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Free Questions › ACCA › Business and Technology
Free ACCA Business and Technology Practice Questions & Answers
300 exam-style Business and Technology questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 91
E-commerce primarily refers to:
Select an option first.
Correct answer: B — The buying and selling of goods and services over the internet
Explanation: E-commerce specifically covers commercial transactions conducted online. Electronic HR management, email communication, and financial reporting software are separate concepts.
Question 92
Which of the following is an example of B2B e-commerce?
Select an option first.
Correct answer: B — A manufacturer ordering components from a supplier via an online portal
Explanation: B2B e-commerce involves commercial transactions between businesses. Buying from a retailer is B2C. Selling second-hand goods is C2C. Social media advertising to consumers is B2C marketing.
Question 93
The main advantage of e-commerce for consumers is:
Select an option first.
Correct answer: B — Ability to compare prices and shop 24/7 from any location
Explanation: E-commerce gives consumers convenience — shopping any time, anywhere, and comparing products easily. Prices are not always lower and delivery costs are common.
Question 94
A Decision Support System (DSS) is primarily used to:
Select an option first.
Correct answer: B — Help managers analyse data and evaluate decision options
Explanation: A DSS assists managers with semi-structured decisions by analysing data and modelling scenarios. It supports, rather than replaces, managerial judgment. Payroll automation is a TPS function.
Question 95
Which of the following best describes the concept of information overload?
Select an option first.
Correct answer: B — When managers receive more information than they can effectively use, reducing decision quality
Explanation: Information overload occurs when the volume of data exceeds a manager's capacity to process it usefully, leading to poorer decisions. Good information systems filter and present relevant data to avoid this.
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Question 96
Two-factor authentication (2FA) improves security by:
Select an option first.
Correct answer: B — Requiring users to verify identity using two different types of credentials
Explanation: 2FA requires two different verification methods (e.g. password plus a code sent to a phone), making unauthorised access significantly harder than with a single password alone.
Question 97
Master data management in a business context refers to:
Select an option first.
Correct answer: B — The processes, governance, and tools to ensure key business data is accurate, consistent, and shared across systems
Explanation: Master data management ensures that critical data (customers, products, suppliers) is accurate, consistent, and authoritative across all systems. Poor master data causes errors in reporting, billing, and customer service.
Question 98
Which of the following best describes robotic process automation (RPA)?
Select an option first.
Correct answer: B — Software that automates repetitive, rule-based digital tasks previously performed by humans
Explanation: RPA uses software robots to automate structured, repetitive tasks — data entry, invoice processing, report generation — freeing human staff for higher-value work. It does not involve physical robots or AI-based decisions.
Question 99
Which of the following best describes a virtual private network (VPN)?
Select an option first.
Correct answer: B — An encrypted connection over the internet that enables secure remote access to an organisation's network
Explanation: A VPN creates an encrypted tunnel over the public internet, allowing remote users to securely access the organisation's network. It protects data confidentiality and is commonly used for remote working.
Question 100
Data warehousing in an organisation is primarily used for:
Select an option first.
Correct answer: B — Storing large volumes of historical data from multiple sources for reporting and analysis
Explanation: A data warehouse aggregates historical data from multiple operational systems into a single repository for analysis, reporting, and business intelligence. It is separate from operational transactional systems.
Question 101
Which of the following is a characteristic of good information?
Select an option first.
Correct answer: B — It is cost-effective to produce relative to the value it provides
Explanation: Good information should be cost-effective — the value of the information must justify the cost of producing it. Volume for its own sake creates overload, and format should suit the user's needs.
Question 102
An intranet is best described as:
Select an option first.
Correct answer: B — A private internal network accessible only to employees of an organisation
Explanation: An intranet is a private network that uses internet technologies but is restricted to an organisation's employees. It differs from the public internet and an extranet (shared with selected external parties).
Question 103
Which of the following best describes disruptive technology?
Select an option first.
Correct answer: B — Technology that fundamentally changes existing markets or business models
Explanation: Disruptive technology (e.g. smartphones, streaming services) transforms industries by creating new markets or displacing established products and models. It is not about system failures or routine updates.
Question 104
Social engineering in cybersecurity refers to:
Select an option first.
Correct answer: B — Psychologically manipulating people into revealing confidential information or taking insecure actions
Explanation: Social engineering exploits human psychology rather than technical vulnerabilities — e.g. phishing, pretexting, or impersonation to gain access to systems or sensitive data.
Question 105
Artificial intelligence (AI) in business is primarily used to:
Select an option first.
Correct answer: B — Automate repetitive tasks, analyse large data sets, and support complex decision-making
Explanation: AI enables businesses to automate routine processes, identify patterns in large datasets, and enhance decisions. It augments rather than fully replaces human judgment, particularly in complex or ethical decisions.
Question 106
Which of the following is a benefit of implementing an ERP system?
Select an option first.
