March 2010 Part 2 Insight

INSIGHT
EXAMINERS GENERAL COMMENTS

BREACH OF EXAMINATION INSTRUCTIONS
IN SPITE OF THE EXAMINERS GENERAL COMMENT IN PREVIOUS EDITIONS OF THE INSIGHT, IT WAS OBSERVED THAT A NUMBER OF CANDIDATES HAVE CONTINUED TO BREACH EXAMINATION INSTRUCTIONS AS STATED BELOW: A) BY ATTEMPTING MORE QUESTIONS THAN ALLOWED IN EACH PAPER; AND B) BY ATTEMPTING MORE QUESTIONS THAN ALLOWED IN EACH SECTION.
INADEQUATE COVERAGE OF THE SYLLABUS

IT HAS BECOME MANIFEST THAT MANY CANDIDATES DO NOT COVER THE SYLLABUS IN DEPTH BEFORE PRESENTING THEMSELVES FOR THE EXAMINATION. CANDIDATES ARE THEREFORE ADVISED TO BE ADEQUATELY CONVERSANT WITH ALL ASPECTS OF THE SYLLABUS.
ATSWA PART II - MARCH 2010
INSIGHT
FOREWORD
This issue of INSIGHT is published principally, in response to a growing demand, as an aid to: (i) Candidates preparing to write future examinations of the Institute of Chartered Accountants of Nigeria (ICAN) at an equivalent level; Unsuccessful candidates in the identification of those areas in which they lost marks and need to improve their knowledge and presentation; Lecturers and students interested in acquisition of knowledge in the relevant subjects contained therein; and The profession in improving pre-examination and screening processes, and so the professional performance.
(ii)
(iii) (iv)
The answers provided in this book do not exhaust all possible alternative approaches to solving the questions. Efforts have been made to use methods, which will save much of the scarce examination time. It is hoped that the suggested answers will prove of tremendous assistance to students and those who assist them in their preparations for the Institutes Examinations.
NOTE
Although these suggested solutions have been
published under the Institutes name, they do not represent the views of the Council of the Institute. They are entirely the responsibility of their authors and the Institute will not enter into any correspondence about them.
INSIGHT
CONTENTS
PAGE
PRINCIPLES AND PRACTICE OF FINANCIAL ACCOUNTING
GOVERNMENT ACCOUNTING
QUANTITATIVE ANALYSIS
INFORMATION TECHNOLOGY
INSIGHT
AT/101/PII.5
ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
EXAMINATION NO:
ACCOUNTING TECHNICIANS SCHEME

PART II EXAMINATION MARCH 2010 PRINCIPLES AND PRACTICE OF FINANCIAL ACCOUNTING
Time allowed: 3 hours
Insert your examination number in the space provided above SECTION A - Attempt All Questions PART I 1. MULTIPLE-CHOICE QUESTIONS (10 Marks)
The proportion which the current assets of a firm bears with the current liabilities is called? A. B. C. D. E. Gearing ratio Acid test ratio Liquidity ratio Assets and liability ratio Working capital ratio.
2.
The excess of the nominal value of a debenture issued over the cash received is called A. B. C. D. E. Real value Debenture discount Debenture premium Issued debenture Debenture price. Debenture interest Wages and salaries Discount allowed Commission receiver Rent and rates.
3.
The following are recorded in the profit and loss account EXCEPT A. B. C. D. E.
4.
Which of the following can result in the revaluation of the asset of a partnership firm? A. B. C. When a partner is paid salary When a partner earns bonus When there is a change in the profit sharing ratio of the firm
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D. E. When a partner contributed additional capital to the firm When a son of a partner dies.
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5. Prime cost is A. B. C. D. E. Direct materials + Direct labour Total production cost Direct labour Total variable overheads only Total of all direct materials, direct labour and direct expenses Direct materials + Cost of sales.
Use the information below to answer questions 6 and 7: Gigabite Limited paid 850,000 to acquire the assets of a partnership firm valued as follows: Land and Building 450,00 0 Equipment 280,00 0 Stock 400,00 0 Creditors 195,00 0 6. What is the technical term given to the amount of 850,000 paid by Gigabite Limited? A. B. C. D. E. 7. A. B. C. D. E. 8. Market value Bought value Capital Purchase consideration Average valuation. capital reserve total assets goodwill total fixed asset liquid assets.
Gigabite Limited will record 85,000 in its accounting record as ...........
The system of stock valuation which ensures that issues of stock are made from the latest receipts is known as .............. A. B. C. D. Last-in-first-out First-in-first-out Average cost pricing First-in-first-priced Last-in-last-out.
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9. When a debt previously written-off is subsequently recovered, the accountant re-instates the debt by raising the following entry: A. B. C. D. E. 10. Dr. Dr. Dr. Dr. Dr. Cash a/c Cr. Debtors Cash a/c Cr. Bad debt recovered Debtors a/c Cr. Bad debt recovered Debtors a/c Cr. Profit & loss a/c Provision for bad debt Cr. Cash a/c.
The constitution that governs the relationship of partners in a partnership firm is called A. B. C. D. E. Articles of association The regulation Memorandum of Association Partnership resolution agreement Partnership deed. SHORT-ANSWER QUESTIONS (30 Marks)
PART II 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Inventories must be valued at ............... A company with a gearing ratio of 6:4 is said to be ................. company. Give TWO bases on which the head office may transfer goods to a branch. Working capital is calculated as .............. Where there exists no partnership agreement the partners must pay themselves equal salary (True or false). What effect does losses have on the capital of a business? State the double entry required if a company under-provides for tax in the previous year. The formulae for Earnings Per Share (EPS) is ........... Preference shareholders receive ................ of dividend. The difference between total assets and liabilities is referred to as ........... The excess of the cash received over the nominal value of preference shares issued is called .............
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12. 13. The amount by which the net asset of a business exceeds its purchase consideration is called .............. An agent is paid commission of 50% of net profit after charging such commission. If the profit of a business is N150,000 before commission, calculate the commission payable to the agent. The depreciation method that applies a percentage to the cost of an asset each year until it is reduced to zero is called .............. Balance sheet is defined as ................ Define purchase Goodwill of a business. State TWO circumstances that will give rise to the determination of goodwill in a partnership business. The closing balance represents ..... on the purchases ledger control account
14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.
Which accounting ratio is calculated to show the ability of a business to pay its debt when called upon? According to the International Financial Reporting Standards, cash flow statements should be prepared under three main headings. State them. State the TWO main methods used in the preparation of Cash Flow statement. What is Authorised Share Capital? What is a provision in accounting? Give any ONE situation that will necessitate the revaluation of a partnership. If company A sells goods to company B on sale or return basis, what is the effect of the closing stock of company B on the sales of company A? What is the effect on profit if a company over-states its opening stock figures? Write an expression to calculate the net realisable value of a stock. Error of principles is where ..........
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29. 30. Explain the term dormant Partner. Another term for loan stock or loan capital is ...................
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SECTION B - Attempt any FOUR questions (60 Marks) QUESTION 1
The Trial Balance as at 30 April 2008, given by your clerk is as stated below: DEBIT N Share Capital Profit & Loss A/c Stock opening Purchases Returns Outwards Discount Allowed Received Sales Electricity Rent Commission Sales Selling & Distribution Exp. Admin. Expenses Finance charges: Bank charges Interest on loan Loan XYB Bank Debtors & prepayments Creditors & Accruals 6% Debentures Fixed Assets: Vehicle Equipment 1,774,800 Provision of depreciation - Building Motor vehicle Equipment 50,647,4 50 Other relevant information: 1,000,000 1,442,300 234,500 50,647,4 50 5,648,800 1,251,900 15,444,50 0 257,250 114,300 412,600 33,425,80 0 750,300 1,249,200 334,258 4,426,666 3,876,222 1,671,290 2,100,000 10,000,00 0 4,228,214 875,000 2,000,000 Land 525,000 Building 4,252,000 Motor 3,000,000 CREDIT N 1,000,000
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(i) (ii) (iii) (iv) (v) (vi) Closing stock N6,339,472. Rent in the Trial Balance runs from 1/5/07 30/4/2010. Provision for doubtful debt at 1%. Provision for depreciation - Motor & Equipment 20% Building 5% Debenture interest yet to be charged. Electricity owing N40,500.
You are required to prepare: (a) (b) Extended Trial balance. Journals for necessary entries. (Total 15 Marks) (11 Marks) (4 Marks)
QUESTION 2
(a)
Explain the following terms as defined in International Accounting Standards (IAS 16) Accounting for Property, Plant and Equipment: (i) Property, plant and equipment. (4 Marks) (ii) Fair value (2 Marks) (iii) Recoverable amount (2 Marks) (iv) Improvements (4 Marks)
(b) List further disclosures that are sometimes made in the financial statements. (3 Marks)
QUESTION 3
(Total 15 Marks)
The following balances were extracted from the ledger of Sosoko Limited for the year ended 30 June 2008. CFA 000 Stock of raw materials 01/07/2007 320 Work-in-progress 01/07/2007 146 Stock of finished goods 01/07/2007 1,400 Sales 10,00 0 Purchases of raw materials 3,500 Printing and stationery 72 General expenses 60 Other administrative expenses 132 Factory rent 80 Depreciation of delivery van 500 Depreciation of plant 668
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Carriage inwards of raw materials Advertising expenses Bad debts Indirect wages Direct wages Direct expenses Additional information: (i) Stock as at 30/06/2008 were: Raw materials Finished goods Work-in-progress (ii) CFA 450 1,80 0 168 150 100 85 1,000 1,600 400
The following expenses are to be apportioned as follows: Factor y 1 /3 Administrati ve & selling 2 /3
Printing and stationery General expenses (iii)
Direct wages outstanding as at 30 June 2008 were CFA 50.
Required: Prepare the manufacturing, trading and profit and loss account for the year ended 30 June 2008. Show clearly the prime cost, the cost of production and gross profit and net profit. (15 Marks)
QUESTION 4
(a) Briefly state the contents of a value added statement. (3 Marks) (b) Given below is the summarised information of Glotech Technologies Limited in respect of the year ended 30 June 2008. L$ Salaries and wages 3,918,000 Purchased materials used in 9,180,000 production Turnover 16,804,50 0 Company tax for the year 510,000 Dividends to shareholders 280,500 Services purchased 1,810,500 Depreciation of fixed assets 306,000
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Loan interest paid and payable 229,500 Using the above information, you are required to prepare the following: (i) A value added statement showing the relevant percentage. Marks) (ii) A conventional profit statement of the Company. (5 Marks) (Total 15 Marks) (7
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QUESTION 5
The following balances were extracted from the books of Bongai Limited after the preparation of the trading accounts at 31 December 2007. N
Share capital authorised and issued
1,000,000 N1 Ordinary shares 200,000 10% N1 preference shares Stocks at 31 December 2006 Debtors and prepayment Creditors and accruals Bank balance 10% Debenture General reserve Bad debts Gross profit for the period Wages and salaries Rates and insurances Postages and telephone Electricity Debenture interest ( year to 30 June 2007) Directors fees Sundry expenses Vehicles (at cost N1,212,500) Office fittings and equipment (at cost N2,790,000) Land and buildings at cost Profit and loss account at 1 January 2007 The following information is also available: (i) (ii) (iii)
1,000,000 200,000 5,240,750 1,700,000 857,625 487,250 1,000,000 8,250,000 21,250 7,394,250 1,762,500 88,125 38,750 76,000 50,000 156,250 194,250 425,000 1,715,000 8,262,500 1,515,750
Office fittings and equipment are to be depreciated at 15% of cost and vehicles at 20% of cost. A bill for N34,250 in respect of electricity consumed up to 31 December 2007 has not been entered in the ledger. The amount for insurance includes a premium of N18,750 paid in December 2006 to cover the company against fire loss for the year 31 December 2006 to 31 December 2007. Provisions are to be made for: Directors fees N312,500 Audit fees N75,000
(iv)
(10 Marks)
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The outstanding debenture interest
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(v) The directors have recommended that: N750,000 be transferred to general reserve the preference dividend be paid a 10% ordinary dividend be paid
You are required to: (a) (b) Prepare the income statement (profit and loss and appropriation accounts) for the period ended 31 December 2007. (8 Marks) A Balance Sheet (Statement of Financial position) as at that date. (7 Marks) (Total 15 Marks)
QUESTION 6
Jemmy Enterprises has a branch in Zaso Town which trades on its own account. The following is a summary of the transaction of the branch for the year ended 31 December 2008. Goods from Head office Purchases from suppliers credit Cash Sales - Credit Cash Cash received from Debtors Cash paid to creditors Expenses paid by Branch Expenses paid Head office for branch Cash received from Head office Cash remitted to Head office The branch prepares its own final accounts. You are required to: Record the above transaction in the ledger accounts with the branch. Marks) (15 240,000 202,500 67,500 495,000 405,000 420,000 142,500 150,000 45,000 30,000 420,000
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SECTION A PART I - MULTIPLE CHOICE QUESTIONS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. E B D C D D A A C E
EXAMINERS COMMENT Many of the candidates scored above 50% marks in this part.
PART II - SHORT ANSWER QUESTIONS

