Part Ii March 2021 Insight

AT/211/PII.5 Examination No..................................
THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2021 EXAMINATIONS (PART II)
PRINCIPLES AND PRACTICE OF FINANCIAL ACCOUNTING

PLEASE READ THESE INSTRUCTIONS BEFORE COMMENCEMENT OF THE PAPER
EXAMINATION INSTRUCTIONS
1. All solutions should be in ink. Any solution in pencil will not be marked.
2. Read all instructions on each part of the paper carefully before answering
the questions.
3. Ensure that you do not answer more than the number of questions
required for Section B (The Essay Section).
4. Check your pockets, purse and mathematical sets box to ensure that you
do not have any cell phone or written material with you in the hall,
otherwise, you will be stopped from continuing with the examination.
5. Do not enter the hall with anything written on your docket.
6. Insert your examination number in the space provided above.
DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

TUESDAY, 30 MARCH, 2021

ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
PART II EXAMINATIONS – MARCH 2021
PRINCIPLES AND PRACTICE OF FINANCIAL ACCOUNTING
Time Allowed: 3 hours
SECTION A: PART I MULTIPLE-CHOICE QUESTIONS (30 Marks)

ATTEMPT ALL QUESTIONS
Write ONLY the alphabet (A, B, C, D or E) that corresponds to the correct option
in each of the following questions/statements
1 The implication of the entity concept to a sole trader is that the
A. Business can sue and be sued separately

B. Private use of business assets reduces owner’s capital
C. Owner cannot own private assets
D. Liability of the owner is limited
E. The owner of the business and the business are the same
2 In the final accounts of not-for-profit making organisation, capital expenditures

are recorded in
A. Profit or loss account

B. Statement of financial position
C. Subscription account
D. Income and expenditure account
E. Bar account
3. Making an allowance for receivables is an example of which concept?
A. Prudence
B. Accruals
C. Going concern
D. Mater
E. Consistency
Use the following information to answer questions 4 and 5
Peter and Paul are in partnership sharing profits and losses in ratio 2:3. On 1
January, 2019, they admitted Paulina injecting N1,200,000 as capital.
The following also took place at that date
(i) Goodwill was valued at N4,000,000

(ii) The new profit sharing ratio is to be 3:6:1
(iii) Property is valued upwards by N3,500,000
Peter had a balance of N4,500,000 credit in his capital account prior to
adjusting the accounts. Goodwill is not to be retained in the books.
4. The total amount of goodwill and revaluation surplus to be credited into Paul’s
capital account is
A. N4,500,000
B. N3,000,000
C. N2,400,000
D. N2,100,000
E. N1,600,000
5. The balance in Peter’s capital account after the adjustment is
A. N7,500,000
B. N6,800,000
C. N6,300,000
D. N5,900,000
E. N5,600,000
6. Which of the following items is NOT correctly classified as an element of

financial statement?
(i) Cash and cash equivalent - Asset
(ii) Loan Note - Equity
(iii) Current income taxation payable - Liability
(iv) Retained earnings – Income
A. II
B. I and III
C. IV and II
D. II and IV
E. IV and III
7. Which of the following is NOT a financing item in a statement of cash flows?
A. Cash proceeds from issues of shares
B. Cash repayments of amount borrowed
C. Cash payment to owners of equity
D. Cash payment to acquire equity or debt instruments
E. Cash proceeds from issue of loan notes or other long term
borrowing
8. Which of the following items is correctly matched in accordance with IASB

Conceptual Framework?
S/N Enhancing Fundamental
Qualitative Qualitative
Characteristics Characteristics
A. Timelines Relevance
B. Verifiability Going concern
C. Faithful representation Comparability
D. Neutrality Faithful representation
E. Understandability Accruals
9. The net profit of Adewale ventures for the year ended 31 December is
GH₵1,051,000 and he injected capital of GH₵100,000 into the business during
the year. At the end of the year, there was an increase in net assets of the
company by GH₵733,000.
The drawings made during the year by Mr. Adewale is
A. GH₵218,000
B. GH₵418,000
C. GH₵1,151,000
D. GH₵1,684,000
E. GH₵1,884,000
10. The following is the extract from the financial statement of TEMA Limited.
GH¢’000
Inventory 200
Receivables 300
Cash and cash equivalent 100
Trade payables 300
Loan notes (5 years) 300
The current and acid test ratios of the company is
Current Ratio Acid Test Ratio
A 1.33:1 0.67:1
B 1:1 0.67:1
C 2:1 1.33:1
D 1:1 1.33:1
E 2:1 0.67:1
11. A financial statements prepared under IFRS, which statement contains the
proceeds from sales of non-current assets sold during year?
A. Statement of cash flows
B. Statement of changes in equity
C. Statement of financial position
D. Statement of profit or loss and other comprehensive
E. Value added statement
12. In a Not-for-profit organisation, a debit balance on the subscription account is

reported on
A. Receipt and payment account
B. Profit or loss account
C. Income and Expenditure account
D. Statement of financial position
E. Trading Account
13. Agege social club has the following information as at 31/12/18
Subscription in advance as at 1/1/18 - L$50,000
Subscription collected during the year - L$400,000
Subscription in advance as at 31/12/18 - L$25,000
The amount of subscription that should be recognised as income for the year
ended 31/12/2018 is
A. L$475, 000
B. L$450, 000
C. L$425, 000
D. L$400, 000
E. L$375, 000
14. Which of the following is NOT an account prepared by a Not-for-profit

organisation?
A. Receipts and Payment Account.
B. Statement of Financial position
C. Branch Inventory Account
D. Income and Expenditure Account
E. Bar Trading Account
15. An employee is entitled to 5% commission on the surplus of the club after

charging the commission. What is the commission if the surplus was Le 50,400?
A. Le 2,650
B. Le 2,540
C. Le 2,520
D. Le 2,500
E. Le 2,400
16. A capital receipt by a club or an association comprises of the following; EXCEPT
A. Entry Fees
B. Government grants
C. Endowments
D. Annual Subscription
E. Legacies
17. The necessary accounting entries required to record the amount of calls on
shares not paid by the shareholders are
DR CR
A. Call on shares not paid account Call on shares account
B. Call on shares in Arrears account Call on shares account
C. Ordinary shares account Call on shares in arrears account
D. Call on shares in arrears account Ordinary shares account
E. Cash book Call on shares in arrears account
18. In which ledgers can data relating to discount be found?
A) Cash book
B) Private ledger
C) Sales ledger
D) Norminal ledger
E) Public ledger
19. The necessary accounting entries required to record the amount refunded to the
applicants on rejected ordinary shares are
DR CR
A. Cash book Application and allotment account
B. Cash book Ordinary shares account
C. Application and allotment account Cash book
D. Ordinary shares account Cash book
E. Cash book Rejected ordinary shares account
20. Going Concern Concept assumes that an established business entity will operate
in perpetuity. This perpetuity concept is …………. assumption.
A) Duality
B) Entity
C) Going concern
D) Money measurement
E) Periodicity
21. The entries for payment of joint venture expenses in case of memorandum joint
venture methods is
DR CR
A. Goods account Cash account
B. Memorandum Joint Venture account Cash account
C. Joint Venture account Cash account
D. Co-venturer’s account Cash
E. Joint venture account Co-venturer’s account
22. Which of the following would NOT be found in a manufacturing account?

A. Royalties
B. Purchases of raw materials
C. Depreciation of plant and machinery
D. Return inwards
E. Carriage inwards
23. Use the following information to answer the question below

Net assets on January 1, 2019 GMD4,250,000
Net assets at December 31, 2019 GMD5,914,583
Drawings for the year ended December 31, 2019 GMD3,152,084
The profit for the period is
A. GMD1,097,916
B. GMD1,487,501
C. GMD4,816,667
D. GMD7,012,499
E. GMD9,066,667
24. Which of the following would be treated as a cash outflow?
A. Bonus issue of shares

B. Decrease in receivables
C. increase in payables
D. Increase in inventory
E. Dividend received
25. In a value-added statement, which of the following is NOT distribution of value
added
A. Finance cost
B. Hire of plant
C. Interest
D. Company income tax
E. Depreciation
Boluwatife sold a tricycle to Adeola on hire purchase under the following terms.
Initial Deposit N50,000, installment of N45,000 on monthly basis for a period of
ten months. The cash price for the tricycle is N400,000
26. The hire purchase price is
A. N575,000
B. N550,000
C. N500,000
D. N450,000
E. N400,000
27. The monthly interest payable is
A. N10,000
B. N9,000
C. N7,500
D. N6,500
E. N5,000
28. Which of the following statement is TRUE?
I. Foreseeable losses should be written off immediately in the period even

if the contract has not commenced
II. All anticipated profits should be recognised immediately in the contract
account
III. All cash advances received in respect of contracts should be recognised
immediately
A. I and II
B. I and III
C. I, II and III
D. II and III
E. III
29. In a royalty agreement, the following accounts are normally used to record
transactions in the books to original landlord and sub-tenant, EXCEPT
A. Royalty payable account
B. Landlord account
C. Short working recoverable account
D. Memorandum account
E. Royalties receivable account
30. The cost of goods sold, given the sales figure as GH₵9,000,000 with a mark-up
of 25% is
A. GH₵11,250,000
B. GH₵9,000,000
C. GH₵7,200,000
D. GH₵6,750,000
E. GH₵2,250,000
SECTION A: PART II SHORT-ANSWER QUESTIONS (20 MARKS)
Write the correct answer that best completes each of the following
questions/statements
1. The net amount which the entity expects to obtain for an asset at the end of its
useful life after deducting the expected costs of disposal is………………………
2. The opening capital of a not-for-profit making organisation is called ……………
3. A legal document drawn up to regulate a partnership business is called ………..
A company’s bank statement shows N715,000 direct debit and N353,000

investment income that are not recorded in the company’s cash book. The bank
statement did not show a customer’s cheque of N875,000 entered in the cash
book on the last day of the accounting period.
Assuming the cash book shows a credit balance of N610,000
4. The balance that appeared in the bank statement is…………….
5. The bank balance figure that should be reported in the final accounts is ………
6 The costing method not allowed by IAS 2 on Inventory is …………………
7. State TWO items in the statement of financial position which are potentially
affected by construction contracts.
8. State the formulae for accounts receivables collection period (in days).
9. An accounting adjustments made before year end to improve the appearance of

the financial statements is called……………………………………
10. State the formula for acid test ratio.
11. The IFRS term for shareholder’s fund is ……………
12. Dividends payable on preference shares are reported in statement of ………..

and statement of financial position as current liability
13. Dividends paid on ordinary shares are reported in statements of ………….and

statements of cash flow.
Use the following information to answer question 14 and 15
Adamu, Bala, Gambo are partners, sharing profit or losses in ratio of 2:3:4. The
Capital accounts balances after the partnership was dissolved and all accounts
closed were Adamu, L$8 million CR: Bala L$12 million CR and Gambo L$16
million DR.
14. What will be Bala’s contribution to the deficiency of Gambo assuming Gambo is
insolvent?
15. What will be the difference in your answer if Gambo was not insolvent?
16. Shares issued to existing shareholders at a price lower than the market price is
called…………..
17. In the statement of financial position, the following assets Goodwill, Patent and
Trademarks are called …………..
18. If the royalties receivable exceeds the minimum royalties and a credit balance
exist on the unexpired shortworking allowable account, show the necessary
accounting entries required to record shortworkings recoupable within the time
limit.
19. X and Y are in partnership with the agreement that Y is entitled to salary of
N600,000 per annum together with 5% commission on net profit after charging
salary and commission, but before interest on capital. The net profit of the
partnership for the year is N6,050,000. Calculate the commission due to Y for
the year. Provide your answer to the nearest naira.
20. State TWO basic methods of invoicing goods to the branches.
SECTION B: ATTEMPT ANY FOUR QUESTIONS IN THIS SECTION (50 MARKS)
QUESTION 1
The following balances were extracted from the books of Dariye, a sole trader
on December 31, 2019
N
Capital at January 1, 2019 12,500,000
Receivables 4,715,000
Cash in hand 241,400
Payables 3,442,400
Furniture and fittings 4,220,000
Inventory at January 1, 2019 1,846,000
Turnover 49,100,000
Purchases 38,500,000
Motor vehicle at cost 4,500,000
Motor vehicle expenses 2,750,000
Rent 5,620,000
Drawings 2,650,000
The following information as at December 31, is also available
(i) N250,000 is owing for motor vehicle expenses
(ii) N120,000 has been prepaid for rent
(iii) Inventory at the close of business was valued at N1,500,000
(iv) Provision of N2,500,000 is to be made for audit fee
(v) Provision is to be made for unrecoverable debts at 1% of total receivables at
January 1
(vi) Depreciation is to be provided as follows:
Motor vehicle: 20% on cost
Furniture and fittings: 10% on cost
You are required to
Prepare the business opening trial balance, make the necessary adjustments by
journal and the final trial balance using extended trial balance.
(Total 121/2 Marks)
QUESTION 2
Lockdown Limited is involved in the manufacture of ‘Personal Protective Equipment
(PPE) used by health workers and its financial statement are as follows:
Statement of Financial Position
2019 2018
Non-current Assets GH₵’000 GH₵’000
Property plant & equipment 9,150 7,305
Total non-current assets 9,150 7,305
Current Assets
Inventories 1,310 1,445
Trade receivable 805 730
Cash and cash equivalent 490 405
2,605 2,580
Total Assets 11,755 9,885

Equity and Liabilities
Equity
Share capital 1,500 1,000
Share premium 250 100
Retained earnings 7,255 6,385
Revaluation surplus 370 600
9,375 8,085
Non-current Liabilities
Loan Notes 1,400 1,000
Current Liabilities
Trade payables 740 580
Bank overdraft 50 90
Current tax payable 190 130
980 800
Total equity and liabilities 11,755 9,885
Lockdown Limited Statement of Profit or Loss and Other Comprehensive Income for the
year ended 31 December 2019
GH₵’000
Revenue 21,500
Cost of sales (18,000)
Gross profit 3,500
Distribution costs (880)
Admin. Expenses (620)
Finance costs (210)

Profit before taxation 1,790
Income tax expense (230)
Profit for the year 1,560
Other comprehensive income:
Loss on property revaluation (230)
Total comprehensive income 1,330
Additional Information
(i) Property plant and equipment (PPE) with carrying amount of GH₵1,600,000
was sold for GH₵1,400,000. This asset had originally cost GH₵2,250,000.
(ii) Depreciation of property plant & equipment during the year amounted to
GH₵1,780,000.
(iii) Dividend paid during the year amounted to GH₵690,000 and are reported in
statement of changes in equity.
Required
Prepare statement of cash flows of Lockdown Limited for the year ended 31 December,
2019 using indirect method. (Total 121/2 Marks)
QUESTION 3
The information extracted from the books of Gold Cast Enterprise Limited as at 31
December, 2019 were:
N’000
Total Trade Payables Account Balance 219,465
Trade Payables Account Balance 240,595
Total Trade Receivables Account Balance 94,025
Trade Receivables Account Balance 81,480
Examination of the accounting records shows that:
(i) The Sales Day Book (SDB) had been overcast by N2,000 on one occasion and
N1,000 on another.
(ii) The Purchases Day Book (PDB) was under cast by N15,000 on one occasion
and overcast by N9,000 on another.
(iii) Discounts Allowed of N200 posted to the Sales Ledger was omitted from the
Cash Book (CB).
(iv) Discount received totaling N27,145 was posted to the Total Account as
N22,645.
(v) A balance of N1,760 was omitted from the list of Trade Receivables.
(vi) The credit side of Trade Receivable Account was overcast by N1,000.
(vii) Bad Debts of N2,440 had been written off in the Sales Ledger, but no entry
made in the General Ledger.
(viii) A balance of N9,405 was omitted from the list of Trade Payables.
(ix) An account of N3,465 in the Trade Payables Ledger set off against a contra
account in the Sales Ledger, but not recorded in the General Ledger.
(x) Discounts Allowed of N400 was entered in the Cash Book, but not posted to
the Customer’s Account.
(xi) An item of N1,860 in the Sales Day Book was posted as N780 in the
Customer’s Account
(xii) Pro-forma invoice on goods worth N32,500 posted in the Trade Payable
Ledger, but the goods has not be supplied.
You are required to
Show the adjustment necessary in the Total Trade Payables and Trade Receivables
balances in the General and subsidiary ledgers.
(Total 12½ Marks)
QUESTION 4
Write short notes on each of the following financial ratios, give TWO examples of each
and state the formula to calculate each example.
(a) Profitability Ratios (2½ Marks)

