AT/221/PII.5 Examination No..................................

THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2022 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, mathematical set, etc to ensure that you do
not have prohibited items such as telephone handset, electronic storage
device, wrist watches, programmable devices or any form of written
material with you in the hall. You will be stopped from continuing with
the examination and liable to further disciplinary actions including
cancellation of examination result if caught.

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

6. Insert your examination number in the space provided above.
TUESDAY, 29 MARCH, 2022

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

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 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2022
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 totality of methods adopted by an economic entity for applying
fundamental accounting concepts to its financial transaction is
A. Accounting estimates
B. Accounting concepts
C. Accounting methods
D. Accounting basis
E. Accounting principles

2. In recording the values of a newly acquired non-current asset in the books

of economic entity, which of the following should be considered?
A. Depreciated value
B. Estimated value
C. Verifiable objective value
D. Conservative value
E. Set-off value
3. Just-in-time enterprises received GMD15,000 from a customer (Teniola
Amusan) and the amount was erroneously recorded on the credit side of
the Cash Book with the double entry completed in the customer’s account.
The correcting journal entries are
A. Dr. Teniola Amusan Account GMD15,000
Cr. Cash Book GMD15,000
B. Dr. Cash Book GMD15,000
Cr. Teniola Amusan Account GMD15,000
C. Dr. Cash Book GMD30,000
Cr. Teniola Amusan Account GMD30,000
D. Dr. Teniola Amusan Account GMD30,000
Cr. Cash Book GMD30,000
E. Dr. Suspense Account GMD30,000
Cr. Teniola Amusan Account GMD30,000

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Use the following to answer questions 4 - 6
Alex and Umaru are in partnership with the following relevant
information for the year ended 31 December, 2021.
Alex Umaru
N N
Fixed Capital 1,500,000 2,500,00
Current Account (Cr.) 400,000 600,000
Salary per annum 600,000 800,000
Interest on capital p.a 3% 3%
Drawings for the year 300,000 400,000
Interest on Drawings 4% 4%
Profit or loss sharing ratio 2:5 3:5
The net profit for the year ended 31 December, 2021 is N2,800,000
4. What is the distributable profit for the year ended 31 December, 2021?
A. N2,800,000
B. N2,772,000
C. N2,762,000
D. N2,708,000
E. N2,680,000

5. What is the net income realised by Alex from the partnership?

A. N1,624,800
B. N1,128,000
C. N1,120,000
D. N1,116,200
E. N1,083,200

6. The accounting entries to record Umaru’s share of profit from the

partnership for the year ended 31 December, 2021 are
A. Dr. Appropriation Account N1,083,200
Cr. Capital Account N1,083,200
B. Dr. Capital Account N1,083,200
Cr. Appropriation Account N1,083,200
C. Dr. Appropriation Account N1,624,800
Cr. Capital Account N1,624,800
D. Dr. Capital Account N1,624,800
Cr. Appropriation Account N1,624,800
E. Dr. Appropriation Account N1,624,800
Cr. Current Account N1,624,800

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7. The profit on hire purchase transaction is calculated, by the hire purchase
vendor as
A. Cash selling price less cost price
B. Hire purchase price less cost price
C. Hire purchase price less cash selling price
D. Cash selling price less higher purchase price
E. Cash selling price less deposits

8. Okoro, a non-governmental, not-for-profit organisation uses indirect

method to prepare its statement of cash flows. In determining its net cash
flow from operating activities Okoro must add back which of the following
A. Purchase of equipment and proceeds from sales of equipment
B. Amortisation and profit on sale of equipment
C. Loss on sale of equipment and depreciation
D. Proceeds on sales of equipment and depreciation
E. Amortisation and purchase of equipment

9. Master Company Limited’s closing inventory was over stated in the

financial statements for the year ended 31 December, 2021. What will be
the effect on the company’s cost of sales for the year?
A. Cost of sales will be over stated
B. Current year cost sales will be equal to previous year cost of sales
C. Cost of sales will be understated
D. Purchases will be greater than the cost of sales
E. Cost of sales will be greater than revenue

10. Accra Limited purchased land for GH¢450’000 as a factory site. An

existing building on the site was razed before construction began.
Additional information is as follows:
GH¢’000
Cost of razing old building 60
The insurance and legal fee to purchase 30
land
Architect fees 95
New building construction cost 1,850

What amount should Accra Limited capitalised as cost of the completed

factory building?
A. GH¢1,910,000
B. GH¢1,945,000
C. GH¢1,975,000
D. GH¢2,005,000
E. GH¢2,485,000

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11. The following information relates to Adatan Nigeria Limited’s Electricity
bills

Period Covered Amount Date Paid

Le’000
16 April – 15 May 5,000 1st June
16 May – 15 June 6,000 1st July
16 June – 15 July 8,000 1st August

Electricity bill accrue evenly over the month

What is the electricity bill outstanding for the company as at 30 June?

A. Le6,000,000
B. Le7,000,000
C. Le10,000,000
D. Le14,000,000
E. Le19,000,000

12. How is a bank overdraft classified in the statement of financial position?

A. Current liability
B. Non-current asset
C. Current asset
D. Non-current liability
E. Owner’s equity

13. Which of the following items are non-current assets?

I. Land
II. Machinery
III. Bank overdraft
IV. Inventory
A. I
B. I and II
C. I, II and III
D. II, III and IV
E. I, III and IV

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14. Which of the following is NOT true about the accounts of clubs and
societies?
A. A deficit on income and expenditure account reduces accumulated
fund
B. Income and expenditure account does not contain capital receipts
and expenditure
C. The excess of total assets over total liabilities represents
accumulated fund
D. The closing balance of receipts and payments account is not
transferred to income and expenditure account
E. The gains or losses on bar trading account is transferred to receipts
and payments account

15. When no partnership agreement exists, which of the following will govern
the partnership?

A. Trade laws
B. Constitution
C. Memorandum and articles of association
D. Partnership Act
E. Deed of agreement

16. Which of the following would result from an increase in the provision for
doubtful debts?

A. A decrease in gross profit

B. An increase in gross profit
C. A decrease in net profit
D. An increase in net profit
E. An increase in receivable figures

17. Calculate the interim profit where the final costs on a contract are
estimated at GH₵2,500,000, the contract price is GH₵3,500,000 and cash
received to date is GH₵2,625, 000

A. GH₵1,000,000
B. GH₵875,000
C. GH₵850,000
D. GH₵750,000
E. GH₵125,000

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18. Under IAS 2, which of the following is NOT permitted as a cost of
inventory?

