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Human Resources Management& Accounting Books

B203 – Part B

Questions for Midterm Exam

1) A) Define the term “Human Resources Management”


B) Explain the role of the HR functions, by identifying the key objectives to
be achieved.

Itis the management process of an organization's workforce, or human


resources. It is responsible for the attraction, selection, training,
assessment, and rewarding of employees, while also overseeing
organizational leadership and culture and ensuring compliance with
employment and labor laws

The are four objectives for the foundation of all HR activity. Staffing
objectives ,Performance objectives , Change-management objectives
and Administration objectives

staff objective : business is appropriately staffed by designing


organization structures, identifying under what type of contract
different groups of employees will work, before recruiting, selecting
and developing the people required to fill the roles also organizations
must develop employment packages that are sufficiently attractive to
maintain the required employee skills level . for example zain co. put
contract of employees by type of work, give services customers
training to achieve objectives
Performance objectives : HR managers seek to ensure that people
are well motivated and committed , Training and development has a
role to play, as do reward systems to maximize effort and focus
attention on performance targets , for example zain co. reward the
employee how have top target in seals
Change-management objectives : Change-management objectives
Change comes in different forms: structural (reorganization of
activities or the introduction of new people into particular roles) –
cultural (is sought in order to alter attitudes, philosophies or long-
present organizational norms) for example Alahli bank transfer from
traditional bank to Islamic system then change culture of employees
by training
Administration objectives : It is simply carried out in order to facilitate
an organization’s smooth running , there is a need to maintain
accurate and comprehensive data on individual employees, a record
of their achievement in terms of performance, and conditions of
employment and their personal details for example zain co. if open a
new branch due to staff data to choose the right employee to be
manager in new branch
2) A) What is a significant role that HR functions should play in helping to
achieve the dimensions of organizational effectiveness?
B) “According to many , on consequence
of evolving environmental pressures is a significant and fundamental
change in what has become known as Psychological Contract” – Discuss this
statement.

Organizations’ objectives are will vary depending on the type of


organization and its situation. by gaining competitive advantage
involves mobilizing a workforce, maximizing its performance,
managing change effectively and striving to achieve excellence in
administration , maintaining competitive advantage involves
recognizing the significance of the organization’s people as an
effective barrier preventing would be rivals from expanding their
markets into territory that your organization holds , HR function plays
a central role in building an organization’s reputation as an ethically
or socially responsible organization , by Involves fostering an
understanding of and commitment to ethical conduct on the part of
managers and staff and Relates to the manner in which people are
managed.
Psychological Contracts: Refers to the expectations that employees
have about the role that they play and to what the employer is
prepared to give them in return . when Legal contract it formal
contract that specifies agreements such as hours and type of work in
return for compensation and benefits for example sales employee
have contract by salary 200k.d it legal contract when organization
expectation to sales more and profit from his work it psychological
contract
3) A) Define the process “Recruitment”, and then discuss the internal
recruitment method. B) Define the process “Selection”, and then
explain different selection criteria, using examples.

Recruitment includes those practices and activities carried out by the


organization with the primary purpose of identifying and attracting
potential employees ,

vacancies, are often filled internally, creating what are referred to as


internal labor markets, some organizations advertise all vacancies publicly,
and consider internal candidates along with anyone from outside the
organization who applies , this consider good practices in respect of
equality of opportunity, many organizations prefer to invite applications
from internal candidates before they look to external labor markets for new
staff. a advantages: less expensive, cost savings and efficiency gains and
faster, disadvantages: the main disadvantage on only advertising posts
internally is that a limited field of candidates are considered.

Selection is the process where HR and line managers continue to use a


variety of perfect methods to aid the task of predicting which applicant will
be most successful in meeting the demands of the job, or be the best fit
with the work group and culture of the organization. selection criteria are
typically presented in the form of individual specification and competency
based criteria
individual job criteria : job descriptions and person specification by job first -
personal later approach it starts with analyzing the task to be done,
presenting this in form of a job description and from this deriving the
personal qualities and attributes or competencies that are necessary to do
the task. Person first – job later’ approach: it starts with identifying which
individuals are successful in a certain job and then describing their
characteristics. for example Supermodel must be of a specific length and
metrics
competency based criteria by characteristics of person such areas as skills,
experience, qualification, education, personal attributes, special attributes,
interests and motivations. For example construction engineer must have
relevant testimony and experience to finish work
4) Clarify and discuss different selection methods, many of which may be used
at different stages in the selection process.