(b) Liquidity Ratios (2½ Marks)
(c) Leverage Ratios (2½ Marks)
(d) Activity Ratios (2½ Marks)
(e) Investibility Ratios (2½ Marks)
(Total 12½ Marks)
QUESTION 5
The following balances were extracted from the book of accounts of Jamie Limited for
the year ended 31 March, 2020 with comparative figures for 2019
31 March, 31 March,
2020 2019
GMD’000 GMD’000
Property, plant and equipment 23,750 23,594
Account receivables 1,870 1,769
Account payables 1,530 1,448
10% Loan notes 11,200 11,080
Ordinary shares of 0.50 each 13,200 13,200
Revenue 35,124 34,604
Material consumed 12,934 12,452
Wages 2,607 2,598
Depreciation for the year 1,115 1,114
Fuel consumed 1,290 1,242
Hire of equipment 141 138
Salaries 4,203 4,198
Auditors remuneration 820 580
Income tax expense 1,420 1,393
Dividend per share GMD0.08 GMD0.10

Required
a. State the stakeholders of the value -added statement (2 Marks)
b. Prepare the value-added statement of Jamie Limited for the year ended 31
March, 2020. (101/2 Marks)
(Total 121/ 2 Marks)
QUESTION 6
a. Explain the following types of construction contracts
i. Fixed sum contract
ii. Variable price contract (4 Marks)
b. Pandemic Limited was involved in a major construction projects during the year
ended 30 September 2019. The company enters into three separate
construction contracts each with a fixed contract price of N10million.
The following information relates to these contracts as at 30 September, 2019.
Contracts
X Y Z
N’000 N’000 N’000
Payment on account (including amount 5,400 4,750 4,000

receivable)
Cost incurred to date 5,000 5,500 3,200
Estimated cost to complete the contract 3,000 5,500 5,800
Estimated percentage of work completed 60% 50% 35%
Required
(i) Prepare extracts of statement of profit or loss for each contracts for the
year ended 30 September, 2019. (4½ Marks)
(ii) Prepare extract of statement of financial position for each contracts as at

30 September 2019. (4 Marks)
(Total 12½ Marks)
SECTION A: PART I MULTIPLE-CHOICE SOLUTION
I. E
2. B
3. A
4. D
5. C
6. D
7. D
8. A
9. B
10. C
11. A
12. D
13. C
14. C
15. E
16. D
17. B
18. A
19. C
20. E
21. B
22. D
23. C
24. D
25. B
26. C
27. A
28. B
29. D
30. C
Workings
Q4 and 5 Peter and Paul Partnership
Peter Paul Paulina Peter Paul Paulina
N’000 N’000 N’000 N’000 N’000 N’000
Goodwill 1,200 2,400 400 Bal 4,500 - -
Cash - - 1,200
Bal 6,300 2,100 800 3,000 4,500 -
7,500 4,500 1,200 7,500 4,500 1,200,
9. [1,051,000 + 100,000 – N733,000] = GH 418,000
10. [C/R = 600 = 2:1 A/T = 400 1.33:1]

300 300
23. Closing net asset = opening net assets +profit-drawings

Profit = 5,914,583+3,152,084-4,250,000 =₦4,816,667
EXAMINER’S COMMENTS
The questions set under this section of the paper cover the syllabus. All the candidates
attempted the questions and their performance was fair. Candidates’ major pitfall was
their poor understanding of some of the questions.
Candidates are advised to prepare well for the future Institute’s examinations.
SECTION A: SHORT ANSWER SOLUTIONS
1. Residual value, Scraps or salvage value
2. Accumulated fund
3. Partnership Deed or Partnership Agreement
4. ₦1,847,000 dr or Overdraft
5. ₦972,000 cr
6. LIFO
7. Inventories, receivables, payables
8. Receivables x 365
Credit Sales 1
9. Window dressing
10. Current Assets - Inventory

Current Liabilities
11. Equity
12. Profit or loss
13. Changes in equity
14. N9.6 million = (12m/20m x 16m) Rule in Garner v Murray.
15. Gambo’s deficit would be settled from the surplus of his private estate.
16. Rights issues
17. Intangible Assets

18. Dr. Short workings Allowable Account; Cr. Landlord Account
19. N259,523
20. i. Cost price

ii. Cost plus mark up
Workings
Questions 4 and 5
Balance as per cash book (610,000)
Items in bank statement not in cash book
Direct debit (715,000)
Investment income 353,000 (362,000)
Correct balance in the cash book (972,000)
Customer cheque already posted in cash book (875,000)
1,847,000
Amount to be in the bank statement (1,847,000)
Q. 19 N6,050,000 – (N600,000 + 5% of x) = x
N5,450,000 + 0.05 x = x
N 5, 450,000 = 1.05 x
X = N5,450,000
1.05
x = (Net profit after changing salary and commission)
= 5,190,476
Commission = N5,190,476 x 5%
= N259, 524
The questions set under this section of this paper cover substantially all parts of the
syllabus. All the candidates attempted the questions and their performance above
average.
Candidates’ major pitfall was their poor preparation for the examination. Candidates
are advised to prepare adequately for the future examinations.
SECTION B:
SOLUTION 1
OPENING TRIAL BAL ADJUSTMENTS FINAL TRIAL BALANCE
DR CR DR CR DR CR
Capital at Jan 1 12,500,000 12,500,000
Receivables 4,715,000 120,000 47,150 4,787,850
Cash in hand 241,400 241,400
Payables 3,442,400 250,000 5,192,400
1,500,000
Fixtures & fittings 4,220,000 4,220,000
Inventory at Jan 1 1,846,000 1,846,000
Turnover 49,100,000 49,100,000
Purchases 38,500,000 38,500,000
Motor vehicle at cost 4,500,000 4,500,000
Motor expenses 2,750,000 250,000 3,000,000
Rent 5,620,000 120,000 5,500,000
Drawings 2,650,000 2,650,000
Prov for depr – Mv 900,000 900,000
Acc. Depr – Mv 900,000 900,000

Prov for depr – F&F 422,000 422,000
Acc. Depr – F & F 422,000 422,000
Audit fee 2,500,000 1,500,000
Accrued audit fee 2,500,000 1,500,000
Prov for bad debts 47,150 47,150
Inventory Dec 31 1,500,000 1,500,000
65,042,400 65,042,400 5,739,150 5,739,150 69,614,400 69,614,400
The question tests candidates’ knowledge in the preparation of opening and extended
closing trial balance using journal entries.
About 95% of the candidates attempted the question and their performance was well
above average.
Candidates’’ major pitfall was their poor knowledge in the preparation of journals and
Extended trial balance.
Candidates are advised to prepare very well for the Institute’s future examination.
SOLUTION 2
Lockdown Limited
Statement of Cash flows for the year ended 31 December, 2019
Operating activities GH₵'000 GH₵'000
Profit Before Tax 1,790
Adjustment for non-cash item
Finance cost 210
Depreciation 1,780
Loss on disposal of PPE (1,400 - 1,600) __200 _2,190
Cashflow from operating activities 3,980
Movement of changes in working capital
Decrease in inventories 135
Increase in trade receivable (75)
Increase in trade payable 160 220
4,200
Finance cost paid (210)
Taxation Paid (130 + 230 - 190) _(170)
Net cash flow from operating activities 3,820
Investing activities
Purchase of PPE by cash (Wk 1) (5455)
Proceeds from deposit of PPE (wk2) 1,400
Net cash flow from investing activities (4,055)
Financing Activities
Issues of shares (wk 3) 650
Issues of loan notes 400
Dividend paid (690)
Net Cash flow from financing activities 360
Increase in cash and cash equivalents for the year 125
Cash and cash equivalents b/f 315
Cash and cash equivalents c/d 440
Analysis of cash and cash equivalents

2019 2018
GH₵'000 GH₵'000
Cash and cash equivalents 490 405
Bank overdraft (50) (90)
440 315
Working Notes
WK I Determination of Purchase of PPE by Cash GH₵'000 GH₵'000
Balance as per 2018 7,305
Depreciation for the year (1,780)
Disposal during the year (1,600)
Loss on revaluation (230) (3,610)
Expected Closing Balance 3,695
Actual Closing Balance 9,150
Addition during the year 5,455
Wk 2 Loss on sale of PPE
Cost 2,250
Less: Accumulated depreciation 650
Carrying amount 1,600
Less: Sales proceed 1,400
200
Wk 3 Share Capital
N’000 N’000
Additional share capital 1500 Share capital 1,000
Share premium 250 Share premium 100
Proceed of share capital 650
1,750 1,750
The question tests candidates’ ability to prepare cash flow statement from a
comparative financial position and current statement of profit or loss and other
comprehensive income statement.
About 70% of candidates attempted the question and their performance was below
average.
Candidates’ major pitfall was their poor understanding of the question’s requirements.
Candidates’ are advised to practice with the Institute past questions before sitting for
the future examination.
SOLUTION 3
Gold Cast Enterprises Limited
Total Trade Payables Account
N'000 N'000
Discount Received
Undercast 4,500 Balance b/f 219,465
Purchases Daybook
Set Off 3,465 Undercast 15,000
Purchases Daybook
Overcast 9,000
Balance c/d 217,500 ________
234,465 234,465
Balance b/d 217,500
Trade Payables Account
N'000 N'000
Pro-forma Invoice 32,500 Balance b/f 240,595
Balance c/d 217,500 Payable balance omitted __9,405
250,000 250,000
Balance b/d 217,500

Total Trade Receivables Account
N'000 N'000
Balance b/f 94,025 Sales Daybook Overcast 3,000
Discount allowed omitted 200
Bad debt written off 2,440
Set Off 3,465
______ Balance c/d 84,920
94,025 94,025
Balance b/d 84,920
Trade Receivables Account
N'000 N'000
Balance b/f 81,480 Discount allowed 400
Receivable balance omitted 1,760
Credit Sales Undercast 1,080
Credit side overcast _1,000 Balance c/d 84,920
85,320 85,320
Balance b/d 84,920
This question tests candidates’ knowledge on the preparation of both Trade Receivable
and payables in the General and subsidiary ledger with adjustments.
About 50% candidates attempted the question and their performance was fair.
Candidates’ major pitfall was their poor understanding of the questions requirement
and poor preparation for the examination.
Candidates are advised to prepare adequately well before writing future examinations.
SOLUTION 4
1. Profitability Ratio; These ratios provide an overall evaluation of the

performance of the company and its management. This is because the main
reason for the existence of the company is to generate returns on owner’s
investment. Hence, the main questions a shareholder is likely to ask are; is the
company making profit? Is the level of profit satisfactory in terms of resources
invested? Etc.
I). ROCE – Returns on Capital Employed
Net profit on Ordinary activities before interest & Tax x 100

Capital Employed
Where Capital Employed = Shareholders funds plus long term liabilities
II) Profit Margin;
Net Operating Profit before interest & Taxation x 100

Sales
III) Assets Turnover;
Sales
Capital Employed
IV) Return on Equity ratio
Net Income
Shareholders’ Equity
2). LIQUIDITY RATIO
These ratios measure a company’s ability to settle its short term indebtedness as
and when due. A company should strike a balance between having too much of
its assets tied down in highly liquid assets and not being able to meet its
obligations.
i) Current ratio;
Current Assets
Current Liabilities
The ideal ratio for any company is 2:1.

II)a. Quick or Acid Test ratio;
Liquid Assets (i.e. Current assets less inventory & prepayment)

Current Liabilities.
The ideal liquidity ratio is 1:1
II)b. Cash ratio;
Cash and Cash equivalents

Current Liabilities
III) Operating cash flow ratio;
Measures the number of times a company can pay off current liabilities with the cash
generated in a given period.
Operating Cash Flow

Current Liabilities
3) LEVERAGE RATIOS.
These ratios are used to measure the long-term solvency and stability of a company. It
measures the amount of capital that comes from debt. It is used to evaluate a
company’s debt Level.
I) Gearing; Fixed Interest loan + Preference share capital

Equity.
II) Debt to Equity ratio;
Total liabilities
Shareholders Equity.
III) Interest Coverage ratio; (show how easily a company can pay its interest
expenses)
a) Fixed Interest Coverage ratio;
Operating Income
Interest Expenses
b) Debt Service Coverage ratio;
Operating Income
Total Debt Service
IV) Proprietary ratio;
Shareholders Fund
Total Assets (Tangible).
4) Activity / Efficiency Ratio;
These ratios measures the efficiency with which the assets of a company are utilized
for the purposes of generating income and the ability of the management to keep
expenses within predetermined level.
I) Inventory Turnover;
Cost of Sales
Average Inventory
II) Receivables Turnover;
Credit sales
Receivables
III) Average Collection Period;
Trade Receivables x 12 months

Credit Sales.
IV) Payables Turn over
Credit Purchases
Payables
V) Payables payment Period;
Trade payables x 12 months

Credit Purchase.
VI) Non- Current Asset Turnover
Sales
Non-current Assets
VII) Total Assets Turnover;
Sales
Total assets
VIII) Expenses to sales %;
Individual Expenses x 100

Sales
5.) INVESTIBILITY RATIOS
These ratios measures a company’s investment potentials. It is also used to

measure a company’s growth.
I) Net book value per Ordinary share;
Net book value of ordinary shares

No of ordinary shares
II) Earnings per share;
Net profit after tax & preference shares Dividend but before extraordinary item
No of shares
III) Dividend per share;
Total Dividend
No of Ordinary shares
IV) Price /earnings ratio;
Market Price per ordinary shares

Earnings per share
V) Earnings Yield;
Earnings per share.

Market price per share.
VI) Dividend Yield;
Dividend per share x 100

Market price per share
VII) Payment Ratio;
Dividend per share.

Earnings per share.
This question tests candidates knowledge on the meaning of financial ratios terms and
at the same time give examples.
About 90% of the candidates attempted the question. The question tested candidate
knowledge and understanding of financial ratios and analysis. Most of the candidates
could not explain each of the financial ratios. However, the students did well with
relevant examples and formulas.
Candidates are advised to read relevant texts when preparing for future Institute
examination.
SOLUTION 5
a). Stakeholders of value added statement
I. Employees
II. Government
III. Shareholders
IV. Lenders
V. Directors
5b. Value Added Statement
Revenue 35,124
Less: Bought in materials (Note) 15,185
Value Added 19,939 100%
Applied as follows:
To pay Employees:
Salaries 4203
Wages 2067 6810 34.16
To remuneration:
Income tax 1420 7.12
To providers of capital:
Dividend 2112
Income loan 1120 3233 16.21
For growth & expansion:
Depreciation 1115
Retained profit 7362 8477 42.51
100
Note: Bought in materials
Materials consumed 12934
Fuel consumed 1290
Hire of equipment 141
Auditors remuneration 820
15,185
This question tests candidates knowledge of value –added statement. Part (a) of the
question tests ability to state the stakeholders of the value-added statement, while
part (b) of the question tests the preparation of value-added statement.
About 85% of the candidates attempted the question and their performance was below
average as they scored about 25% of the marks allocated. It shows that many of the
candidates do not have a full understanding of what it takes to construct a value
added statement which is the requirement of question 5b. The requirement of
question 5a is to state the stakeholders of value added statement, but the students end
up providing examples of stakeholders of financial statement in general and not
examples of value added statement in specific terms.
Candidates’ major pitfall was their poor understanding of the question’s requirements.
Candidates are advised to consult relevant texts when preparing for the examination
in order to be fully prepared for the examination.
SOLUTION 6
(a) Explanation of Type of construction contract:

(i) Fixed Sum Contract
Under this type of contract the contractor agreed to a fixed contract price
or sum, in some cases subject to cost escalation clauses. For fixed sum
contract to be used, the following conditions must be obtainable:
a. Total contract revenue must be reliably estimated.
b. Cost of completion can be reliably estimated.
c. Percentage of the contract performance completed at the reporting
date can be reliably estimated.
(ii) Variable Price Contract
This type of contract contains one or more clauses regarding:
a. Price variation that allows adjustment to the base price.
b. Work variation for an additional work order from the employer.
c. Prologation that takes care of additional costs resulting from
delays not caused by the contractor.
(b) PANDEMIC LIMITED
STATEMENT OF PROFIT OR LOSS (EXTRACT) FOR EACH CONTRACT
FOR THE YEAR ENDED 30 SEPTEMBER, 2019
X Y Z Total
Notes N’000 N’000 N’000 N’000
Revenue (w1) 6,000 5,000 3,500 14,500
Expenses (w2) (4,800) (5,500) (3,150) (13,450)
Expected loss (w2) -- (500) - (500)
Gross profit 1,200 (1,000) 350 550
Extract of Statement of Financial Position As At 30 Sept. 2019

X Y Z Total
Notes N’000 N’000 N’000 N’000
Gross amount due from (w3) 800 -- -- 800

contractor
Gross amount due to (w4) -- (250) (450) (700)

customers
Trade receivable (w5) -- -- -- --

Working Notes:
(w1) Revenue
X Y Z
N’000 N’000 N’000
Revenue (N10m x 60%) 6,000 -- --
Revenue (N10m x 50%) -- 5,000 --
Revenue (N10m x 35%) -- -- 3,500
6,000 5,000 3,500
(w2) Expenses
X Y Z
N’000 N’000 N’000
Expenses(60% x (5,000 + 3,000) 4,800 -- --
Expenses (all cost to date) -- 5,500 --
Expected loss (5,000 – 5,500) -- 500 --
Expected expense [9,000 x 35%] -- -- 3,150
4,800 6,000 3,150
(w3) Amount due to/from Customers

X Y Z
N’000 N’000 N’000
Contract cost incurred 5,000 5,500 3,200

Recongnised profit or loss 1,200 (1,000) 350
6,200 4,500 3,550
Less: Progress billing to date (5,400) (4,750) (4,000)
800 (250) (450)
This question tests candidates knowledge on contract account, part (a) of the question
tests their knowledge on contract terms, while the part (b) tests their ability to prepare
statement of profit or loss for the three (3) contracts and they were expected to prepare
the extract of the statement of financial position as at company’s year end.
About 85% of the candidates attempted the question and their performance was below
average.
Candidates’ major pitfalls were poor understanding of the area tested in the question
and poor preparation.
Candidates are advised to prepare adequately well before sitting for the future
Institute’s examination.
AT/211/PII.6 Examination No.....................