A. Cost of Purchase
B. Cost of shipping transport and non-recoverable taxes
C. Cost of storage
D. Cost of Conversion including fixed and variable manufacturing
overhead.
E. Other costs incurred in bringing the inventory to present location
and conditions

19. Under IAS 16, what is an impairment loss?

A. The amount by which the market value of an asset exceeds the net
present value
B. The amount by which the carrying amount of an asset exceeds the
realisable amount
C. The difference between the fair value of an asset and the net
realisable value
D. The amount by which the carrying amount of an asset exceeds the
book value
E. The amount by which the market value exceeds the fair value

20. Which of the following is NOT true of the difference between salaries and
drawings of a sole-trader?

A. Salaries are charge against profit while drawing is a withdrawal of

income
B. Salaries reduces the amount of net income while drawings only
reduces equity
C. Salaries may be constant from month to month, Drawings are
usually unregulated
D. Salaries are subject to pay as you earn tax while drawings are
subject to personal income tax
E. Sometimes Drawings may be taken in kind - goods, while salaries
are usually taken in cash

21. Which of the following product is NOT exempted from VAT?

A. Agricultural Equipment
B. Basic food items
C. Pharmaceuticals and Medicals
D. Cements to repair government roads
E. Books or Educational materials

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22. When shares are issued at a bonus, which of the following accounts may
be affected?
I. Ordinary share capital
II. Preference share capital
III. Share premium
IV. Cash account

A. I and III
B. I, II and III
C. I and IV
D. I, II and IV
E. I, III and IV

23. Which of the following adjustment should be recognised retrospectively?

A. Recognition on change from cost method to revaluation method in

revaluation of property, plant and equipment
B. Change in the useful life of assets
C. Change in recognition of item from administration overhead to cost
of sales
D. Change in the allowances for bad and doubtful receivables
E. Reduction in the net realisable value of inventory below cost

24. The following balances were extracted from the account of Jebu Limited at
31 March 2020 and 31 March 2019.
31 March 2020 31 March 2019
L$ L$
Cash in hand 1,000 1,100
Cash at bank 20,402 -
Bank overdraft - 26,071

Calculate the net cash and cash equivalents for the period.
A. L$5,069
B. L$5,169
C. L$20,069
D. L$46,373
E. L$46,983

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25. Which of the following does NOT affect acid-test ratio?

A. Cash sales
B. Credit sales
C. Goods purchased on credit
D. Cash received from customers
E. Cash paid to suppliers

26. In the books of consignee, the sale of goods is credited to

A. Consignor’s account
B. Sales account
C. Consignee’s account
D. Consignment account
E. Goods sent on consignment account

27. On 30 Sept. 2019, a fire destroyed some of the company inventory and its
inventory records. Extracts from the company’s records:
GMD’000
Inventory on 1 Sept. 2019 159,000
Sales for Sept 2019 306,000
Purchases for Sept. 2019 206,000
Inventory in good condition @ 30 Sept. 2019 107,000

Standard gross profit on sales is 25%

What is the value of inventory lost?

A. GMD13,200,000
B. GMD28,500,000
C. GMD48,000,000
D. GMD135,500,000
E. GMD137,000,000

28. Which of the following sets of items will appear on the same side of the
Trial Balance of a company?
A. Revenue, prepayments, share capital
B. Receivables, drawings, non-current assets
C. Sundry expense, interest received, commission paid
D. Share premium, office expenses, salaries & wages
E. Other income, interest paid, cash and bank

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29. The opening inventory of a firm at the beginning of the financial year is
Le300,000 and at the end of the financial year it is Le200,000 while the
turnover and purchases are Le3,500,000 and Le2,500,000 respectively.

What is the gross profit or loss?

A. Le900,000 loss
B. Le900,000 profit
C. Le500,000 profit
D. Le200,000 profit
E. Le100,000 loss

30. Which of the following disclosure is NOT required under IAS 1?

A. A description of the entity’s operation and its’ principal activities
B. The level of rounding used in presenting the financial statements
C. Name of the reporting entity
D. Name of major shareholders of the entity
E. The measurement basis used in preparing financial statement

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

ATTEMPT ALL QUESTIONS
Write the correct answer that best completes each of the following questions/statement:
1. An expenditure which would normally be treated as revenue expenditure
but is not written off in one period is called …………….

2. An error in Trial Balance where an account which should have been

debited was credited while an account that should have been credited was
debited with similar amounts is called ………………….

3. An accounting concept that says every transaction has two folds, for every
credit, a corresponding debit is made is called ……………..

4. The accounting entries to record goods bought for sale on credit later
returned are …………………. and …………………

5. The principal who owns the goods and sends them to an agent for sale is
called ………………..

6. The accounting ratio that shows the relationship existing between the
shareholders’ fund and long-term liabilities is called ………………..

7. With regards to a not-for-profit organisation, a debit balance on the

subscription account is reported in ………………. Account

8. The fact that provisions are made against doubtful debts upholds the
concept of ………………….
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9. TWO standard headings in statement of cash flows according to IAS 7 is
……………….. and …………………………..

10. When a partnership is converted into a company, the purchase

consideration could be in the form of ………………………….. and
……………………………..
11. TWO reasons why partners of a firm may decide to dissolve a partnership
are ………… and …………...
12. The condition where a company increases its sales revenue without having
adequate financial capacity to cope with rate of expansion is
called………………………………..
13. Which users of financial statement will be interested in the gearing ratio
of a company?
14. The necessary accounting entries required to record the cash sale price of
the goods on hire when Hire Purchase Interest suspense account method is
used are ………………... and ………………..
15. The necessary accounting entries required to record profit on goods sent
to branch when adjustment account method is used are ……………..
16. In partnership business, state the condition(s) that will warrant the
preparation of Revaluation account and Realisation account respectively.
17. The formula for the computation of rate of return on sales or profit margin
is ……………….
18. Loss on revaluation of property, plant and equipment is recognised in the
statement of ……………….

