0.2 Practice Questions 2.1 PDF

Assessment objective 2 - The business environment Task 2.1 (a) It is Friday morning. A colleague usually banks the weekly cash on a Friday morning. As the colleague is on holiday, she has left a note asking you to do it. Your line manager has also asked you to complete some projec...

Assessment objective 2 - The business environment Task 2.1 (a) It is Friday morning. A colleague usually banks the weekly cash on a Friday morning. As the colleague is on holiday, she has left a note asking you to do it. Your line manager has also asked you to complete some project work which you think will take all of Friday. You are not sure that you will have time to do both tasks and you know that the business is suffering from cash flow problems. Required Which TWO of the following are possible consequences of you NOT banking the money on Friday? The business may have insufficient funds available to pay a debt becoming payable next week. You will not be able to complete the work for your line manager. You will be able to complete the work for your line manager. The money will not have to be banked by someone else. (b) Complete the following sentence. The most appropriate action to take is: Picklist: Bank the money and then move on to the project work Complete the project work and bank the money next week Explain the situation to your manager and try to find a solution Throw away the note from your colleague and claim you did not receive it Your weekly workload (excluding completed tasks) is shown in the table below. You need to carry out all these tasks, but you also have to respond to business needs as required. Your working day is 9:30am to 5:30pm. Your lunch break is an hour long (12:30pm to 1:30pm). It is 9:30am on Wednesday and you have completed your routine tasks on time so far this week. Your remaining tasks for the week are as follows: 1 11 Receivables reconciliation Thursday 09:30 45 minutes Supplier statement reconciliations Thursday 10:15 1 hour Calculate depreciation and process the Wednesday 11:30 1.5 hours related journals Collect and distribute post Every day 10:00 j 30 minutes 4- Enter cash payments and receipts Every day 17:00 3 hours Prepare payroll listing Friday 15:00 I 1 hour Bank reconciliation Friday 13:00 2 hours BPP 8 Synoptic Assessment LEARNING MEDIA  On arriving at your desk, you pick up an email informing you that the managing director has called a meeting to brief all employees on a proposed project to relocate the business to another nearby premises. All employees must attend the briefing at 11:30am which will last for 1 hour. Required (c) Complete the to-do list below for Wednesday by selecting the appropriate tasks from the picklist provided. First task Second task Third task Fourth task Fifth task Sixth task Picklist: Bank reconciliation Briefing from managing director Calculate depreciation and process the related journals Collect and distribute post Enter cash payments and receipts Prepare payroll listing Receivables reconciliation Supplier statement reconciliations Ma* Task 2.2 You are a trainee in the accounting function, and you work for both the financial accounting and management accounting functions. You work from 9:00am until 5:00pm and are required to have lunch between 12:00pm and 1:00pm. The following tables show your work schedules for the financial and management accounting functions and detail the days when specific jobs have to be completed and the length of time, in hours, each job takes you to complete. The financial accounting function works on a monthly cycle of work whereas the management accounting function works on a weekly cycle of work. For the financial accounting function, work is required by the end of the day identified in the work schedule. Week 1 , Bank Bank monies Trade I reconciliation (2 hours) receivables (2 hours) review (3 hours) I Week 2 Petty cash top Supplier Bank monies up (2 hours) payments (2 hours) I (3 hours) PPP LEARNING Questions 9 MEDIA  Financial accounting function work schedule Monday Tuesday Week 3 Bank Accruals and Bank monies Trade reconciliation prepayments (2 hours) receivables (2 hours) (2 hours) review (3 hours) Week I+ Wages analysis Non-current Bank monies (3 hours) assets (1 hour) (2 hours) Management accounting function work schedule Task to be completed by: Task Task duration Day Time Budget run Friday 09:00 4 hours Expenses analysis Tuesday 14:00 2 hours Departmental reports Monday 12:00 2 hours Inventory review Friday 10:00 1 hour Variance report Every day 14:00 1 hour I Departmental charges Wednesday 12:00 2 hours In addition to this information, the whole accounting function has an hour-long meeting at 10:00am on Mondays. Today is Friday in week three of the month. Required Complete the to-do list below for next Monday by assigning each task to the correct position using the picklist. Please note that each task box is one hour in duration therefore, if a task takes more than one hour to complete, you will be able to use the task box more than once. 09:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:00 16:00-17:00 BPP 10 Synoptic Assessment LEARNING MEDIA Picklist: Accounting function meeting Accruals and prepayments Bank monies Bank reconciliation Budget run Departmental charges Departmental reports Expenses analysis Inventory review Lunch Non-current assets Petty cash top up Supplier payments Trade receivables review Variance report Wages analysis Task 2.3 (a) Which ONE of the following policies and procedures is most likely to be relevant to those working in an accounting function? ; Production quality control policy i Website development procedures I I Staff code of behaviour policy t Motor vehicle maintenance policy (b) Identify which TWO of the following statements are correct. Organisations, by law, must have at least ten policies and procedures. I It is good practice for organisations to have policies and procedures ' so all staff