PUBLIC SECTOR ACCOUNTING

PLEASE READ THESE INSTRUCTIONS BEFORE COMMENCEMENT OF PAPER
the questions.
WEDNESDAY, 31 MARCH 2021

PUBLIC SECTOR ACCOUNTING

ATTEMPT ALL QUESTIONS IN THIS SECTION

1. Board of Enquiry can only be set up in the Public Sector when

I. There is a probability of fraud
II. Loss is substantial
III. Possible collution is suspected
IV. The officer is a professional
A. I, II and III
B. II, III and IV
C. III
D. III and IV
E. IV
2. In the public sector, ................... advance is purposely used in writing off loss of
public funds.
A. Touring
B. Non personal
C. Personal
D. Motor vehicle
E. Salary
3. IPSAS 31 states conditions for recognising an intangible asset whether

purchased or self created, EXCEPT
A. It is probable that future economic benefit attributable to the asset will

flow to the entity
B. Cost or fair value of assets can be reliably measured
C. Additional recognition criteria for internally general intangible asset
D. All research cost are charged to expense when incurred
E. Must be a movable asset
4. Which of the following is NOT a means by which the Minister of Finance
controls Government expenditure?
A. Issuance of Financial Authorities

B. Issuance of Financial regulations
C. Issuance of Financial circulators
D. Issuance of Financial budgetary guidelines
E. Issuance of operations guidelines for Insurance companies
5. Which of the following does NOT include the composition of Revenue in IPSAS
Accrual basis of Accounting?
A. Transfer receipt
B. Aid and Grants
C. Federal Government share of Federation Account Allocation Committee
(FAAC)
D. Independent Revenue
E. Research and Development
6. Proceeds of Pay as you earn of the Armed Forces, Foreign Service officers and
residents of the Federal Capital Territory are paid into ……………… account.
A. Contingency Fund Account
B. Federation Account
C. Consolidated Revenue Fund Account
D. Development Fund Account
E. Special Fund Account
7. A commodity that is non-rivaled and non-excludable in consumption is referred

to as ………………… goods.
A. Public
B. Private
C. Natural
D. Economic
E. Giffen
8. GPFS is an acronym for
A. General Purpose Finance Statements (GPFS)

B. General Principle Financial Statements (GPFS)
C. General Principal Financial Statements (GPFS)
D. General Purpose Financial Statements (GPFS)
E. General Principle Finance Statements (GPFS)
9. International Public Sector Accounting Standard (IPSAS) 2 relates to ..…….
A. Borrowing Costs
B. Accounting for Investments and Associates
C. Revenue from exchange transactions
D. Events after reporting date
E. Cash flow Statement
10 The responsibilities of the Sub-Accounting Officer include

I. Maintenance of the recognise Treasury Cashbooks
II. To charge into his accounts under proper heads and sub-heads, all
payments of cash and expenditure commitments immediately such are
effected
III. To check all cash, stamp, paper money and investment records in his care
for verification of the balances with cash register and other registers
IV. To recognise any excess cash discovered apart from the balance in the
cash register, as revenue
V. To approve all financial payment raised by Self-Accounting Unit
A. I, II, III, and V

B. I, III, IV and II
C. I, II, III, and IV
D. I, IV and III
E. I, II, and IV
11. Which of the following is NOT a feature of a valid online payment or

Receipt (e- payment and e-receipt) voucher?
A. Date of the voucher and voucher number or control number

B. Classification code (or chart of accounts), that is Head/Subhead
C. Description of payment, (that is job done or service rendered)
D. Name and address of payee and amount (in words and figures)
E. Signature of the paying imprest holder
12. Statement No.2 Assets and Liabilities, comprises of the following, EXCEPT
A. Consolidated Revenue Funds Balance
B. Pension Accounts with Central Bank Nigeria
C. Imprest
D. Advances
E. Police Reward Funds
13. Which of the following is NOT a function of the Fiscal Responsibility
Commission?
A. Monitoring and enforcing the promotion of economic objective

B. Disseminating standard practices of public expenditure, revenue
collection, debt control
C. Undertaking fiscal and financial studies, analysis and diagnosis
D. Apportioning and approving annual estimate for public institution
E. Compelling public officer to disclose information relating to public
revenue and expenditure
14. Section 88 of the Nigerian Constitution, 1999 confers power to investigate

misappropriation of funds on the
A. Auditor-General for the Federation

B. National Assembly
C. Accountant-General of the Federation
D. ICPC
E. EFCC
15. Which of the following is NOT a permissive source of income to the local
government?
A. Market taxes
B. Motor park levies
C. Donations
D. Cattle tax
E. Tenement rates
16. Which of the following is a duty of the Auditor-General for the Federation?
A. Appropriation Audit to ensure that funds are expended as appropriated

B. He submits to the Accounting Officer a detailed programme of audit
C. Maintenance of cash book
D. Promptly prepares such financial statements as required by law
E. Maintenance of statement of cash flows
17. Under the Pension Reform Act 2014 as amended for both Public and Private
Sector, Pension Schemes are now
I. Non contributory
II. Pensionable
III. Contributory
A. I
B. I & II
C. II
D. II & III
E. III
18. Which of the following officers serves as Secretary to the Funds Management
Committee of the Local Government?
A. The Chairman
B. The Council Treasurer
C. The Vice Chairman
D. Secretary to Local Government
E. Head of Personnel Management
19. The Officers heading the ordinary Board of Survey and Enquiry must be on
Grade Level.
A. 6 and above
B. 7 and above
C. 8 and above
D. 9 and above
E. 10 and above
20. Which of the following is NOT a department in Accountant-General’s Office?
A. Cash Supply
B. Federal Pay Office
C. Final Account
D. Ministry of Financial Incorporated (MOFI)
E. Culture
21. The body saddled with the responsibility of supervision, coordination and
regulation of Pension Scheme is called
A. National Pension Commission

B. Pension Asset Commission
C. National Fund Commission
D. Pension Fund Commission
E. Pension Fund Corporation
22. Which of the following Tender Board can approve contracts whose values
exceed N50,000,000?
A. Departmental Tenders Board

B. Parastatal Tenders Board
C. Ministerial Tenders Board
D. Police Tenders’ Board
E. Federal Executive Council (FEC)
23. According to the Armed Forces Act No. 125 of 1967, an Officer who have
completed 3 years during the war is counted as ………… years.
A. 3
B. 4
C. 5
D. 6
E. 7
24. Which of the following is NOT an Inventory Valuation Method?
A. First – In – First – Out

B. Simple Average
C. Last – In – First – Out
D. Weighted Average
E. Specific Identification
25. Auditor General for the federation cannot be removed, EXCEPT
A. On sanity
B. He has served for 20 years
C. He joins a political party
D. Ill-health
E. He attains the age of 50 years.
26. Which of the following officers is required to report on the strength of the
internal control system?
A. Vote controller
B. Auditor-General
C. Inspector of internal control system
D. Accountant-General
E. Internal control system office
27. Which of the following is related to the internal sources of information for the
purpose of publishing government accounts?
A. Accounts from High commission and Embassies overseas

B. Transcripts from ministries and Departments
C. Accounts from crown Agents (Nigeria high commissions)
D. Audited Accounts of Banks
E. Information generated from World Bank
28. Which of the following is NOT a factor that can cause changes in net assets of
an entity?
A. Surplus/deficit during the period

B. Disclosure of legal form of entity
C. Significant changes in accounting policies
D. Correction of prior year errors
E. Assets revaluation
29. Which of the following are types of computer audit?

I. Computer Annual Audit
II. Auditing Round the Computer
III. Auditing Round the Client Account
IV. Auditing through the office
A. I
B. I and III
C. I, III and IV
D. II
E. II and IV
30. What is the full meaning of IFAC?
A. International Federation of Accounting Committee

B. International Financial Accountants Committee
C. International Federation of Accountants
D. International Federation of Auditors
E. International Financial Assistance Committee
SECTION A: PART II SHORT-ANSWER QUESTIONS (20 Marks)
1. The Ministerial Tender Board threshold for contracts is between i................ and
ii..............
2. A documentary evidence of payment or receipt of money which is available for

future accounting and auditing purpose is called..................................
3. The foremost driver of a country's economy is the...........,........................
4. The Independent Corrupt Practices and other related offences Commission Act
2000 stipulates that the chairman of the commission is to hold office for five
years, while other members shall hold office for................. years.
5. State the FOUR information that are contained in the IPPIS payslip
6. List FOUR examples of Fees and Fines under Consolidated Revenue Funds.
7. The …………is an officer who is “accountable” for the receipts and payments of
the government financial activities in the Ministry, Extra-Ministerial,
Department and Agency (MDA).
8. …………………………………..is a document used by the Ministry of Finance

to authorise money for spending by government departments and agencies.
9. The Public Procurement Act of 2007 was an enactment of…………………
10. The organisation that is in charge of privatisation programme in Nigeria is……..
11. A fiscal and accounting entity in which resources are held, governed by special
regulations, separated from others and established for specific purposes in the
public sector is known as……….
12. The document with codified set of rules and regulations which provides detailed
guidance and instructions on the financial accounting and stores procedures to
be followed in the administration of financial affairs and material management
of each local government in Nigeria is called…….
13. In Public Sector Accounting, authority to write – off the arrears of revenue is
vested in the ……………………
14. The action of a public officer who does any arbitrary thing which prejudices the
right of others is called ……………….
15. The budget that takes into consideration different levels of output and
recognises fixed and variable cost is known as …………………..
16. A cessation of service after an officer has served for a minimum period of 10
years is called …………………
17. Acquisition of physical and permanent assets in the form of equipment, vehicle
and buildings is known as …………………
18. The appointment of the Auditor-General is subject to ………….. by the National

Assembly.
19. An audit that is carried out to determine whether or not a public sector
organisation is acquiring or managing its resources (money, men, and
materials) economically, efficiently and effectively is called ……………..
20. The use of deception to obtain an unjust or illegal financial advantage and /or
theft, whether or not accompanied by misstatement of accounting records or the
accounts is ………………….
SECTION B ATTEMPT ANY FOUR QUESTIONS (50 Marks)
QUESTION 1
Financial Regulation 2009 S.S 1001 defines Imprest as all cash advanced to
Government officers to meet up with urgent expenditure which is provided for in
current budget but which vouchers cannot be presented immediately to a sub
Accounting officer for payment.
Required
a. i. Briefly explain TWO types of Imprest (1 Marks)
ii. State FIVE checks and balances required for keeping an Imprest Account
in the Public Sector (5 Marks)
b. i. Define Departmental Vote Expenditure Allocation Book (D.V.E.A)

(1½ Marks)
ii. State FIVE functions of officer controlling expenditure (5 Marks)
(Total 12½ Marks)
QUESTION 2
a. You are among the Senior Accountant in your office who had attended the
training workshops on International Public Sector Accounting Standards
(IPSAS), organised by Office of the Accountant-General in your State.
You are required

Design a suitable template for the “Monthly IPSAS Accrual Basis Compliant Trial
Balance” for the Finance and Accounts Department for your Ministry or Extra-
Ministerial Department or Agency. (3½ Marks)
b. The following balances were extracted from the books of account in the Ministry
of Waterside, for the month of July 2020
Codes Descriptions N
0x94 Bonds and Sureties 2,507,000
0x85 Payable 56,500
0x76 Short Term Loans 25,900
0x67 Public Funds 150,000
0x58 Long Term Borrowing 120,000
0x49 Provision for Depreciation- Dams 4,000
0x81 Statutory Allocation 5,247,550
0x72 Grant-in-Aid 10,750
0x63 Debt Forgiveness 8,900
0x45 Tax Revenues 25,450
0x45 Non-Tax Revenues 40,750
0x36 Royalty on Gemstone 5, 750
0x27 Profit on Disposal of Assets 3,550
0x18 Investment Incomes 7,500
0x73 Non-Current Assets 2,950,000
0x64 Amory Stores (Ammunition & Other) 150,000
0x55 Printed Materials 75,000
0x46 Receivable-Personal Advances 120,000
0x37 Internal Accounts Transfer 950,000
0x82 Overhead Cost 550, 000
0x73 Personnel Cost 2,350,000
0x64 Social Benefit 280,000
0x55 Bad Debt Charge 48,750
0x46 Subsidy 724,300
0x37 Depreciation Charge 10,550
0x28 Utility General 5,000
Required
Prepare and present a suitable monthly return in accordance with the “IPSAS
Accrual Basis Compliant Trial Balance” for July 2020. (9 Marks)
NOTE: Ignore the Column for “Analysis of Economic Items Accounting to

Sources” (Total 121/2 Marks)
QUESTION 3
a. What are the provisions of the Financial Reporting Council of Nigeria Act 2011
on the appointment and tenure of office of the Chairman and members of the
Council? (7 Marks)
b. State other functions of the Bureau of Public Enterprises (BPE) apart from
commercialisation and privatisation functions. (3 Marks)
c. What are the Powers conferred on BPE by the enabling Act? (2½ Marks)
(Total 121/2 Marks)
QUESTION 4
a. i. State what the mnemonic PTAD stands for (1 Mark)
ii. What is the responsibility of PTAD? (1½ Marks)
b. What are the roles of PTAD? (10 Marks)

(Total 12½ Marks)
QUESTION 5
a. Explain the Concept of “Accounting Officer” in the Financial Rules and

Regulations. (2 Marks)
b. What are the main responsibilities or duties of an “Accounting Officer”?

(8 Marks)
c. List TEN examples of the concept of “Accounting Officer” (21/2 Marks)

(Total 121/2 Marks)
QUESTION 6
ONOARA Republic of FOREVERJOY has been preparing its financial statements using
cash basis. But in the year 2014, it took a bold decision to migrate to the International
Public Sector Accounting Standards (IPSAS). In compliance with the Technical Sub-
Committee, FAAC sets 1st January, 2015 for the commencement of IPSAS Accrual
Accounting.
The following information was derived from the Final Accounts Directorate in the
Office of the Accountant General as at 31st December, 2019.
(i) General Revenue Balance on 31st December, 2019 was N520,250.

