E1 Managing Finance in a Digital World Practice Test
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CIMAPRO19-E01-1-ENG
E1 Managing Finance in a Digital World
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Question: 90
Which of the following are advantages of a virtual team? Select ALL that apply. A . The costs of a central office are not needed.
B . New members can be brought in and out of the team easily. C . Members do not feel isolated.
D . It is easier to establish decision making processes.
Answer: A,B
Question: 91
Which of the following would be a useful KPI to highlight increasing recruitment costs? A . Ratio of employee costs to turnover
B . Reportable health and safety incidents. C . Training spend per employee.
D . Employee retention rate.
Answer: C
Question: 92
The Finance function of XZY company, which is based in the UK. are planning how they can minimise the corporation tax costs
Which of the following is correct?
A . Tax avoidance aims to reduce the amount of tax payable and is legal B . Tax avoidance aims to reduce the amount of tax payable and is illegal C . Tax avoidance operates within the spirit of the law.
D . Tax avoidance is the same as tax mitigation
Answer: A
Question: 93
Which TWO of the following are non-incorporated organisations? A . K, who runs a business alone and is entitled to all profits
B . P and Q who share joint responsibility for their business and all its debts C . MN, a family-owned business sharing profits by means of dividends
D . XY, an organisation whose owners can trade their shares publicly E . The British Red Cross Society, a well known charity
Answer: A,B
Question: 94
Stephanie has just secured a job as a management accountant for a well-known banking firm. She needs to understand the organisations financial position.
What should she do first in order to gain this understanding?
A . Record the organisations transactions in the books of prime entry. B . Inform the tax authorities of the organisations revenues.
C . Total all the day books and enter them into ledgers. D . Submit the companys accounts to the IFR
Answer: A
Question: 95
According to Ansoff, which of the following marketing strategies should be adopted when introducing an existing product to a new market?
A . Market penetration B . Product development C . Diversification
D . Market development
Answer: D
Question: 96
System changeover has four approaches, each of which vanes in terms of risk. cost and time. Select the most suitable approach for when there is a need to minimise costs and time.
A . Phased changeover
B . Pilot operation
C . Direct changeover D . Parallel running
Answer: C
Question: 97
Which of the following would be a disadvantage of the use of big data? A . Increased system requirements
B . Increased speed of decision making
C . Increased relevance of decisions
D . Increased volume of unstructured data
Answer: A
Question: 98
T is employed as an HR manager for a chain of hotels. A large part of her role is to assist the HR director with forecasting personnel requirements for the next one, three and six month periods respectively.
Which TWO of the following factors should be taken into consideration when forecasting personnel requirements? A . Staff approaching retirement age
B . Absence and sickness rates
C . Changes to the minimum wage legislation D . Employee turnover
Answer: B,D
Question: 99
Which of the following is a benefit to the employer of remote working? A . Reduced cost of commuting
B . Ease of balancing work/life commitments C . Privacy to the individual
D . Increased employee motivation
Answer: D
Question: 100
Which of the following best outlines the shift to higher level skills anticipated to be fundamental to future accountants?
A . The ability to collect and process data B . The ability to balance ledger accounts
C . The ability to produce an extended trial balance D . The ability to evaluate data sources.
Answer: A
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