19. Income received in advanced is shown as ………………. in the statement of

financial position?

20. An account that an entity prepares, when it sends goods to another person
to sell or return on its behalf is called ………….

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SECTION B: ATTEMPT ANY FOUR QUESTIONS (50 MARKS)
QUESTION 1

On 31 July, 2019, SuperV Limited appointed Jude as its sales agent in Akwa. On
15 August, 2019 SuperV sent 400 computer laptops to Jude to be sold on behalf
of SuperV Limited The cost of one computer laptop was Le60,000, but was
invoiced to Jude at Le70,000. SuperV Limited incurred Le1,000,000 on freight
and insurance. Jude received the consignment on 10 August 2019 and accepted a
draft drawn on him by SuperV Limited for Le16,000,000. Jude paid Le52,500 as
rent and Le12,500 as insurance.

By 31 March 2020, Jude had disposed 320 laptops at Le82,000 each. Jude is
entitled to a commission of 5 percent on sales including a del credere
commission of 1 percent.
You are required to:
Prepare the following ledger accounts in the books of SuperV Limited.
a. Consignment to Jude’s account (51/2 Marks)
b. Goods on consignment account (11/2 Marks)
c. Consignment inventory account (11/2 Marks)
d. Bills receivables account (11/2 Marks)

e. Jude’s account (21/2 Marks)

(Total 121/2 Marks)

QUESTION 2
The main objective of International Accounting Standard (IAS) 2 is to prescribe
the acceptable accounting treatment for inventories when an economic entity is
presenting its Final Accounts.
a. Define Net Realisable Value of Inventories according to IAS 2. (21/2
Mark)

b. According to IAS 2, state FIVE items that must NOT be included in the
measurement of inventory in the books of an economic entity. (5
Marks)

c. What are the Disclosure Requirements for inventories according to IAS 2?

(5 Marks)
1
(Total 12 /2 Marks)

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QUESTION 3

a. Identify and explain FOUR key issues that should be covered in a

partnership agreement when setting up a partnership. (4 Marks)

b. Edo and Rivers are in partnership sharing profit and loss in the ratio of
2:1. They had originally invested N2,500,000 and N2,000,000
respectively. Their current account balance on 1 January 2019 were
N700,000 credit for Edo and N495,000 debit for Rivers.

The partnership agreement specify the following:

(i) The payment of interest on drawings and receipts of interest on

capital at the rate of 5% p.a. and 3% p.a. respectively.
(ii) The partners receive drawings in the same proportion as they share
profit or losses. Edo receives drawings of N120,000 a month with
Rivers taking the amount of drawings as allowed by the partnership
rules.
(iii) Rivers is entitled to take a salary of N100,000 a month.
(iv) The interest on drawings is calculated as if the drawings for the six
month period had been taken in full on the first day of the period.

On 1 July 2019 Edo decides to retire. Both partners agree to have the
partnership valued and bring in the resultant goodwill into the
partnership. Edo agrees to leave N1,500,000 of his capital as a loan to the
business earning interest at the rate of 4% p.a and to withdraw the
balance of what is due to him. An independent expert values the goodwill
on 1 July, at N4,500,000.

On 1 July, 2019 ‘Rivers’ decides to enter a new partnership with ‘Ogun’

where they share profit or losses in the ratio of 3:1. They decided to keep
the same interest rates from the previous partnership agreement in
relation to drawings and capital. Rivers salary was changed to N110,000 a
month from this period to the year end. Rivers took drawings of N500,000
and Ogun took drawings of N250,000. Ogun introduced capital of
N1,250,000 on his admission to the partnership. The goodwill was
cancelled in the same proportion as they share profit or losses.

The profit for the year amounted to N5,400,000 and this profit accrued
evenly throughout the year.

Required:
Prepare the profit or loss appropriation accounts for the year ended 31
December 2019 in columnar form. (8½ Marks)
(Total 12½ Marks)

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QUESTION 4
The following is a summary of the cash book of the Likeminds Club for the
year ended December 31, 2019
RECEIPTS GH¢ PAYMENTS GH¢
Bank balance - 1/1/19 838,000 Bar wages 1,000,000
Annual subscription 2,820,000 Bar purchases 1,900,000
Entry fees 706,000 Rent 3,300,000
Gala night ticket sales 240,000 Secretary allowance 360,000
Bar sales 3,150,000 Cost of gala night 140,000
Donation by a Patron 2,000,000 Competition prizes 585,000
Treasurer honorarium 600,000
Club house repair 40,000
New members night 100,000
Purchase of furniture 600,000
Bank balance 31 Dec 1,129,000
9,754,000 9,754,000

Examination of the club’s records disclosed the following:

(i) The assets of the club at January 1, 2019 were furniture

GH¢1,500,000 and bar inventory GH¢210,000.

(ii) Membership subscriptions for the year ending December 31, 2019 in
arrears was GH¢360,000.

(iii) On December 31, 2019 the bar inventory was GH¢150,000 and
GH¢40,000 as owing for bar purchases.

(iv) The rent paid during the year was paid in December and was for 5
years beginning from January 1, 2020.

(v) Depreciation on furniture is 10% per annum.

Required:
a. Prepare an income and expenditure account for the year ended
December 31, 2019; and (61/2 Marks)

b. Statement of financial position as at December 31, 2019.

(6 Marks)
(Total 12½ Marks)

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QUESTION 5

a. Distinguish between Accounting Concepts and Accounting Conventions

(3½ Marks)
b. State and explain FIVE accounting concepts (5 Marks)

c. State and explain FOUR Accounting Conventions (4 Marks)

(Total 12½ Marks)

QUESTION 6
The following Trial Balance relates to the operations of Kafo Limited for the
year ended 31 December, 2019

DR CR
L$'000 L$'000
Revenue 98,200
cost of sales 51,000
Admin expenses 31,350
Building at cost 120,500
Equipment at
cost 26,500
Motor vehicle at cost 17,200
Accumulated depreciation
1/1/2019 28,500
Accumulated depreciation
1/1/2019 5,600
Accumulated depreciation
1/1/2019 8,160
10% Preference shares 20,000
Ordinary shares of ₦1
each 70,000
10% loan notes 30,000
Inventory 31/12/2019 27,220
Receivables 18,610
Loan interest 1,500
Bank 8,390
Trade payables 11,370
Share premium 14,000
Dividend paid on ordinary shares 3,500
Preference dividends paid 2,000
Retained earnings
1/1/2019 21,940
307,770 307,770