1. 2. 3. the lower of cost and net realizable value highly geared company i) ii) iii) At cost At selling price by the branch At cost plus a predetermined percentage
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4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Current assets less current liabilities False It decreases capital Debit profit and loss appropriation account Credit IRS account Earnings per share (EPS) = Net profit after tax and preference dividend Number of ordinary shares issued A fixed rate of dividend Capital employed or shareholders fund Premium on preference shares Capital reserve 50% x 100% + 50% N150,000 = N50,000
Straight line method Balance sheet is the statement that shows the financial position of a business as at a particular time. Purchase Goodwill is the excess of price or purchase consideration over the value of net identifiable assets acquired. Where there is a change in profit or loss sharing ratio
on death or retirement of a partner admission of a new partner dissolution of the partnership
18. 19. 20. 21.
Trade Creditors Acid test ratio or liquid ratio Operating activities, investing activities and financing activities Direct method and indirect method
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22. Authorised share capital is the maximum number of shares that companys regulations or memorandum of association allows it to issue to the public. Provision is an expenditure that has occurred but cannot be calculated with substantial accuracy. a partner is admitted a partner leaves the firm there is a change in the profit and loss sharing ratio No effect The profit figure will decrease Saleable value anticipated cost before sale Error of principles occurs where the wrong class of account is used A dormant partner is a general partner who takes no part in the management of the firm. Debenture
23. 24.
25. 26. 27. 28. 29. 30.
EXAMINERS COMMENT The candidates put up average performance generally in this part.
QUESTION 1 (LANDSCAPE TABLE)
INSIGHT
JOURNAL ENTRIES
DR N 832,800 42,282 42,282 1,167,560 600,00 0 354,96 0 212,60 0 120,000 40,500 160,50 0 CR N 832,80 0
i ii iii
Dr. Debtors and prepayments Cr. Rent Dr. Bad and doubtful debt Cr. Provision for doubtful debt Depreciation (P & L a/c) Provision for depreciation Motor vehicle Provision for depreciation Equipment Provision for depreciation Building
iv
Interest on debenture Electricity Creditors and accruals
EXAMINERS COMMENT The question on extended trial balance was attempted by 90% of the candidates and many of them put up poor performance. 80% of the candidates who attempted the question could not raise the required journal entries.
SECTION B SOLUTION 2
a) (i) Property, plant and equipment are tangible assets that:
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are held by an enterprise for use in the production or supply of goods and service, for rental to others or for administrative purposes and may include items held for the maintenance or repair of such assets have been acquired or constructed with the intention of being used on a continuing basis, and are not intended for sale in the ordinary course of business
(ii)
Fair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arms length transaction. Recoverable amount is that part of the net carrying amount of an asset that the enterprise can recover from the future use of the asset, including its net realisable value on disposal. Improvements are expenditures that increase the future benefits from the existing asset beyond its previously assessed standard of performance is included in the gross carrying amount. Examples of these future benefits include:
an extension in the assets estimated useful life an increase in capacity a substantial improvement in the quality of output or a reduction in previously assessed operating costs
(iii)
(iv)
Expenses on improvements should be added to the gross carrying amount. b) The following are further disclosures in financial statements
a reconciliation of the amounts of property, plant and equipment at the beginning and end of an accounting period showing additions, disposals, acquisitions through business combinations and other movements. the amount of payments on account of property, plant and equipment in the course of construction or acquisition. the carrying amount of temporarily idle property plant and equipment.
EXAMINERS COMMENT The question tests the candidates knowledge of IAS 16 property, plant and equipment. 70% of the candidates attempted the question and many of them scored less than 50 marks.
SOLUTION 3
SOSOKO LTD
INSIGHT
MANUFACTURING, TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2008 CFA CFA 000 000 Opening stock of raw 320 materials Purchases of raw materials 3,50 0 Carriage inwards 150 3,650 3,970 Less closing stock of 450 materials Cost of materials used 3,520 Add direct cost: Wages Add owing Direct expenses Prime cost Factory overheads: Factory rent Depreciation plant General expenses (60 x 1/3) Printing & stationery ( x 72) Indirect wages 1,60 0 50 1,65 0 400 80 668 20 18 1,00 0 1,786 7,356
2,050 5,570
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CFA 000 146 168 CFA 000 (22) 7,334 10,00 0 1,40 0 7,33 4 8,73 4 1,80 0
Add work-in- progress at 01/07/07 Less work-in-progress at 30/06/2008 Cost of production Sales Less cost of sales: Opening stock of finished goods Add cost of production
Less closing stock of finished goods Gross profit Less: General, selling and administrative expenses Printing and stationery (72 x ) General Expenses (60 x 2/3) Other administrative expenses Depreciation delivery van Advertising expenses Bad debts Net profit
6,934 3,066
54 40 132 500 100 85
911 2,155
EXAMINERS COMMENT The question in manufacturing, trading profit and loss account was attempted by 95% of the candidates and they put up good performance. The only pitfall is their inability to determine prime cost and cost of production.
SOLUTION 4
a) Turnover
INSIGHT
Bought out materials and services used in production Value added Employees pay and contributions Government company tax Interest on borrowing Dividend to shareholders Depreciation Profit
bi)
GLOTECH TECHNOLOGIES LTD VALUE ADDED STATEMENT FOR THE PERIOD ENDED 30 JUNE 2008 Turnover Bought out materials and services used in production Value added Applied to Employees pay and contribution Government company tax Providers of capital Interest on borrowing Dividend to shareholders Retained in business Depreciation of fixed assets Profit to reserve N 16,804,5 00 10,990,5 00 5,814,00 0 3,918,00 0 520,000 229,500 280,500 306,000 570,000 5,814,00 0 %
100
67.3 9 8.77 3.95 4.83 5.26 9.8 100
(bi)
GLOTECH TECHNOLOGIES LTD
CONVENTIONAL PROFIT STATEMENT FOR THE PERIOD ENDED 30 JUNE 2008 N N
INSIGHT
Turnover Bought out materials production Salaries and wages Bought out services Depreciation of fixed assets Loan interest Profit before tax Taxation Profit after tax Dividends Retained profit of the year used in 9,180,00 0 3,918,00 0 1,810,50 0 306,000 229,500 16,804,5 00
15,444,0 00 1,360,50 0 510,000 850,500 280,500 570,000
EXAMINERS COMMENT The question which tests the candidates knowledge in preparation of value added statement was attempted by 60% of the candidates. Many of them scored above 50 marks, while few candidates lack the understanding of the difference between value added statement and cash flow statement in part (a) of the question.
SOLUTION 5
BONGAI LIMITED PROFIT AND LOSS AND APPROPRIATION ACCOUNT FOR THE PERIOD ENDED 31 DECEMBER 2007 N Gross profit for the period Less: Bad Debts Wages and Salaries Rates and insurance Postages and telephone Electricity 21,250 1,762,50 0 88,125 38,750 110,250 N 7,394,25 0
INSIGHT
Debentures interest Directors fees Audit fee Sundry expenses Depreciation: Office fittings Vehicles Net profit for the period Profit and loss account at 31 Jan 2007 Profit available for distribution Dividend proposed: 10% ordinary 10% preference Transfer to general reserve Undistributed profit at 31 Dec 2007 100,000 468,750 75,000 194,250 418,500 242,000 3,519,87 5 3,874,37 5 1,515,75 0 5,390,12 5
100,000 20,000
120,000 750,000 4,520,12 5 5,390,12 5
BONGAI LIMITED BALANCE SHEET AT 31 DECEMBER 2007
INSIGHT
N Authorized and issued share capital 1,000,00 N1 ordinary shares 2,000,000 10% shares Reserves: General reserve Undistributed profit Shareholders funds Loan capital: 10% debentures Net capital employed N1 preference N 1,000,00 0 200,000 9,000,00 0 4,520,12 5 N
1,200,00 0
13,520,1 25 14,720,1 25 1,000,00 0 15,720,1 25
Represented by: Fixed assets Land and building (cost) Office fittings and equipment (cost) Less: Depreciation Vehicles (cost) Less: Depreciation 2,790,00 0 1,493,50 0 1,212,50 00 1,030,00 0
8,262,50 0 1,296,50 0
182,500 9,741,50 0
Current assets: Stock Debtors Bank Less Current liabilities: Creditors and accrual Debenture interest Dividend proposed
5,240,75 0 1,700,00 0 487,250 7,428,00 0 1,279,37 5 50,000 PART II 120,000
ATSWA
- MARCH 2010 1,449,37 5,978,62