Application forms – are used as a straightforward way of giving a


standardized summary of the applicant’s history. It increasingly available
electronically; this is not only speed up the process but also enables ‘key
word’ searches of the data on the forms. It also used to collect bio data ,
The drawbacks of this procedure are, 1) the time that is involved and the
size of sample needed, so that it is only feasible where there are many job
holders in a particular type of position. 2) it lacks face validity for applicants
who might find it difficult to believe that success in a position correlates with
being, the first born in one’s family.
Telephone interviewing – it used if speed is important, and if geographical
distance is an issue, an interview can be arranged immediately, and it
concentrate on content rather than the person. The problem that there is a
lack of non-verbal information, and difficulties getting hold of the applicant.
References – candidates provide the names of previous employers or
others with appropriate credentials and then prospective employers request
them to provide information. There are two types: the factual check and the
character reference.
The factual check : It confirms that the facts are accurate. For example
experience certificate

The character reference – the prospective employer asks for an opinion


about the candidate before the interview , for example His connection with
such previous work

5) Explain the concept of ‘Employer Branding’ with the use of example.

Employer branding, which advocates competing for staff by borrowing


techniques long used in marketing goods and services to potential
customers. Brand image: is an approach that has been used to positive
effect by a number of public sector employers offering jobs that are
presented as intrinsically rewarding rather than highly remunerated when
recruiting , Developing a good brand image is an easier task for larger
companies with household names than for those which are smaller of
highly specialized, but the possibility of developing and sustaining a
reputation as a good employer is something from which all organizations
stand to benefit , branding consumer products is to build on any aspect of
the working experience that is different from that offered by other
organizations competing in the same broad applicant pool

6) “There is little that an organization can do to manage turnover unless there


is an understanding of the reasons for it” – categorize the main reasons
people have for voluntarily leaving a job.

The are four reasons to turnover first outside factors: It relates to situations
in which someone leaves for reasons that are largely unrelated to their
work , examples: moving when spouse or partner is relocated, wish to fulfill
a long-term ambition to travel , solution by possible to be reduced through
the provision of career breaks, forms of flexible working . second functional
turnover It includes all resignations which are welcomed by both employer
and employee alike. examples: individual poor performance or failure to fit
in comfortably with an organizational or departmental culture. solution:
improving recruitment and selection procedures. Third Push factors: the
problem here is dissatisfaction with work or the organization that lead to
unwanted turnover. examples: insufficient development opportunities,
boredom, ineffective supervision solution: organizations has to readily
address all of these issues, and put the mechanisms for picking up signs of
dissatisfaction. fourth Pull factors: the attraction of rival employers,
employees leaving in order to improve their living standards, and career
development, or to work with particular people examples: salary levels, and
people may wish to move into new areas of work. solution: a need to be
aware of what other employers are offering and to match the package as
possible as they can
Another reasons by Taylor , the dissatisfaction with the conditions of work,
especially hours , a perception that they were not being given sufficient
career development opportunities , a bad relationship with their immediate
supervisor.

7) People leave jobs for different reasons. Explain the most common reasons
as identified by Taylor (2002)?

 Dissatisfaction with the conditions of work, especially hours


 A perception that they were not being given sufficient career
development opportunities;
 A bad relationship with their immediate supervisor.
 The job or workplace not living up to expectations.
 A mismatch between the person and the job;
 Too little coaching and feedback;
 Too few growth and advancement opportunities;
 Feeling devalued and unrecognized;
 Stress from overwork and work-life imbalance;
 Loss of trust and confidence in senior leaders;
 Training and development;
 Challenging and interesting work;
 Freedom for innovative thinking

8) What are the best practices which help the organization in retaining their
staff?
9) Briefly discuss FIVE staff retention strategies. Support your answer with the
use of example (it six not five)

