Accountant in Business Flashcards
7 cards from real ACCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Accountant in Business flashcards as text
Which of the following is a characteristic of a 'tall' organizational structure?
Answer: Narrow span of control with many management levels
Tall structures have many layers of management with each manager overseeing a small number of subordinates.
According to the CIMA/ACCA ethical framework, which threat arises when an accountant audits financial statements they personally prepared?
Answer: Self-review threat
A self-review threat occurs when a professional must evaluate their own previous work, impairing objectivity.
Which stakeholder group is typically classified as having HIGH power and HIGH interest in a company according to Mendelow's matrix?
Answer: Key investors and major creditors
Key investors and major creditors have both significant power to influence decisions and high interest in outcomes, placing them in the 'manage closely' quadrant.
What does the term 'principal-agent problem' describe in a corporate context?
Answer: Conflict of interest between shareholders (principals) and managers (agents)
The principal-agent problem arises because managers may pursue their own interests rather than maximizing shareholder value.
Which of the following is an example of a macro-environmental factor in a PESTEL analysis?
Answer: A change in the national interest rate set by the central bank
Interest rate changes are an economic (E) factor in PESTEL, representing the broader macro-environment beyond the organization's control.
A business implements a mandatory two-week vacation policy for employees who handle cash. What internal control principle does this enforce?
Answer: Forced holiday as a fraud detection tool
Mandatory vacations force another employee to cover, which can expose fraud or irregularities that the original employee was concealing.
In Maslow's hierarchy of needs, which level must be satisfied before an employee becomes motivated by 'esteem needs'?
Answer: Social/belonging needs
Maslow's hierarchy requires social needs (belonging, love) to be met before esteem needs (recognition, status) become motivating.