5 5 15,720,1 25
INSIGHT
EXAMINERS COMMENT The question on income statement and balance sheet was attempted by 70% of the candidates. Candidates performance in part (a) was okay, while many of them performed poorly in part (b).
SOLUTION 6
Cash
Balance b/d
Head office current Account 420,000 Cash Goods Expenses Balances c/d 420,000 105,000
INSIGHT
30,000 240,000 45,000 105,000 420,000
Head office Creditors Cash
Purchases Account 240,000 Trading Account 202,500 67,500 510,000
510,000
510,000
Trading Account
Sales Account 900,000 Sundry debtors Cash 900,000 Sundry Creditors Account 142,500 Purchases 60,000 202,500 Sundry Debtors Account 495,000 Cash Balance c/d 495,000 Expenses Account 150,000 Profit and loss 45,000 195,000
495,000 405,000 900,000 202,500 202,500 420,000 75,000 495,000 195,000 195,000
Cash Balance c/d
Sales
Cash Head office
Cash Book Head office 30,000 Sundry 142,500 creditors Sundry Debtors 420,000 Head office 420,000 Sales 405,500 Purchases 67,500 Expenses 150,000 ATSWA PART II - MARCH75,000 2010 Bal c/d 855,000 855,000 Bal b/d 75,000
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EXAMINERS COMMENT The question test candidates knowledge of branch account 60% of the candidates attempted the question and many of them scored above 50 marks. The common pitfall is that most of them could not post entries correctly into the ledger accounts.
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AT101/PII.6 EXAMINATION NO:
ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA ACCOUNTING TECHNICIANS SCHEME PART II EXAMINATION MARCH 2010 GOVERNMENT ACCOUNTING
Time allowed: 3 hours Insert your Examination number in the space provided above
SECTION A (Attempt all questions)
PART I
1.
MULTIPLE-CHOICE QUESTIONS
(10 Marks)
The coordinated actions which have to be taken to ensure that funds available are adequately controlled and effectively utilised are known as ............................ A. B. C. D. E. revenue control cash control expenditure control payment control budgetary control.
2.
Which of the following is an example of recurrent expenditure? A. B. C. D. E. Advances granted to staff Refund of unspent touring advance Payment for utilities Purchases of motor vehicle Construction of access road.
3.
An example of below the line account is ........................ A. B. C. D. E. housing loan electricity bill purchases of plant and machinery salaries cash received from the ministry of finance
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4. A Non Expendable store is a ........................... A. B. C. D. E. 5. stationery item food stuff item shovel motor vehicle brush
Store purchased for general stock rather than for a particular service for which the final vote of charge cannot be stated at the time of purchase is called ................................... A. B. C. D. E. allocated of store non-expendable store expendable store unallocated store general store
6.
Which of these best describes the composition of the Board of Survey? A. B. C. D. E. The The The The The president president president president president and and and and and not not not not not less less less less less than than than than than two members four members six members three members one member
7.
All of the following are debt instruments of foreign borrowing EXCEPT: A. B. C. D. E. Government Development Stocks Treasury Bills Government Revenue Bonds Paris Club rescheduling Treasury certificates
8.
All the items listed below are the functions of the Local Government, EXCEPT: A. B. C. D. E. Licensing of bicycles, trucks, motors vehicles etc Naming of roads and numbering of houses Registration of deaths and marriages Provision of security for the entire local government council area Construction and maintenance of roads
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9. ONE of the following budgets shows the total basic salaries and allowances of various categories of staff in each ministry or department A. B. C. D. E. 10. Salaries and wages commission budget Personnel Cost Budget Total Cost budget Manpower Planning Budget Human Resources Cost Budget
Where income is distributed in the economy evenly, this is referred to as: A. B. C. D. E. F. Equitable income distribution Inequitable distribution Income distribution Equity and Income distribution Proportionate income distribution
PART II
1. 2. 3. 4. 5. 6. 7. 8.
SHORT-ANSWER QUESTIONS (30 MARKS)
A radical approach of a countrys refusal to pay back its debt is termed........................ The Government Agency responsible for the administration and collection of Value Added Tax (VAT) in your country is .......................... A form of taxation which termed ........................... is fixed lump sum per head is
State TWO types of imprest you know. The type of loan that can be sought by a country having persistent balance of payment deficit is called............................... A grant that is tied to a specific project is called ........................... Items of revenue received to finance projects are called........................... Funds that accrue to the Local Government Councils from the Federation/Consolidated Accounts and other constitutional releases are from ..................... sources. The cardinal objectives of Internal Audit is to ensure that funds are not .........................
9.
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10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. The name of fund whose assets are held by the government as trustee for application to purposes stated in the trust deed is called......................... That voucher used in transferring money from one department to the other without physical cash changing hands is called.............................. Incomes and expenditure called ........................... not budgeted for but listed are
All financial warrants must be issued and signed by the ............................ The control book that highlights the uncommitted balance at a glance is called ........................... The government expenditure called ............................... on roads, bridges, buildings etc is
On what date does the authority of the warrant issued expire? What legal authority enables the government to incur expenditure before the passenger of the Appropriation Bill. State the TWO ways in which a spoilt cheque is treated. Who is responsible for the control of treasury and revenue collector receipt books in public sector accounting. What is the name of the document used by the revenue collector to record all the cash received and paid or transferred by him. All receipt books, licences etc issued from the main stocks for use under the relevant Financial Regulation must be recorded in a ..................... by the receiving officer. The Committee that examines all cases of audit alarm raised and brought before it is called ............................ In government accounting Revolving Fund is also known as ..................... The transfer of funds to lower levels of government either directly or indirectly is referred to as .......................... What is the official name of the external auditor to the Local Government?
22. 23. 24. 25.
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26. 27. 28. 29. 30. How is the outstanding balance of motor vehicle advance taken by a retiring officer treated? What is the name of the document issued by the Accountant General for the submission of Budget Estimate? Which budget is prepared in the Public Sector for construction of bridges, schools and roads? The budget technique that present public expenditure by referring to function and projects is called.......................... The type of budget that can be used to reflate an ailing economy is a(n) ....................
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SECTION B Attempt any Four Questions (60 Marks) QUESTION 1
You are required to enter the following transactions in cash book which was carried out by John Kente for the month of December 2009. December 1 December 3 December 4 December 5 December 12 December 15 December 17 December December December December December 19 21 23 25 27 John commenced business with N480,000 cash Paid into bank N280,000 Purchased office equipment by cheques N100,000 Cash sales N16,000 paid cash for wages N6,000 Sent Peter sale cheque in settlement of his account of N40,000 Discount received 2% Cash sales N60,000 Received cheque from Adebayo N76,000 being full settlement of his account N80,000 Paid Tola N2,000 cash Sent Abubakar a cheque for N40,000 Received cheque from Paul N40,000 Paid staff wage in cash N8,000 Sent cheque to Kanu in settlement of his account of N48,000 less 5% discount Paid electric bill N8,400 cash Paid N20,000 into cash Paid into bank N8,000 (15 Marks)
December 28 December 29 December 31
QUESTION 2
The following balances are in the records of the Ministry of Water Resources for the month of October, 2009. Head & Subhea d 2/1 2/3 Receipt: VAT Companies Income Tax Description Amoun t 000
40,700 7,500
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2/4 5/3 10/6 10/7 12/5 2001 5001 8/1 8/2 8/3 8/4 8/5 8/6 8/7 8/8 8/9 2001 5001 Capital Gain Tax Petroleum Profit Tax Stamp duties Sales of government properties Sundries Below the- line Deposits Advances Payments: Personnel Cost Local Transport Stationery Printing Utility Service Maintenance of Properties Entertainment Motor Vehicle expenses Miscellaneous expenses Below -the- line: Deposits Advances Opening balance as at 1 October year 2009 1,250 4,735 1,200 21,000 7,000 5,000 3,700 27,500 3,500 2,750 2,100 9,500 3,150 1,750 2,500 850 8,500 3,500 1,200
Required: Prepare the Transcript of the Ministry for the month of October 2009. (15 Marks)
QUESTION 3
The following information was extracted from the accounting records of Ministry of Transportation during the month ended August 2007. The Treasury Cashbook showed a debit balance of L$11,200,000 as against the balance as per bank statement that showed a credit balance of L$8,050,000. On investigation, it was revealed that: (a) Cheques issued to suppliers but not presented to bank are: L$ (i) (ii) (iii) 2604001 2604040 2604102 1,450,00 0 800,000 750,000
(b)An investment income of L$2,450,000 was received directly by the bank but no entry in the
INSIGHT
cash book. (c) Standing order of L$2,600,000 to Virgin Liberia made by bank but no entry in the Cashbook. (d)A cheque of L$2,750,000 received from a Tender was duly entered into the cash book but no entry was made in bank. (e) Bank charges of L$1,350,000 had been deducted by the bank but no entry was made in the # cashbook. Required: (i) Prepare the bank reconciliation statement for August 2007. Marks) (12
(ii) State THREE financial items that require entries in the cashbook but not featured in the bank reconciliation. (3 marks) (Total 15 Marks)
QUESTION 4
From the Ministry of Industry the following information were extracted from the ledger: Values of stores as per stock Account Value of store issued during the year as abstract PAYMENTS Payment as per abstract Payment in respect of change previous year Expenditure credit from claim met Store taken on change at the fixed price as per stock account Total Price Deficiencies Value of claims raised 2006 Transfer to unallocated stock net You are required to:Prepare Unallocated Store Reconciliation Account Issue and Payment. (15 Marks) N 1,307,00 0 1,407,50 0 3,007,50 0 2,075,00 0 790,000 4,500,00 0 890,000 750,000 950,000
QUESTION 5
INSIGHT
(a) (b) What is Incremental Budgeting System? (3 marks)
The Ministry of Agriculture of Tema State provided the following information about budgeted and actual overhead and personnel in respect of year 2007. Hea d 35 35 35 35 35 35 35 35 35 35 35 35 Subhe ad 01 02 03 04 05 06 07 08 09 10 11 12 Title/Particular Previo Actu us al 000 00 0 600 600 1,575 605 400 1,160 210 355 875 2,600 203 430 650 1,18 3 635 364 986 263 318 1,03 0 2,49 0 173 430 553
Contribution, Subvention & Grants Maintenance of capital assets Maintenance Motor vehicle Office furniture & Maintenance Stationery Telephone Services Utility Travel & Tours Personnel Costs Staff Training & Development Contributions to Foreign Bodies Miscellaneous Expenses
The following information are also relevant: (i) Increase in activities in 2008 will attract 30% of overhead cost. (ii) 20% of total salaries for 2007 is required to meet the additional personnel cost 2008. The personnel costs for the year 2007 include 945,000 spent on staff allowance. (iii) The staff allowance will be 50% of the year 2008 staff salaries. (iv) An inflation factor of 20% on overhead cost is recognised in the computation of 2008 budget. You are required to: Prepare an incremental budget for the year. Show all workings. Marks) (15
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QUESTION 6
(i) The Auditor General for FREETOWN STATE observed the following anomalies on Treasury Clearance Fund (Statement 5.1) as at 31 December 2005. (a) Account No Description Amount in Trial balance Le 1100 1199 1300 1399 Excess Cash Account Clearance Account SAD C 160,559,1 R 46 D R 553,475 Amount in Statement Le 79,703,159 C R 553,275 D R 80,855,98 7 200 CR DR Difference Le
(b)The total debit figures in the statement should be Le26,202,854 instead of Le26,202,654 while the total credit figure should be Le227,700,535 instead of Le146,884,548. (c) The net balance as at 31 December 2005 should be Le201,497,681 instead of Le120,641,894. You are required to effect the correction through the use of the Journal. (10 Marks) (ii) State FIVE particulars that a good Advances Voucher should disclose. (5 Marks) (Total 15 Marks) MULTIPLE CHOICE QUESTIONS 1. 2. 3. 4. C C A D
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5. 6. 7. 8. 9. 10. D A D D B A
SHORT ANSWER QUESTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Debt repudiation Federal Inland Revenue Service (FIRS) Poll Tax Standing and Special Imprest Balance of payment support loan Specific grant Capital receipts Statutory Mismanaged or misappropriated Trust funds Adjustment voucher Below-the-line account Minister of Finance Vote book Capital expenditure
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16. 17. 18. 31st December (the end of the year) Provisional general warrant (i) (ii) (iii) (iv) Spoilt cheque must be cancelled Spoilt cheque to be affixed to the counterfoil The designated bank is promptly informed Corresponding cheque number cancelled in cheque delivery register
19. 20. 21. 22. 23. 24. 25. 26.
The Accountant-General Revenue collector cash book Receipt Book Register Audit Alarm Committee Working capital fund Intergovernment transfer Auditor-General for local government The outstanding balance of advance is deducted from the retiring officers gratuity embloc. However, if the gratuity is not adequate to recoup the outstanding amounts, the vehicle is seized by court action, sold and necessary set-off exercised. Call circular Capital budget Performance budgeting Deficit budget
27. 28. 29. 30.
SOLUTION 1 SECTION B
Date Particul ar JOHN KENTE CASH BOOK FOR DECEMBER 2009 Discou Cash Bank Date Particul Discou nt ar nt Cash Bank
INSIGHT
Dec 3 Dec 5 Dec 15 Dec 17 Dec 23 Dec 9 Dec 31 Cash Cash Sales Adebayo Paul Bank Cash 4,000 20,000 16,000 60,000
Allowe d
480,00 0
Dec. 3 280,00 Dec. 4 0 Dec. 5 Dec. 12 76,000 Dec. 19 40,000 Dec. 21 Dec. 25 8,000 Dec. 27 Dec. 28 Dec. 29 Dec. 31 Dec. 31
Bank
receive d
280,00 0 100,00 0 6,000
Wages Prefer Tola Abubakar Wages Kanu Electric Bill Cash Bank Bal c/d 2,400 800
39,200 2,000 40,000 8,000 45,600 8,400 20,000 8,000 263,60 0 _______ 576,00 0 159,20 0 _______ 404,00 0
_____ 4,000 Bal b/d
_______ 576,00 0 263,60 0
_______ 404,00 0 159,70 0
_____ 3,200
EXAMINERS COMMENT Question 1 is on cash book of transactions for a month in a three column cash book. More than 99% of the candidates attempted this question. 70% of the candidates that attempted the question scored above 50%. Confusion of between cash and bank columns were faced by candidates.
SOLUTION 3
(a) MINISTRY OF TRANSPORTATION BANK RECOCILIATION STATEMENT FOR THE MONTH OF AUGUST 2007 N Treasury cash book balance 31/8/07 Add Unpresented cheques 2604001 2604040 2604102 Investment income N 11,200,00 0
1,450,000 800,000 750,000
3,000,000 2,450,000
INSIGHT
16,650,00 0 Less: Uncredited cheque Standing orders Tender Bank charges Bank error Balance per bank statement (b) i) ii) iii) iv) v) Bank charges Dishoured cheques Standing order Clerical errors in the cash book Errors, omission and irregularities such as casting errors 2,600,000 2,750,000 1,350,000 (6,700,00 0) 1,900,00 0 8,050,00 0
EXAMINERS COMMENT Question 3 is a question on bank reconciliation statement for a month. About 95% of the candidates attempted this question. Majority of the candidates understand the topic hence 80% of those that attempted it scored over 50%.
SOLUTION 4
UNALLOCATED STORES RECONCILIATION ACCOUNT ISSUE N Value of store issue as Value of store as per store account 1,307,000 per abstract Adjustment 100,500 1,407,500 N 1,407,50 0 1,407,50 0
PAYMENTS Payment as per abstract 2006 Less payment in respect 2005 Less expenditure credit N 3,007,500 Stock taken on 2,075,000 Change fixed 790,000 Total price N 4,500.000 890,000
INSIGHT
deficiencies Value of claim Less transfer unallocated deficiencies Sub head price excess 950,000 Sub-Total 807,500 Adjustment 5,332,500 6,140,000 750,000
6,140,000
EXAMINERS COMMENT Question 4 is on unallocated store accounts. Only about 40% of the candidates attempted this question and about 10% of them scored pass marks. Generally they performed woefully. This indicated that candidates did not prepare for this topic. This is a potential future topic for reexamination.
SOLUTION 5
(a) Incremental budgeting system is a technique by which a particular percentage of last years budget is added to obtain this years budget.
(b) MINISTRY OF AGRICULTURE, TEMA STATE INCREMENT BUDGET FOR THE YEAR 2008 Head 35 Subheads 01 02 03 04 05 06 07 08 09 10 11 12 Particulars/titles Contribution, subvention & grants Maintenance of capital assets Maintenance of motor vehicle Office furniture & maintenance Stationery Telephone services Utilities Travel & tours Personnel costs Staff training & developments Contribution to foreign bodies Miscellaneous expenses To budget cost Notes 1 2 3 4 5 6 7 8 9 10 11 12
000
936.00 1,845.48 990.60 567.84 1,538.16 410.28 496.08 1,606.80 2,781.00 269.88 670.80 862.68 12,975.6 0
Working:
INSIGHT
Note s 1 2 3 4 5 6 7 8 9 Sub Heads 01 02 03 04 05 06 07 08 09 Particulars Contribution etc Maintenance of capital assets Maintenance of motor vehicle Workings 600 x 1.20 x 1.3
1,193 x 1.20 x 1.30
10 11 12
10 11 12
635 x 1.20 x 1.30 Office furniture & maintenance 364 x 1.20 x 1.30 Stationery 986 x 1.20 x 1.30 Telephone services 263 x 1.20 x 1.30 Utilities 318 x 1.20 x 1.30 Travel & tours 1,030 x 1.20 x 1.30 Personnel cost: Salaries = (2,490 945) x 1,854 1.20 927 Staff allowance (1,854 x 50%) Staff training & development 173 x 1.20 x 1.30 Contribution of foreign bodies 430 x 1.20 x 1.30 Miscellaneous expenses 553 x 1.20 x 1.30
936.00 1,845.4 8 990.60 567.84 1,538.1 6 410.28 496.08 1,606.8 0 2,7810 0 269.88 670.80 862.68
EXAMINERS COMMENT Question 5 deals with budgeting in governmental establishment. Around 65% of the candidates attempted this question where about 10% of them scored pass marks. Candidates should realize the importance of budgeting in organizations and should understand it properly, theory and practice.
SOLUTION 6
(a) i DR Difference account 80,855,987
INSIGHT
ii iii Iv (b) DR CR DR CR Clearance statement Difference account Difference account Clearance statement 200 200 80,815, 989 80, 815, 987 CR DR CR Clearance state net Clearance statement Difference account 80,855,987 200 200
DR CR (c)
Difference account Statement clearance
280,855.787 80,855,787
a) b) c) d) e) f) g) h) i)
Voucher relating to advance must indicate: Name of the officer collecting the advance Designation of officer collecting the advance Below the line code Nature of advance Term of recovery The authority for the advance Approving office Ledger reference Officer entry into the ledger
EXAMINERS COMMENT Question 6 deals with anomalies in Auditor-General is Treasury Clearance Fund, which requires journal entry. The question is meant to test the candidates knowledge of application of journal in correcting accounts. About 20% of candidates attempted this question where only 30% of them scored pass marks. The correction of accounts is important, candidates should prepare for it.
AT/101/PII.7
EXAMINATION NO:
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ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA ACCOUNTING TECHNICIANS SCHEME PART II EXAMINATION MARCH 2010 QUANTITATIVE ANALYSIS
Time allowed: 3 hours
Insert your examination number in the space provided above
SECTION A - Attempt All Questions PART I