(ii) Assets and Liabilities as at 31st December, 2019 include:
N
Cash and Cash Equivalents 357,950
Investment Property 8,081,000
Receivables 3,500,000
Investments 300,000
Short Term Loans & Debts 554,350
Property, Plant & Equipment 1,008,700
Accumulated Surpluses/ (Deficits) 11,840,350
Inventories 255,750
Reserves 1,108,700
You are required to
a. Prepare the Statement of Financial Position as at 31st December, 2020

using IPSAS Format. (8 Marks)
b. SATOSTB is a government entity that is IPSAS compliant. Revenues are
recognised when the outcome of a transaction involving the rendering of
services can be estimated reliably. From the information provided below;
The Entity sells products worth N225,000 to a customer on 1st January,

2020. The customer paid N15,000 on receipt of the product, while the
balance was paid in February, 2020.
You are required

To record the Accounting entries of the transactions. (4½ Marks)
(Total 12½ Marks)
SECTION A: PART I
MULTIPLE CHOICE SOLUTIONS
1. A
2. B
3. E
4. E
5. E
6. C
7. A
8. D
9. E
10. C
11. E
12. E
13. D
14. B
15. C
16. A
17. D
18. D
19. E
20. E
21. A
22. E
23. D
24. E
25. D
26. B
27. B
28. B
29. D
30. C
This consists of 30 Compulsory Questions that covers the entire parts of the syllabus.
All candidates attempted this section and performance was high as more than 80%
scoring above 50% of total marks obtainable.
SECTION A: PART II SHORT ANSWER SOLUTIONS
1. N 500,000 – N 5,000,000
2. Voucher
3. Public Sector – (bonus mark)
4. 4 years
5. The FOUR (4) information in the content of an IPPIS payslip are:
i. Earning:
a. Salary
b. Acting Allowance
c. Salary Arrears
d. Overtime Allowance
ii. Statutory Deductions:
a. Tax Due (PAYE)

b. NHIS (National Health Insurance Scheme)
c. NHF (National Housing Funds)
d. Contribution Pension Scheme and Pension PIN
iii. Non-Statutory Deductions:

a. Union Due
b. Cooperative, Thrift and Loan Due
c. Rent Allowances
d. Furniture Loan (Advance)
iv. Net Pay
v. Employee Information:
a. Name
b. Rank (Position)
c. Grade Level
d. IPPIS Number
e. Mobile Number and
f. ID Card (Service) No.
vi. Month and Year concerned

vii. Bank Information:
a. Account Number and
b. Bank Branch
viii. Name of the Entity or Organization
6. The FOUR (4) examples of Fees and Fines under Consolidated Revenue Funds
are: i. Business Name and Company Registration Fees
ii. Court Fees and Fines
iii. Postage, Telegraphs and Telephone Fees
iv. Passport and Visa Fees
v Trade Marks and Patent
vi. Citizenship, Naturalization and Aliens Fees
7. Accounting Officer or Permanent Secretary or Director- General or Comptroller-

General or Inspector-General or Post-Master-General or Any equivalent
8. Warrant
9. The National Assembly
10. Bureau of Public Enterprises
11. A Fund
12. Financial Memoranda
13. Minister of Finance
14. Abuse of Power
15. Flexible Budget
16. Retirement
17. Capital Expenditure
18. Ratification
19. Value-for-money Audit
20. Fraud
This consists of 20 short answer questions that covers the entire parts of the syllabus.
All the candidates attempted this section. The performance was fair as about 60% of
them scoring above 50% of total marks allocated.
SOLUTION 1
A. i.) Two types of Imprest
a. Standing Imprest: This is a general imprest which is in use from

the beginning of a fiscal year to the end to the end of that year. It
is reimbursed as and when required. All standing imprest
balances should be retired on or before 31st December of the year.
b. Special Imprest: This is an imprest that is generated for special

purpose when the need arises. Special imprest must be terminated
and all balances retired immediately the purpose for which it is
set up is achieved.
A. ii.) Checks and balances for keeping an Imprest Account
a. The imprest officer should be an officer from grade level 04 and

above.
b. The officer should be an officer of proven integrity.
c. Imprest money should not be used for any other purpose.
d. The officer keeping imprest cashbook should balance the book
regularly.
e. The imprest cashbook should be checked regularly for any
anomaly or sharp practices by the Sub Accounting officer.
f. Any balance of imprest must be retired at the end of the Fiscal
year.
g. Any imprest from N50,000 and above should be banked by the
imprest holder in an account to be opened in his official status.
h. There should be no lending to employees from the imprest money.
i. Payment vouchers should be raised for all disbursement from the
imprest money.
j. All expenditure from the imprest should be properly authorised.
B. i.) Departmental Vote Expenditure Allocation Book (D.V.E A)
It is simply referred to as vote book. It is a record kept by all officers

entrusted with the responsibility of having total and express control of
the expenditure vote in his ministry or Department. Vote book records all
expenditure including Liabilities incurred as regards vote allocated to a
particular ministry or Department. It is controlled by an Accounting
Officer.
B. ii.) Functions of Officer Controlling Expenditure.
a. To ensure that the vote book is properly maintained by entering

all Payments accurately.
b. To forward on monthly basis returns to the vote issuing ministry or
Department.
c. To make investigations, reports and take any other action as he
deems fit where he discovers any irregularities in a payment
voucher.
d. To ensure that all expenditures are justified.
e. He must ensure that votes are always available throughout the
Fiscal year by spreading them evenly.
f. He must ensure that the votes are applied for the purpose for
which they are provided.
g. To demand additional provision of votes where he feels that
incurred liabilities will be more than the votes obtained.
The question tested the candidates understanding of Imprest Account. It also tested
their knowledge of Vote Book and on functions of the Officer Controlling Expenditure.
About 85% of the candidates attempted this question. The performance was fair as
about 55% scoring above 50% of the mark obtainable. The major pitfall is the inability
of some candidates to identify the types of Imprest and the DVEA Book.
SOLUTION 2
a. A suitable template is as follows:

Ministry of Waterside
Monthly IPSAS Accrual Basis Compliant Trial Balance *
For the Month ended 31st July, 2020
Economic Descriptions * Debit Credit * Analysis of Economic Items According to

Codes * *(N) (N) Sources *
Budget Service Capital Aid &
Wide Supplementation Grants
Vote
0201 0202 0203 0204
01 Revenues * xx Xx
02 Expenditures * xx Xx
03 Assets * xx Xx
04 Liabilities * xx Xx
Total * xx xx
Names Position Signature

1. Prepared by *
2. Checked by *
3. Approved by *
b. Ministry of Waterside,
Monthly IPSAS Accrual Basis Compliant Trial Balance *
For the month of July 31st, 2019
Code Descriptions * Debits * Credit *

*
01 Revenues:
0x81 Statutory Allocation 5,247,550 *
0x72. Grant-in-Aid 10,750 *
0x63. Debt Forgiveness 8,900 *
0x54 Tax Revenues 25,450 *
0x45 Non-Tax Revenues 40,750 *
0x36 Royalty on Gemstone 5,750 *
0x27 Profit on Disposal of Assets 3,550 *
0x18 Investment Incomes 7,500 *
02 Expenditures:
0x82 Overhead Cost 550, 000 *
0x73 Personnel Cost 2,350,000 *
0x64 Social Benefit 280,000 *
0x55 Bad Debt Charge 48,750 *
0x46. Subsidy 724,300 *
0x37 Depreciation Charge 10,550 *
0x28. Utility General 5,000 *
03 Assets
0x73 Non-Current Assets 2,950,000 *
0x64 Amory Stores (Ammunition & Other) 150,000 *
0x55 Printed Materials 75,000 *
0x46 Receivable-Personal Advances 120,000 *
0x37. Internal Accounts Transfer 950,000 *
04. Liabilities
0x94 Bonds and Sureties 2,507,000 *
0x85 Payables 56,500 *
0x76 Short Term Loans 25,900 *
0x67 Public Funds 150,000 *
0x58. Long Term Borrowing 120,000 *
0x49 Provision for Depreciation- Dams -- 4,000 *
Total as at 31st July, 2019 8,213,600 * 8,213,600 *
Names Position Signature

1. Prepared by *
2. Checked by *
3. Approved by *
This question is divided into two parts, “a” and “b”. The ‘a’ part tested the candidates
understanding of template for the “Monthly IPSAS Accrual Basis Compliant Trial
Balance”. While the “b” part required candidates to prepare a suitable monthly return
in accordance with the “IPSAS Accrual Basis Compliant Trial Balance” from the
information provided. The question was attempted by about 90% of the candidates and
the performance was above average as over 60% of them scored above 50% of total
marks obtainable.
SOLUTION 3
3a. Provisions of the Financial Reporting Council of Nigeria Act 2011 on the
appointment and tenure of the Chairman and members of the Council.
Appointment of the Chairman and members of the Financial Reporting Council

of Nigeria Act
1. The Chairman shall be appointed by the President, on the
recommendation of the Minister
2. The members shall be recommended by their various professionals or
statutory bodies to the Minister
3. Minister recommends members for appointment by the President.
4. In appointing the Chairman and the Executive Secretary, due cognizance
shall be taken to ensure fair representation of accounting bodies
established by Acts of National Assembly.
5. They may be appointed on such terms and conditions as may be
specified in their letters of Appointment
Tenure of Office
- The Chairman and other members of the Board shall each hold office for
a term of 4 years in the first instance and
- They may be reappointed for a further term of 4 years and no more.
3b Other functions of the Bureau of Public Enterprises Bureau apart from

commercialization and privatization functions
The Bureau shall-
1. provide secretarial support to the Council; and
2. Carry out such other duties and responsibilities as may be assigned to it
from time to time by the Council.
3c Powers of the Bureau of Public Enterprises (Bureau)

The Bureau shall, subject to the overall supervision of the Council, have power
to-
1. Acquire, hold and manage movable and immovable property;
2. Enter into contracts or partnerships with any company, firm or person
which in its opinion will facilitate the discharge of its functions;
3. Request for and obtain from any public enterprise statistical and other
information including reports, memoranda and audited accounts and
other information relevant to its functions under this Act; and
4. Liaise with relevant bodies or institutions locally or overseas for effective
performance of its functions under this Act.
The question tested candidates’ knowledge on the provisions, appointment, functions

and powers of the Financial Reporting Council of Nigeria and the Bureau of Public
Enterprises (BPE). This question was not well attempted, about 40% of the candidates
attempted the question and less than 30% scoring above 40% of marks allocated. The
major pitfall was the inability of the candidate to understand the appointment to FRCN
council and other functions and the power of the BPE.
SOLUTION 4
a. (i) PTAD stands for Pension Transitional Arrangement Directorate.
(ii) - PTAD is responsible for the Pension administration of the Defined

Benefit Scheme (DBS)
OR
- (Alternatively) – PTAD is responsible for payment to existing retirees
of the Federal Government that retired up to June, 2007 and thus
exempted from the Contribution Pensions Scheme.
b. The Roles of Pension Transitional Arrangement Directorate (PTAD) is to address

the numerous pensioners’ complaints that bother on issues such as:
(i) Non – payment of monthly pension
(ii) Removal of name on Pension Payment Voucher
(iii) Non – payment of harmonized pension arrears
(iv) Irregular payment of federal pension
(v) Non – receipt of pension after retirement
(vi) Short payment of Pension and Gratuity
The question required candidates to state the mnemonic, responsibility and roles of
PTAD. Many candidates did not attempt the question. Only about 20% of the
candidates attempted with less than 5% of them scoring above 40% of marks allocated.
SOLUTION 5
5 a. CONCEPT OF ACCOUNTING OFFICER

In line with the Financial Regulation (FR 111), the term “Accounting
Officer” means the *Permanent Secretary of a Ministry or the Head of
extra-ministerial office and other arms of government who is in full
control of, and is *responsible for human, material and *financial
resources which are critical inputs in the management of an
organization.
5 b. FUNCTIONS OF AN ACCOUNTING OFFICER
i. To establish and manage an effective, efficiently run and result-

oriented Internal Control Department in his Ministry.
ii. To ensure that proper books of accounts and system as specified
by the Minister of Finance are kept.
iii. To ensure that all revenue accruable to his Ministry are collected
and accounted for as and when due.
iv. To ensure that there is provision for effective security system over
all government funds.
v. To install adequate preventive measures against frauds and
misappropriation of funds.
vi. To ensure that only trustworthy, dedicated and reputable officers
are entrusted with government funds.
vii. To ensure that all payments are backed up with proper authority
and that only services and goods provided are paid for.
viii. To make available all the cash, stamps, bank statements etc in his
custody when such is requested for by the Accountant-General of,
or Auditor-General for the Federation.
ix. To ensure that financial statements statutorily required are
prepared without delay.
x. Ensuring personal appearance before the Public Accounts
Committee to answer audit queries to ministry/extra-ministerial
department or agency.
5 c. EXAMPLES OF THE CONCEPT OF “ACCOUNTING OFFICER”
Accounting Officer or Equivalent Applicable Organizations

Post
i. Permanent Secretary Ministries
ii Director- General Commissions or Corporations or
Agencies/Parastatals
iii Chief Executive Officer Commissions or Corporations or
Agencies/Parastatals
iv Commandant- General Para-Military- NSCDC
v Comptroller-General Correctional Services, Custom
Service, etc
vi Inspector-General Police
vii Post-Master-General Post Office
viii Clerk of the National Assembly National Assembly
ix Registrar Judiciary
x Accountant-General Finance or OAGF
xi Corps Marshal Federal Road Safety Corps
xii Executive Secretary Financial Reporting Council of
Nigeria (FRCN)
xiii Vice Chancellor Universities
xiv Local Government Chairman Local Government
The question required candidates to explain concepts, responsibilities and examples of

“Accounting Officer” in the Financial Rules and Regulations. About 85% of the
candidates attempted this question and about 60% of them scoring 50% of total marks
obtainable.
SOLUTION TO QUESTION 6
ONOARA
6a. Statement of Financial Position as at 31st December, 2016
=N= =N=
ASSETS
Current Assets:
Cash and Cash Equivalents 357,950 *
Receivables 3,500,000 *
Inventories 255,750 * 4,113,700 *
Non – Current Assets:
Investments 300,000 *
Property, Plant & Equipment 1,008,700 *
Investment Property 8,081,000 * 9,389,700 *

Total Assets 13,503,400 *
LIABILITIES
Current Liabilities:
Short Term Loans 554,350 *
Non- Current Liabilities: Nil * (554,350) *

Net Assets 12,949,050 *
NET-ASSETS/EQUITY
Reserves 1,108,700 *
Accumulated Surpluses 11,840,350 *

Total Net Assets/Equity: 12,949,050 *
6b. Accounting Entries - SATOSTB
S/N DETAILS DR CR REMARK

(=N=) (=N=)
1 Cash / Bank 15,000 * To recognize cash
receipts from the
customer *
Non-Taxable Revenue-Sales 15,000 *
2 Accounts Receivable 210,000 * Accrue for portion of
credit sales *
Non-Taxable 210,000 *
Revenue-Sales
3 Cash / Book 210,000 * On receipt of the
balance from the
customer *
Accounts Receivable 210,000 *
The question tested the candidates understanding of the Preparation of the Statement
of Financial Position using IPSAS format from the available information provided.
About 90% of the candidates attempted this question and more than 55% scoring 50%
of total marks obtainable.
AT/211/PII.7 Examination No............................

QUANTITATIVE ANALYSIS
the questions.
WEDNESDAY, 31 MARCH, 2021


QUANTITATIVE ANALYSIS
1. Mr. Banke got his data from books, newspapers, magazines, journals, online
portals e.t.c. for a research. He collected …………………… data.
A. Simple
B. Primary
C. Secondary
D. Qualitative
E. Quantitative
2. A sampling method based on a chance mechanism with unknown choice of

selection is called …………………… sampling.
A. Stratified random
B. Cluster
C. Random
D. Two-Stage
E. Multi-Stage
3. The table below shows the personnel in each department of an Accounting firm
Department Number of Pie Chart sectoral

Personnel angles
Audit 36 1080
Taxation X Y
Public sector 25 750
Human resources 29 870
Find the values of X and Y

A. 900and 30
B. 320 and 90
C. 32 and 900
D. 300 and 90
E. 30 and 900
4. The following are the data generated from the income of three casual workers
(in N’000): 5, 25 and 125. Compute the geometric mean
A. N 5,000
B. N 25,000
C. N 125,000
D. N 625,000
E. N 650,000
5. A population consists of five observations: 1,3,5,7 and 9. Compute its Coefficient

of Variation.
A. 0.556
B. 0.566%
C 55.6%
D. 56.6%
E. 57.6%
6. The following data consists of the percentage scores obtained by eight
candidates in a job interview: 70, 60, 50, 55, 48, 80, 65 and 40. What is the
quartile range of the score?
A. 12
B. 17
C. 20
D. 22
E. 40
7. The table below shows the income and expenditure (in ₦'000) of an Auditor for
five months. Find the regression coefficient of x on y given that the regression
model of y on x is y = a + bx ,
åxy = 336, åx 2
= 264, åy 2
= 445, åx = 32andåy = 45
Income x 2 4 6 8 12
Expenditure 5 7 9 11 13
y
A. 1200.0
B. 810.8
C. 1.2000
D. 0.8108
E. 0.1200
8. A cab operator works on Friday, Saturday and Sunday of every week. His net
returns for two consecutive weeks are tabulated below:
Net Returns (N ‘000)

Week Friday Saturday Sunday
1 12 14 16
2 15 20 13
The moving average for Saturday of week 2 is
A. 13
B. 14
C. 15
D. 16
E 17
9. The unit prices of 4 household items A, B, C and D from a retail store for two
consecutive years are given in the table below:
Prices of commodities per unit (N)