 Pay : Use a pay rates as a prime weapon to reduces staff turnover,


and in retaining staff. pay is a ‘ hygiene factor ’ rather than a
motivator. This means that it can be a cause of dissatisfaction at
work, but not of positive job satisfaction It is very easily to be
matched by competitors , the organization may well make itself more
attractive in recruitment terms, but the effect on staff retention will be
limited. Moreover, wage costs will increase.
 Managing Expectation : employers benefit from ensuring that
potential employees gain a ‘realistic job preview’ before they take up
a job offer , To provide for the employee and realistic information
about the work before starting to work not to mislead candidates
about the nature of the work that they will be doing , by provide
periods of work experience for students before they graduate.
 Induction : It is the process of introducing new candidates to
organization, and to their particular role , It has distinct purposes
which concerned with preparing new employees to work as effectively
as possible in their new job it helping new starters to adjust
emotionally to the new workplace , provides a forum in which basic
information about the organization can be transmitted , also can be
used to convey to new starters important cultural messages about
what the organization expects and what employees can expect in
return.
 Family Friendly HR Practices : good business case, especially when
retention is high on the agenda, for considering ways in which
employment can be made more family friendly , family responsibilities
is a big issue in employees' live
 Training and Development : opposing perspectives on the link
between training and turnover , training opportunities enhance
commitment to an employer making employees less likely to leave ,
training makes people more employable and they will leave to
develop careers
 Improving the quality of line management : by to take action on
various fronts to improve the effectiveness of supervisors, as follows :
select people for line management roles following an assessment of
their supervisory capabilities , ensure that all newly appointed line
managers are trained in the art of effective supervision , regularly
appraise line managers on their supervisory skills.

10) Discuss the main stages in a performance management system.

 Planning Performance: a Shared View of Expected


Performance
Individual objectives : derived from team objectives and an agreed
job description can be jointly devised by manager and employee ,
moving staff to a different view of how their personal objectives
contribute to team and organizational objectives is an important part
of the performance management process. many organizations use
the ‘SMART’ acronym for describing individual objectives or targets:
Specific – Measurable – Appropriate - Relevant - Timed
Performance expectations need to be understood and to involve a
contribution from the employee , expressing objectives as a ‘what’
statement rather than a ‘how’ statement gives employees the power
to decide the appropriate approach, and are likely to generate a
higher degree of employee ownership and commitment , Planning the
support, development and resources necessary for employees to
achieve their objectives is imperative.
 Delivering and Monitoring Performance
There may well be unforeseen barriers to the agreed
performance which the manager needs to deal with, and
sometimes the situation will demand that the expected
performance needs to be revised , managers can identify
information sources and other people who may be helpful ,
ongoing coaching during the task is important as managers
guide employees through discussion and by constructive
feedback , employees carry out ongoing reviews to plan their
work and priorities and also to advise the manager well in
advance if the agreed performance will not be delivered by the
agreed dates , manager review ensures that information is
shared. these review are normally informal , will review is to
facilitate future employee performance
 Formal Performance Review/Assessment & reward
Regular formal reviews are needed to concentrate on
developmental issues and to motivate the employee , an annual
review and assessment is needed that may well affect pay
received , some organizations encourage employees to give
upward feedback to their managers at this point in the cycle.
 Reward
many systems still include a link with pay, but difficulties may
be experienced , it had been found that there was more
satisfaction with the system where promotion and development,
rather than money, were used as rewards for good
performance

: ‫ادارة اداء الموظفين تكون على اربع مراحل‬


‫ عن طريق الهدف الفردي الماخوذ من هدف الفريق وهو وصف لمهام الوظيفه و العديد من‬: ‫اداء التخطيط‬
:‫المنظمات استخدام اختصار "سمارت" لوصف األهداف أو األهداف الفردية‬
‫ ذو صلة – موقوت‬- ‫ المناسبة‬- ‫ قياس‬- ‫خاص‬
‫والتخطيط يساعد الموظفين لتحقيق أهدافهم‬
‫ تحديد مصادر للمعلومات وتقديم التدريب المستمر للموظفين و مناقشة واعطاء‬: ‫تقديم ومراقبة االداء‬
‫االنتقاد البناء للموظفين حتى اليكون هناك عائق للوصول الى االداء المطلوب‬
‫ التقييم السنوي يساعد على التركيز لتطوير الموظف وتحفيزة و يؤثر على مكافاة‬: ‫التقييم والمكافاة‬
‫الموظفين‬
‫ العديد من االنظمه تستخدم الدفع "المال" كوسيلة للمكافاة والكن هناك طريقه اخرى مثل الترقيه‬: ‫المكافاة‬
‫والتطوير‬
11) Briefly discuss the advantages and disadvantages of internal
recruitment.