1.
MULTIPLE-CHOICE QUESTIONS (10 Marks)
When a fair coin is tossed once, a boy wins 100 if head shows up and loses 50 if tail shows up. Find his expected income A. B. C. D. E. 25.00 50.00 55.00 75.00 150.00.
2.
If the regression coefficient is positive, this indicates A. B. C. D. E. High correlation Negative correlation Non-sense correlation Positive correlation Low correlation.
3.
How many samples of size 2 can be chosen from 5 numbers without replacement? A. B. C. D. E. 32 25 20 10 7
4.
If the marginal cost of a product is given by MC = 9 + 3q 2, then the total cost is A. B. 6q + C 9q + 6q2 + C
INSIGHT
C. D. E. 5. q3 + C 9q + q3 + C 9q + 6 + C. 1 0 1 , the result
If Matrix P of dimension 2 x 2 is multiplied by I = is 0 -1 A. P B. P C. PT D. PPT E. I.
6.
If a sum of N12,000 is invested for two years at 8% compounded semiannually, the amount is A. B. C. D. E. N12,979.20 N14,038.30 N13,920.00 N13,996.80 N14,480.00
7.
Which of these statements is correct? A. B. C. D. E. Arithmetic mean < Geometric mean < Harmonic Arithmetic mean = Geometric mean = Harmonic Arithmetic mean > Geometric mean > Harmonic Harmonic mean > Geometric mean > Arithmetic Geometric mean > Harmonic mean > Arithmetic mean mean mean mean mean
8.
Data obtained from these methods can be regarded as primary source of data EXCEPT: A. B. C. D. E. Observation method Personal interview method Panel method Telephone method Registration method.
9.
The head and the tail of an arrow in a network respectively indicate the A. B. C. D. beginning and the end of a task end and beginning of a task head event and tail event tail event and head event
INSIGHT
E. end task and tail event.
10.
The minimum duration of a project equals the sum of the A. B. C. D. E. durations of all possible paths in the network durations of the longest and the shortest activities durations of activities on the longest non-critical path durations of activities connecting events where the earliest start time equals latest start time optimistic and the pessimistic time estimates of activities along the critical path.
PART II
1. 2. 3.
SHORT- ANSWER QUESTIONS (30 Marks)
The TWO main aspects of statistics are ............... and .................. The difference between the upper and lower class boundaries of a grouped data is called ................. A table containing variable values in one column and the number of times these values repeat themselves in adjoining column is known as ................. The value in the data set which lies in such a position that half of the observations are below it and the remaining half above it is known as the ................ The arithmetic mean of the absolute values of the deviations of the individual values from the mean in a data set is .................. The probability of an event which cannot occur is .............. Given that the mean and variance of a set of data are 25 and 16 respectively, then the coefficient of variation is .................. The type of interest that accrues only on the principal is known as ........... A null set is a subset of every defined set. True or False? The profit is zero when revenue ............... If x represents the number of oranges, and y stands for the number of apples and if the two items are related as follows: 2x + y < 40
4.
5. 6. 7. 8. 9. 10. 11.
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x + y = 22 then x is ....................... 12. 13. A set with four elements or members has .......... subsets. The set that contains all the elements in the universal set but are not found in sets A nor set B is written in notation form as ..................
Use information in the diagram below to answer questions 14 and 15. A(28) 5 x y 2x 15 8 14. 15. 16. 17. C(32) 9 B U
From the Euler-Venn diagram shown above, the total number of elements in set B (i.e. n (B)) is ..................... The size of the universal set n(U) in the Euler-Venn diagram is ............ The list of every member of a population is called the .................. The normal distribution reasonably approximates the binomial distribution when the number of trials is ............ and the probability of success is not close to .............. Regression establishes a ............ between two variables while correlation measures the strength of the ............... The mean of a sample of size 100 is 20 while the population mean and standard deviation are 18 and 6.8 respectively. Calculate the test statistic. If Kofi expects 400 cedis from his brother with probability 0.6 and 300 cedis from his sister with probability 0.5, how much money is he likely to have? If the null and alternative hypotheses are stated as Ho: = 0; Hi: > 0, then the test is said to be a ............. test.
18. 19.
20.
21.
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22. 23. 24. 25. 26. The feasible region in any Linear programming problem is always in the first quadrant because the variables cannot be ............... In transportation problems, the cost of transporting one unit of a commodity must be .............. An activity in a process is represented on the network by .............. The shortest time period in which a whole project can be completed equals the duration of the ............... The correct presentation of the network shown below is ....... B 1 27. 28. 29. 30. A 2 C The revenue (in Naira) from the sales of x units of a product is represented by R(x) = 7x3 + 4x2 + 7x. Then the marginal revenue is ............... The rate of increase of the revenue in question 27 when 50 units of the product are sold is ............ TWO types of models that are used for inventory control are deterministic and ............... The level of stock at which a further replenishment order should be placed is ............... 3 D 4
SECTION B Attempt Any Four Questions out of which at Least one Must Come From Each Sub-Section (60 Marks) STATISTICS QUESTION 1
The daily profits (in N000) made by an accounting consulting company in a season are given below: 20 15 40 28 32 23 31 33 45 12 24 35 50 36 36 25 18 38 37 49 18 16 43 22 24 44 30 26 28 48 21 33
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38 30 a) 27 20 26 40 24 43 27 27 29 41 34 28 37 31
By the aid of Tally method, use the classes 10-14, 15-19, etc., to construct the frequency distribution table for the data. (8 Marks) Determine the, (i) Number of days the company operated. (ii) Number of days the company made a daily profit of less than N30,000. (iii) Proportion of the days under consideration in which the company made a daily profit of at least N40,000. (iv) Percentage of the days under consideration in which the company made profit of at least N20,000 but less than N30,000. (7 Marks) (Total 15 Marks)
b)
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QUESTION 2
TWO out of every FIVE students from JAYEBs local government council in tertiary institutions are awarded scholarships. If 400 students from the local government are randomly selected, calculate the probability that (a) at least 150 (8 Marks) (b) between 140 and 175 (4 Marks) (c) at most 135 (3 Marks) of the students are awarded scholarships (Total 15 Marks)
QUESTION 3
The auditors report of a company provides the following data for the management to take valuable decisions on weekly expenses. Week Expenses (m) (a) 1 5 2 4 3 10 4 12 5 8 6 6 7 6 8 5
Calculate the (i) (ii) (iii) Mean weekly expenses Variance of the weekly expenses Marks) Co-efficient of variation of the weekly expenses. (4 Marks) (4 Marks) (5
(b)
Based on your result in (a)(iii) above only, comment, in not more than one sentence, on the stability of the weekly expenses. (2 Marks) (Total 15 Marks) BUSINESS MATHEMATICS
QUESTION 4
In a manufacturing company, the demand and total cost functions are respectively p = 36 q2 and C = 2q2 + 4q, where q is the number of quantities produced and sold. 3 a) Determine the number of quantity that will
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(i) (ii) (b) maximise the profit of the company and hence determine the maximum profit. make the company to break even. (11 Marks)
Determine the elasticity of demand when the profit is maximum and comment on your result. (4 Marks) (Total 15 Marks)
QUESTION 5
Madam Love operates a Beauty Salon in Akoka. She specialises in Afro (x), Jerry Curl (y) and Perming (z) hair styles. To service each customer, she makes use of dryer, washer and stylists. To do an afro hair style requires 1 hour in the dryer, 2 hours in the washer and 2 hours with the stylist. The jerry curl hair style requires 4 hours in the dryer, 2 hours in the washer and 3 hours with the stylist. And the perming hair style requires 2 hours in the dryer, 1 hour in the washer and 3 hours with the stylist. She has available 220 dryer hours, 200 washer hours and 330 stylists hours. Required: a) b) Obtain the system of linear equations for Madam Loves problem. Marks) (3
QUESTION 6
Use the Cramers rule to determine how many Afro (x), Jerry curl (y) and Perming (z) hair styles she can do given her available resources. (12 Marks) (Total 15 Marks) OPERATIONS RESEARCH
An organisation has just established a canteen outfit for its staff members where they are to take free meals. The staff members are entitled to breakfast, lunch and dinner. The organisation has two main cadres of staff, management staff (M) and operating employees (O). In order to minimise costs, the organisation has decided to encourage its staff to skip either lunch or dinner. The table below gives the information pertaining to the decision problem. Activities Activity Levels Resour B L M x1 5 3 O x2 5 2 Lower Limits of Availability 1000 600
INSIGHT
ces D Contribution to cost 2 N1,20 0 3 N800 800
where: x1 denotes the number of management staff members to be given meals. x1 denotes the number of operating employees to be given meals. Required: (a) Formulate the problem as a Linear Program. (3 Marks) (b) Plot the Primal Model on a graph and identify the feasible region Marks) (c) Obtain the Dual of the problem. (2 Marks) (Total 15 Marks) (10
QUESTION 7
The demand for an item is 160,000 per quarter at a constant rate. The ordering cost is L$120 while holding cost per item is L$3.75 per annum. You are required to find the: (a) Economic Order Quantity. (6 Marks) (5
(b) number of orders per year and the associated ordering cost. Marks) (c) total cost per annum.
(4 Marks) (Total 15 Marks)
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SECTION A PART I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10 A D D D B B C E B D
MULTIPLE-CHOICE QUESTIONS
Workings 1. 3. 4. Expected income = x 100 + x (-50) = N25

