E1 Practice Exam Questions with Answers Managing Finance in a Digital World Certification

YKF is a manufacturer of candles with world-wide operations.

The finance department within YKF has recently adopted the use of accounting systems that are hosted and operated by an external provider, instead of being in-house.

The technology allows different users to access elements of the accounting software, regardless of location, through either an internet browser or an app on their mobile device

What technology has YKF adopted to make its accounting software more flexible?

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.

Arrange the stages of the product life-cycle in the correct order.

JFD is a pet supplies retailing business.

Using customer data to build the target customer profile. JFD plans to create personalised advertising and communications more specific to customers' wants and needs in its market It is hoped that this will create interaction and responses from these customers.

Which of the following is JFD using?

The following statements are from which section of the UK Combined Code?

1:The board should disclose a balanced and understandable assessment of the company's position and prospects in the financial reports.

2:The board should maintain an appropriate relationship with the company's external auditor.

Data warehousing is an essential element of the extraction transformation and loading process.

Which of the following best describes data warehousing?

A management accountant vacancy has arisen in the Finance Department of HJ Company. The Finance Manager is preparing the necessary paperwork for the recruitment process and is currently working on the person specification. He has contacted the company's Human Resource Department to ask for advice on which THREE of the following he should include in the person specification:

The Sales Manager has called his usual monthly meeting with his sales team and presented the monthly sales budget broken down into weekly targets for each member of the team. What type of planning is this?

TTT plc has recently been responsible for a major environmental accident. As a result the management of the company wishes to set up a large fund to compensate stakeholders affected. The company has a significant number of institutional shareholders which own a large share of the company, as well as many individual investors. 

The management is considering Mendelow's Matrix to determine the likely movement of the institutional shareholders during the change in strategy. What is the institutional shareholders' likely movement according to Mendelow?

Which of the following organisational approaches is associated with the consistent delivery of a product or service?

A is developing a new mission statement. Which TWO of the following should NOT be included?

Stephanie has just secured a job as a management accountant for a well-known banking firm. She needs to understand the organisation's financial position.

What should she do first in order to gain this understanding?

Which TWO of the following are activities associated with setting up a new IT system?

Karl runs a factory. He wants his employs to feel that their role in the company has meaning.

Which of the following would help to make his employees feel this way?

With the use of increasingly sophisticated systems and improved communications, the focus of the accountant's role has changed in recent years to which of the following?

Which of the following scenarios is an example of independence within the role of the finance function?

HKD is an online marketing company Its finance function is currently preparing budgets for the coming period.

At which stage of value creation is HKD's finance function currently playing a key role?

Which of the following best defines Business Process Re-engineering (BPR)?

The finance function of Company E are considering using blockchain technology for its ledger systems Which of the following will be an advantage of introducing this technology?

Which type of organisation is owned by its customers, strictly speaking is a not-for-profit organisation and is in the private sector?

Which of the following is NOT an element of the system development life cycle?

Which of the following specifically describes experiential marketing?

Which of the following is important when considering the 'Promotion' element of the marketing mix?

Which of the following are advantages of a virtual team?  

Select ALL that apply.

Which one of the following structures primarily suits a nationwide business with three product lines; for example, soup, condiments and baby food?

Company O has appointed a new CEO who is well known in the industry for making radical changes within the companies that she works for. After her first 9 months in the role, she announced some changes that she wanted to make, starting with the Finance Department. She stressed an intention to focus inwards on improvements to efficiencies and that she was not afraid to make fundamental changes if this is what is required to achieve those improvements. Which of the following is described above?

An individual works for Organisation A. They are responsible for collating financial information from all the local County primary schools in order to report budgetary requirements for the next financial year.

An individual works for Organisation B. They are responsible for collating financial information from all the local charity shops in order to report donation items and items sold.

An individual works for Organisation C. They are responsible for counting and recording raw materials stock, work in progress and finished goods stock on a monthly basis for the managers to report on rates of stock wastage and pilferage at the monthly board meeting.

For each of the organisations above, match them with the relevant sector below.

In a new initiative, Company O has been putting a lot of emphasis on internal awareness of Corporate Social Responsibility and creating value for it's stakeholders. A huge part of this has been about focusing on recycling and making departments accountable.

In order to assist with the achievement of goals in this area, a process has been designed to give some structure to measuring value for each department. Each of the process elements are listed below. Place the steps against each of these to indicate the correct sequence.

Which of the following do working capital reports include?

GBX has been receiving adverse customer feedback regarding late deliveries. As a result, it has decided to review its delivery logistics systems and related performance indicators.

The management team are discussing the introduction of a Key Performance Indicator (KPI) which allows a maximum of three hours to deliver a customer order

Which of the following SMART criteria is unlikely to apply to this KPI?