Advantages: less expensive, cost savings and efficiency gains,


faster, and the employee will be more knowledgeable than new
starters, and more familiar with the organization’s culture, rules
and geography.
- Disadvantages: the main disadvantage on only advertising
posts internally is that a limited field of candidates are
considered.
- While it may mean that someone who ‘fits in well’ is recruited,
it may also mean that the best available candidate is not even
considered.
- The management of internal recruitment practices is difficult to
carry out effectively.
- The serious problems often occur when internal candidates
fail to be selected, because they tend to enter the selection
process with higher expectations of being offered the position
than is the case with external candidates.
- Giving honest, full, accurate and constructive feedback to
failed candidates is an essential part of the process

12) The term “360-degree feedback, a very specific term used to refer to
multi-rater feedback. Discuss the statement

360-degree feedback, also known as multi-rater feedback, multi


source feedback, or multi source assessment, is feedback that
comes from members of an employee's immediate work circle ,
feedback will include direct feedback from an employee's
subordinates, peers, and supervisor(s), as well as a self-
evaluation. It can also include, in some cases, feedback from
external sources, such as customers and suppliers or other
interested stakeholders , it provides powerful information for the
development of self-awareness , It is based on behavioral
competencies and their associated behaviors.

13) Briefly discuss the uses and usefulness of the income-statement.

Income statement: a statement showing revenues and


expenses for a period of time. Income statement or profit and
loss statement reflecting financial performance (profitability).
Also called profit and loss account, presents the revenues and
expenses and resulting net income or net loss of a company for
a specific period of time.
Income - expenses = net income (profit or loss).
14) The following information has been taken from ABC Company for the
year 2012. Calculate gross profit for the year ended 31, December 2012.
Item Amount
Opening inventories $ 80000
Purchases during the year $ 378000
Closing inventories $ 150000
Sales revenue $ 464000
‫نكتب قيمة المبيعات اوال ثم نطرح منها قيمة تكاليف البضاعه‬
)‫الخ‬...‫اي شئ يخص البضاعه (مواد خام مخزون نقل بيع شراء‬

Item Amount
Opening inventories $ 80000
+
Purchases during the year $ 378000
+
Sales revenue $ 464000
_

Closing inventories ‫المطروح يوضع‬ )$ 150000(


‫بين قوسين‬ =

Gross profit $772000


12.The following information relates to the activities of H & S Retailers for the
year ended 30th April 2012, prepare an income statement for the year
ended 30th April 2012.
Selling expenses 1200 Sales revenue 97400
Closing inventory 3000 Purchases 68350
Rent & rates 5000 Insurance 750
Depreciation 1500 Interest expenses 620
expenses
Heat & light 900 Salaries expenses 10400
Telephone 450 Opening 4000
charges inventory

Sales revenue 97400


Cost of sales
Opening inventory 4000
Purchases 68350
Closing inventory )3000(
(69350)
Gross profit 28050
Selling expenses (1200)
Rent & rates (5000)
Depreciation expenses (1500)
Heat & light (900)
Telephone charges (450)
Salaries expenses (10400)
Interest expenses (620)
Insurance (750)
Operating profit 7230
Profit for years 7230

13.What are the differences between financial and management accounting?


Discussion should include at least 4 out of 6 differences.
Management accounting
Which seeks to meet the accounting needs of managers , is the
process of identifying, measuring, accumulating, analyzing,
preparing, interpreting, and communicating information that
managers use to fulfill organizational objectives , Produces
information that is mainly used for management purpose within
the organization , helps management to record, plan and
control activities and aids the decision-making process it not
legal requirements , Focus on specific areas of a business ,
Time focus historical and future (planning tool)
Emphasis on relevance for planning and control , Not
Mandatory ,not specified format and no specific, required
statements and behavioral Issues: Designed to influence
employee behavior
Financial accounting
Which seeks to meet the accounting needs of all of the users
groups except for managers.
• Accounting identifies, measures and communicates financial
information.
• This information is about economic entities.
• Information is communicated to interested parties such as
investors, creditors, unions and governmental agencies.
Produces information that is mainly used by parts external to
the organization
Provides a record of the performance of an organization over a
financial year and the financial position at the end of that
financial year
Governed by legal (law)
Concentrates on the whole organization , time focus: historical
picture of past operations
Emphasis on verifiability , mandatory for external reports has a
format specified by accounting standards and by law
,behavioral Issues: Indirect effects on employee behavior
14.Financial information should possess certain key qualities. List and briefly
discuss three of them.