5
C2 = 5 x 4 = 10 2
C = (9 + 3q2) dq = 9q + q3 + c
6. A = P (1 + r)n in 2x2 = 4; n = 2x 2 = 4 r = 0.4 (i.e. 8% 2 for semi annually) = 12,000 (1 + 0.04)4 = N14,038.30 7. 8. Out of the three, Arithmetic mean is the highest while the Harmonic mean is the smallest. Here Registration method is the most appropriate and correct option .
INSIGHT
SHORT - ANSWER QUESTIONS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Descriptive and inferential Class width or class size Frequency table Median Mean Absolute Deviation or MAD 0.0 or zero
100
/1 = 4/25 x
100
/1 = 16%
x simple interest True equals cost or is equal to cost y = 22 x 2x + 22 x < 40 x < 40 22 = 18 ;. x < 18 24 or 16 (AB)1 or A1B1 8 + 15+x + 2x = 32 x = 3 5 + y + x + 2x = 28 5 + 3 (3) + y + 28 y = 14 : . n (B) = 9 + 15 + (2(3) + 14 = 44 n(U) = 44 + 3 + 5 + 8 = 60 Sampling frame large, zero (in that order)
12. 13. 14.
15. 16. 17.
INSIGHT
18. 19. relationship, relationship (association) z = x = / n = 20 18 = 2.94 6.8/ 100
20. 21. 22. 23. 24. 25. 26.
0.6 x 400 + 0.5 x 300 = 390 cedis one tailed or one sided negative or less than zero constant an arrowed line or critical path 1 A 2 B C OR 1 A 2 C B 3 D 4 3 D 4
27.
R (x) = 7x3 + 4x2 + 7 x :. MR = dR (x) = 21x2 + 8x + 7 dx 2 (x)
28. MR = 21x2 + 8x + 7 2 x at x =50 MR = Rate of increase = 21(50)2 + 8(50) + 7 2 50
INSIGHT
=N52,900.49 29. 30. Stochastic in probabilistic model Re-order level
EXAMINERS COMMENT The entire syllabus is fairly covered in which the three sections of the syllabus (i.e. Statistics, Business Mathematics and Operations Research) are adequately represented. The performance of candidates was fair.
SOLUTION 1
a)
Profit (N000) 10-14 15-19 20-24 25-29 30 - 34 35 - 39 40-49 45 -49 50 - 54 I III IIII IIII IIII IIII IIII III 1 Number of days 1 4 8 10 8 7 6 3 1 48
III IIII III III I
b)
(i) (ii) (iii)
Number of days of operation = f = 48 days Number of days with daily profit less than N30,000 = 1 + 4 + 8 + 10 = 23 days Number of days with daily profit of N40,000 or more = 6 + 3 + 1 = 10 days :- proportion of the total days = 10/48 = 5/24 or 0.208 Number of days with daily profit more or equal to N20,000 but less than N30,000 = 8 + 10 = 18 days :- percentage of the total days = 18/48 x 100/1 = 37.50%
(iv)
EXAMINERS COMMENT This question tested the candidates knowledge of constructing frequency distribution table from the given set of data using the Tally Method.
INSIGHT
Majority of the candidates attempted the question and not less than 70% of the candidates did fairly well. The only pitfall identified was the inability of a few candidates to correctly use the Tally Method to capture the total daily profits.
SOLUTION 2
P = 2/5 = 0.4 :- q = 0.6
np = 400 x 0.4 = 160 npq = 400 x 0.4 x 0.6 = 9.8 Calculate the various Z values as follows: (a) 150 160 = - 1.02 9.8 A = 0.3461 from the table and B= 0.5 :- the required probability (shaded) = 0.5 + 0.3461 = 0.8461
-1.02 b) 175 160 = 1.53 9.8 140 160 = -2.04 9.8 A is 0.4793 and B is 0.4370 from the tables :- required probability (shaded) = 0.4793 + 0.4370 = 0.9163
A -2.04
B 1.53
INSIGHT
c) 135 160 = -2.55 9.8 A is 0.4946 from the tables :- required probability = 0.5 0 .4946 = 0.0054
A -2.55 EXAMINERS COMMENT This question is on probability distribution using Normal approximation to Binomial. Very few of the candidates attempted the question and their performance was fair. The main pitfall identified was the inability of most of those who attempted it to correctly use the Normal Distribution Tables.
SOLUTION 3
X 5 4 10 12 8 6 6 5 56
X2 25 16 100 144 64 36 36 25 446
(i)
mean = x = 56 n 8 =7.0 = 7m variance = 2 = x2 (x)2/n n = 446 (56)2/8 8 = 54/8 = 6.75
(ii)
INSIGHT
(iii) C.V. = x 100 x 1 = 6.75 x 100 7 1 = 2.5598 x 100 7 1 = 37.12% Since, the coefficient of variation is a little above 30%, one can conclude that the weekly expenses are fairly stable.
ALITER X 5 4 10 12 8 6 6 6 5 (X X) -2 -3 3 5 1 1 -1 -1 -2 (X X)2 4 9 9 25 1 1 1 1 4 54
b)
Variance = (x x)2 n
= 54 8 = 6.75
EXAMINERS COMMENT The question is set to test candidates ability to identify discrete data. Majority of the candidates failed to recognise this aspect of the question and hence made blunders by using wrong set of data as variates i.e. they were using the real figures i.e. the expenses as frequencies and the time (given in weeks) as variables. Generally, the performance was very poor. More than 95% of the candidates attempted the question.
INSIGHT
SOLUTION 4
a) (i) Profit ( Revenue Cost
2
= q (36 q ) - (2q2 + 4q) 3 =36q q3 2q2 4q 3 = 32q q3/3 2q2 d /dq = 32 q2 4q At the turning point, d /dq = 0, then 32 q2 4q = 0 i. e. q2 + 4q 32 = 0 (q-4) (q+8) =0 gives q= 4 or -8 At this point, q = -8 is rejected since quantities cannot be negative. d2 = -2q - 4 dq2 when q = 4, d2 = -8-4 = -12 < O hence dq2 q =4 gives maximum profit. :- maximum profit = 32(4) (4)3 2(4)2 3 =74.67 Aliter R = q 36 q2 = 36q q3 3 3 For maximum profit MR =MC i.e. 36 -q2 = 4q + 4 i.e. q2 + 4q 32 = 0 (q 4) (q + 8) = 0 q = 4 or -8 i.e. q = 4 since q cannot be negative Now profit is R C i.e 36q q3 2q2 4q 3 3 32q q 2q2 3 : . maximum profit = 32 (4) (4)3 2(4)2
4a (i)
INSIGHT
= 74.67 (ii) The company breaks even when R = C 36q q3 = 2q2 + 4q 3 i.e 36 q2 = 2q + 4 q2 + 6q-96 = 0 3 :- q = -6 (36 + 384) = + 7.25 or 13.25 2 ;- the company will break even when q = 7.2
INSIGHT
b) Elasticity of demand E = -dq p dp q 2 p = 36 q 3 dp = -2q dq 3 :- E = = -3 2q 3 2q 108 q2 3q 108 q2 3q 108 16 3x4
= 3 2x 4
= 23/8 =2.88 So, the demand is elastic since E > 1 EXAMINERS COMMENT This is a Business Mathematics question which tests the candidates knowledge of (i) basic differentiation being applied to determine maximum profit (ii) the condition under which a company can break even and (iii) determination of the elasticity of demand when the profit is maximum. About 50% of the candidates attempted the question. The pitfalls identified include candidates inability to simplify well, to know the condition for maximum profit, to know when a company breaks even and to know the correct expression for the elasticity of demand. The overall performance of candidates was fair.
SOLUTION 5
Afro (x) 1
2 2
Dryer
Washer Stylist
Jerry Curl (y) 4