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The following information is also relevant

(i) Accrued loan interest is L$1,500,000

(ii) Preference shares is treated as debt instrument
(iii) Estimate of income tax expense is L$3,000,000

You are required to prepare for Kafo Limited:

a. Statement of profit or loss for the year ended 31 December 2019 (4 Marks)

b. Statement of changes in equity for the year ended 31 December 2019

(3 Marks)
c. Statement of financial position as at 31 December 2019 (51/2 Marks)

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SOLUTIONS - MCQ

1 D

2 C

3 C

4 D

5 D

6 E

7 A

8 C

9 C

10 D

11 C

12 A

13 B

14 E

15 D

16 C

17 D

18 C

19 B

20 D

21 D

22 A

23 A

24 D

25 D

26 C

27 B
28 B
29 B
30 D
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WORKINGS
4. Net Profit 2,800,000

Add: Int. on drawings:

A 12,000

U 16,000

28,0000

Less: Int. on capital: 2,828,000

A 45,000

U 75,000 120,000

Adjusted profit 2,708,000

Share of profit

A = 2/5 x 2,708,000 1,083,200

U = 3/5 x 2,708,000 1,624,800

2,708,000

5. 1,083,200 + 4,500- 12,000 = N1,116,200

11 [6,000,000 + ½ (8,000,000)] = N10,000,000]

27 [159,000 + 206,000 – 107,000 – (75% X 306,000) = N28,500

29 Turnover 3,500,000
Opening inventory 300,000
Add: Purchases 2,500,000
2,800,000
Less: Closing inventory 200,000 2,600,000
Gross Profit 900,000

Examiner’s report
This question tests candidates’ knowledge on all the areas of the syllabus. It is a
compulsory question. Their performance was good. Candidates’ major pitfall
was their poor preparation for the examination.

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PART II - SHORT ANSWER SOLUTION

1. Deferred Revenue Expenditure

2. Complete Reversal of Entries

3. Dual or double Aspect concept

4. Dr Trade Payables Account

Cr Return outward/Purchases Return Account

5. Consignor
6. Gearing ratio or debt/equity ratio

7. Statement of financial position

8. Prudence or conservatism

9. Operating activities, Investing activities, financing activities, cash and cash

equivalents (Any two).
10 Component of purchase consideration
 Cash and cash equivalent
 Cash
 Issues of shares to the partners
 Issue of debentures
 Liabilities taken over
11. Two reasons for dissolution of partnership
 The death of partner
 The bankruptcy of partner,
 The lunacy of a partner.
 Misunderstanding among the partners
 A withdrawal of a major technical partner which handicapped the
partnership financially
 Withdrawal of technical partners
 The business, which partnership is involved, declared illegal
 The partnership is no longer doing well and cannot be revamped

12. Over-trading

13. Lenders and Creditor

14. Dr Hire Purchase Receivables Account or Hirer/ Cr Hire purchase sales

account

15. Dr. Branch Inventory Account

Cr. Branch Adjustment Account

19
16. Revaluation Account can be prepared under any of the following situations
in a going concern partnership.
 When assets has been fully depreciated but still remain productive
 When there is a strong belief that the book value does not reflect its
current economic value
 When there is a change of interest
 When partners(s) is/(are) admitted
 When partners retire
 When partnership businesses are amalgamated
Realisation Account can be prepared under any of the following
situations in a partnership business.
 When partnership businesses are amalgamated
 When partnership business is dissolved
 When partnership is converted to Limited Liability Company
 When there is absorption of partnership

17. Profit/Revenue x 100

18. Statement of Profit or Loss

19 Current Liabilities

20. Consignment account

Examiner’s report
The question tests candidates’ knowledge on all the areas of the syllabus. All the
candidates attempted the question and their performance was good Candidates’
observed major pitfalls were their poor preparation for their examination.

20
 SECTION B

SOLUTION 1

In the Book of the Consignor - SuperV Limited

a. Consignment to Jude's Account
Consignor: Le Le
Goods on Consignment 28,000,000 Sales 26,240,000
Freight and Insurance 1,000,000 Closing Inventory 5,813,000
Consignee:
Rent 52,500
Insurance 12,500
Commission on sales 1,312,000
Del-credere Commission 262,400
Gross Profit - SOPL _1,413,600 ___________
32,053,000 32,053,000

b. Goods on Consignment Account

Le Le
Consignment Inventory 28,000,000 Consignment to Jude 28,000,000

Consignment Inventory Account

c. Le Le
Goods on
Trading Account 5,813,,000 Consignment 5,813,,000

d. Bills Receivables Account

Le Le
Consignee - Jude's
Account 16,000,000 Balance c/d 16,000,000
Balance b/d 16,000,000

e. Consignee - Jude's Account

Le Le
Sales - 320 laptops 26,240,000 Rent 52,500
Insurance 12,500
Commission on sales 1,312,000
Del-credere
Commission 262,400
Bills Receivables 16,000,000
___________ Bank _8,600,600
26,240,000 26,240,000

21
 Workings

i Choosing inventory

Goods on consignment 28,000,000

Freight and Insurance 1,000,000

Rent 52,500

Insurance 12,500

29,065,000

=29,065,000 x 400 - 320

= 72,662.50 x 80= 5,813,000

ii Commission on sales

5% of 26,240,000

= 1,312,000
iii Del-credre commission

1% of 26,240,000

= N262,400

Examiner’s report
The question tests candidates’ knowledge on the preparation of various ledgers
relating to consignment accounts.

About 95% of the candidates attempted the question and their performance was
below average.

Major pitfalls of the candidates were their poor understanding of consignment

accounts. Candidates should prepare well for future examination.