work to a consistent standard. Data protection policy is an example of a policy that would not apply to those staff working in an accounting function. Organisational procedures always result in staff taking longer to do work tasks. Ensuring staff adhere to organisational policies and procedures should result in more efficient working practices. The health and safety policy only applies to those working in the production department. BPP LEARNING Questions 11 MEDIA You have been passed a company 'information' policy that your manager says is relevant to you when carrying out your daily tasks. An extract from the policy is given below: Information policy Personal data must be accurate. Personal data must only be kept for as long as necessary. Personal data must be kept securely. No information about customers or employees must be revealed to other customers or employees. Required (c) Complete the following sentence by selecting the appropriate option from the picklist. This policy has been compiled to aid compliance with Picklist: Confidentiality of information legislation. Data protection legislation. Employee protection legislation. The accounting department will provide information to other departments within the business. Task 2.4 You have been asked to do an urgent task by your manager which means you will not be able to complete the work a senior colleague has already allocated to you to complete by the end of the day. Required (a) Select the most appropriate action to take from the list provided in the table. Complete the additional task as your manager is the most senior person you work for, then do whatever other work you can. The colleague will have to wait for their work until you have time to complete it. Complete the additional task as your manager is the most senior person you work for, then do whatever other work you can. You will prioritise the colleague's work for the next day. Complete the colleague's work as they asked you to do the work first and you will start the manager's work tomorrow. Discuss your workload with both the manager and the colleague to decide on the work priority and renegotiate deadlines where appropriate. L BPP 12 Synoptic Assessment LEARNING MEDIA You have to check supplier statements on a Thursday so that your colleague can receive the necessary information for her to be able to pay appropriate suppliers. A critically important task has been left on your desk by your manager. If you complete this urgent task, you will not be able to check all the supplier statements and provide information to your colleague. Required (b) Identify whether the following statements are true or false in relation to the impact on your colleague or the organisation if you do not supply the information on supplier statements. There will be no impact. If you cannot check supplier statements , on Thursday, you can prioritise this work the next day. Your colleague may be unable to pay suppliers by the due date which may result in problems for the organisation in receiving future supplies. (c) For each of the following actions, indicate whether they primarily contribute to: Compliance with applicable laws and regulations The management of working capital and solvency The smooth running of the business Reduce customer credit terms so they pay their debts earlier Ensure IT support is in place in case staff encounter I computer problems Produce a health and safety policy to be circulated to all staff Ensure all staff are paid at least the minimum wage Ensure staff recruited for each job have the relevant experience and skills Avoid the build-up of surplus inventories Picklist: Compliance with applicable laws and regulations The management of working capital and solvency The smooth running of the business Task 2.5 As an accounts assistant, you work 9:00am to 5:00pm (with an hour for lunch at 1:00pm) and have the following routine duties (duration of tasks are in brackets): Open the morning post (30 minutes) Pass any cheques received to the cashier (30 minutes) Enter sales invoices/credit notes daily in batches into computer system by midday (2 hours) Match and check purchase invoices to goods received notes daily and pass them all to the accountant for authorisation (6 minutes per invoice) (see related information that follows on the deadline for this) File sales invoices/credit notes (between land 2 hours of filing) BPP LEARNING Questions 13 MEDIA Today is Friday 27 September and, having already opened the post and passed the cheques to the cashier, you get a telephone call from the accountant to say that one of your colleagues is not coming in today due to sickness. You now also need to enter the weekly purchase invoices into the computer (which should only take an hour). Another colleague, who is back in the office this afternoon (2:00pm), needs to review a list of these invoices before the end of the day for forecasting purposes. The list is generated from the computer system you are entering the invoices into. You have 20 purchase invoices that need to be matched to (and checked against) GRNs before the end of the day, ready for authorisation first thing on Monday. Required (a) Decide on the order you would carry out the tasks included in the picklist. 1st task 2nd task I 3rd task 4th task Picklist: Enter sales invoices/credit notes into computer system Enter weekly purchase invoices into the computer Filing Match purchase invoices to goods received notes and pass to the accountant for authorisation (b) Identify which TWO of the following actions will help the solvency of an organisation. Maximise inventory levels Issue statements to trade receivables on a regular basis Pay trade payables as soon as invoices are received Encourage trade receivables to pay the amounts owed on or before the due date Ensure the organisation has a staff development policy Issue statements to trade payables on a regular basis BPP 14 Synoptic Assessment LEARNING MEDIA