Year A B C D
2018 40 30 35 45
2019 30 25 30 35
The simple aggregate price index, using year 2018 as base year, is
A. 80%
B. 100%
C. 120%
D. 125%
E 150%
10. The probability rule of multiplication can best be represented by which of the
following?
A ( )
P ( A and B) = P ( A) ´ P B
A
B ( )
P( A and B) = P A ´ P B ( )
C P( A or B) = P( A) + P(B) - P( A and B)
D P( A or B) = P( A) + P(B)
E ( A)
P ( A and B) = P( A) + P( B ) - P B
11. Tickets numbered 1 to 20 are mixed and then a ticket is drawn at random. What
is the probability that the ticket drawn has a number which is a multiple of 3
or 5.
A.
B.
C.
D.
E.
12. The classification table below, which is extracted from the records of Centre for
Disease Control, shows the statuses of those that contracted a deadly virus
infection and their age categories for a particular area:
Age category
Status Young Adult Aged
Those that survive 14 16 4
Those that died 2 4 10
What is the probability that an individual selected from this area will survive
the infection given that he/she is an adult?
A. 0.32
B. 0.40
C. 0.50
D. 0.68
E 0.80
13. The value of 푥 in this inequality 4푥 − 3 ≥ 2푥 + 3 is
A. 푥≤ 3
B. 푥< 3
C. 푥> 3
D. 푥≥ 3
E. 푥= 3
14. The point at which total revenue equals total cost is known as
A. T o t a l lo s s
B. Break-even point
C. Marginal volume
D. M a rg i na l co s t
E. Total profit
15. The supply function of a given commodity is defined by y = x 2 . The

producers’ surplus when y0 = 36, is
A. 144
B. 162
C. 180
D. 216
E 432
16. The sum of GH₵300,000 is invested in a business for 2 12 years at the rate of 20%
compounded semi-annually. What is the accrued amount of the investment?
A. GH₵150,000
B. GH₵450,000
C. GH₵473,232
D. GH₵483,153
E. GH₵500,000
17. An advertisement for the post of Secretary in YATCO plc., states that the post
attracts an initial salary of N600,000 per annum with an annual increment of
N2,000. In what year will he earn N614,000?
A. 12th year
B. 10th year
C. 8th year
D. 6th year
E. 5th year
18. The Average Cost function of a commodity is given by AC = 2Q + 5 . The Marginal

Cost ( MC ) when Q = 10 is
A. 250
B. 205
C. 55
D. 45
E. 25
19. ……………………… resources is needed for competitive activities (in an

optimum way) in scientific Operation Research.
A. Manpower
B. Physical
C. Raw material
D. Scarce
E. Unlimited
20. In degenerate solution, the value of objective function
A increases infinitely
B is usually minimised
C decreases infinitely
D decreases exponentially
E is usually maximised
21. The objective function of a linear programming problem is given as Max:

Z = 3x + 4 y , where Z is contribution in GH Ë , x and y are units of raw materials
in hundreds. If the corner point solutions are X( 8, 0 ), Y( 0, 12 ), and Z ( 6, 8 ),
find maximum contribution.
A. GH Ë 2400
B. GH Ë 3200
C. GH Ë 4800
D. GH Ë 5000
E. GH Ë 5800
22. The demand for an item is 60,000 units per annum. The cost of an order is N25
and holding cost per unit of an item is N2.00 per annum. The number of orders
per year is
A. 1225
B. 1200
C. 102.5
D. 49
E. 46
23. The time period between placing an order and its receipt in stock is known as
……………………… time.
A. Lead
B. Carrying
C. Shortage
D. Over
E. Holding
24. The following are the rules for drawing network diagram, EXCEPT that
A. Dummy can be used for correct dangling

B. Events or nodes must be progressively numbered
C. Network proceeds from left to right
D. Occasionally, avoid arrow that crosses another activity
E. Activities that start from the same source and end at the same
destination should be avoided
25. In a network diagram, the critical activities have
A. Free float
B. Dependent float and free float
C. Independent float
D. Total float
E. No float
26. Which of the following is a policy in the sudden failure category?
A. The group and individual replacements policy

B. Gradual replacement policy
C. Immediate replacement policy
D. B and C
E. A and C
27. Which of the following must be achieved in the optimal solution of an

assignment problem in the total opportunity cost table?
A. Draw lines horizontally or vertically through the total opportunity cost in

such a manner as to minimise the number of lines necessary to cover all
zero cells.
B. Draw lines minimally to cover all zero cells in the total opportunity cost
table in such a manner that number of lines drawn is equal to the
number of rows or columns.
C. Draw lines horizontally or vertically through the total opportunity cost in
such a manner as to minimise the number of lines necessary to cover all
non-zero cells.
D. Draw lines horizontally or vertically through the total opportunity cost in
such a manner as to maximise the number of lines necessary to cover all
zero cells.
E. Draw lines horizontally or vertically through the total opportunity cost in
such a manner as to maximise the number of lines necessary to cover all
non-zero cells.
28. All the following are true about Simulation, EXCEPT that
A. Simulation is not a trial and error approach

B Simulation is an act of designing a model
C. Simulation experiments make use of model not the system itself
D. The result from simulation is an approximate solution
E. Simulation is an imitation of the reality.
29. Consider the problem with two factories in the table below:
Warehouse(W1) Warehouse(W2) Warehouse(W3) Supply
Factory A C11 C12 C13 10
Factory B C21 C22 C23 20
Demand 13 7 10
Use the North-West Corner Method to find the sum of the allocations AW2 and
BW3.
A. 14 units
B. 10 units
C. 8 units
D. 7 units
E. 5 units
30. The unit transportation cost (N’00), the quantities demanded and quantities
supplied of an item from the 3 different sources to 3 different destinations are
given in the table below:
Destination
Source P Q R Supply
A 9 8 7 1500
B 7 6 5 x
C 8 4 3 950
Demand y 1100 800 3250
What is the value of x + y ?

A. 800
B. 950
C. 1,350
D. 2,150
E 3,250
SECTION A: PART II SHORT -ANSWER QUESTIONS (20 MARKS)
1. A number is chosen at random from the first twenty-five natural numbers. What
is the probability that such number is a multiple of 5?
2. Use the table below to determine the second value of moving average of order 4
Month (x) 1 2 3 4 5 6 7 8 9 10 11 12
Sales (y) 14 24 42 19 29 38 43 58 48 43 64 78
3. How long will it take a sum of money to double itself at an interest rate of 19%
compounded quarterly?
4. The earliest event time and the latest event time are found from the ………… of
activities.
5. One of the reasons for the study of Replacement Analysis is to know when and
how best an equipment can be replaced in order to ............... the total costs of
................... them.
6. The marks obtained by the students in an Accounting examination are 12, 11,
10, 7, 8, and 16. If the mean is estimated to be 10, then the coefficient of
variation is …………………
7. The following data:

åxy =14560, åx 2
=13160, åy 2
=16418, åx = 350, åy = 316
are obtained from the production costs (x) and returns (y) of a manufacturing
company for the period 2004 to 2011. Compute the coefficient of determination,
leaving your answer in 3 places of decimal.
8. A man’s salary in 1960 was N500 per annum and it increased by 20% each year.
Find how much he earned in the years 1960 to 1964 inclusive.
9. The total monthly revenue of Layink enterprise (in Naira) is given by the
equation, 푅 = 300,000 0.5 . where 푥(푁 ′ 000) is the amount spent on
overheads. What is the total revenue, if N7,000 is spent on overheads?
10. The amount by which the objective function decreases (or increases) as a result
of the availability of one unit less or more of the scarce resource is known
as…………………………
11. Given that the annual demand is 70,000 units, the re-order quantity is 3,000
units, ordering cost is L$30 per order and holding cost per item is L$3 per
annum, then total cost per annum is …………………………
12. The aggregate index number of a group of commodities can either be

………………… or……………………
13. If the following demands: 100, 150, 200, 250, 300, 350 have the corresponding
probabilities: 0.05, 0.15, 0.20, 0.10, 0.20, 0.3, use the following random
numbers: 43, 76, 23, 63, 08 to find the demand forecast for random number 63
using Monte Carlo’s simulation method..
14. In the use of Hungarian method, an optimal assignment is reached when the
number of …………………….. is equal to number of ………………………
15. The solution to a transportation problem with m rows (supplies) and n columns
(destination) is feasible if the number of positive allocations is
……………………………
16. The probability of rejecting the null hypothesis when it is true is known as
……………………
17. The sampling technique which involves dividing the population into two or
more stages in which some groups are randomly selected is
called............................. sampling.
18. Linear programming, transportation and assignment problems are some

examples of ………………………… models.
19. The three types of MEAN are Arithmetic mean, ........................ and ................
mean.
20. The absolute measure of the return on a project is known as ………………..

while the relative measure relating to the size and timing of the cash flows to
the initial investment is known as …………………………
SECTION B: ATTEMPT ANY FOUR QUESTIONS IN THIS SECTION (50 MARKS)
QUESTION 1
a. The daily withdrawals (N’000) from the Automated Teller Machine (ATM) of a
small community microfinance bank by 5 customers are given as follows: 12, 7,
9, 7, and 10. By using the data given, calculate the
i. Arithmetic mean of the daily withdrawals (1 1

2
Marks)
ii. Geometric mean of the daily withdrawals (2 Marks)
iii. Harmonic mean of the daily withdrawals (2 Marks)
b. The volume of petrol (in ten thousands of litres) sold by 50 selected filling
stations during a fuel scarcity, in a particular local government area, is
tabulated as follows:
Number of
Volume filling stations
0.6 – 1.5 10
1.6 – 2.5 8
2.6 – 3.5 12
3.6 – 4.5 7
4.6 – 5.5 6
5.6 – 6.5 4
6.6 – 7.5 3
Calculate the:
i. Modal quantity of fuel (2 1
2
Marks) ii. Median quantity of fuel

(2 12 Marks) iii. 7th decile quantity of fuel
(2 1
2 Marks)
(Total 12 12 Marks)
QUESTION 2
The following table shows the book value (Y) and the age (X) of equipment.
Age (in years) Book Value (₦’000)

1 40
2 38
3 25
4 20
5 12
6 5
a. Derive a regression equation to explain the relationship between

the age of the equipment and the book value. (8 Marks)
b. Compute the Pearson’s correlation coefficient between X and Y. (2 Marks)
c. Compute the standard error of the estimate. (2 1

2
Marks)
(Total 12 12 Marks)
QUESTION 3
a. An amount of GMD35,000 is invested at 14% for 17 years.
i. Calculate the Simple and Compound Interests. (5 Marks)

ii. How much will it amount to at the end of 17 years based on
the simple interest calculated in a(i) above? (2 Marks)
b. For an essay writing competition, a total of four students that competed received a
cash prize. The first prize was GMD2,000. Each prize is GMD500 less than the first
prize.
i. What was the total sum of cash given out to students for the essay writing
competition? (2 12 Marks)
ii. Find the number of terms in the geometric progression 6, 12, 24, ..., 1536
(3 Marks)
(Total 12 12 Marks)
QUESTION 4
A company runs a production line that contains 250 identical components. They fail on
a regular basis according to the following table
Life span (months) Observed

frequency
1 6
2 14
3 20
4 30
5 15
6 10
7 5
a. Determine the probabilities distribution of the life span (3 1

2
Marks)
b. Determine the expected life span (5 1
2
Marks)
c. Calculate the average number of components replaced in the period?(3 12
Marks)
(Total 12 12 Marks)
QUESTION 5
A local contractor has been awarded to construct a state-of-the-art bus terminal in the
state’s secretariat. The contractor divided the stages of the project into 12 activities.
The table below gives the activity, preceding activity and estimated activity duration:
Preceding Activity duration

Activity Activity (weeks)
K – 4
L – 8
M K 5
N K 9
O K 3
P M 7
Q M 5
R M 3
S L,N 5
T P,S 3
U Q,T 5
V O,R 4
a. Construct the Activity – On – Arrow network diagram for the project. (6 Marks)
b. Determine all possible paths and their durations (3 12
Marks)
c. Identify the critical path and its duration (2 Marks)
d. State the shortest completion time for the project (1Mark)
(Total 12 12 Marks)
QUESTION 6
a. The AJAX production company produces four varieties of chocolate: C1, C2, C3
and C4. For quality assurance purposes, the customers were asked, through
copies of questionnaire, to indicate their choices. The pieces of information
about daily consumptions of the chocolate based on the customers’ responses
are given as follows:
Chocolate C1 C2 C3 C4
Number of customers’ response 14 9 15 12
You are required to
i. Use the above information to simulate the next 10 results using the
following random numbers: 15, 20, 87, 09, 34, 56, 60, 07, 75 and 40.
(4 12 Marks)
ii. Based on your answer in (i) above, advise the producer on how the
variety of chocolate that has the least consumption can be improved
upon. (2 Marks)
b. The information about the number of cars arriving for parking (per hour) and
their associated probabilities, in a particular garage, is given as follows:
Arriving time (hour) 4 5 6 7 8

Probability 0.1 0.15 0.25 0.30 0.20
You are required to
i. Simulate the next 10 results using the following random numbers: 52,
37, 82, 69, 98, 96, 33, 50, 27 and 50. (5 Marks)
ii. Estimate the average number of cars arriving at the park per hour on the
basis of the simulated frequency. (1 Mark)
(Total 12½ Marks)
FORMULAE
å (x - x )
2
Sample variance, s = 2
n -1
Economic Order Quantity
2 cd
Q=
n
x-m
Zcal =
s
n
Slope of a regression equation
nå xy - å xå y
b=
nå x 2 - (å x )
2
æ p öæ dq ö
Elasticity of demand, e = çç - ÷÷çç ÷÷
è q øè dp ø
The 95% confidence interval for m
s
= x ± t a ,n-1
n
The trend equation, y = a + bt, where t = xi - xm
b=
å ty × a = y - bxm , xm = median of x values
åt 2
æ Pn ö
å çç P ´100 ÷÷
SARPI = è o ø
N
SAPI = åP ni
´ 100
åP oi
p
t =
pq
n
EOQ with stock-out
2cd h + cs
Q= ´
h cs
LPI =
åpq 1 o
´ 100
åp q o o
p - pˆ
Z =
pˆ (1 - pˆ )
n
æ iN ö
ç - å f Qi ÷
Qi = LQi + ç 4 ÷c
ç f Qi ÷
ç ÷
è ø
æ iN ö
ç - å f Di ÷
Di = LDi + ç 10 ÷c
ç f Di ÷
ç ÷
è ø
æ iN ö
ç - å f Pi ÷
Pi = L Pi + ç 100 ÷c
ç f Pi ÷
ç ÷
è ø
Spearman’s rank correlation coefficient
6å d 2
r = 1-
n ( n 2 - 1)
EOQ with gradual replenishment
2cd
Q=
æ dö
hç1 - ÷
è rø
Q
Length of Inventory cycle =
d
d
Number of production runs =
Q
Production cost = Ordering cos t + Holdering cos t
æ D1 ö
Mode = L mo + çç ÷÷ c
è D1 + D 2 ø
SECTION A: PART I MULTIPLE- CHOICE SOLUTIONS
1. C
2. C
3. E
4. B
5. D
6. B
7. C
8. D
9. A
10. A
11. B
12. E
13. D
14. B
15. A
16. D
17. C
18. D
19. D
20. D
21. D
22. D
23. A
24. D
25. E
26. A
27. B
28. A
29. B
30. D
WORKINGS (MCQ)
3. Sum of angles for the sector is 3600
1080+Y+ 750+870=3600
Y= 3600- 2700
Y= 900.
Let Z represent total personnel of the firm
36
Angle of sector for Auditor department = ´ 360o = 108o
Z
36 ´ 360o
Z= = 120
180o
x
Angle of sector for Taxation department = ´ 360o = 90o
120
120´ 90o
x= = 30
360o
30 and 900 (E)
4. GM = 3 5 ´ 25 ´125 = 5(1+ 2 +3)´1/ 3 = 52 ´1000 = N25,000 (B)
5. x = 1,3,5,7,9
w
åx 25
x= = =5
n 5
(x - x )
=å
2
16 + 4 + 0 + 4 + 16
s 2
= =8
n 5
s = 8 = 2.83
2
s 2.83
CV = ´ 100 = ´ 100 = 56.6% (D)
x 5
6. Arranging the data in an ascending order of magnitude
40, 48, 50, 55, ß 60, 65, 70, 80

Since n = 8, Q1is the median of 40, 48, 50, 55
48 + 50 98
i.e Q1 = =
2 2
Q1 = 49
Q 3 is the median of 60, 65, 70, 80
65 + 70 135
i.e Q3 = =
2 2
Q3 = 67.5
Quartile range = Q3 - Q1 = 67.5 - 49 = 18.5 (B)
7. For regression of y on x : y = a + bx where b is given as
b=
n ( å xy ) - ( å x )( å y )
and a =
å y -b åx
n(å x 2 ) - (å x ) 2 n n
for regression of x on y : x = a1 + b1 y where b is given as
b1 =
n ( å xy ) - ( å x )( å y )
and a1 =
åx -b å y 1
n(å y ) - (å y )
2 2
n n
n ( å xy ) - ( å x )( å y ) 5(335) - (32)(45)
Regression coefficient of x on y is b1 = =
n(å y ) - (å y )
2 2
5(445) - 452
1680 - 1440 240
= = = 1.2 (C)
2225 - 2045 200
8.
3-day 3-day
Moving Moving
Week Day Returns total average
1 Fri 12
1 Sat 14 42 14
1 Sun 16 45 15
2 Fri 15 51 17
2 Sat 20 48 16
2 Sun 13
The moving average for Saturday week 2 is 16 (D)
9. Simple Aggregate Pr ice Index , SAPI =