22
SOLUTION 2

a. Net Realisable Value of inventories is the estimated selling price in the

ordinary course of business, less the estimated cost of completion and
estimated costs necessary to make the sale.

b. In the measurement of inventories the following must not be included

(i) Abnormal waste
(ii) Storage cost
(iii) Administrative overheads unrelated to production
(iv) Selling cost
(v) Foreign exchange differences arising directly on the recent
acquisition of inventories invoiced in foreign currency.
(vi) Interest cost when inventories are purchased with deferred
settlement terms

c. Disclosure Requirement for inventories according to IAS2

(i) Accounting policy for inventories

(ii) Carrying amount, generally classified as merchandise, supplies,
materials, work-in-progress and finished goods. The classification
depend on what is appropriate for the entity
(iii) Carrying amount of any inventories carried at fair value less cost to
sell.
(iv) Amount of any write-down of inventories recognized as an expense
in the accounting year.
(v) Amount of any reversal of a write-down to Net Realizable value and
the circumstances that led to such reversal.
(vi) Carrying amount of inventories pledged as security for liabilities.
(vii) Cost of inventories recognized as expense (Cost of goods sold).

Examiner’s report
The question tests candidates’ knowledge on provisions of International
Accounting Standards (IAS) 2 (Accounting for inventories).

About 70% of the candidates attempted the question and their performance was
below average.

Candidates’ major pitfalls were their poor understanding of IAS 2 (Accounting

for inventories).

Candidates are advised to prepare well for future examinations.

23
SOLUTION 3
a. The following are the key issues that should be covered in a partnership
agreement when setting up a partnership:
i. Capital: The agreement would indicate whether each partner should
contribute a fixed amount of capital or not and how much each partner
should contribute.
ii. Profit Sharing: How profits and losses should be shared among the
partners will be spelt out; whether they are capital or revenue profits or
losses.
iii. Interest on capital and drawings: Whether interest on capital or drawings
should be allowed or charged before arriving at divisible profits, and if so
at what rate.
iv. Interest on loan by partners: The rate of interest payable on any loan
advanced by any of the partners.
v. Whether current accounts are to bear interest, and if so at what rate;
vi. Whether partners’ drawings are to be limited in amount so that the
current account does not turn into debit balance or not;
vii. Whether partners are entitled to remuneration for their services
before arriving at divisible profits and if so what amounts and which of
the partners;
viii. How the books of account would be kept and where they should be
kept.
ix. The method for the valuation of assets i.e. goodwill in case of an incoming
or outgoing partner;
x. The method and procedures for settlement of disputes;

24
b. Edo, Rivers and Ogun
Profit or Loss Appropriation Account for the year ended December 31, 2019
Jan. - June (6months) July - Dec. (6months) Jan. - Dec. (12months)
N N N N N N
Net Profit for the year 2,700,000 2,700,000 5,400,000
Less: Interest on loan ____-____ _(30,000) _(30,000)
Adjusted Net Profit 2,700,000 2,670,000 5,370,000
Interest on Drawings:
Edo 18,000 - 18,000
Rivers 9,000 12,500 21,500
Ogun ____-____ ___6,250 ___6,250
Profit avail. for appropriation 2,727,000 2,688,750 5,415,750
Deduct:
Interest on Capital:
Edo 37,500 - 37,500
Rivers 30,000 30,000 60,000
Ogun - 18,750 18,750
Partner's Salary - Rivers 600,000 (667,500) 660,000 (708,750) 1,260,000 (1,376,250)
Divisible Profit 2,059,500 1,980,000 4,039,500
Share of Profit:
Edo 1,373,000 - 1,373,000
Rivers 686,500 1,485,000 2,171,500
Ogun ____-___ _495,000 _495,000
(2,059,500) (1,980,000) (4,039,500)
______NIL ______NIL ______NIL

Examiner’s report
The question tests candidates’ knowledge on the preparation of partnership
appropriation accounts in columnar form.

About 40% of the candidates attempted the question and their performance was
below average.

Candidates’ major pitfall was their poor understanding of Partnership

appropriation accounts in columnar form.

Candidates are advised to prepare well for the future examination.

25
SOLUTION 4
LIKEMINDS CLUB
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER,2019
N N
Secretary allowance 360,000 Subscription 3,180,000
(2,820 +360)
Cost of gala night 140,000 Entry fee 706,000
Competition prizes 585,000 Sales of ticket 240,000
Treasurer honorarium 600,000 Profit from 150,000
bar
Club house repair 40,000 Donation 2,000,000
New members’ night 100,000
Depreciation on furniture 210,000
2,035,000
Net surplus 4,241,000
6,276,000 6,276,000
17 ticks at ¼ mark = 41/4 Marks

LIKEMINDS CLUB
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER, 2019
N N N
Non-current asset Cost Depreciation NBV
Furniture 2,100,000 210,000 1,890,000
Current assets
Bar inventory 150,000
Subscription in arrears 360,000
Bank 1,129,000
Rent in advance 3,300,000
4,939,000
Current liabilities
Bar creditors 40,000 4,899,000
6,789,000
Represented by
Accumulated fund 2,548,000
Add: Net surplus 4,241,000
6,789,000
17 ticks at ¼ Mark = 41/4 Marks

26
 BAR TRADING ACCOUNT
N N N

Opening inventory 210,000 Sales 3,150,000

Add: Purchases 1,900,000
Add: Accrued purchases 40,000 1,940,000
2,150,000
Less: Closing inventory 150,000
2,000,000
Add: Bar wages 1,000,000
3,000,000
Profit taken to income & 150,000
expenditure
3,150,000 3,150,000

16 ticks at ¼ Mark = 4 Marks

Examiner’s report
The question tests candidates’ knowledge on the preparation of financial
statements for not-for-profit organisations.

About 60% of the candidates attempted the question and their performance was
above average.

Major pitfall of the candidates was poor preparation for the examination.
Candidates are advised to prepare well before writing future examination.

SOLUTION 5

a. Difference between Accounting Concepts and Accounting Conventions

Accounting concepts are basic assumption, postulations or ideas adopted and
used in accounting practice for the preparation of financial statements. They
are said to be the broad basic assumptions used in preparing the periodic
financial accounts of a business. It can be defined as those sets of rules and
regulations guiding the way and manner in which financial transaction of an
entity are to be recorded, analyzed and interpreted to the management and
other users for the purpose of making an economic decision.

Accounting Conventions on the other hand are generally accepted approaches

to the application of the concepts. They are those set of rules and regulations
guiding the way and manner in which conflicts arising as a result of the
application of two or more accounting concepts are to be resolved.