Running shoe manufacturer Bo Joggs have a long established method to ensure their product is right first time. The aim is to reduce the amount of quality checking. Internal processes and procedures are closely

monitored so that the running shoes are of the highest standard before going to market.

What are Bo joggs likely to do to ensure this quality is maintained?

Select ALL that apply.

Level 2 of the contemporary shape of the finance function involves Strategic Business Partnering In this context strategic partners are

Continued improvements in Information Technology have encouraged organisations to use IT increasingly to assist in their development. Which of the following is such an improvement in IT?

Company Q is a relatively small company but expanding quickly. In this period of rapid growth it feels that now is the time to add a Human Resource presence and support, but does not wish to add a permanent department within the organisational structure. What is the best option for Company Q?

A business is seeking to introduce TQM. It gets some advice from a business consultant on how to ensure it is successful in its implementation. Which of the following are likely to be included in the advice they receive?

Select ALL that apply.

Information systems outsourcing involves purchasing the services required to perform business functions from outside the organisation.

Which of the following is an advantage to the organisation of outsourcing activities?

Which of the following is an example of operational information?

Corporate governance in the UK, that provides guidance regarding areas such as directors, internal controls and remuneration, is largely defined by which of the following?

The process of human resources planning would involve the following: strategic analysis, forecasting, job analysis and recruitment and training. Which THREE of the following are issues relevant to forecasting?

Different types of organisation exist for different purposes. Match the types of organisation to the appropriate purpose.

Which of the following is NOT a component of the working capital cycle?

C Company is a manufacturer of components for the electronics industry. Although enjoying healthy returns in the past, results for the last two years have shown a decline in profit. G has been brought in as the new Operations Manager. In her previous role, she was responsible for turning around a struggling organisation by using process mapping tools and she feels that this approach could also benefit her new company. Which of the following is NOT a feature of process mapping?

M works in the finance function of S Company, a logistics and distnbution organisation

M has been asked to assist in narrating how the company has performed by collating the regular six monthly review for distribution to shareholders

Which of the following finance function activities best describes the activities M is likely be involved in?

XY Company has just completed a consumer survey which has produced large quantities of data regarding its products. Which of the following is NOT relevant in the processing of this data?

Simone is a management accountant at a jewellers called ShinyShiny. She is currently conducting operational reporting for them.

Which of the following will Simone not discover during her operational reporting?

Select ALL that apply.

TJD is a national retailer of garden accessories and a FTSE 350 company It is currently establishing a remuneration committee

According to the UK Corporate Governance Code what is the minimum number of non-executive directors TJD's remuneration committee should be

made up of?

More and more organisations are developing their supply chain networks by building closer links with suppliers. Which THREE of the following are considered to be features of this trend?

The finance function has an important role in the management of performance and the achievement of the organization’s plans and budgets.

Which of the key roles of the finance function does this best describe?

Accountants and finance professionals in the future will see the basic routine transactional work reduce with a shift to higher level skills

Which of the following best describes business acumen?

A decision has been made to close down a branch of a restaurant.

Which of the following is quantitative information produced by the finance function that will have supported this decision being made?

Data science is increasingly important in the production of business focused data It consists mainly of experts with backgrounds in mathematics, programming and computer science

Which of the following best describes the attributes of a data scientist?

Which of the following are benefits of appraisals? Select ALL that apply.

The development of technical maps of rules and data structures would be part of which level of a data modelling process?

There are several inter-related activities thought critical in implementing internal marketing.  Which THREE are valid?

YZ Company has grown rapidly and has recently recruited a finance director to set up a more structured finance function. During this process care will be needed to ensure effective lines of communication between different disciplines within the whole function and to recognise the interdependencies.

Which of the following are examples of the interdependence of elements of the finance function?

Select ALL that apply.

A boiler repair business uses an expert system in the form of a fault diagnostic system. What benefits does this give to the business?

Select ALL that apply.

A service level agreement will NOT normally include which of the following? 

At which stage of a systems development lifecycle is systems architecture considered?

The development of a Corporate Digital Responsibility (CDR) strategy is increasingly common in modern business and will include 5 key areas including customer expectation

Which of the following best describes customer expectation in this context?

Working in the finance function of a manufacturer of baked goods, T has been asked to support the monitoring of key performance indicators (KPIs) within the operations function of the company.

Which of the following would be a suitable KPI to help measure quality costs?

Which of the following statements is correct in relation to a tall organisation?

At his recent appraisal CD discussed his development needs with PQ, his line manager.  In particular CD has said that he would like the opportunity to take on more responsibility.  Which of the following job design techniques could PQ use to support CD's development?.

