Free ACCA Business and Technology (BT) Practice Questions

Sample Practice Questions

Try these 10 sample questions from the ACCA Business and Technology (BT) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A not-for-profit body earns more income than it spends in a year. Which conclusion is consistent with its status?

   1. A.It must convert into a shareholder-owned company.
   2. B.It can retain the surplus to support its purposes.Correct answer: B
   3. C.It must distribute the surplus to its outside investors.
   4. D.It loses its status whenever annual income exceeds costs.

   Explanation: ACCA states: "any profit (or surplus) that is generated is retained by the business as a further source of capital." A surplus is compatible with not-for-profit status. Retention supports the organisation; it does not require conversion, distributions to investors or automatic loss of status.

   Reference: ACCA Not-for-profit organisations — What is a not-for-profit organisation?

2. 2In a business, what is meant by the informal organisation?

   1. A.The network of personal connections and unofficial communication.Correct answer: A
   2. B.The reporting hierarchy approved by the board of directors.
   3. C.The set of job descriptions issued by the human resources team.
   4. D.The contractual allocation of authority among departments.

   Explanation: The source states: "based on the informal relationships of individuals inside the organization" It arises through personal relationships rather than approved reporting lines, job documents or contractual authority.

   Reference: OpenStax Introduction to Business 2e: The Informal Organization — 7.7 The Informal Organization, opening paragraphs

3. 3A purchasing team is comparing making a component internally with buying it. Which information set best supports that decision?

   1. A.Compare the supplier's current price with internal variable cost, excluding capacity and quality constraints.
   2. B.Compare relevant internal and purchase costs, capacity, quality and delivery reliability.Correct answer: B
   3. C.Compare historical factory averages with a catalogue price, without checking changes in the specification.
   4. D.Compare quoted unit prices and choose the lowest, without considering delivery or the quality required.

   Explanation: The source states: "She needs the cost to buy the part as well as all the costs that would be incurred to make the part; whether her company has the ability (capacity) to make the part; the quality of the part if they buy it compared to if they make it; the ability of a supplier of the part to deliver on time" Cost comparisons need capacity and nonfinancial quality/delivery information too. Price alone and irrelevant/historical aggregates cannot establish the better supply option.

   Reference: OpenStax Managerial Accounting: Management responsibilities — 1.1, Table 1.1 – supply chain role

4. 4A manager represents the business at a ceremonial opening. Which Mintzberg role is being performed?

   1. A.Negotiator
   2. B.FigureheadCorrect answer: B
   3. C.Monitor
   4. D.Resource allocator

   Explanation: The source states: "every manager must perform some ceremonial duties." Ceremonial representation is figurehead activity, not negotiation, environmental information gathering or resource allocation.

   Reference: OpenStax Principles of Management: The Roles Managers Play — 1.2, Interpersonal roles

5. 5An employee is struggling to track several assignments and deadlines. Which action best supports workload planning?

   1. A.Work only on tasks mentioned in the latest message.
   2. B.Keep all commitments in memory rather than recording them.
   3. C.List and organise all tasks to obtain an overview of the workload.Correct answer: C
   4. D.Avoid planning until every deadline has become urgent.

   Explanation: The source states: "gain a clear view of all the tasks you need to complete?" An overview supports planning and prioritisation; recency, memory alone and waiting for urgency obscure the full workload.

   Reference: ACCA Ensuring personal effectiveness — Prioritising and planning

6. 6Which ethical principle requires an accountant to be straightforward and honest in professional and business relationships?

   1. A.Objectivity
   2. B.Confidentiality
   3. C.IntegrityCorrect answer: C
   4. D.Professional competence and due care

   Explanation: The source states: "to be straightforward and honest" Integrity concerns honesty and straightforwardness. Objectivity concerns judgement, confidentiality information, and competence professional ability and diligence.

   Reference: ACCA Code of Ethics and Conduct: Guidance Factsheet, 1 January 2026 — p. 7, The fundamental principles – Integrity

7. 7Which governance arrangement is characteristic of a cooperative?

   1. A.Voting power normally rises with the number of shares held.
   2. B.Voting power normally depends on each member's seniority.
   3. C.Members own it, normally with one vote for each member.Correct answer: C
   4. D.Managers own it, normally with one vote for each employee.

   Explanation: ACCA states: "A cooperative is a body owned by its members, and usually governed on the basis of ‘one member, one vote’." Member ownership and usual equal voting distinguish this form from capital-weighted voting, seniority-weighted voting and management ownership.

   Reference: ACCA Not-for-profit organisations — Corporate form

8. 8Which employee need can informal workplace groups directly help satisfy?

   1. A.A need to know the formally approved reporting authority for each position.
   2. B.A need for friendship and social contact at work.Correct answer: B
   3. C.A need for a contractual statement of each employee's formal duties.
   4. D.A need for documented spending approval limits for each job.

   Explanation: The informal organisation provides "a source of friendships and social contact". Social relationships satisfy this need; formal reporting, contracts and approval limits concern the formal organisation.

   Reference: OpenStax Introduction to Business 2e: The Informal Organization — Functions of the Informal Organization

9. 9Why must production planning use the sales forecast?

   1. A.Expected sales determine maximum factory capacity regardless of resources.
   2. B.Expected sales replace the need to estimate labour and material requirements.
   3. C.Expected sales describe units already made rather than future demand.
   4. D.Expected demand helps determine how many units should be produced.Correct answer: D

   Explanation: The source states: "they can determine how many units must be produced." Production volumes depend on demand and inventory plans. Sales estimates neither establish tax rates nor remove resource budgeting or guarantee collections.

   Reference: OpenStax Managerial Accounting: Prepare Operating Budgets — 7.2, Individual Operating Budgets

10. 10A manager briefs journalists on the organisation's plans. Which Mintzberg role is this?

    1. A.Disseminator
    2. B.Disturbance handler
    3. C.SpokespersonCorrect answer: C
    4. D.Liaison

    Explanation: The source states: "In the spokesperson role, managers send information to people outside of their organizations" External communication as the organisation's voice is spokesperson activity. Dissemination is to subordinates; crisis handling and relationship-building have different purposes.

    Reference: OpenStax Principles of Management: The Roles Managers Play — 1.2, Informational roles