27
b. State and Explain Five Accounting Concepts
i. Business Entity or Entity Concept
ii. Dual Aspect concept
iii. Matching concept
iv. Accrual concept
v. Money measurement concept
vi. Realisation or Recognition concept
vii. Historical cost concept
viii. Going concern concept
ix. Stable Monetary Concept
x. Periodicity or Time Interval Concept
xi. Cost concept

1. MONEY MEASUREMENT: This state that events that are recorded, in any
business organization are those that can be expressed in monetary term in
order words; in naira and kobo. Measuring items in terms of money is
objective and does not rely on personal opinions. There are many aspects
of a business which do not appear in the accounting records because they
cannot be measured in terms of money. The value of a good manager, a
loyal workforce and high staff morale are of great benefit to a business.

2. STABLE MONETARY CONCEPTS: In other for people to have Confidence

in the way they record, there is an assumption that the value of money
will be stable whenever events are being expressed in monetary terms.

3. HISTORICAL CONCEPTS: the amounts that are recorded in accounting are

normally real amount. In other words, they are truthful and actual figure.
They are amount that has already occurred and are recorded as certainty.
All these are done in other for people to have confidence in the financial
report.

4. GOING CONCERN: Accounting always assumes that the business will

continue to operate for an indefinite period of time. The final account of a
business are prepare on the basis that there is no intention to close down
the business or to reduce the size of the business by any significant
amount. Therefore, accounts are prepared on the basis that the business
will continue to operate for an indefinite period of time e.g. the fixed
assets of a business appear in the balance sheet at the book value.

28
5. BUSINESS ENTITY: For accounting purpose, the business is traded as
completely separate from the owner of that business. There are distinct
between the business and the owner. The business is regarded as an
artificial person in other words, as a party or entity that can sue and can
be sued. It can own property and be liable. The owner’s personal assets,
the owner’s personal spending etc. do not appear in the accounting records
of the business. The only time that the personal transaction appears in the
accounting records of the business, when the business is also affected.
This can occur when the owner introduces capital into the business and
when he/she makes drawings from the business. In the books of the
business, capital introduced will appear as a credit in the capital account
showing the funds coming from the owner who thus becomes a “creditor”
of the business. Drawings are debited to the owner’s account in the books
of the business showing the amount going to the owner and so reducing
the indebtedness of the business to the owner.

6. PERIODICITY OR TIME INTERVAL: This concept is telling us that there

must be a specified period of time when the business will want to find out
whether or not its objective has been achieved. This period of time is
common to all business. It is called financial year and is normally 12
months calendar year.

7. ACCRUAL CONCEPT: During the period when we want to determine

whether the objective of the business have been achieved or not, the
expense used is the expenses incurred and not expenses paid. That is
income and expenses are recognized when earned and incurred and not
when received and paid for.
 Expenses incurred = expenses paid + expenses incurred but not yet paid
– expenses paid but not yet due.
 Income earned = income received + income due but not yet received –
income received but not yet due.

8. RECOGNITION OR REALISATION: This concept is telling us about the

point at which recognition is given to both income and expenses. It is
important that a profit is only recorded when it has actually been earned.
Profit is not regarded as being earned when the customer actually pays for
the goods or services. In accounting, profit is regarded as being earned at
the time the goods or services pass to the customer. Realization concept
states that sales are recognised when the ownership of goods sold and
legal liability to pay passes to the customer. Revenue relates to the output

29
 of goods and services. In most cases revenue is recognised when goods are
delivered or services rendered. In some cases revenue is recognised:
i. During production
ii. When production is completed or
iii. When cash is collected.

9. MATCHING CONCEPT: It states that at the end of a define period the

expenses are deducted from income of the same period in order to
calculate the profit. The figure shown in the trading and profit and loss
account should relate to the period of time covered by that account
irrespective of the actual amount paid or received. It is therefore,
necessary to adjust the items of income and expenses for amounts prepaid
or accrued.

10. DUALITY: This is the rule guiding how our transactions are recorded.
Tells us that every transaction must be recorded twice; the first entry is
called the debit while the other is called credit entry. The term double
entry is used to describe how the dual aspect of all transactions is
recorded.

11. COST CONCEPT: This concept holds that all assets of the enterprise are
recorded in the account at costs i.e. purchase price. In other words, at any
moment in time the value recorded in books do not necessarily reflect the
current value of the assets.

c. State and Explain Four Accounting Conventions

1. Materiality
2. Consistency
3. Fairness
4. Prudence or conservatism
5. Objectivity
6. Substance over form
7. Disclosure

1. MATERALITY: This rule means that in the application of the accounting

concept, the items that are accorded the specific rules are those that are
significant. In most cases, significant has something to do with size of the
transactions. What is significant in a business may not be treated as being
significant in another business. The accountant must be practical and must
consider the relative importance of data; the decision as to what is

30
 material and what is unimportant require judgment rather than inflexible
rules.

2. CONSISTENCY: In some areas of accounting, a choice of method is

available e.g. depreciation. The accounting method which is likely to give
the most realistic outcome should be selected. Once a certain method is
chosen it should be applied consistently from year to year. Changing to a
different method would lead to profits being distorted and would make
comparism of the financial results of different years impossible e.g. a
company cannot use a straight-line method of calculating depreciation in
one year and suddenly change to the use of reducing balancing method in
another year.

3. FAIRNESS: This is an extension of the objectivity principle this rules state

that when we are keeping records, analyzing and interpreting it, we
should realize that many parties will make use of the records. When such
records are being interpreted accountant must ensure that none of the
parties involved is favored. In other words, we should not be biased or
manipulate the record to favor any party.

4. PRUDENCY OR CONSERVATION: The following phrase is often used to

describe this concept “never anticipate a profit but provide for all possible
losses”. The accountant should be cautious and always avoid overstating
profit, overvaluing assets and understating liabilities. Profit should always
be recognized when it is reasonably certain that they will be realized, and
all known liability should be provided for. If it seems likely that a
proportion of the debtors will not pay their accounts, this expected loss
should be anticipated by making a provision for doubtful debts. The term
“prudence prevails” is often used as this concept overrides (overrules) the
other entity concept. In a situation where applying one of the other
concepts would go against prudence, then the concept of prudence is
applied in preference to the other concept e.g. under the realization
concept, profit is regarded as being earned when the goods pass to the
customer after the debt has been owing for some time, the prudence
concept may override this and the debt may be written off.