2 3
Perming (z) 2
1 3
Availabilit y 220
200 330
System of linear equations x +4y + 2z = 220
INSIGHT
2x + 2y + z = 200 2x + 3y = 3 z = 330
INSIGHT
and in matrix form 1 4 2 2 2 1 2 3 3 = 1 2 2 4 2 3 x z 2 1 3 220 y = 300 330
=1 = = -9
1 2 3 3 3 16 + 4
-4
2 1 2 3
+2
2 2 2 3
x = 220 200 330
4 2 2 1 3 3
= 220
2 1 -4 3 3 = 660 1080 -120
200 1 +2 330 3
200 330
2 3
= -540 x = x y = 1 2 2 = -540 = 60 -9
220 200 330
= 1 200 1 -220 2 1 +2 330 3 2 3 = 270 880 + 520 = -90
2 200 2 330
:- y = -90 = 10 -9 z= 1 2 2 4 2 3 220 200 330 = 1 2 200 - 4 2 200 +200 2 2 3 330 2 330 2 3 = 60 1,040 + 440 = -540
:- Z = z = -540 = 60 -9
INSIGHT
i.e Madam Love should do 60 Afro, 10 Jerry curl and 60 Perming. EXAMINERS COMMENT This question tests the candidates knowledge of the use of Cramers Rule to solve a systems linear equations. This involves determining determinants of appropriate matrices. A number of candidates had problem with that aspect of the question. Almost 90% of the candidates attempted the question with about 50% of them doing fairly well.
SOLUTION 6
a) Formulation as a Linear Program Minimize Z = 1200x1+ 800x2 object function s.t. 5xi + 5x2 1,000 . Breakfast constraint 3xi + 2x2 600 Lunch constraint 2xi + 3x2 800 . Dinner constraint xi, x2 0 ... non-negativity Solution by the Graphical method Initialising the problem 5xi + 5x2 1,000 . 1 3xi + 2x2 600 2 2xi + 3x2 800 . 3 xi, x2 0 ... non-negativity obtaining boundary Points from equation 1 when x1=0 0x1 + 5x2 = 1000 5x2 = 1000 ;. X2 = 1000 = 200 5 point A = (0,200) From equation 1 when x2 = 0 5x1 = 1000 ;. X1 = 1000 = 200 5 point B = (200,0) From equation 2 when x1 = 0 0x1 + 2x2 = 600 2x2 = 600 ;- x2= 600 = 300 2 point C = (0,300)
b)
INSIGHT
From equation 2 when x2 =0 3x1 + 2(0) = 600 3x1 = 600 ;- x1 = 600 = 200 3 point D = (200,0) From equation 3 when x1 = 0 0x1 + 3x2 = 800 3x2 = 800 :- x1 = 800 = 266.67 3 point E = (0,266.67) From equation 3 when x2 = 0 2x1 + 0x2 = 800 2x1 = 800 ;- x1 = 800 = 400 2 point F = (400,0) Please see graph sheet. Feasible Region = FIC c) The dual of the problem is obtained as maximize Z = 1,000y1+600y2 + 800y3 s.t 5y1 + 3y2 + 2y3 1,200 5y1 + 2y2 + 3y3 800 y1, y2, y3 0 Graph
EXAMINERS COMMENT This is an OR application question based on linear programming techniques. Very few candidates attempted the question and the performance was generally poor. The major pitfall was the candidates inability to formulate the relevant linear programming problem such as objection function and the constraints.
SOLUTION 7
INSIGHT
a) Q = 2cd h where d = 160,000 x 4 = 640 per annum
:- Q = 2x 120 x 640,000 3.75 = 6,400 b) No of orders per year = d/Q = 640,000 6,400 =100 Associated ordering cost = L$(120 x 100) = L$12,000 c) Total cost per annum = c.d + Q/h Q 2 =120x 640,000 + 6400 x 3.75 6,400 2 =L$24,000
EXAMINERS COMMENT This is an inventory control problem. Candidates are expected to calculate Economic Order Quantity (EOQ) from the given data. The major pitfall identified was the inability of majority of the candidates to obtain the correct annual demand from the information given. Virtually, all the candidates attempted this question with about 30% doing fairly well.
INSIGHT
AT/101/PII.8
ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA ACCOUNTING TECHNICIANS SCHEME PART II EXAMINATION MARCH 2010 INFORMATION TECHNOLOGY Time allowed: 3 hours
EXAMINATION NO
Insert your examination number in the space provided above SECTION A - Attempt All Questions PART I
1.
MULTIPLE-CHOICE QUESTIONS (10 Marks)
Which of the following is collection of records of the same type or related data? A. B. C. D. E. Bit Byte Field File Data
2.
The sum of 11101two and 1111two is. A. 11111 two B. 111001two C. 101100two D. 111000two E. 1011101two Serial transmission can occur either A. B. C. D. E. Asynchronously or synchronously Serially or Bi-serially Asynchronously or Bi-synchronously Synchronously or Bi-Asynchronously Bi-serially or co-synchronously
3.
4.
Which of these is NOT of the seven Open Systems Interconnection (OSI) Layer A. Application
INSIGHT
B. C. D. E. 5. Data evolution Transport Network Physical
A keyboard with only 88 keys is called ........................ A. B. C. D. E. enhanced keyboard standard keyboard cloned keyboard classified keyboard specified keyboard
6.
A printer which prints whole lines at a time is called ..................... A. B. C. D. E. Image printer Character printer Line printer Laser printer Page printer
7.
Which of the following is NOT a running or operating cost during systems development. A. Staff salaries B. Overheads C. Cost of hardware D. Utilities and consumable E. Insurance and financing The contents of a feasibility study report exclude ONE of the following items. A. B. C. D. E. Current system issues Executive summary Description of options Conclusion Fact findings
8.
9.
The following are computer crimes common in an IT environment EXCEPT: A. B. C. D. E. Impersonation Data diddling Intentional spreading of viruses Hacking Access to a large database
INSIGHT
10. A security measure built into a system with the powers of judgment to determine the accuracy of output or result describes. A. B. C. D. E. Verification Validation Through put Bench mark test Test run
PART II
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
SHORT-ANSWER QUESTIONS (30 Marks)
The major advantages of primary memory over the secondary storage is The processor consists of arithmetic and unit. The components of the hardware are input, output, storage and .. units. A standard computer keyboard has . function keys. The three basic types of monitors are RGB monitors, . and colour monitors. A collection of related records or a logical grouping of characters is known as . A configuration of eight bits used to represent a character is . ASCII is an acronym for .. An integrated collection of data is A computer with the combined features of representing process data in discrete values and also akin to measuring instruments such as thermometers is known as A user who illegally penetrates a computer network to manipulate data is called Protective measures taken to prevent physical, logical and procedural damage of the computer system is called ..
11. 12.
INSIGHT
13. 14. A computer crime that involves falsifying data at the point of entry is called A computer crime whereby criminals snoop around computer room to gain access to the physical facilities and the computer file is called An E-mail virus that called.. has infected over 100,000 computers is
15. 16. 17. 18. 19. 20.
A network in which all communications devices are connected to a common channel is called a network. A client computer system can remotely login to computer server across the internet. The protocol that governs the login is known as An interface that enables dissimilar networks to communicate is known as . The name given to the communications network that covers geographical area, the size of a city or suburb is known as a
The use of television, video and sound technology together with computers to enable people in different geographical locations to see, hear and talk with each other is called.. Computer package designed for numerical, statistical and accounting information is called Word star is an example of packages. Symphony is an example of packages. Pictorial representation of the set of procedures used in writing a program is called . Program flowchart and .. flowchart are major type of flowcharts. The computer-to-computer system of exchange of structured business information in a standard electronic format is called. MS Internet Explorer and Netscape Navigator are both examples of .
21. 22. 23. 24. 25. 26. 27.
INSIGHT
28. 29. 30. An electronic business activity that includes delivery of information, products, services and payments using the internet is called .. The combination of text, audio, video and graphics are . information that may be required in E-commerce applications. The type of E-commerce that binds the relationship between consumers and the company is referred to as
SECTION B QUESTION 1
- Attempt any FOUR questions (60 Marks)
Identify FIVE major features of each of the following computer hardware generations: (a) (b) (c) First Generation Third Generation Fourth Generation (5 Marks) (5 Marks) (5 Marks) (Total 15 Marks
QUESTION 2
(a) (b) What do you understand by Direct Input devices of a computer system? (2 Marks) Input devices are made using different technologies. Two of such are magnetic and optical. (i) (ii) (c) Give THREE examples of magnet input devices Give TWO examples of optical Input devices (3 Marks) (2 Marks)
Give TWO advantages and TWO disadvantages of TWO input devices (8 Marks) (Total 15 Marks)
QUESTION 3
a) (b) (c) What is software? (2 Marks)
Explain the TWO main types of software with FOUR examples each (8 Marks) Give any TWO classifications of Operation System and state FOUR examples of each. (5 Marks)
INSIGHT
(Total 15 Marks)
QUESTION 4
(a) (b) Explain the term Network Topology? Described briefly with the aid of diagram the following: (i) Ring Topology (ii) Bus Topology (iii) Star Topology List FOUR devices used in networks. (2 Marks)
(9 Marks)
(c)
(4 Marks) (Total 15 Marks)
QUESTION 5
a) (b) What is a Computer Crime? (3 Marks)
Give any SEVEN examples of computer crimes that can be committed in a workplace. (7 Marks) (i) (ii) Explain the term Time and Resources Theft Give any three examples of such Theft (5 Marks) (Total 15
(c)
Marks)
QUESTION 6
(a) (b) (c) Name and describe FOUR internet capabilities and their functions (8 Marks) State FOUR benefits of the Internet to an organisation (4 Marks) What is a firewall? (3 Marks) (Total 15 Marks)
INSIGHT
INSIGHT
MULTIPLE CHOICE ANSWERS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. D C A B B C C E E D
EXAMINERS COMMENT This section consists of ten multiple choice questions which cover major parts of the syllabus. The performance was good as 70% of the candidates scored over 50% of the
SHORT ANSWER QUESTIONS