åP 2019
´ 100
åP 2018
30 + 25 + 30 + 35
SAPI = ´ 100
40 + 30 + 35 + 45
120
SAPI = ´ 100 = 80 % (A)
150
11. 푆 = 1,2,3, 4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20

Let 퐸 = 푒푣푒푛푡표푓푔푒푡푡푖푛푔푚 푢푙푡푖푝푙푒표푓 3 표푟 5
퐸 = 3,6,9,12,15,18,5,10,20
푃 퐸 = = (퐵)
12. Let S represent Surviving

Let A represent Adult
16
P ( S Ç A) 50 16
P ( S / A) = = = = 0. 8 (E)
P ( A) 20 20
50
13. 4푥 − 3 ≥ 2푥 + 3
4푥 − 3 + 3 ≥ 2푥 + 3 + 3
4푥 ≥ 2푥 + 6
4푥 − 2푥 ≥ 6
2푥 ≥ 6
푥≥ => 푥≥ 3 (퐷)
15. y = x2
1
x = y2
x0 = ( y0 )2
1
When y0 = 36, x0 = (36) 2 , x0 = 6

x0
Producers’ surplus = ( x 0 y 0 ) - ò f ( x ) dx
0
x0
= ( x 0 y 0 ) - ò f ( x ) dx
0
6
= (6) ´ (36) - ò x 2 dx
0
3 6
x
= 216 -
3 0
æ 63 ö
= 216 - çç ÷÷
è 3ø
= 216 - 72
= 144
(A)
Alternatively,
y = x2
1
x = y2
When x0 = 0, y1 = 0
y0
Producers’ surplus = ò y1
g ( y )dy
36
ò
1
= ( y ) 2 dy
0
3 36
2´ y 2
=
3
0
= ´ (36) 2 - 0
2 3
3
= 144 (A)
16. A = P (1 + r ) n ,
where n = 2 ´ 2 12 = 5
20 %
r= = 10 % = 0.1
2
P = N 300,000
A = 300,000(1 + 0.1) 5
A = 300,000(1 + 0.1) 5
A = N 483,153
(D)
17. The salary is an AP with a = 600,000, d = 2000 L = 614,000
Since the last term of AP is L = a + (n -1)d
614, 000 = 600, 000 + ( n - 1) ´ 2000
614, 000 = 600, 000 + 2000 n - 2000
614, 000 = 598, 000 + 2000n
16, 000 = 2000n
n = 8 years (C )
18. AC = 2Q + 5
TC = Q ´ ( AC )
TC = Q ´ ( 2Q + 5)
= 2Q 2 + 5Q
d (TC )
MC =
dQ
= 4Q + 5
For Q = 10,
MC = 4 ´ 10 + 5
(D)
MC = 45
21. X( 8, 0 ): Z= 3(8) + 0= 24
Y( 0, 12 ): Z = 0 + 4(12) = 48
Z ( 6, 8 ): Z= 3(6) + 4(8) = 50
Therefore, maximum contribution = 50 x 100
= GH Ë 5000 (D)
22.
푐 = 25, 푑 = 60,000, ℎ = 2
× × ,
푄= = = 1225
∴ 푁푢푚 푏푒푟표푓표푟푑푒푟푠푝푒푟푦푒푎푟푖푠
,
= = 48.97 ≈ 49 (D)
29.
W1 W2 W3 Supply
A 10 - - 10
B 3 7 10 20
Demand 13 7 10 30
Sum of the allocation AW2 + BW3 = 0 + 10 = 10 (B)

30. For Supply column:
1,500+ x + 950= 3,250
2,450+ x = 3,250
x = 3,250- 2,450
x = 800
For Demand column:
y + 1,100+ 800 = 3,250
y + 1,900= 3,250
y = 3,250-1,900
y = 1,350
Þ x + y = 800+ 1,350 = 2,150 (D)
This is a compulsory section made up of 30 objective questions with 5 possible options.

Students are expected to answer ALL the questions. Generally, all the 30 questions,
mostly, cover all the segments of the syllabus.
The average score is 16 marks out of the maximum 30 marks allocated.
SECTION A: PART II SHORT -ANSWER SOLUTIONS
1
1. or 0.2
5
2. 30.25
3. 3.7 years/3.73 years/ 3.734 years/3.7337 years/ 4 years
4. Duration
5. Minimize, maintaining (in that order)
6. 30%
7. 0.721
8. N3,720.80
9. 푁10,047.88
10. Shadow cost/shadow price/dual price
11. L$5,200
12. Weighted, unweighted
13. 300 units/300
14. Covered lines, rows / columns
15. 푚 + 푛− 1
16. Significance level
17. Multi–Stage
18. Allocation
19. Harmonic mean/ Geometric mean, Geometric/Harmonic
20. NPV/Net present value, IRR/Internal Rate of Return (in that order)
WORKINGS (SAQ)
1. Let A=Event of multiples of 5

n( A) = 5, i.e 5,10,15,20,25
n( A) 5
p( A) = =
n(S ) 25
2.
Month(x) Sales 4 – Month moving 2 of 4 – Month moving 4 – Month
(y) total total average
1 14
2 24
99
3 42 213 26.63
114
4 19 242 30.25
128
5 29 257 32.13
129
6 38 297 37.13
168
7 43 355 44.38
187
8 58 379 47.38
192
9 48 405 50.63
213
10 43 446 55.75
233
11 64
12 78
The second value of moving average of order 4 is 30.25

3. Compound interest formula
A = P (1 + r)n,
Since interest is compounded quarterly, then

4n
æ rö
A = P ç1 + ÷
è 4ø
Since A= 2P given,
4n
æ 0.19 ö
Therefore, 2P = P ç1 + ÷
è 4 ø
2 = (1 + 0.0475)4n
0.3010
n=
4 ´ 0.02015
n = 3 . 7337 = 4
Answer is: 4 years or 3.7337 years
6. Mean =
åX = 10
n
where n = 7
å X = 12 + 11 + 10 + 7 + 8 + U + 16
å X = 64 + U
\10 = 64 + U
7
70 = 64 + U
U = 70 - 64
U =6
SD 100
Coefficient of variation = ´
Mean 1
Variance 100
x 1
10 100
10 1
3 .162 100
10 1
Coefficient of variation = 0 . 3162 ´ 100 = 31 . 62 %
7. Coefficient of determination = r2 where r is the correlation coefficient given as
follows
n å xy - å xå y
r=
[ n(å x 2 - (å x)2 ][n(å y 2 - (å y) 2 ]
r= å xy = 14560, å x 2
= 13160, åy 2
= 16418, å x = 350, å y = 316
8(14560 ) - (350 )(316) 5880
r= = = 0.84897
[8(13160) - (316) ][8(16418) - (350) ]
2 2 6926
Coefficient of determination = r2 = (0.84897)2 = 0.7207 » 0.721 ( 3 d.p)
8. Salary in 1960 =N500, increment is r = 20% + 100% =120% = 1.2

n=5
This salary follows GP
Sn =
(
a rn - 1 )
r -1
S5 =
(
5001.25 - 1 )
1.2 - 1
S 5 = N 3,720.80
9. 푥= = 7, since 푥 is in thousands of naira

푅 = 300,000 0.5 . ( )
푅 = 300,000 0.5 .
R = 300,000 ´ 0.03349292
R = N10,047.88
11. .푇표푡푎푙푐표푠푡푝푒푟푎푛푛푢푚 = 표푟푑푒푟푖푛푔푐표푠푡푝푒푟푎푛푛푢푚 + ℎ표푙푑푖푛푔푐표푠푡푝푒푟푎푛푛푢푚

= +
= + = + = 700 + 4500
= 푁5,200
Demand 100 150 200 250 300 350
Probability 0.05 0.15 0.20 0.10 0.20 0.30
Cum.prob. 0.05 0.20 0.40 0.50 0.70 1.00

13. Random 0–4 5 - 20- 40- 50- 70 -
number 19 39 49 69 99
range
The demand for Random Number 63 = 300 units
This is a compulsory section made up of 20 short-answer questions. Students are

expected to answer ALL the questions. As usual, all the questions normally cover the
essential parts of the syllabus.
The average score is 8 marks out of maximum 20 marks allocated.
THEORY
SOLUTION 1
n
åx i
a. i. Arithmetic Mean, AM = i =1
n
12 + 7 + 9 + 7 + 10
AM =
5
45
AM =
5
AM = 9
Therefore, the Arithmetic Mean daily withdrawal is N9,000
ii. Geometric Mean, GM = n x1 × x2 × × × xn

GM = 5 12 ´ 7 ´ 9 ´ 7 ´ 10
GM = 5 52,920
GM = 8.804890658
Also accept:
8.8, 8.80, 8.805, 8.8049, 8.80489
Therefore, the Geometric Mean daily withdrawal is N8,804,89
n
iii. Harmonic Mean, HM = n
1
åx
i =1 i
5
HM =
1 1 1 1 1
+ + + +
12 7 9 7 10
for 1dp,
5
HM =
0 .1 + 0 .1 + 0 .1 + 0 .1 + 0 .1
5
HM = = 10
0.5
Therefore, the Geometric Mean daily withdrawal is
N10,000.00
OR For 2dp,
5
HM =
0.08 + 0.14 + 0.11 + 0.14 + 0.10
5
HM =
0.083 + 0.143 + 0.111 + 0.143 + 0.1
5
HM =
0.57
HM = 8.771929825
Also accept:
8.7, 8.77, 8.7719 and 8.77193
Therefore, the Harmonic Mean daily withdrawal is N8,771.93
OR For 3dp,
5
HM =
0.083 + 0.143 + 0.111 + 0.143 + 0.100
5
HM =
0.58
HM = 8.620689655
Also accept:
8.6, 8.62, 8.621, 8.6207 and 8.62069
OR For 4dp,
5
HM =
0.0833 + 0.1429 + 0.1111 + 0.1429 + 0.1
5
HM =
0.5802
HM = 8.617718028
Also accept:
8.6, 8.62, 8.618, 8.6177 and 8.61772
b.
Class interval f cf
0.6 – 1.5 10 10
1.6 – 2.5 8 18
2.6 – 3.5 12 30
3.6 – 4.5 7 37 æ D1 ö
i. Mode = L mo + çç ÷÷c
è D1 + D 2 ø
Modal 4.6 – 5.5 6 43 class = 2.6 – 3.5 (i.e class
with the 5.6 – 6.5 4 47 highest frequency of 12)
6.6 – 7.5 3 50
Lmo = 2.55 D 1 = 12 - 8 = 4
D2 = 12 - 7 = 5 and c = 1.0
æ 4 ö
Mode = 2.55 + ç ÷1.0
è 4+5ø
Mode = 2 . 55 + 0 .444444
Mode = 2 . 994444
Modal quantity of fuel = 2.994444´10,000= 29,944.44litres
Also accept – Mode =2.95
Modal quantity = 29,500 litres
Mode = 2.99
Mode = 2.994
Mode = 2.9944
Mode = 2.994444
Modal quantity = 29,944.4 litres
æN ö
ç - å f me ÷
ii. Median = Lme + ç 2 ÷c
ç f me ÷
ç ÷
è ø
N
Median position = th
2
50
= th = 25th
2
Median class = 2.6 – 3.5
L me = 2 .55 å f me = 18
Fme = 12 and c = 1.0
æ 25 - 18 ö
Median = 2.55 + ç ÷1.0
è 12 ø
Median = 2 . 55 + 0 .583333
Median = 3 . 133333
Median quantity of fuel
= 3.133333 x 10,000
= 31,333.33 litres
iii. 7th decile = D7

æ 7 ö
ç N - å f D7 ÷
D7 = LD7 + ç 10 ÷c
ç f D7 ÷
ç ÷
è ø
7 ´ 50
= th = 35th
10
D7 class = 3.6 - 4.5
L D7 = 3.55, åf D7 = 30
F D7 = 7 and c = 1 .0
æ 35 - 30 ö
D7 = 3.55 + ç ÷1.0
è 7 ø
D7 = 3.55 + 0.714285
D7 = 4.264285
Therefore, 7th decile quantity of fuel

= 4.264285 x 10,000
= 42,642.85 litres
Also, accept
- D 7 = 4.3 = 43,000 litres
- D 7 = 4.26 = 42,000 litres
- D 7 = 4.264 = 42,640 litres
- D 7 = 4.2643 = 42,643 litres
- D 7 = 4.26428 = 42,642.8 litres
The question tests candidates' knowledge of the Concept of MEASURES OF CENTRAL

TENDENCY.
Specifically, candidates are required to calculate (i)the three forms of the MEAN i.e
Arithmetic mean, Geometric mean & Harmonic mean; Mode; Median and (ii) the 7th
Decile.
The question was attempted by about 95% of the candidates with an average score of
7 marks out of maximum 12.5 marks allocated.
The greatest pitfall of the candidates that attempted the question was their inability to
compute the Harmonic Mean and the 7th Decile.
Candidates are advised to learn more on Measures of Location.
SOLUTION 2
(a)
Age (X) Book Value (Y) XY X2 Y2

(‘000) (‘000) (‘000)
1 40 40 1 1,600
2 38 76 4 1,444
3 25 75 9 625
4 20 80 16 400
5 12 60 25 144
6 5 30 36 25
å X = 21 å U = 140 å X U = 361 å U = 91 åU 2= 4238
The regression equation explaining the relationship between the age of the
equipment (X) and the book value (Y) is given as:
yˆ = aˆ + bˆ x
Where
å CU - å Cå U
bˆ = n
(å C)
2
å C -
2
21 140
361 − 6
=
21
91 − 6
- 129
= = -7.371
17.5
= -7.371428571
(for b, accept: -7.3, -7.37, -7.371, -7.3714, -7.37143 or -7371.43)
-
aˆ =
å U - bˆ å C
n n
140 æ 21 ö
= - ( -7.371)ç ÷
6 è 6ø
= 23.333 + 25.799
= 49.132
(for a, accept: 49.1, 49.13, 49.133, 49.1333, 49.13334 or 49133.34)
The regression equation is
yˆ = 49133.34 - 7371.43X
b.
(21)(140)
361 -
= 6
é (21) ù é
2
(140 ) 2 ù
ê91 - ú ê 4328 - ú
ë 6 ûë 6 û
- 129
=
(17.5)(1061.33)
- 129
=
136.284
= - 0.9465527868
(for r, also accept: -0.9, -0.95, -0.947 or -0.9466)
∑ ∑ ∑
c. Standard Error = 푆푒 =
. .
푆푒 =
4238 − 6878.48 + 2 + 660.931

푆푒 = =
4
6898.931 − 6878.48
푆푒 =
4
20.451
푆푒 = =
4
푆푒 = √5.11275
푆푒 = 2.261139093
For 푆푒, also accept 2.3, 2.26, 2.261, 2.2611 or 2.26114
The standard error of the estimate is 2,261.14
This question is on the concept of CORRELSTION and REGRESSION.

Specifically, the candidates are expected to:
(i) derive a regression equation or to fit regression line;
(ii)calculate the Pearson's Correlation Coefficient and
(iii)to compute the corresponding Standard Error.
About 80% of the candidates attempted the question with an average score of 8 marks
out of maximum 12.5 marks.
The major pitfall of the candidates that attempted the question was in their inability to
handle large figures.
Candidates should practise more questions involving large figures.
SOLUTION 3
a. i. 푃 = 퐺푀 퐷35000, 푟 = = 0.14,
푡= 17
푆푖푚 푝푙푒 푖푛푡푒푟푒푠푡= 푃 × 푅 × 푇 = 35,000 × 0.14 × 17
푆푖푚 푝푙푒 푖푛푡푒푟푒푠푡= 퐺푀 퐷83,300
퐶표푚 푝표푢푛푑 푖푛푡푒푟푒푠푡= 퐴푚 표푢푛푡− 푃푟푖푛푐푖푝푎푙

i.e C.I = A – P
where A = P(i+r)
A = 35,000 (1 + 0.14) 17
A = 35,000 (9.276464197)
A = 324,676.25
(For A, also accept any value within the range of 324,676.25 to 325,500)
Therefore, C.I = 324, 676.25 – 35,000
C.I = GMD 289, 676.25
For C.I, also accept any value within the range of 289,676.25 to 290,500
ii. Amount = 퐴 푃 퐼
Amount = 35,000 + 83,300
Amount = GMD 118,300
A LITER for a(ii)

퐴 푃 1 푟푛
퐴 35,000 [1 + (0.14) (17)]
퐴 GMD 118,300
b.i. 푛 4, 푎 2000 푎푛푑푑 – 500
푛
푆푛 2푎 푛 1 푑
2
4
푆4 2 2000 4– 1 500
2
2 4000 3 500
2 4000 1500
2 2500
퐺푀 퐷 5,000
ii. 푎 6, 푎 12, 푎 24, … . 푎 1536
푎 12
푟 2
푎 6
1539 6 2
256 2
2 2
8 푛 1
푛 8 1
푛 9
Hence, there are 9 terms
Candidates' knowledge of the concept of MATHEMATICS OF FINANCE is tested in d

question. This is a direct application of the Sequences and Series to business problems.
Specifically, candidates are required, in Part (a) to compute Simple Interest,
Compound Interest and the Amount, based on the Simple Interest calculated earlier
on. Part(b), on the other hand, candidates are required to apply (i) the Arithmetic
Progression Formula to compute the total sum based on the Simple Interest calculated
earlier on and(ii) Geometric Progression Formula to find the number of the given
series.
out of the maximum 12.5 marks allocated.
The major pitfall identified was the inability of some of the candidates to understand
what the question actually requires.
Candidates should learn more on both the Arithmetic & Geometric Progressions for
their future examinations.
SOLUTION 4
a.
Life span Obsev. Prob.

x
Frequency Distributions
1 6 0.06 (½)
2 14 0.14 (½)
3 20 0.20 (½)
4 30 0.30 (½)
5 15 0.15 (½)
6 10 0.10 (½)
7 5 0.05 (½)
b.
x P(x) xP(x)
1 0.06 0.06
2 0.14 0.28
3 0.20 0.60
4 0.30 1.20
5 0.15 0.75
6 0.10 0.60
7 0.05 0.35
Expected life span in months = å X P (X)

= 3.84 (1½) (-½ with no unit “month”)
total no.of items used per period
C. Average number replaced in the period =
Average life span
= 250
3.84
= 65.10
= 66
The question is on REPLACEMENT ANALYSIS.