Correct answer: B — It integrates data and processes across departments into a single system, improving consistency and efficiency
Explanation: ERP systems integrate finance, HR, supply chain, and other functions into one platform, enabling real-time data sharing, reducing duplication, and improving reporting accuracy across the organisation.
Question 107
Which of the following best describes a denial of service (DoS) attack?
Select an option first.
Correct answer: B — Flooding a system with requests to make it unavailable to legitimate users
Explanation: A DoS attack overwhelms a system with traffic, preventing legitimate users from accessing it. Phishing steals credentials; spyware monitors activity; man-in-the-middle attacks intercept communications.
Question 108
The Internet of Things (IoT) refers to:
Select an option first.
Correct answer: B — The network of physical devices embedded with sensors and connectivity to exchange data
Explanation: IoT connects physical objects — machinery, vehicles, appliances — via the internet, enabling them to collect and exchange data. This creates opportunities for automation, monitoring, and efficiency improvements.
Question 109
Which of the following best describes the purpose of a management dashboard?
Select an option first.
Correct answer: B — To provide managers with a real-time visual summary of key performance indicators
Explanation: A management dashboard presents key metrics (KPIs) visually and in real time, enabling managers to monitor performance at a glance and respond quickly to issues. It does not replace detailed reporting.
Question 110
Access controls in an information system are designed to:
Select an option first.
Correct answer: B — Ensure only authorised users can access specific data or systems
Explanation: Access controls restrict system access to authorised users — using passwords, biometrics, role-based permissions. They are a fundamental preventive control protecting data confidentiality and integrity.
Question 111
The primary purpose of financial accounting is to:
Select an option first.
Correct answer: B — Provide financial information to external stakeholders such as shareholders and creditors
Explanation: Financial accounting produces financial statements for external users — shareholders, banks, creditors, regulators. Management accounting serves internal decision-making. Tax accounting calculates tax.
Question 112
Management accounting differs from financial accounting primarily because it:
Select an option first.
Correct answer: B — Focuses on providing information for internal management decisions
Explanation: Management accounting is forward-looking, flexible, and designed for internal management use. Financial accounting is historically based, regulated, and aimed at external stakeholders.
Question 113
Which of the following is a function of the finance department in an organisation?
Select an option first.
Correct answer: B — Managing financial resources, budgeting, and financial reporting
Explanation: The finance department manages financial resources, prepares budgets and reports, and handles payments and receipts. Product development is R&D, recruitment is HR, and quality control is operations.
Question 114
A budget is best described as:
Select an option first.
Correct answer: B — A quantified plan expressing an organisation's objectives in financial terms for a future period
Explanation: A budget is a forward-looking financial plan that quantifies expected income and expenditure for a future period. It is not a historical record, an audit report, or an asset valuation.
Question 115
Which of the following best describes working capital?
Select an option first.
Correct answer: B — Current assets minus current liabilities
Explanation: Working capital = Current assets minus Current liabilities. It measures short-term liquidity. Long-term assets minus long-term liabilities relates to long-term solvency. Equity and borrowings are separate balance sheet concepts.
Question 116
Depreciation in accounting represents:
Select an option first.
Correct answer: B — The systematic allocation of an asset's cost over its useful economic life
Explanation: Depreciation is the non-cash charge that allocates the cost of a tangible asset over its useful life. It is not cash paid, not appreciation, and not profit on disposal.
Question 117
The going concern concept in accounting assumes:
Select an option first.
Correct answer: B — The business will continue to operate for the foreseeable future
Explanation: The going concern assumption means financial statements are prepared on the basis that the entity will continue operating. Market value recording relates to fair value; cash-based profit recognition is the cash basis.
Question 118
Which financial statement shows the financial position of a business at a specific point in time?
Select an option first.
Correct answer: C — Statement of financial position (balance sheet)
Explanation: The statement of financial position shows assets, liabilities, and equity at a specific date. The income statement shows income and expenses over a period. The cash flow statement tracks cash movements.
Question 119
The purpose of internal controls in an organisation is to:
Select an option first.
Correct answer: B — Provide reasonable assurance that objectives are achieved and risks are managed
Explanation: Internal controls provide reasonable (not absolute) assurance that objectives are met, risks are managed, and compliance is maintained. They do not eliminate all risk or replace external audit.
Question 120
Segregation of duties as an internal control means:
Select an option first.
Correct answer: B — Different individuals perform different stages of a transaction to prevent fraud and error
Explanation: Segregation of duties ensures that no single person controls all stages of a transaction, reducing fraud and error risk. One person controlling all steps is a control weakness.
More free ACCA topics
Management Accounting401
Financial Accounting400
Corporate and Business Law400
Performance Management400
Financial Reporting400
Financial Management400
Strategic Business Reporting400
Advanced Financial Management400
Advanced Performance Management400
Advanced Taxation400
Taxation300
Audit and Assurance300
Strategic Business Leader300
Advanced Audit and Assurance296
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