Local Accounting Standards

Codes of corporate governance

12 / 27

All the following statements, except one, describe the relationship between data and information.

Which is the exception?

Data is always in numerical form whereas information is always in text form.

The relationship between data and information is one of inputs and outputs.

Information is data which has been processed in such a way as to be meaningful to the person who receives it.

13 / 27

Gordon works in the accounts department of a retail business. He and his colleagues are looking at the sales figures for various types of clothing. The director asks them to use exception reporting to summarise their findings.

Which of the following correctly defines the concept of 'exception reporting' within a business context?

The preparation of reports on routine matters on an 'ad hoc' basis

The scrutiny of all data as a matter of course, save in exceptional circumstances

The reporting of unusual events, outside the normal course of events

The analysis of those items where performance differs significantly from standard or budget

14 / 27

Three of the following are outputs of a payroll system, and one is an input to the system. Which is the input?

Credit transfer forms

Pay slips

Time sheets

Payroll analysis

15 / 27

Legally binding rules relating to the disclosure and presentation of financial statements are set down in which of the following?

Rule books of professional accountancy bodies

International financial reporting standards

Generally agreed accounting principles

National legislation

16 / 27

To whom should the internal audit department of an organisation report?

The shareholders

The audit committee of the board of directors

The Finance Director

17 / 27

Office Automation Systems are designed mainly to increase the ....................................... of data and information workers.

Which word correctly completes this sentence.

18 / 27

Which of the following statements about accounting information is NOT correct?

Accounting information should be relevant, reliable, complete, objective and timely.

Some companies voluntarily provide specially-prepared financial information to employees.

Accountants have a strong obligation to ensure that company accounts conform to accounting standards

Charities and professional bodies do not have to produce financial statements in the same way as businesses.

19 / 27

International Financial Reporting Standards are issued by which of the following organisations?

ASB

IASB

The European Union

20 / 27

What element of a database system is represented by the question mark in the above diagram?

21 / 27

A ....................................... is a program which deals with one particular part of a computerised business accounting system.

Which of the following terms correctly completes this definition?

22 / 27

There is a need for co-ordinated information flow between sections and departments in accounting management. To which of the following should the receivables ledger section give information about overdue debts?

Cost accounting staff

The payables ledger section

The credit control department

23 / 27

Which of the following statements about data security is NOT true?

Loss or corruption of data is almost always non-deliberate.

It is impossible to prevent all threats cost-effectively.

New staff in particular pose a threat.

Smoke detectors are a form of data protection.

24 / 27

Which function in an organisation is responsible for ensuring that only properly authorised purchases which are necessary for the business are made?

Goods inwards

Finance/accounts

Purchasing/procurement

Production/operations

25 / 27

Which of the following user groups of financial and accounting information are likely to need, and have access to, this information most?

Shareholders of the company

Managers of the company

Financial analysis advisers

26 / 27

All of the following, except one, are tasks that can be performed by spreadsheet software. Which is the exception?

The application of logical tests to data

Automatic correction of all data entered by the operator into the spreadsheet

The presentation of numerical data in the form of graphs and charts

The application of 'What if?' scenarios

27 / 27

All the following, with one exception, are examples of advantages of a computer-based accounting system over a manual system. Which statement is the exception?

Financial calculations can be performed more quickly and accurately

There is much stronger provision for data security

Financial information can be presented to other business departments in a variety of forms

The system is easier to update as new information becomes available

Your score is

F1 (BT) – Chapter 10 MCQ’s (The role of accounting) – ACCA