Specifically, candidates are required to:
(i)determine the probability distributions;
(ii)determine the expected life span and
(iii)calculate the average number of components replaced in the given period.
Some of the candidates that attempted the question had difficulty in determining d
Expected Life Span of the components.
Candidates should know that the Expected Life Span is Sum of all the products of
probability and the number of months for which d components fail.
SOLUTION 5
a. The network diagram

O
V
K 3
R 4
O
M
4 5
3
N 9 Q U
O
5
L P 5
8 3 T
7
S
O
5 3
* Without arrows, score is zero
b.
Paths Durations
K O V 4+3+4 = 11 weeks
K N S T U 4+9+5+3+5 = 26 weeks
L S T U 8+5+3+5 = 21 weeks
K M P T U 4+5+7+5+5 = 24 weeks
K M Q U 4+5+5+5 = 19 weeks
K M R V 4+5+3+4 = 16 weeks
c. The critical path is K N S T U

and its duration is 26 weeks
d. The shortest completion time for the project is 26 weeks

The question tests the candidates' knowledge of NETWORK ANALYSIS.

Specifically, the candidates are expected to:
(i) be able to draw the Activity-On-Arrow Network Diagram for the given project;
(ii)determine(from the diagram drawn)all the possible paths and their durations;
(iii)identify the critical path & its duration and
(iv)state the shortest completion time for the project.
Candidates should know that "shortest completion time" is the same as the
"critical duration".
Greater number of the candidates that attempted the question could not cope
with many Activities demanded by the Network Diagram.
Candidates are advised to practise drawing Network Diagrams that involve many
Activities for their future examinations.
SOLUTION 6
a.
Chocolate Frequency Probability Cumulative Range interval
Probability
C1 14 0.28 0.28 00 – 27
C2 9 0.18 0.46 28 – 45
C3 15 0.30 0.76 46 – 75
C4 12 0.24 1.00 76 – 99
i. The simulation of the next 10 results is therefore carried out as tabulated in

the table below.
Random number Corresponding chocolate

15 C1
20 C1
87 C4
09 C1
34 C2
56 C3
60 C3
07 C1
75 C3
40 C2
ii. The simulation results are summarised in the table below
Chocolate Simulated
Frequency
C1 4
C2 2
C3 3
C4 1
Also, accept
C4 has the least consumption
bi.
Time Probability Cumulative Probability Random number interval
4 0.10 0.10 00 – 09
5 0.15 0.25 10 – 24
6 0.25 0.50 25 – 49
7 0.30 0.80 50 – 79
8 0.20 1.00 80 – 99
The simulation of the next 10 results is therefore carried out and the results are
tabulated below:
Car arriving time Random number Simulated arriving time

(hr)
1 52 7
2 37 6
3 82 8
4 69 7
5 98 8
6 96 8
7 33 6
8 50 7
9 27 6
10 50 7
∑m = 70
70
ii. The average number of cars arriving per hour =
10
= 7 cars
Concept of SIMULATION is the subject matter of this question.

Specifically, candidates are required to know how to use probabilities to assign
random number ranges based on the cumulative probabilities derived from the given
probability distributions.
About 75% of the candidates attempted the question with an average score of 8.5
marks out of the maximum 12.5 marks allocated.
Generating the desired random number ranges was the difficulty encountered by some
of the candidates. This made it very difficult for them to simulate the given random
numbers.
AT/211/PII.8 Examination No...........................

INFORMATION TECHNOLOGY
the questions.
TUESDAY, 30 MARCH, 2021


INFORMATION TECHNOLOGY
ATTEMPT ALL QUESTIONS IN THIS SECTION
Write ONLY the alphabet (A, B, C, D or E) that corresponds to the correct option in each
of the following questions/statements
1. Which of the standard coding form has each of its character coded using 7 bits?
A. ABCD
B. ASCII
C. BCD
D. BCDE
E. EBCDIC
2. Convert the binary number 100111 to a decimal number.
A. 39
B. 38
C. 37
D. 36
E. 35
3. Which of the following is NOT the key element in the definition of a Computer
System?
A. Electronic Machine
B. Reject data
C. Stores data and information
D. Processes the data into information
E. Make information available to end users
4. Which of the following is NOT a feature of Mainframe Computers?
A. Can be moved around

B. Is a large system
C. Generates a lot of heat
D. Is normally housed in air-conditioned room
E. Is very expensive
5. Which one of the following is NOT a type of Microcomputers?
A. Desktop
B. Workstation
C. Suite case
D. Laptop
E. Notebook
6. ALU can perform the following operations, EXCEPT
A. Addition and Subtraction

B. Multiplication and Division
C. Exponentiation
D. Coordination
E. Logical Operations
7. Control unit can perform the following operations, EXCEPT
A. Receives instruction in a program, one at a time from the memory

B. Comparison
C. Interprets the instructions
D. Send out control signals to the peripheral devices
E. Coordinate all the activities in the system
8. Which of the following is NOT an Optical Storage Media?
A. CD-ROM
B. DVD-ROM
C. Video Tape Recorder
D. WORM
E. DVD-RAM
9. Which of the following is NOT a Magnetic Storage Media?
A. CD-ROM
B. Magnetic disk
C. Winchester disk
D. Cartridge disk
E. Magnetic tapes
10. SVGA is an acronym for
A. Special Versatile Graphic Array

B. Super Versatile Graphic Adapter
C. Super Versatile Graphic Array
D. Super Video Graphic Adapter
E. Super Video Graphic Array
11. Which of the following is NOT a type of System Software?
A. Operating System
B. Moduler
C. Loaders
D. Debuggers
E. Editors
12. A program which translates a user’s code written in low level language into the
machine code is called
A. Assembler
B. Compiler
C. Interpreter
D. Moduler
E. File Manager
13. Utility programs perform the following operation, EXCEPT
A. File copy
B. Housekeeping operations
C. Sorting
D. Disk formatting
E. Record Keeping
14. A Database Management System must ensure the following, EXCEPT
A. Easy data storage

B. Consistency in data organisation
C. Data redundancy
D. Rapid access to data
E. Easy data retrieval
15. Application packages can be acquired from the following sources, EXCEPT
A. Computer Bureaux and Information centre

B. Software Houses
C. Software Vendors
D. Softloading
E. In-house developers
Use the table below to answer Question 16 – 19
S/No Products Monday Tuesday Wednesday Thursday Friday (N)

Code (N) (N) (N) (N)
1. Ref10000010 25563 355625 255555 144333 35522
2. Ref10000020 42256 35422 45556 41112 55521
3. Ref10000030 55555 544233 355544 52223 44447
4. Ref10000040 44456 44455 422554 522223 12345
5. Ref10000050 33421 67778 355544 777714 45512
16. How many data fields can exist in the table above?
A. 1
B. 4
C. 5
D. 6
E. 7
17. How many data records can exist in the table above?
A. 1
B. 4
C. 5
D. 6
E. 7
18. How many data files exist in the table above?
A. 1
B. 4
C. 5
D. 6
E. 7
19. Which of the following is NOT an example of primary key?
A. Customer number in a customer ledger record

B. Stock code number in a stock record
C. Employee PIN in a payroll record
D. Student name in a student record
E. BVN in a bank
20. Which of the following is NOT a characteristic of a file?
A. Hit rate
B. Volatility
C. Size
D. Access time
E. Level rate
21. A set of rules/procedures that governs the way information is exchanged

between Computers over the network is called
A. Protocol
B. Command
C. Syntax
D. Algorithm
E. Program
22. Which of the following is NOT a benefit of network?
A. Duplication of data on files of different Computers on the network

B. Sharing of programs and data
C. Better communications
D. Security of Information
E. Access to databases
23. OSI means
A. Open System Interconnection

B. Open System Internet
C. Open Source Internet
D. Open Source Interconnection
E. Open Source Input
24. Which of the following is NOT an Internet Security issue?
A. Sharing of peripheral devices

B. Communication link may break down or distort data
C. Information transmitted from one part of the organisation to another may
be intercepted
D. Employees may download inaccurate information, or imperfect or virus-
ridden software from external networks
E. A virus on a single Computer can easily spread through the network to all
the organisation’s Computers
25. Forensic investigation process does not involve the ---------- of digital evidence
A. Identification
B. Presentation
C. Analysis
D. Design
E. Preservation
26. Which of the following does NOT include the running cost of a system?
A. Staff salaries
B. Training
C. Maintenance
D. Cost of installing the system
E. Utilities and consumables
27. The steps involved in system investigation are
A. Fact-finding and Evaluation

B. Fact recording and Evaluation
C. Fact-finding, Fact recording and Evaluation
D. Fact finding and Fact recording
E. Fact finding
28. The application of investigation and analysis techniques to gather and preserve
evidence from a particular computing device in a way that is suitable for
presentation in a court of law is
A. Telecommuting
B. Cloud Computing
C. Forensic Computing
D. Grid Computing
E. Detective Computing
29. Which of the following does NOT include Repetitive Strain Injuries?
A. Eye
B. Neck
C. Arm
D. Hand
E. Wrist
30. A Computer crime that uses psychological manipulations to trick users into
making security mistakes or divulging confidential information is
A. Social engineering
B. Salami Technique
C. Hacking
D. Denial of service attack
E. Masquerading
SECTION A: PART II SHORT-ANSWER QUESTIONS (20 Marks)
1. The logical components of a system are Input, Output and …………………...
2. A system which interacts with their environment for the collection of

Information is known as …………………...
3. A System that contains built-in control mechanism for self-regulating is known

as ………………...
4. A printer that work by banging a head or needle against an ink ribbon to make
a mark on the paper is called …………………….
5. A program that converts the user’s code into machine language code is known
as ……………………...
6. A finite sequence of instructions to solve a given problem is called

……………….
7. In a program flowchart symbol, the circle shaped box depicts ….……………..
8. A collection of related data files is known as …………………………………...
9. Another name for machine code is ……………...
10. The way data are stored on the physical storage media is known as ………….
11. The amount of time taken to complete a process or fulfil a request is known
as ……………...
12. A procedure that a computer’s CPU follows to change from one task to another
while ensuring that the tasks do not conflict is called …………………..
13. A technique that enables many people, located at various terminals, to use a
particular Computer system at the same time on time slice basis is
called…………...
14. A network in which all the PCs on the network communicate directly with each
other and there is no server is called ……………………..
15. The technique of transforming information to make it unreadable for

unauthorised users in order to preserve its confidentiality during transmission
and when stored is called ……………..……...
16. The Seventh layer of OSI model is known as …………………...
17. A communication equipment that performs the conversion of computer’s digital

signals to analog signals as well as analog signals to digital signals is called
……………………..
18. The process through which users or organisations send files and documents to
the internet for authorised users to access is called ……………..…...
19. A protocol used by the World Wide Web that defines how messages are
formatted and transmitted, and what actions web servers and browsers should
take in response to various commands is called …………..……...
20. An approach of changeover where the old system is discarded and replaced
with the new system is known as ………………….
SECTION B: ATTEMPT ANY FOUR QUESTIONS (50 Marks)
QUESTION 1
a. Define
i. Quantitative Information (1½ Marks)
ii. Qualitative Information (1½ Marks)
b. State THREE examples of Quantitative Information (1½Marks)

C. State FOUR benefits of Information Systems (4 Marks)
d. State FOUR challenges of Information Systems (4 Marks)
(Total 12½ Marks)
QUESTION 2
a. What is an Output device? (2 Marks)

b. Describe THREE features of Impact printers as an output device (3 Marks)
c. Identify and describe FIVE output devices (7½ Marks)
(Total 12½ Marks)
QUESTION 3
a. What is an application package? (2½ Marks)

b. Enumerate FIVE advantages of off-the-shelf application
package over in-House packages (5 Marks)
c. Enumerate FIVE disadvantages of off-the-shelf application
package over in-House packages (5 Marks)
(Total 12½ Marks)
QUESTION 4
a. Describe Real-time processing (2½ Marks)

b. State FIVE benefits of Real-time processing (5 Marks)
c. State FIVE challenges of Real-time processing (5 Marks)
(Total 12½ Marks)
QUESTION 5
a. What is Cloud computing? (2 Marks)

b. List and describe the THREE technologies used in Cloud computing
(10½ Marks)
(Total 12½ Marks)
QUESTION 6
a. What is safety and security in a workplace? (1 Mark)

b. List and describe THREE health issues that can happen to a user
of computer in a work place. (9 Marks)
c. Mention FIVE basic steps/techniques involved in Forensics
Processes (2½ Marks)
(Total 12½ Marks)
SECTION A: PART I MULTIPLE CHOICE SOLUTIONS
1. B
2. A
3. B
4. A
5. C
6. D
7. B
8. C
9. A
10. D
11. B
12. A
13. E
14. C
15. D
16. E
17. C
18. A
19. D
20 E
21. A
22. A
23. A
24. A
25. D
26. D
27. C
28. C
29. A
30. A
Thirty questions were set in this section and they spread across the whole syllabus. The
questions tested students’ knowledge and understanding of most of the aspect of the
syllabus.
The performance is highly impressive as over 70% of the candidates scored above 60%
of the allocated marks.
Candidates are advised to be more familiar with IT terms and concepts by using ICAN
study packs and credible IT textbooks.
SOLUTION (SAQ)
1. Process/processing
2. Open system
3. Closed-loop control system
4. Impact printer/line printer
5. Language Processor/Language Translator
6. Algorithm
7. Connector
8. Database
9. Object code
10. File organisation
11. Turnaround time
12. Multi-tasking
13 Time-sharing
14. Peer-to-Peer
15. Data encryption/cryptography
16. Application
17. Modem (Modulator/Demodulator)
18. Uploading
19 HTTP (Hyper Text Transfer Protocol)
20. Direct changeover
This section consists of twenty questions demanding for words or phrases as solutions.
The questions cover almost all the sections of the syllabus, but the performance is very
bad as about 60% of the candidates scored below 50% of the allocated marks.
The major pitfall of the candidates is the inability to supply correct words to the
questions.
Candidates are advised to be more familiar with IT concepts by reading standard IT

texts and ICAN study pack.
SECTION B THEORY SOLUTIONS
SOLUTION 1
1ai. Quantitative Information
This is an information that deals with the magnitudes of variables, their

variability or absolute value. It can also be defined as the value of data in the
form of counts or numbers where each data-set has a unique numerical value
associated with it. It is usually collected for statistical analysis using surveys,
polls or questionnaires sent across to a specific section of a population.
It is any quantifiable information that can be used for mathematical

calculations and statistical analysis, such that real-life decisions can be made
base on these mathematical derivations. It is used to answer questions such as
“How many?”, “How often?”, “How much?”. This information can be verified
and can also be conveniently evaluated using mathematical techniques.
ii. Qualitative Information
This is an information that is related to the attributes of an entity in respect of

quality factors. This type of information is not exact in nature but it is very
useful for comparative measurement.
Qualitative information describes qualities or characteristics. It is collected

using questionnaires, interviews, or observation, and frequently appears in
narrative form.
For example, it could be notes taken during a focus group on the quality of the
food at restaurant or responses from an open-ended questionnaire. Qualitative
information may be difficult to precisely measure and analyse. It could be in the
form of descriptive words that can be examined for patterns or meaning,
sometimes through the use of coding.
Qualitative information could also be standard of finished product in respect of

paintwork, variation of tolerances of manufactured parts such as deviation from
standard dimensions.
b. Examples of Quantitative Information include:
i. Annual sales of Production of a company

ii. Variation in the wages of low-level staff in an organisation
iii. Number of people who log-in within a specified period by checking
the system log
iv. Number of employees who report for work through the use of clocking
machine
v. Prices of goods
vi. Number of hours worked on a production line
vii. Number of people who download a particular application from the
App Store.
c. Benefits of information system include:
i. Operational efficiency
ii. Functional effectiveness
iii. Provision of improved services
iv. Better products selection
v. Competitive advantage
vi. Reduction in the rate of error
vii. It enhances faster processing
viii. It enhances paperless office
ix. Increase in productivity
x. Savings in labour
xi. It reduces storage space of files since files can be stored in electronic
form rather than hard copies in cabinets.
xii. Better customer services
xiii. Complete and recent information
d. Challenges of information system include:
i. Loss of valuable data due to virus infection, and end users mistakes or
deliberate action by the user
ii. Users activities will be system dependent, therefore if the system breaks
down, activities of the user will be affected
iii. Unauthorized access due to hacking or eavesdropping to enhance the

fraudulent activities of fraudsters
iv. GIGO phenomenon (Garbage-in Garbage-out) which means whatever you

feed into a system will be processed by the system. Therefore, if wrong
data is fed into the system wrong information will be produced
v. Users may be prone to some health hazard such as eye strain, finger
strain, wrist pain and general tiredness
vi. Information produced and not well understood or explained can lead to
wrong use
vii. It can lead to staff redundancy
viii. Ease of fraud
ix. The use of information system requires some level of computer literacy
x. High cost of acquisition
xi. High cost of maintenance