The information provided must posses certain qualities, and


must be relevant and faithful represent , Relevance.
Accounting information should make a difference. It should be
capable of influencing user decisions.
To do this it must be relevant to the prediction of future events,
or to the confirmation of past events, or to both
Faithful representation. Accounting information should be
capable of being relied upon to represent what is supposed to
represent , means that it should be complete, that is it provides
all of the information needed to understand
Comparability. This help users to identify similarities and
differences between items of information
Verifiability. This provides assurance to users that the
accounting information provided faithfully represents what it is
supposed to represent. Accounting information is verifiable
where different, independent experts would be able to reach a
consensus that it provides a faithful portrayal
Timeliness. Accounting information should be produced in time
for users to make their decisions.
Understandability. Accounting information should be set out as
clearly and concisely as possible. It should also be understood
by those at whom the information is aimed.

15.Briefly discuss assets and claims with examples.

Assets:
Definition: Economic resources that are expected to bring
benefits in the future. Examples: Cash, Land, Building,
Equipment, patent, and Goodwill , Tangible assets (Ex. Cash,
Land, Building, Equipment).
- Intangible assets (Ex. patent, Goodwill, and Trademark
Liability:
Definition: Outsider claims – debt that is payable to outsider.
Examples: Accounts payable, and Bank loan.

16.State the purpose of the balance sheet.

statement showing the resources of a company (the assets),


the company’s obligations (the liabilities), and the equity of the
owners at a certain point in time. The balance sheet is a
snapshot of the entity’s assets and liabilities at a given point in
time. reports the assets, liabilities, and stockholders‟ equity of a
business enterprise at a specific date.
It is produced based on the accounting equation:
Asset – liabilities = owner’s equity
Asset = owner’s equity + liabilities

17.Alpha company produces a variety of coverings for electrical wiring. On


January 1, 2010 it acquired new production equipment at a cost of
$650,000. The machine has an expected life four years and an estimated
salvage value of $50,000. Prepare a four year depreciation schedule for the
machinery under straight line method.

Depreciation = (cost of assets - estimated salvage value )÷ life


time
= (65000 – 50000) ÷ 4
=150000$
First year = 650000 – 150000 = 500000
Second year = 500000 – 150000 = 35000
Third year = 350000 – 150000 = 200000
Fourth year = 200000 – 150000 = 50000

18.Best Cake Shop (BCS) is a local business with the following accounts
information at the end of 2013:
Inventories $ 40,000 Plant and equipment $ 40,000
Trade payables $ 25,000 Profit (2013) $ 28,000
Long-term loan $ 75,000 Salaries payables $ 20,000
Van $ 25,000 Property $ 100,000
Drawings $ 20,000 Trade receivables $ 8,000
Cash $ 15,000 BCS capital, beginning of 2013 $ 100,000
A. State the purpose of a balance sheet.
- It shows how the business is financed and how these funds are
deployed
- It can provide a basis for assessing the value of the business
- Relationships between assets and claims can be assessed
- Performance can be better assessed
B. Using the following information, prepare a balance sheet for BCS Company as at 31
December, 2013:
balance sheet for BCS Company as at 31 December, 2013
‫ االصول‬Assets
"‫ اصول قصيرة االجل "مستهلكه‬Non-current assets
Plant and equipment 40,000
Property 100,000
Van 25,000
165,000
, ‫ مباني‬, ‫ اصول طويلة االجل "نقد‬current assets
"‫مخزون‬, inventories 40,000
cash 15,000
trade receivables 8,000
‫مجموع االصول يجب ان تتساوى مع‬ 63,000
‫مجموع الديون وحقوق الملكيه‬ total assets 228,000
‫ الديون وحقوق الملكيه‬liabilities and owners’ equity
‫ديون قصيرة االجل "مدتها اقل من‬
current liabilities
"‫سنه‬ 25,000
trade payable
20,000
salaries payable
45,000
‫ديون طويلة االجل " مدتها اكثر من‬
"‫ سنه‬non-current liabilities
long term loan 75,000
‫ ارباح‬, ‫حقوق الملكيه"راس المال‬
"‫ مسحوبات‬,‫ السنه‬owners’ equity 75,000
‫ المسحوبات يجب ان تطرح من‬BCS capital beginning of 2013
‫ مجموع حقوق الملكيه "لذل نضعها‬Profit 2013 100,000
"‫بين قوسين‬ 28,000
Drawing (20,000)
‫مجموع الديون وحقوق الملكيه‬
‫(يجب ان تساوي مجموع‬ 108,000
)‫االصول‬ Total liabilities and owners’ equity 228,000

