ACCA F2 Kit

1.1 Which of the following statements about qualities of good information is false?

• It should be relevant for its purposes

• It should be communicated to the right person

• It should be completely accurate

• It should be timely

1.2 The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning?

• Strategic planning

• Tactical planning

• Operational planning

• Corporate planning

1.3 Which of the following statements about management accounting information is/are true?

(i) They must be stated in purely monetary terms.

(ii) Limited companies must, by law, prepare management accounts.

(iii) They serve as a future planning tool and are not used as an historical record.

• (i), (ii) and (iii)

• (i) and (ii)

• (ii) only

• None of the statements is true

1.4 Which of the following statements is/are correct?

(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.

(ii) An objective is a course of action that an organization might pursue in order to achieve its strategy.

(iii) Information is data that has been processed into a form meaningful to the recipient.

• (i), (ii) and (iii)

• (i) and (iii)

• (ii) and (iii)

• (iii) only

1.5 Good information should have certain qualities. Which of the following are qualities of good information?

(i) Complete

(ii) Extensive

(iii) Relevant

(iv) Accurate

• (i), (ii) and (iii)

• (i), (iii) and (iv)

• (ii) and (iv)

• All of them

1.6 Monthly variance reports are an example of which one of the following types of management information?

• Tactical

• Strategic

• Non-financial

• Operational

1.7 Which of the following statements is/are correct?

(i) Information for decision-making should incorporate uncertainty in some way

(ii) The data used to prepare financial accounts and management accounts are thesame

• (i) is true and (ii) is false

• (ii) is true and (i) is false

• Both are true

• Both are false

1.8 Which of the following processes occurs at the business planning stage?

• AObtaining data about actual results

• Taking corrective action

• Comparing actual performance with budget

• Establishing objectives

1.9 Which of the following statements is correct?

• Management accounting systems provide information for use in fulfilling legal requirements

• Management accounting systems provide information for the use of decision-makers within an organisation

• Management accounting systems provide information for use by shareholders

• Management accounting systems provide information for use by tax authorities

1.10 Which of the following would be data rather than information?

• Sales increase/decrease per product in last quarter

• Total sales value per product

• Sales made per salesman as a percentage of total sales

• Sales staff commission as a percentage of total sales