This question tests candidates’ knowledge in Information Systems. It demands for the
nature of quantitative and qualitative information as well as the benefits and
challenges of Information Systems.
About 80% of the candidates attempted this question and the performance is fair as
about 60% of the candidates scored over 60% of the allocated marks.
The major pitfall is that candidates could not distinguish between quantitative and
qualitative information.
Information system is a major component of the syllabus so candidates need to pay

more attention to it for future examinations.
SOLUTION 2
2a. Output devices are devices that bring out computer output or information from
the central processing unit to the outside world such as monitor, printer,
speaker.
OR: It is any piece of computer hardware equipment that gives information out
from a computer system.
b. Features of impact printers as an output device are:
i. It is old technology
ii. It makes noise when printing
iii. It cannot print a page at a time
iv. It does not have good quality print out
v. It is very slow
vi. It uses ink ribbon
vii. It is relevant for printing multiple copies (i.e carbon copies)
viii. It is useful for bulk copies because of its low cost of operation
c. Examples of output devices are:
i. Monitor or Visual Display Unit (VDU)

ii. Printer
iii. Speaker
iv. Projector
v. Graph plotter
vi. Computer output on Microform (COM)
vii. Headphone
viii. Voice Response (Audio Response Unit)
Explanations:
i. Monitor:
This is a device that displays computer output on its screen (sometimes in
colours) in the form of text, graph, diagram or picture. The Visual Display
Unit output is called softcopy output and is only suitable for data of
temporary use.
Types of Monitor:
· Monochrome Monitor: It displays information in black and white
colour
· Colour Monitor: It displays information in different colours
· Liquid Crystal Display Monitor
ii. Printer:
A printer is an output device that produces computer output on paper
known as hardcopy output. The output produced on paper is the most
usual form of output.
Printers can be classified into two categories:
i. Impact printer
ii. Non-impact printers
Examples of printer are:
· Line printer
· Daisy wheel printer
· Dot matrix printer
· Thermal printer
· Electrostatic printer
· Inkjet printer
· Xerographers
· Lasers printers etc.
iii. Speakers
These are hardware devices that transform the signal from the
computer’s sound card into audio. Speakers create sound using internal
amplifiers that vibrate at different frequencies according to data from the
computer. This produces sound.
iv. Projector
As its name suggests, this output device projects computer images or video unto
a wall or screen. The computer transmits the image data to its video card, which
then sends the video image to the projector. It is most often used for
presentations or for viewing videos.
v. Graph Plotter
This is a device used for the output of graphical information on large and small
computers. The most common type is the drum plotter. Continuous paper lies
over the surface of the drum with the pen in a cradle that will move auxiliary
with respect to the drum.
vi. Computer Output on Microform (COM)

Computer Output on Microform is a form of computer output whereby, the
output is projected on to a cathode ray tube and photographed into a very
much reduced form i.e, into a microform. Microform is readable but it requires a
magnifying reading device or photographic development before it can be
viewed.
There are two types of a Microform:
· Microfilm: This is an ordinary roll of film i.e, a continuous strip with images
formed in frames one at a time, along the strip of the film.
· Microfiche: It is a separate sheet of film containing a rectangular pattern of

pages. Special viewers are available to magnify a page at a time up to
readable size.
Normal printout can simply be photographed on the microfilm or microfiche

but there are special COM units using cathode – ray tubes or light-emitting
diodes and providing film or fiche output direct, requiring only photographic
development.
vii. Headphone
It allows the users to listen to audio without disrupting other people in the
vicinity
viii. Voice Response (Audio Response Unit)
A voice response system is also known as an audit response unit or a voice
answer back machine and is one of the least familiar peripheral. It has a
restricted vocabulary of fixed words that are produced as audio output to sound
like a human voice.
This question tests candidates’ knowledge and understanding on computer output

devices. It demands for the features of impact printers as well as some examples of
output devices.
This question is very popular among the candidates as over 70% of the candidates
attempted this question.
The performance is good as over 70% of the candidates scored over 60% of the
allocated marks.
SOLUTION 3
3a. Application packages
An application package is a software that consists of programs which are

written to solve specific user’s problems. It consists of programs which direct
the computer system to solve specific data processing activities required for the
solution of business and other problems of the computer user. It is designed for
user’s immediate use and supports users. It can also be defined as a pre-written
computer program that are widely used for specific applications in order to
avoid unnecessary duplication of similar programs by many users.
b. Advantages of off-the-shelf application packages over in-house packages:
i. It enables faster implementation of the computer system compared to in-

house packages.
ii. It reduces errors in design since the packages would have been properly
tested by various users before sales as against in-house packages that
can only be tested by the user alone.
iii. It provides software expertise not normally available to common users.
iv. It reduces cost since the cost of developing the package would have been
spread across many buyers as against in-house packages that the cost
will be incurred by the users alone.
v. The user does not have the potential burden of computer staff to contend
with; as packages are suited to be operated by non-computer personnel.
vi. It is less expensive compared to in-house packages.
vii. It is usually error free and well suited to the general public.
viii. It is constantly updated by the developer.
ix. It is written by software specialists and has a very high quality.
x. It can be used immediately by the user after purchase because it must
have been properly tested by the developer.
xi. It is long in the market
xii. It is well documented with ease to follow users’ manual.
c. Disadvantages of Application Packages
i. The user will have less control over the quality of works and services than
they would have over programs produces by their own employees.
ii. The user is dependent on the supplier of the package for maintenance of
the system as against the in-house packages that easily be maintained
by the user or developer who is resident in the organisation.
iii. There is the likelihood of inefficiency resulting from the inclusion of

features not relevant to every application but the features in in-house
packages will be limited to user’s needs.
iv. Off-the-shelf application packages cannot be customized unlike in-house

developed packages that can easily be customised because it is ‘tailor-
made’.
v. It produces standardized solution which may be well suited to individual

user.
vi. It may not have some special features required by the end user.
vii. Sometimes, the off-the-shelf packages may not be compatible with the
hardware or data structure of the organisation.
viii. The developer will be more attached to the software therefore the user
will depend on the manufacturer for maintenance and update.
ix. The source code of off-the-shelf packages is not with the user therefore it
can only be upgraded by the developer
x. Customization of off-the-shelf may be problematic.
xi. The off-the-shelf may demand for high memory capacity which may be
very expensive to an Organisation.
xii. It may not have some special features requires by the end-user.
This question tests candidates understanding of application packages. It demands for

the advantages and disadvantages of off-the-shelf packages over In-house packages.
This question is very popular among the candidates as over 80% of the candidates
attempted it.
The performance is good as over 75% of the candidates scored over 65% of the
allocated marks.
SOLUTION 4
4a. Real-time Processing:

Real-time processing is a processing method whereby data can be entered into a
system, all the data will be accepted, processed and all relevant files updated and
the result will be produced immediately because the result will be needed to
take further action.
In real-time processing, data are captures electronically, edits for accuracy and
completeness, process it instantly and produces result. Output from real-time
processing is generated immediately so that it can be used to influence the
current activities.
b. Benefits of Real-time processing are:
i. Result is made available immediately

ii. It enhances paperless transaction
iii. In real-time processing, several databases can be updated and
updated concurrently.
iv. It enables users to see the cumulative effect of all transactions for
decision making.
v. It avoid costly and time consuming data preparation and control
vi. It is interactive
vii. It enhances quick decision making due to immediate result from the
system.
c. Challenges of Real-Time processing are:
i. It is very complex to design and implement

ii. Processing activities will be network dependent
iii. It is prone to security challenges such as hacking, eavesdropping
iv. There is no enough time to adequately check input data for error
v. Organisations with critical real-time applications have to pay a high cost
premium for the security of fault tolerant computer system
vi. It is expensive to implement.
vii. Users may be prone to some ergonomic risk factors such as eye strain
viii. Implementation of real-time processing requires a lot of expertise.
This question tests candidates’ understanding of processing techniques. It demands for

the advantages and disadvantages of Real-time processing technique.
Over 50% of the candidates answered this question and the performance was just fair.
About 40% of the candidates scored over 50% of the allocated mark.
The major pitfall was that many of the candidates do not have a clear understanding
of Real-time processing.
Processing technique is a major component of the syllabus, so candidates are advised

to pay more attention to it.
SOLUTION 5
5a. Cloud Computing
Cloud computing can be defined as internet-based computing whereby shared

resources, software and information are provided to computers and other
devices on demand like the electricity grid.
It describes a new supplement, consumption and delivery model for information
technology services based on the web-based tools or applications that users
can access and use through a web browser as if it were a program installed on
their own computer.
Cloud computing is a system in which applications and services run on a

distributed network using virtualized resources and accessed by common
internet protocols and networking standard.
It can also be described as a trend in information technology that moves

computing resources and data away from the user’s desktop and personal
computers into a large data center.
It is a web-based technology where quality services are provided to users

including data and software, on remote servers.
5b. Technologies used in Cloud Computing are:
i. Infrastructure–as–a–Service (IaaS)
ii. Platform-as-a–Service (PaaS)
iii. Software-as-a-Service (SaaS)
i. Infrastructure-as-a-Service (IaaS): The backbone of the entire concept;

the vendors provide the physical storage space and processing
capabilities that allow for all the services described above. Major
infrastructure vendors are:
· Google - managed hosting, development environment

· International Business Machine (IBM) - managed hosting
· Terremark - managed hosting
· Amazon.com - cloud storage
· Backspace Hosting - managed hosting and cloud computing.
ii. Platform-as-a-Service (PaaS): The platform segment of cloud computing

refers to products that are used to deploy applications. Platforms servers
as an interface for users to access applications provided by partners or in
some cases the customers. Examples of platforms are salesforce.com
platform, Netsuite, Amazon, Google, Sun Oracle, Microsoft etc.
iii. Software-as-a-Service (SaaS): In the past, the end-user would generally

purchase a license from the software provider and then install and run
the software directly from on-premise servers. Using on-demand service,
the end-user pays the software a subscription fee for the service. The
software is hosted directly from the software provider servers and is
accessed by the end-user over the internet. Some of the companies that
offers SaaS business include: Sales force.com, Google, Netsuite, Info
Technologies, Canada software.net.
This question tests candidates’ knowledge on cloud computing. It demands for the
definition and the technologies used in cloud computing. Only few candidates
attempted this question and the performance was poor.
The major pitfall was that many candidates could not mention nor describe the
technologies.
Cloud computing is a modern computing techniques and candidates are advised to

pay more attention to it for future examinations.
SOLUTION 6
6a. Safety and security in workplace
This is a set of measures put in place to protect an employee from work related
illness and injury and to make the workplace safe, secure and conducive for
employees.
Safe and secure working environment can be provided by using thorough

security system including access control systems, CCTVs (Closed Circuit
Television), keycards, clean environment, emergency exits, training the
employees about security procedures, constant improvement of the system as
well as using security guards to physically guarding the entire work place.
b. Health issues that can happen to a user of computer in a work place are:
i. Eye strain
ii. Back pain
iii. Finger strain and wrist pain
iv. Repetitive Stress Injury (RSI)
v. Obesity
vi. Photosensitive epileptic seizures (caused by flashing or rapidly changing
lights).
EXPLANATIONS:
i. Eye strain:
Focusing eyes at the same distance point for long periods of time causes
eye problem. The human eye structurally prefers to look at objects more
than six metres away, so any work performed close up puts extra
demands on your eye muscles.
The illuminated computer screen can also cause eye fatique therefore,
computer users may get symptoms such as blurred vision, temporary
inability to focus on faraway objects and headaches.
ii. Back pain:

Improper use of furniture and use of chair without back rest can cause
back pain which may result to miscarriage in pregnant women. User
must constitute the habit of using proper furniture with back rest.
iii. Finger strain and wrist pain:

Improper positioning of keyboard and using inability to rest the wrist on
the table when using the keyboard may lead to finger strain as well as
wrist pain.
iv. Repetitive Stress Injury (RSI):

This consists of wrist, hand, arm and neck injury resulting when muscles
are forced through fast and repetitive motion. Repetitive stress injury
can as well lead to damage to the nerves and tendons in the hands.
v. Obesity:
This is a state of being grossly fat or overweight due to prolong sitting
when using the computer system. Prolong use of the system will prevent
the user from doing regular exercise which may lead to obesity. To
prevent this, regular exercise is required to burn the excess fat.
c. The following are basic steps involved in forensic processes:
i. Preparation of investigation
ii. Collection of the data
iii. Examination of data
iv. Analysis of data
v. Reporting
This question tests candidates’ knowledge on safety and security in a work places as
well as steps involved in forensic processes.
This question is not popular among the candidates as less than 40% of the candidates
attempted it. The performance was very poor. The major pitfall is that the candidates
do not have ideas about the question.

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AT/211/PII.5 Examination No..................................

THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

PRINCIPLES AND PRACTICE OF FINANCIAL ACCOUNTING

5. Do not enter the hall with anything written on your docket.

6. Insert your examination number in the space provided above.

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

Time Allowed: 3 hours

SECTION A: PART I MULTIPLE-CHOICE QUESTIONS (30 Marks)

1 The implication of the entity concept to a sole trader is that the

A. Business can sue and be sued separately

2 In the final accounts of not-for-profit making organisation, capital expenditures

A. Profit or loss account

3. Making an allowance for receivables is an example of which concept?

The following also took place at that date

(i) Goodwill was valued at N4,000,000

5. The balance in Peter’s capital account after the adjustment is

6. Which of the following items is NOT correctly classified as an element of

8. Which of the following items is correctly matched in accordance with IASB

B. Verifiability Going concern

C. Faithful representation Comparability

D. Neutrality Faithful representation

Cash and cash equivalent 100

Trade payables 300

Loan notes (5 years) 300

The current and acid test ratios of the company is

Current Ratio Acid Test Ratio

12. In a Not-for-profit organisation, a debit balance on the subscription account is

14. Which of the following is NOT an account prepared by a Not-for-profit

15. An employee is entitled to 5% commission on the surplus of the club after

16. A capital receipt by a club or an association comprises of the following; EXCEPT

18. In which ledgers can data relating to discount be found?

22. Which of the following would NOT be found in a manufacturing account?

23. Use the following information to answer the question below

The profit for the period is

24. Which of the following would be treated as a cash outflow?

A. Bonus issue of shares

Use the following information to answer questions 26 and 27

26. The hire purchase price is

28. Which of the following statement is TRUE?

I. Foreseeable losses should be written off immediately in the period even

SECTION A: PART II SHORT-ANSWER QUESTIONS (20 MARKS)

ATTEMPT ALL QUESTIONS

2. The opening capital of a not-for-profit making organisation is called ……………

3. A legal document drawn up to regulate a partnership business is called ………..

Use the following information to answer questions 4 and 5

A company’s bank statement shows N715,000 direct debit and N353,000

4. The balance that appeared in the bank statement is…………….

9. An accounting adjustments made before year end to improve the appearance of

10. State the formula for acid test ratio.

11. The IFRS term for shareholder’s fund is ……………

12. Dividends payable on preference shares are reported in statement of ………..

13. Dividends paid on ordinary shares are reported in statements of ………….and

20. State TWO basic methods of invoicing goods to the branches.

SECTION B: ATTEMPT ANY FOUR QUESTIONS IN THIS SECTION (50 MARKS)

Capital at January 1, 2019 12,500,000

Cash in hand 241,400

Furniture and fittings 4,220,000