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Foundations in Accountancy FAB / ACCA Paper F1
Accountant in Business
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Foundations in Accountancy FAB /
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Foundations in
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BPP Learning Media is an ACCA Approved Content Provider for the Foundations in
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Accountancy qualification. This means we work closely with ACCA to ensure this
Interactive Text contains the information you need to pass your exam.
In this Interactive Text, which has been reviewed by the ACCA examination team, we:
Highlight the most important elements in the syllabus and the key skills you need
Signpost how each chapter links to the syllabus and the study guide
Provide lots of exam focus points demonstrating what the examination team will
want you to do
Emphasise key points in regular fast forward summaries
Test your knowledge in quick quizzes
Examine your understanding in our practice question bank
Reference all the important topics in our full index
BPP's Practice & Revision Kit also supports this paper.
FOR EXAMS FROM 1 SEPTEMBER 2016 TO 31 AUGUST 2017
FAB/F1 ACCOUNTANT IN BUSINESS
First edition March 2011
Fifth edition January 2016
ISBN 9781 4727 4589 7
Previous ISBN 9781 4727 3524 9
eISBN 9781 4727 4630 6
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ii
CONTENTS
Contents
Page
Introduction
Helping you to pass.......................................................................................................................v
Chapter features...........................................................................................................................vi
Studying FAB/F1.........................................................................................................................vii
The Computer-Based Examination.................................................................................................xxi
Tackling Multiple Choice Questions...............................................................................................xxii
Part A The business organisation, its stakeholders and the external environment
1 Business organisations and their stakeholders..........................................................................3
2 The business environment...................................................................................................19
3 The macroeconomic environment.........................................................................................57
4 Microeconomic factors.........................................................................................................85
Part B Business organisation structure, functions and governance
5 Business organisation, structure and strategy.......................................................................123
6 Organisational culture and committees................................................................................145
7 Corporate governance and social responsibility.....................................................................177
Part C Accounting and reporting systems, controls and compliance
8 The role of accounting.......................................................................................................201
9 Control, security and audit.................................................................................................237
10 Identifying and preventing fraud.........................................................................................265
Part D Leading and managing individuals and teams
11 Leading and managing people............................................................................................293
12 Recruitment and selection..................................................................................................319
13 Diversity and equal opportunities........................................................................................345
14 Individuals, groups and teams............................................................................................357
15 Motivating individuals and groups.......................................................................................379
16 Training and development..................................................................................................399
17 Performance appraisal.......................................................................................................421
Part E Personal effectiveness and communication in business
18 Personal effectiveness and communication..........................................................................437
Part F Professional ethics in accounting and business
19 Ethical considerations.......................................................................................................477
Practice question bank.........................................................................................................................517
Practice answer bank...........................................................................................................................537
Index.....................................................................................................................................................551
Review form
iii
FAB/F1 ACCOUNTANT IN BUSINESS
iv
INTRODUCTION
Helping you to pass
BPP Learning Media – ACCA Approved Content Provider
As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use study
materials reviewed by the ACCA examination team. By incorporating the examination team's comments
and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media
Interactive Text provides excellent, ACCA-approved support for your studies.
The PER alert!
To become a Certified Accounting Technician or qualify as an ACCA member, you not only have to pass
all your exams but also fulfil a practical experience requirement (PER). To help you to recognise areas
of the syllabus that you might be able to apply in the workplace to achieve different performance
objectives, we have introduced the 'PER alert' feature. You will find this feature throughout the
Interactive Text to remind you that what you are learning in order to pass your Foundations in
Accountancy and ACCA exams is equally useful to the fulfilment of the PER requirement.
Your achievement of the PER should now be recorded in your online My Experience record.
Tackling studying
Studying can be a daunting prospect, particularly when you have lots of other commitments. The
different features of the Interactive Text, the purposes of which are explained fully on the Chapter
features page, will help you whilst studying and improve your chances of exam success.
Developing exam awareness
Our Interactive Texts are completely focused on helping you pass your exam.
Our advice on Studying FAB/F1 outlines the content of the paper and the necessary skills you are
expected to be able to demonstrate.