5. OBJECTIVITY: This rule is telling us that we should be very objective

during the course of recording and preparing financial statement and the
interpretation of the statement there is need to be uniformity in the
acceptance of opinion expressed and the content of the financial statement
prepared. For statement to be universally acceptable, such statement must

31
 be factual. It is the statement that is based on historical that can have
above properties.

6. SUBSTANCE OVER FORM OR REALITY OVER LEGALITY: This principle

holds that although business transaction are usually governed by legal
principles, they are nevertheless accounted for and presented in
accordance with their substance and financial reality and not merely with
legal form. This principle emphasizes the need to present information
based on reality, which in certain situation will deviate from the
expectation of the owner of the business. It is ideal for us to place reality
above legality. E.g. if an asset is purchased on hire purchase, it is recorded
in the books, but legally the asset could be recovered if there is any default
in payment of any installment.
Traditionally, there are two competing views of accounting.

a) The legal view

b) And the economic view.

According to the legal view, accounting should reflect the legal nature of
transactions, whereas under the economic view, it should reflect their
economic substance.

To show the opposition between these two approaches let us consider the
case of financial leases, such as leases that give the lessee the right to
acquire the lease asset by the end of the lease term.

i. According to the legal view of accounting the leased asset should be

recognized in the balance sheet of the lessor because as long as title has
not been transferred, the lessor has the ownership of the asset.
ii. According to the economic view of accounting, the relevant issue is not
who has the ownership title but bears the risks and rewards incidental
to the ownership of the asset. In a financial lease contract, these risk
and rewards have been transferred to the lessee at the inception date.
The leased asset should thus be recognised in the balance sheet of the
lessee.

In a nutshell, the substance over form convention requires that transaction

be accounted for and presented in accordance with their substance and
economic reality and not merely their legal form. In order words, the
economic view of accounting prevails over the legal view.

32
7. DISCLOSURE: This means that the financial statement should be prepared
in such a way that it fairly discloses all material information to the users
so as to help in taking rational decisions.

Examiner’s report
The question tests candidates’ knowledge on Accounting concepts and
Accounting conventions.

About 60% of the candidates attempted the question and their performances
was good.

Candidates’ major pitfall was their poor understanding of the tested area of the
syllabus.

Candidates are advised to adequately cover the syllabus when preparing for the
examination.

SOLUTION 6

Kafo Limited
Statement of Profit or Loss for the year ended December 31, 2019
L$'000 L$'000
Revenue 98,200
Cost of Sales (51,000)
Gross Profit 47,200
Administrative Expenses (31,350)
Profit from operation 15,850
Finance Cost/Interest Expenses:
Loan Interest (1,500 + 1,500 3,000
Preference dividends paid 2,000 (5,000)
Profit Before Taxation 10,850
Income Tax Expenses (3,000)
Profit for the year 7,850
Kafo Limited
Statement of Changes in Equity for the year ended December 31,
2019
Ordinary Share Retained Total
Share Premium Earnings

₦'000 ₦'000 ₦'000 ₦'000

Balance 1/1/2019 70,000 14,000 21,940 105,940
Dividend paid -3,500 -3,500
Profit for the year 7,850 7,850
Balance31/12/2019 70,000 14,000 26,290 110,290

33
 Kafo Limited
Statement of Financial Position as at December 31, 2019
Cost Acc. Depr. C. Amount
Non-Current Assets: L$'000 L$'000 L$'000
Building 120,500 (28,500) 92,000
Equipment 26,500 (5,600) 20,900
Motor Vehicle 17,200 (8,160) __9,040
164,200 (42,260) 121,940
Current Assets
Inventories 27,220
Receivables 18,610
Bank 8,390
Total Current Assets 54,220
Total Assets 176,160
Equity and Liabilities:
Ordinary Share Capital of N1
each 70,000
Share premium 14,000
Retained earnings _26,290
Total Equity 110,290
Non-Current Liabilities:
10% Loan Notes 30,000
10% Preference Shares 20,000
Total Non-Current Liabilities 50,000
Current Liabilities:
Trade Payables 11,370
Accrued Loan Note Interest 1,500
Income Tax Payables _3,000
Total Current Liabilities 15,870
Total Liabilities _65,870
Total Equity and Liabilities 176,160

Examiner’s report
The question tests candidates’ knowledge on the preparation of simple financial
reports of a company (Income statement, statement of changes in equity and
statement of financial position).
About 80% of the candidates attempted the question and their performance was
good.

Major pitfall of the candidates was their poor preparation for the examination.
They are advised to prepare adequately for the Institute’s examination.

34
AT/221/PII.6 Examination No............................
THE ASSOCIATION
THE OFOF
ASSOCIATION ACCOUNTANCY BODIES
ACCOUNTANCY IN IN
BODIES WEST AFRICA
WEST
AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

ACCOUNTINGMARCH TECHNICIANS SCHEME, (PART
2022 EXAMINATIONS WEST AFRICA
II)
SEPTEMBER 2021 EXAMINATIONS (PART 1)
PUBLIC SECTOR ACCOUNTING
BUSINESS LAW
PLEASE READ THESE INSTRUCTIONS BEFORE COMMENCEMENT OF THE PAPER
PLEASE READ THESE INSTRUCTIONS BEFORE COMMENCEMENT OF THE
EXAMINATION INSTRUCTIONS
PAPER
1. All solutions should be in ink. Any solution in pencil will not be marked.
EXAMINATION INSTRUCTIONS
2. Read all instructions on each part of the paper carefully before
1. All solutions should be in ink. Any solution in pencil will not be
answering the questions.
marked.
3. Ensure that you do not answer more than the number of questions
2. Read all instructions on each part of the paper carefully before
required for Section B (The Essay Section).
answering the questions.
4. Check your pockets, purse, mathematical set, etc, to ensure that you do
3. Ensure that you do not answer more than the number of
not have prohibited items such as telephone handset, electronic storage
questions required for Section B (The Essay Section).
device, wrist watches, programmable devices or any form of written
4. material on you
Check your in the
pockets, examination
purse hall. Yousets
and mathematical willboxbetostopped
ensure from
continuing
that you dowith the examination
not have any cell phoneand liable to
or written further
material disciplinary
with you
actions including cancellation of examination result if caught.
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.
5. Do not enter the hall with anything written on your docket.
6. Insert your examination number in the space provided above.
6. Insert your examination number in the space provided above.
WEDNESDAY, 30 MARCH, 2022
TUESDAY, 28 SEPTEMBER, 2021