G Company has recently undergone a series of redundancies meaning that, in the near future, opportunities for promotion of remaining staff are likely to be limited. If the company wishes to keep staff motivated, which of the following techniques should NOT be used?

There are various roles within the finance and accounting function. A trainee accountant first joining the profession can take some time learning the different aspects of each before making a decision on specialising in any particular direction.

Below are different components of the finance function. Match these with the examples of responsibilities listed.

An effective induction programme will typically focus on which THREE of the following?

A company sells double glazed windows. It has traditionally adopted a sales orientation and used aggressive direct selling techniques. As part of a new initiative, it is exploring its options to update its business philosophy.

Which of the following would be the most effective orientation for this business?

Which THREE of the following features are likely to indicate that an organisation is following the marketing concept as a business philosophy?

M has a new job working in the finance function of HKF. a chain of hotels. At M's interview, new job working in the finance function of HKF. a chain of hotels emphasis on connecting the different activities in the organisation.

Which of the following is an example of connecting the different activities in an organisation'?

Which of the following would be a useful KPI to highlight increasing recruitment costs?

Which of the following statements regarding Just-In-Time (JIT) are true?

1:The main aim of JIT it to ensure a business has a sufficient amount of leftover stock, just in case it's needed further down the line.

2:Although the benefits of JIT are many, its use can end up harming supplier relations.

3:JIT generally results in lower costs for the business using it.

The finance function of an organisation supports the organisation's strategies and operations.

Which THREE of the following activities are fundamental to the role of the finance function?

Which of the following is NOT a form of viral marketing?

Offshoring may be successful when which of the following applies?

Following scandals such as Enron and legislation such as Sarbannes-Oxley in the US, the emphasis of the finance function of many entities has changed. This has led to which of the following?

From the following, which best defines Business Process Re-engineering (BPR)?

The growth and success of virtual teams have been a result of which THREE developments becoming available to organisations?

MN College (limited by guarantee) aims to ensure that each student achieves their qualification and gains employment. Which THREE of the following are suitable measures of performance for MN College?

Which of the following best describes a virtual team formed by individuals from different companies to achieve a common aim?

Shortly after starting his new role within R, Q begins to suspect that the training opportunities he was offered at interview are unlikely to materialise. Upon discussing his concerns with his manager, Q is made to feel as though his expectations regarding training opportunities were unrealistic as everything included within his employment contract had been honoured. Which of the following applies to the above situation?

LFN is a tuition provider

The finance function has recently migrated all accounting systems onto cloud software which is expected to considerably streamline the existing systems.

The Managing Director is keen to promote the benefits of the new software in terms of increased accuracy of reporting and availability of real time management information.

However, the Finance Director has concerns and is feeling pressured to keep quiet about the ability of the technology to achieve all that is expected

Which of the following ethical principles is highlighted within LFN?

Velocity is one of the defining characteristics of Big Data.  Which of the following most accurately defines what this means?

Which TWO of the following are non-incorporated organisations?

Which of the following is NOT an element of the EOQ (Economic Order Quantity) equation?

Which of the following is a possible disadvantage associated with a matrix structure?

Which of the following does NOT help to bring about operational improvement in the manufacturing process of an organisation?

Which of the following statements best describes data extraction?

Which of the following would work as Support Staff in Mintzberg's organisational structure?

According to Ansoff, which of the following marketing strategies should be adopted when introducing an existing product to a new market?

Material requirements planning (MRP I) and manufacturing resource planning (MRP II) are computerised systems used for planning the requirements for raw materials, work-in-progress and finished items and integrating with other production processes. These systems enable strong relationships to be forged with suppliers as orders can be placed with suppliers in good time to fulfill customer requirements and expectations, as well as other processes related to materials planning. Which of the following specifically can MRP I and MRP II NOT assist with? 

Which of the following are measures a business might introduce specifically as part of its Corporate Social Responsibility (CSR) strategy?

Select ALL that apply.

When implementing a new IT system and according to the theory of Kotter, Schlesinger and Sache, which of the following is a benefit of using participation as a way of overcoming resistance to change?

H works in an organisation that supplies advertising space in prominent areas in inner cities. She frequently works at client premises with limited time spent at the office headquarters. H's colleagues also work in the same manner and the organisation has reduced office space as most employees are not in the office all at the same time. Instead, a bank of work stations are provided for sales staff with telephones and internet connections. Which of the following working arrangements is described above as being provided by the organisation?

Information relating to production, accounting records and payroll are most likely to be used by which of the following stakeholders?

Which THREE of the following refer to information sourced externally?

Organisation Z distributes beauty products to retailers and salons. As part of the operations management function, demand is forecasted from historical sales records. The marketing department, on the other hand, has predicted temporary higher levels of demand due to a recent popular advertising campaign.

Which capacity planning technique is appropriate?