1. 2. 3. 4. 5. 6. 7. 8. Speed of Access Logical and Control Central processing Ten Monochrome Field Byte American standard code for information interchange
INSIGHT
9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. Database Hybrid A Hacher Computer Security Data Swindling Piggy backing Mellisa Virus / Sobig Virus Bus/Ring Telnet/ Wireless Application protocol ( WAP) Gateway Metropolitan area network (MAN) Video conferencing (Teleconferencing) Spreadsheet Word Processing Spreadsheet Program Flowchart System Electronic Data interchange (EDI) Web browsers E-commerce Multimedia
INSIGHT
30. Business-to-consumer (B2C)/(C2B) EXAMINERS COMMENT This section consists of thirty questions which cover every section of the syllabus. The performance was not encouraging as 60% of the candidates scored below 40% of the mark. The major pitfalls were the inability of the candidates to reproduce essential concepts and acronyms in IT. The candidates are advised to give special recognition to the concepts and pay more attention to the meaning of most acronyms in IT.
SOLUTION 1
a) The features of First Generation Computers Hardware include: It occupied large amount of space Use of vacuum tubes/ diode Large circuits which consist of wires and thermionic valves were involved T he internal storage consists of a magnetic drum and delay lines Slow in operation Low capacity of internal storage A lot of heat generated Lot of manual intervention
b) The features of third generation computers include: Integrated circuit (IC) is used Computers of this generation were cheaper, smaller and faster compared to first generation computers Designing of sophisticated operating systems
INSIGHT
Time sharing devices introduced Data channel communication came into existence There were a wide range of optional peripherals available Supports multiprogramming and multiprocessing
c) The features of Fourth generation computers include: Very large scale integration (VLSI) circuit was introduced The VLSI led to the introduction of micro processor which facilitated the production of micro computers The generation witnessed wide Varity of software tools like database management systems, word processing packages, spreadsheet etc User friendly i.e. Easy to use Enhancement of networking capabilities Introduction of electronic mail, office information systems Extremely large internal and external storage media etc.
Simple and Common Operating system
In general, the above generations could be treated under the following headings: Size of system Memory capacity Memory Technology Operation system Network Human Computer Interface [HCI] Computer Languages
INSIGHT
Heat Generated
EXAMINERS COMMENT This question tests candidates knowledge on the computer hardware generations. The question demands for features and computer facilities available during each generation. 92% of the candidates attempted this question and the performance was very encouraging as over 80% of the candidates scored over 50% of the marks.
SOLUTION 2
(a) Direct Input devices are input devices that read source documents into the central processing unit [CPU] without any intermediary medium/ media i.e there is no intermediary conversion of source data before transfer into the CPU. 2 mark
Magnetic Ink Character Reader [MICR] Magnetic strip reader Keyboard Joystick Tag Barcode
(b)(i) Magnetic Input devices
(ii)

