What is an acronym used to describe the key elements of an organisation's external environment? A SWOT B SMART C PEST

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• 1Which of the following organisations would rely most heavily on value for money indicators and effi

  Which of the following organisations would rely most heavily on value for money indicators and

  efficiency rather than information on performance and profitability?

  A A private accountancy college

  B A local authority

  C A small retailer

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• 2Which of the following groups may be considered to be stakeholders in the activities of a nuclear po

  Which of the following groups may be considered to be stakeholders in the activities of a nuclear power station?

  (i) The government

  (ii) Environmental pressure groups

  (iii) Employees

  (iv) Local residents

  A (i), (iii) and (iv)

  B( i), (ii), (iii) and (iv)

  C (iii) only

  D (i) and (iii) only

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• 3Which one of the following statements is true? A Limited company status means that a company is onl

  Which one of the following statements is true?

  A Limited company status means that a company is only allowed to trade up to a predetermined turnover level in any one year.

  B For organisations that have limited company status, ownership and control are legally separate.

  C The benefit of being a sole trader is that you have no personal liability for the debts of your business.

  D Ordinary partnerships offer the same benefits as limited companies but are usually formed by professionals such as doctors and solicitors.

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• 4What is the term given to the idea that the combined output of a number of individuals working toget

  What is the term given to the idea that the combined output of a number of individuals working together will exceed that of the same individuals working separately?

  A Sympathy

  B Specialisation

  C Synergy

  D Systems thinking

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• 5Which ONE of the following statements correctly describes the contents of the Statement of Profit or

  Which ONE of the following statements correctly describes the contents of the Statement of Profit or Loss?

  A A list of ledger balances shown in debit and credit columns

  B A list of all the assets owned and all the liabilities owed by a business

  C A record of income generated and expenditure incurred over a given period

  D A record of the amount of cash generated and used by a company in a given period

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• 6Which ONE of the following statements correctly describes the contents of the Statement of Financial

  Which ONE of the following statements correctly describes the contents of the Statement of Financial Position?

  A A list of ledger balances shown in debit and credit columns

  B A list of all the assets owned and all the libilities owed by a business

  C A record of income generated and expenditure incurred over a given period

  D A record of the amount of cash generated and used by a company in a given period

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• 7Which of the fllowing best describes corporate governance? A Corporate governance is the system of

  Which of the fllowing best describes corporate governance?

  A Corporate governance is the system of rules and regulations surrounding financial reporting.

  B Corporate governance is the system by which companies and other entities are directed and controlled.

  C Corporate governance is carried out by the finance department in preparing the financial statements.

  D Corporate governance is the system by which an entity monitors its impact on the natural environment.

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• 8Which of the following are advantages of trading as a limited liability company? 1 Operating as a l

  Which of the following are advantages of trading as a limited liability company?

  1 Operating as a limited liability company makes raising finance easier because additional shares can be issued to raise additional cash.

  2 Operating as a limited liability company is more risky than operating as a sole trader because the shareholders of a business are liable for all the debts of the business whereas the sole trader is only liable for the debts up to the amount he has invested.

  A 1 only

  B 2 only

  C Both 1 and 2

  D Neither 1 or 2

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• 9Which of the following statements is/are true? 1 A supplier of goods on credit is interested only i

  Which of the following statements is/are true?

  1 A supplier of goods on credit is interested only in the statement of financial position, ie an indication of the current state of affairs.

  2 The objective of financial statements is to provide information about the financial position,performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.

  A 1 only

  B 2 only

  C Both 1 and 2

  D Neither 1 or 2

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• 10Who issues International Financial Reporting Standards? A The IFRS Advisory Committee B The stock

  Who issues International Financial Reporting Standards?

  A The IFRS Advisory Committee

  B The stock exchange

  C The International Accounting Standards Board

  D The government

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