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FAB ACCOUNTANT IN BUSINESS

PAPER F1 ACCOUNTANT IN BUSINESS

FIA & ACCA

About BPP Learning Media

BPP Learning Media is dedicated to supporting aspiring business professionals with top quality learning material as they study for

demanding professional exams, often whilst working full time. BPP Learning Media’s commitment to student success is shown by

our record of quality, innovation and market leadership in paper-based and e-learning materials. BPP Learning Media’s study materials

are written by professionally-qualified specialists who know from personal experience the importance of top quality materials for

exam success.

BPP Learning Media is the sole ACCA Platinum Approved Learning Partner - content.

This Interactive Text provides the only study material for FIA FAB Accountant in Business and ACCA Paper F1 Accountant in

Business which has been comprehensively reviewed by the Examiner. This unique review guarantees appropriate depth and

breadth of content and comprehensive syllabus coverage.

In addition to Examiner-reviewed material you get:

n Chapter activities to test your understanding of the topics covered

n Key terms extracted from the text and highlighted in ‘key term’ boxes

n Exam focus points highlighting ways in which topics might be examined

n A question and answer bank prepared by BPP Learning Media authors

n Icons to highlight activities, key terms, PER alerts and quick quizzes

n Regular fast forward summaries emphasising the key points in each chapter

At BPP Learning Media, we specialise in helping people pass professional exams. Your exam success is our business.

For more details about this or any other BPP Learning Media products, please call our customer services team on

0845 0751 100

(

within the UK

)

or +44

(

)

20 8740 2211

(

from overseas

)

, email learningmedia@bpp.com or visit our website

www.bpp.com/learningmedia

SEPTEMBER 2013

UK £25.00

FOR EXAMS FROM

FEBRUARY 2014

TO AUGUST 2015

INTERACTIVE

TEXT

FIA &ACCA

FAB

ACCOUNTANT IN BUSINESS

PAPER F1

ACCOUNTANT IN BUSINESS

FIA

FAB

ACCOUNTANT IN BUSINESS

ACC A

PAPER F1

ACCOUNTANT IN BUSINESS

INTERACTIVE TEXT

FOR EXAMS FROM FEBRUARY 2014

TO AUGUST 2015

BPP House, Aldine Place, London W12 8AA

Tel: 0845 0751 100 (for orders within the UK)

Tel: +44

(

)

20 8740 2211

Fax: +44

(

)

20 8740 1184

www.bpp.com/learningmedia

FI31ST14 (RICOH)_Layout 1 15/08/2013 18:02 Page 1

FAB/F1 ACCOUNTANT IN BUSINESS

First edition March 2011

Third edition September 2013

ISBN

9781 4453 7026 2

Previous ISBN

9781 4453 9965 2

eISBN

9781 4453 7061 3

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from

the British Library

Published by

BPP Learning Media Ltd

BPP House, Aldine Place

142-144 Uxbridge Road

London W12 8AA

www.bpp.com/learningmedia

Printed in the United Kingdom by

RICOH

Ricoh House

Ullswater Crescent

Coulsdon

CR5 2HR

Your learning materials, published by BPP

Learning Media Ltd, are printed on paper

obtained from traceable sustainable sources.

be reproduced, stored in a retrieval system or

transmitted in any form or by any means,

electronic, mechanical, photocopying, recording or

otherwise, without the prior written permission of

BPP Learning Media.

We are grateful to the Association of Chartered

Certified Accountants for permission to reproduce

past examination questions. The suggested

solutions in the exam answer bank have been

prepared by BPP Learning Media Ltd.

BPP Learning Media Ltd

2013

A note about copyright

Dear Customer

What does the little © mean and why does it matter?

Your market-leading BPP books, course materials and e-

learning materials do not write and update themselves.

People write them on their own behalf or as employees of an

organisation that invests in this activity. Copyright law

protects their livelihoods. It does so by creating rights over

the use of the content.

Breach of copyright is a form of theft – as well as being a

criminal offence in some jurisdictions, it is potentially a

serious breach of professional ethics.

With current technology, things might seem a bit hazy but,

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one area, can you really trust them?

CONTENTS

iii

Contents

Page

Introduction

Helping you to pass – the ONLY FAB/F1 study text reviewed by the examiner!......................................v

Chapter features ........................................................................................................................... vi

Studying FAB/F1 ......................................................................................................................... vii

The Computer Based Examination ............................................................................................... xxiii

Tackling Multiple Choice Questions.............................................................................................. xxiv

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 macro-economic environment ........................................................................................ 57

4 Micro economic 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 ....................................................................................................... 199

9 Control, security and audit ................................................................................................. 235

10 Identifying and preventing fraud ......................................................................................... 261

Part D Leading and managing individuals and teams

11 Leading and managing people ............................................................................................ 289

12 Recruitment and selection.................................................................................................. 315

13 Diversity and equal opportunities........................................................................................ 341

14 Individuals, groups and teams............................................................................................ 353

15 Motivating individuals and groups....................................................................................... 375

16 Training and development.................................................................................................. 395

17 Performance appraisal....................................................................................................... 417

Part E Personal effectiveness and communication in business

18 Personal effectiveness and communication .......................................................................... 433

Part F Professional ethics in accounting and business

19 Ethical considerations ....................................................................................................... 473

Exam question bank ............................................................................................................................. 511

Exam answer bank................................................................................................................................ 531

Index ..................................................................................................................................................... 543

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