Optical Input devices

Optical Character Reader [OCR] Optical Mark Reader [OMR] Touch screen Scanner Mouse
(c) (i) Keyboard Advantages: Cheap Flexible
INSIGHT
Easy to use Disadvantages: Personnel need training Slow High error risk (ii) MICR Advantages Cheap in operation of high volume activities Low error rate It is fast Disadvantages: It is expensive to purchase The fonts are not easily readable It has limited use (iii) OCR Advantages: Cheap in operation for high-volume activities Has low error rate It is fast Fonts are easily readable Read data directly to computer Disadvantages: Expensive It is easy to corrupt the characters It attracts dirt and damages easily. EXAMINERS COMMENT This question tests candidates understanding on input devices. It specifically demands for the definition of direct input devices and examples of input devices based on magnetic and optical technologies.
INSIGHT
Over 80% of the candidates attempted this question, but the performance was just average as over 55% of the candidates scored below 50% of the mark.
The major pitfalls were: I Ii Inability to define direct input devices; Inability to recognize and distinguish between magnetic and optical input devices.
The students are advised to study the input and output devices more seriously.
SOLUTION 3
a) Software is a generic term used for all computer programs that run on the hardware system and their accompanying documentations. 2 marks The two main types of software are: i. System Software which are programs that control the computer hardware. Examples include: Operating Systems Utility programs Language processor Loader Editors ii. Application Software are software designed and developed for specific application areas. They are mostly ready-made packages. 1 mark
b)
Examples include: Word processor Electronic Spreadsheet Database Management Systems Graphics generators
INSIGHT
c). Desktop publishing Statistical packages e.g. SPSS Accounting packages e.g. Peachtree General purpose packages e.g. Ms Excel Mathematical package e.g. Matematica
The two main classification of operating systems are single-user, multiuser or Network operating system. i. Single user Operating System is designed for a single user access operation. Its examples include PC-Dos, IBM-Dos, OSVS, OS/2, MsDos, Windows 95.
Multi- user Operating System is designed for networking or multi access operation, its examples includes: PC-MOS UNIX NOVEL LINUX WINDOWS NT Network Operating Systems: Apple talk Windows NT LAN Manager Novell Netware EXAMINERS COMMENT This question tests candidates knowledge on computer software systems. The question demands for the definition of software and examples of the different software subsystems. It also demands for the different types of operating systems. Over 90% of the candidates attempted this question and the performance was good as over 60% of the candidates scored above 50% of the mark. The major pitfall was the inability of the students to classify the operating systems as single user and multiuser (or Network) operating systems. Some students classified the operating systems according to the platforms i.e. operating systems stored on disk and operating systems in windows.
ii.
INSIGHT
Candidates are advised to pay more attentions to software and particularly operating systems.
SOLUTION 4
a) Network topology: refers to the connection of different computer systems and deals with problems of how best various computers can be interconnected i.e. physical patterns.
b) (i) Ring topology: all the PCs and other communication devices are connected in a continuous loop. It is a typical peer-to-pear LAN, no server. However if a connection is broken the entire network may stop working D D A A Ring topology B C
ii)
Key: Here A, B, C, D are Computer systems. Bus Topology: In a bus network all the communication devices are connected to a common channel .If a connection is broken, the network may stop working. This type of network structure may be organized as a client/ server or peer-to-peer network. 11/2 for definition TERMINAL COMPUTER
11/2 for labeled diagram
SsSS
SERVER TERMINAL Bus Topology PRINTER
INSIGHT
iii. Star topology: on the star network all the PCs and communication devices are connected to a central server. The advantages are that the server prevents collision of messages and also if a connection is broken between any communications device and the server, the rest of the devices on the network will continue to function. A
B D
SERVER
C STAR TOPOLOGY
Key A, B, C, D are computers and compute resources. c) i. ii. iii. iv. v. vi. vii. viii. Devices used on the Internet include: Switches Routers Gateways Hubs Computers Cables or wireless channels Modem Multiplexors
INSIGHT
ix.
x.
Network cards Network operating systems
EXAMINERS COMMENT This question tests candidates understanding on components of the network and network topology. The question demands for the definition of network topology and components of networks. About 90% of the candidates attempted this question and the performance was very impressive as over 60% of the candidates scored over 50% of the mark.
SOLUTION 5
a) Computer crime is an illegal exploitation of computer technologies, usually involving the internet, to support crimes such as fraud, identity theft, sharing of information and embezzlement. 3 marks Types of crime that may be committed with computer include i. Fraud achieved by manipulation of computer records ii. iii. iv. v. vi. vii. viii. ix. x. Spamming wherever outlawed completely or where regulations controlling it are violated Deliberate circumvention of computer security systems Unauthorized access to or modification of programs and data hacking and cracking Intellectual property theft including software piracy. Identity theft where this is accomplished by use of fraudulent computer transactions Writing and spreading of viruses and worms Denial of services attack Pornography Leakages
b)
c) (i) Time and Resource theft refers to a situation where a user makes use of organization computer time for its private use for a gain and stealing of
INSIGHT
organization resources for personal use. 2 marks (ii)Examples of such unauthorized uses include Private consulting Playing video games Unauthorized use of internet facilities Processing private data with organization computer system Copying of organization software
EXAMINERS COMMENT This question tests candidates understanding on computer crimes. It demands for the definition and examples of computer crimes. About 40% of the candidates attempted the question and the performance was good as 55% of he candidates scored over 50% of the mark. The major pitfall was the inability of the students to define and give examples on Time and Resources Theft. This is a rather recent concept and the students are advised to lay more emphasis on it.
SOLUTION 6
a) Internet capabilities and their functions i. Online processing: This allows task to be done among several systems across wide areas e.g. e-banking, EFT, e-commerce, EDI ii. iii. iv. v. E-mail: This allows person to person messaging and document sharing Browsing: This allows the process of obtaining information from organization website by indicating the organization web addresses. WWW: This facilitates the retrieval, format and display of information including text, audio, graphics and video using hypertext links Global communication: This allows interactive activities among people in different locations e.g. Video conferencing, audio conferencing, charting , teleconferencing, telecommuting
INSIGHT
vi. vii. b) Usenet Newsgroup: This involves discussion among groups on electronic bulletin boards Telnet: This allows client computer system to remotely log on to computer server across the internet. Benefits of Internet to organizations include: i. Reduces communication costs ii. iii. iv. v. vi. vii. c) Enhance communication and coordination to wide geographical areas It accelerates the distribution of knowledge It facilitates Electronic commerce It provides access to large databases Strategic competitive advantage Enhance management efficiency
Firewalls are security systems with specialized software to prevent outsiders from invading private networks
EXAMINERS COMMENT This question tests candidates understanding on the capability and function of the internet. About 40% of the candidates attempted this question and the performance was fair as over 60% of the candidates scored over 50% if the mark.

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INSIGHT

EXAMINERS GENERAL COMMENTS

INADEQUATE COVERAGE OF THE SYLLABUS

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

PRINCIPLES AND PRACTICE OF FINANCIAL ACCOUNTING

ATSWA PART II - MARCH 2010

ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

Gigabite Limited will record 85,000 in its accounting record as ...........

ATSWA PART II - MARCH 2010

PART II 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

Printing and stationery General expenses (iii)

Direct wages outstanding as at 30 June 2008 were CFA 50.

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

SECTION A PART I - MULTIPLE CHOICE QUESTIONS

PART II - SHORT ANSWER QUESTIONS

ATSWA PART II - MARCH 2010

18. 19. 20. 21.

ATSWA PART II - MARCH 2010

25. 26. 27. 28. 29. 30.

QUESTION 1 (LANDSCAPE TABLE)

ATSWA PART II - MARCH 2010

Interest on debenture Electricity Creditors and accruals

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

54 40 132 500 100 85

ATSWA PART II - MARCH 2010

67.3 9 8.77 3.95 4.83 5.26 9.8 100

GLOTECH TECHNOLOGIES LTD

CONVENTIONAL PROFIT STATEMENT FOR THE PERIOD ENDED 30 JUNE 2008 N N

ATSWA PART II - MARCH 2010

15,444,0 00 1,360,50 0 510,000 850,500 280,500 570,000

ATSWA PART II - MARCH 2010

120,000 750,000 4,520,12 5 5,390,12 5

BONGAI LIMITED BALANCE SHEET AT 31 DECEMBER 2007

ATSWA PART II - MARCH 2010

13,520,1 25 14,720,1 25 1,000,00 0 15,720,1 25

5,240,75 0 1,700,00 0 487,250 7,428,00 0 1,279,37 5 50,000 PART II 120,000

- MARCH 2010 1,449,37 5,978,62

ATSWA PART II - MARCH 2010

30,000 240,000 45,000 105,000 420,000

Head office Creditors Cash

Purchases Account 240,000 Trading Account 202,500 67,500 510,000

Cash Balance c/d

Cash Head office

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

ATSWA PART II - MARCH 2010

SHORT-ANSWER QUESTIONS (30 MARKS)

ATSWA PART II - MARCH 2010