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: 10 to 14
Chapter Number: 14 of the Practice and Exam Kit
Syllabus Area: C – Accounting and reporting systems, technology, compliance and controls
Questions Type: MCQs and OTQs
Exam Section: Section B

Number of the Questions

There are 23 Questions in this Online F1 MCQ Test that cover Chapter 14, covers the Part C of the Syllabus; Accounting and reporting systems, technology, compliance and controls 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 14 - Part C Test - MCQs and MTQs

1 / 23

Scenario

Stella is an external auditor who has observed some cash transactions that don't have any supporting documentation. Upon further investigation she discovered that these payments are made into bank accounts of the Finance Director's family. She discusses this with the audit manager and they jointly decide not to take any further action.

James is also an external auditor and has discovered a fraud at one of his clients and has decided he will make a report to his nominated officer. At the same time he decides to inform the financial controller of the client about making the report.

QUESTION

Which of the following offences has been committed by James?

No offence has been committed

Failure to report

Tipping off

2 / 23

Which of the following statements are relating to the 'Internal audit'?

Enables an opinion to be expressed on the financial statements

Designed to add value and improve an organisation's operations

Report is to those charged with governance

Work relates to the operations of the organisation

Independent of the company and its management

Work relates to the financial statements, and the financial records that underlie them

3 / 23

Which of the following statements are relating to the 'External audit'?

Work relates to the operations of the organisation

Report is to those charged with governance

Independent of the company and its management

Enables an opinion to be expressed on the financial statements

Designed to add value and improve an organisation's operations

Work relates to the financial statements, and the financial records that underlie them

4 / 23

Check digits, control totals and limit checks are examples of which type of control?

Output control

Input control

Processing control

5 / 23

A ______________ is a program that deals with a particular part of the accounting system.

Which word fills in the blank above?

6 / 23

Which TWO of the following are examples of physical access controls?

Automatic system back ups

Door locks

Physical inspection of inventory

Intruder alarms

Authorisation of purchases

7 / 23

The statement of financial position must give _______________ view of the company at the end of the financial year.

Which of the following correctly fills the blank?

8 / 23

A control system consisting of sufficient controls will be entirely effective.

True

False

9 / 23

Only businesses need to prepare financial statements.

True

False

10 / 23

Scenario

Elyse is transferring amounts of money from business to business to disguise the fact that the money was originally the proceeds from criminal activity.

Laura is in the process of banking several small amounts of illegally obtained money with a variety of banks in order to avoid anti-money laundering requirements.

QUESTION

Which of the following phases of money laundering is being undertaken by Elyse?

Layering

Integration

Placement

11 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Tax authorities ____________ ?

(Why Tax authorities will be interested in financial information?)

Assessing how effectively management is running the company

To advise clients

To assess the ability of the company to pay its debts

To assess tax payable by the company

12 / 23

Which of these is an example of an 'internal check'?

Completeness of the accounting records

Adherence to internal policies

Use of control totals

Safeguarding of assets

13 / 23

The external auditor should design audit procedures to have a reasonable expectation of detecting fraud. Everything else is the responsibility of the directors.

Which TWO of the following are advantages of computerised accounting systems over manual systems?

Information is less accessible

The risk of errors is eradicated

Corrections can be made quicker

Processing is faster

14 / 23

Scenario

QUESTION

Which of the following offences has been committed by Stella?

Failure to report

Tipping off

No offence has been committed

15 / 23

____________ audit is based on testing and evaluating the internal controls of an organisation.

Which of the following correctly fills the blank?

16 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Shareholders ____________ ?

(Why Shareholders will be interested in financial information?)

To assess tax payable by the company

To assess the ability of the company to pay its debts

To advise clients

Assessing how effectively management is running the company

17 / 23

Scenario

QRT Co has just implemented a new computerised accounting package and also reinforced some of its accounting controls. The new system has the following features

All accounting entries must balance or they cannot be entered.
A module exists so that non-current asset purchases can be authorised by the relevant
member of management.
Users are set up with passwords in order to login to the system.
An audit trail is produced so all transactions can be traced to the time of posting and the
individual who entered them.

QUESTION

From the following controls, identify which are non-discretionary.

Review of the audit trail

Authorisation of non-current asset purchase

Password access to the system

Balancing of accounting entries

18 / 23

Scenario

QRT Co has just implemented a new computerised accounting package and also reinforced some of its accounting controls. The new system has the following features

All accounting entries must balance or they cannot be entered.
A module exists so that non-current asset purchases can be authorised by the relevant
member of management.
Users are set up with passwords in order to login to the system.
An audit trail is produced so all transactions can be traced to the time of posting and the
individual who entered them.

QUESTION

From the following controls, identify which are discretionary.

Balancing of accounting entries

Authorisation of non-current asset purchase

Review of the audit trail

Password access to the system

19 / 23

A database does not need updating once it has been set up.

True

False

20 / 23

Scenario

Elyse is transferring amounts of money from business to business to disguise the fact that the money was originally the proceeds from criminal activity.

Laura is in the process of banking several small amounts of illegally obtained money with a variety of banks in order to avoid anti-money laundering requirements.

QUESTION

Which of the following phases of money laundering is being undertaken by Elyse?

Integration

Placement

Layering

21 / 23

______________ controls help an organisation recover in the event of a disaster.

Which word fills in the blank above?

22 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Financial analysts ____________ ?

(Why Financial analysts will be interested in financial information?)

To assess tax payable by the company

To advise clients

Assessing how effectively management is running the company

To assess the ability of the company to pay its debts

23 / 23

Scenario

The following are reasons why people might be interested in financial information about a large
public company.

Assessing how effectively management is running the company
To advise clients
To assess tax payable by the company
To assess the ability of the company to pay its debts

Requirement: For each of the following users of financial information, match the appropriate reason for wanting the information form the list above:

(i) Suppliers
(ii) Tax authorities
(iii) Shareholders
(iv) Financial analysts

QUESTION

Suppliers ____________ ?

(Why suppliers will be interested in financial information?)

To advise clients

To assess tax payable by the company

To assess the ability of the company to pay its debts

Assessing how effectively management is running the company

Your score is

F1 (BT) – Chapter 14 – PART C – MCQ’s and OTQs – ACCA