Exam focus points are included within the chapters to highlight when and how specific topics might
were examined, or how they might be examined in the future.
Using the Syllabus and Study Guide
You can find the syllabus and study guide on page viii of this Interactive Text.
Testing what you can do
Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can
recall what you have learnt.
We include Questions – lots of them – both within chapters and in the Practice Question Bank, as well
as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content.
v
FAB/F1 ACCOUNTANT IN BUSINESS
Chapter features
Each chapter contains a number of helpful features to guide you through each topic.
Topic list What you will be studying in this chapter and the relevant
section numbers, together with the ACCA syllabus
references.
Introduction Puts the chapter content in the context of the syllabus as a
whole.
Study Guide Links the chapter content with ACCA guidance.
Fast Forward Summarises the content of main chapter headings,
allowing you to preview and review each section easily.
EXAMPLE Demonstrates how to apply key knowledge and techniques.
Key Term Definitions of important concepts that can often earn you
easy marks in exams.
Exam Focus When and how specific topics were examined, or how they
Point may be examined in the future.
Formula Formulae that are not given in the exam but which have to
be learnt.
PER Alert Gives you a useful indication of syllabus areas that closely
relate to performance objectives in your Practical
Experience Requirement (PER).
Question Gives you essential practice of techniques covered in the
chapter.
Chapter Roundup A full list of the Fast Forwards included in the chapter,
providing an easy source of review.
Quick Quiz A quick test of your knowledge of the main topics in the
chapter.
Practice Question Bank Found at the back of the Interactive Text with more
comprehensive chapter questions. Cross referenced for
easy navigation.
vi
INTRODUCTION
Studying FAB/F1
How to Use this Interactive Text
Aim of this Interactive Text
To provide the knowledge and practice to help you succeed in the examination for Paper FAB/F1
Accountant in Business.
To pass the examination you need a thorough understanding of all areas covered by the syllabus and
teaching guide.
Recommended approach
(a) To pass you need to be able to answer questions on everything specified by the syllabus and
teaching guide. Read the Interactive Text very carefully and do not skip any of it.
(b) Learning is an active process. Do all the questions as you work through the Interactive Text so
you can be sure you really understand what you have read.
(c) After you have covered the material in the Interactive Text, work through the Practice Question
Bank, checking your answers carefully against the Practice Answer Bank.
(d) Before you take the exam, check that you still remember the material using the following quick
revision plan.
(i) Read through the chapter topic list at the beginning of each chapter. Are there any gaps
in your knowledge? If so, study the section again.
(ii) Read and learn the key terms.
(iii) Look at the exam focus points. These show the ways in which topics might be examined.
(iv) Read the chapter roundups, which are a summary of the fast forwards in each chapter.
(v) Do the quick quizzes again. If you know what you're doing, they shouldn't take long.
This approach is only a suggestion. You or your college may well adapt it to suit your needs.
Remember this is a practical course.
(a) Try to relate the material to your experience in the workplace or any other work experience you
may have had.
(b) Try to make as many links as you can to other papers at the Introductory and Intermediate levels.
For practice and revision use BPP Learning Media’s Practice & Revision Kit and Passcards.
vii
FAB/F1 ACCOUNTANT IN BUSINESS
What FAB/F1 is about
The overall aim of the Accountant in Business syllabus is to introduce accountancy firmly in its context
as a central business function. This encompasses:
Business organisation, stakeholders and the business environment
Business structure, functions and governance, including social responsibility
Accounting and its relationship with other business functions
Audit and internal control
People management issues
Effectiveness and communications
Professional ethics in the business environment
Brought forward knowledge
There is no assumed brought forward knowledge for this paper.
Approach to examining the syllabus
Paper FAB/F1 is a two-hour paper. It can be taken as a written paper or a computer-based examination.
The questions in the computer-based examination are objective test questions or multiple task questions
– multiple choice, number entry, multiple response, multiple response matching, picklists and hotspots.
(See page xxiii for frequently asked questions about computer-based examinations.)
The written examination is structured as follows:
Number of marks
16 one mark objective test questions 16
30 two mark objective test questions 60
6 four mark multiple task questions (One on each area of the syllabus) 24
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