19.A - Briefly discuss the uses and usefulness of the income statement

- A statement showing revenues and expenses for a period of time.


Income statement or profit and loss statement reflecting financial
performance (profitability).
- Income - expenses = net income (profit or loss).
B - Explain what is meant by ‘depreciation’

Depreciation: A method of allocating the cost of a tangible asset


over its useful life.
A. The following information has been taken from ABC Company for the year
2013. Calculate gross profit for the year ended 31, December 2103. (Show
all the formulas and methodologies)
Item Amount
Opening inventories $50,000
Purchases during the year $30,000
Closing inventories $60,000
Sales revenue $35,000

Gross profit for ABC Company for the year 2013

Gross profit = ‫ ايرادات البيع – تكلفة البيع‬Sales revenue 35,000

Cost of sales
Opening inventories 50,000
Purchase during the years 30,000
Closing inventories (60,000)
20,000

gross profit 15,000


20. ABC Company has the following account information at the end of 2013:

Inventories $ 50,000 Plant and equipment $ 90,000


Trade payables $ 35,000 Salaries payables $ 30,000
Long term loan $ 80,000 Property $ 100,000
Van $ 15,000 Trade receivables $ 5,000
cash $ 10,000
Calculate the following:

a- Current assets
b- Non current assets
c- Current liabilities
d- Non current liabilities
e- Equity of Pear ABC Company. ‫حقوق الملكيه غير موجوده لذا سوف نطرح االصول و الديون الستخراج‬
‫حقوق الملكيه‬ Balance sheet of ABC Company 2013

‫ االصول‬Assets
"‫ اصول قصيرة االجل "مستهلكه‬Non-current assets
Plant and equipment 90,000
Property 100,000
Van 15,000
205,000
, ‫ مباني‬, ‫ اصول طويلة االجل "نقد‬current assets
"‫مخزون‬, inventories 50,000
cash 10,000
trade receivables 5,000
‫مجموع االصول يجب ان تتساوى مع‬ 65,000
‫مجموع الديون وحقوق الملكيه‬ total assets 270,000
‫ الديون وحقوق الملكيه‬liabilities and owners’ equity
‫ديون قصيرة االجل "مدتها اقل من‬
current liabilities
"‫سنه‬ 35,000
trade payable
30,000
salaries payable
65,000
‫ديون طويلة االجل " مدتها اكثر من‬
"‫ سنه‬non-current liabilities
long term loan 80,000
‫حقوق الملكيه ؟؟ غير موجوده‬
‫بالجدول‬ 80,000
‫ سوف نطرح االصول‬owners’ equity
‫والديون الستخراج‬ 125,000
‫حقوق الملكيه‬

‫مجموع الديون وحقوق الملكيه‬


‫(يجب ان تساوي مجموع‬
)‫االصول‬ Total liabilities and owners’ equity 270,000
21. ABC Company produces several electrical products. On January 1, 2014 it
acquired new production equipment at a cost of $ 650,000. The machine
has an expected life of four years and an estimated residual value of $
50,000.
- Calculate the book value of the machine at the end of year 1, year 2,
year3 and year 4.

Depreciation = (cost of assets - estimated salvage value )÷ life


time
= (650,000 – 50,000) ÷ 4
=150,000$
First year = 650,000 – 150,000 = 500,000
Second year = 500,000 – 150,000 = 350,000
Third year = 350,000 – 150,000 = 200,000
Fourth year = 200,000 – 150,000 = 50,000

...‫انتهى‬

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