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

35
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2022
PUBLIC SECTOR 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. Which of the following is NOT an objective of Medium Term Expenditure

Framework (MTEF)
A. To make public expenditure more efficient and effective
B. To increase greater political accountability for expenditure outcomes
through good decision making
C. To improve inter and intra sectoral resource allocation by effective
prioritising all expenditures
D. To improve macroeconomic balance, fiscal discipline through good
estimates of available resources
E. To ensure accounting officers have enough to spend by using
increment methods

2. Which of the following CANNOT arise where there is loss of funds

A. Misappropriation of funds and fraud

B. Falsification of records
C. Theft
D. Reduction in value of exchange currency
E. False claim

3. Which of the following is NOT emphasised in the Fiscal Responsibility Act

2007?

A. Preparation of Medium Term Expenditure Framework

B. Collection of public revenue
C. Public expenditure
D. Transparency and accountability
E. Loss of stores

4. Which of the following budgeting methods is currently being adopted by

Extra-Ministerial Departments (MDAs)

A. Zero base budgeting system

B. Incremental budgeting system
C. Rolling plan budgeting system
D. Programme performance budgeting system
E. Cash basis budgeting system
36
5. Which of the following is NOT a concept of Financial Control in the Public
Sector?

A. Budgeting for public revenue and expenditure over a period of time

B. Recording the revenue collected and the expenditure incurred
C. Comparing actual results with set targets
D. Establishing Systems for flow of information and control
E. Posting Finance officers to Federal pay offices

6. Which of the following constitutional provision does NOT insulate the

Auditor General from being compromised?

A. The Auditor General shall not be subject to the direction or control

of any other authority or person
B. The Auditor General shall not be removed from office before his
retiring age
C. The Auditor General's remuneration shall be drawn on the
consolidated revenue fund
D. The Auditor General's salaries, remuneration and other conditions of
service other than allowances shall not be altered to his detriment
E. The Auditor General shall be responsible for the preparation of the
financial statements

7. The Accountant–General of the Federation prepares and present Financial

Statements to the relevant and appropriate authorities. Which of the
following is NOT included in the content of the report

A. Statement 1: Statement of Cashflow

B. Statement 2: Statement of Assets and Liabilities
C. Statement 3: Statement of Consolidated Revenue Fund
D. Statement 4: Statement of Development Fund
E. Statement 5: Statement of Public Debt and Personnel Cost

8. Which of the following conditions is NOT necessary for capturing an

employee on the IPPIS platform?

A. New Appointment
B. Statutory Appointment
C. Acting Appointment
D Retirement from Service
E. Political Appointment

37
9. Which of the following uses Monetary and Fiscal Policies as a means of
control over Public Expenditure of the government?

A. Ministry of Finance
B. The Treasury
C. The Legislature
D. The Executive
E. Ministries and Extra-Ministerial Departments

10. In line with Annual Estimate, Distributable Pool Accounts is made up of

the following Revenues:

A. Heads 1, 2, and 3
B. Heads 2, 3, and 4
C. Heads 3, 6, and 7
D. Heads 1, 3, and 6
E. Heads 6, 7, and 8

11. Which of the following is NOT an Accounting Officer?

A. Director- General
B. Auditor-General
C. Comptroller-General
D. Inspector-General
E. Post-Master-General

12. A document indicating the total and composition of government

expenditure and the sources from which such expenditure is expected to
be financed in the course of the year is known as

A. Development plan
B Perspective plan
C. Budget
D. Revenue allocation
E. Rolling plan

13. Every spending transaction passes through the following five stages:
I. Management decision to spend money
II. Issuance of order for goods and services
III. Receipt of goods and services and acknowledge of liability
IV. Payment for goods and services received
V. Consumption of value

38
 The Accrual basis of accounting recognises and recorded financial
transaction at stage

A. I
B. IV
C. II
D. III
E. V

14. The Officer who is constitutionally empowered to make periodic check on

Parastatals is the
A. Accountant-General of the Federation
B. Senate President
C. Chief Justice of the Federation
D. Auditor-General for the Federation
E. Attorney-General of the Federation

15. Which of the following officers is required to report on the strength of the
internal control system?
A. The Inspector of Internal Control System
B. The Vote Controller
C. The Internal Control System Office
D. The Accountant-General
E. The Auditor-General

16. The Body set up to establish pricing standards and benchmarks in Nigeria
is the

A. Bureau of Public Procurement

B. Bureau-de-Change
C. Bureau of Public Enterprises
D. Bureau of Public Investigation
E. Public Sector Enterprises

17. The Commission responsible for compelling any person or government

institution to disclose information relating to public revenue and
expenditure is
A. Economic and Financial Crimes Commission
B. Fiscal Responsibility Commission
C. Audit Committee
D. Public Complaints Commission
E. Security Service Commission

39
18. The Act that provides for prudent management of the nation’s resources,
ensures long-term macro-economic stability of the national economy,
secures greater accountability and transparency in fiscal operations within
a medium-term fiscal policy framework is known as
A. The Public Procurement Act 2007
B. The Nigeria Sovereign Investment Authority Act 2011
C. The Fiscal Responsibility Act 2007
D. Appropriation Act
E. The Commitment Act

19. Which of the following is NOT a benefit of Treasury Single Account (TSA)?

A. Provides complete and timely information on government cash

resources
B. Increases the ability to access information on financial and
operational performance
C. Improves operational control on budget execution
D. Facilitates efficient payment mechanisms
E. Reduces bank fees and transaction costs

20. Which of the following is NOT the function of a Storekeeper?

A. Proper arrangement of the store

B. Proper cleanliness of the Store
C. Preparation of store receipt voucher
D. Preparation of store ledger
E. Preparation of store issue voucher

21. Which of the following is NOT expected to receive the report of Board of
Enquiry?

A. Permanent Secretary
B. Accountant – General of the Federation
C. Auditor – General for the Federation
D. Attorney – General of the Federation
E. Secretary, Federal Public Service Commission

22. A method available to the government to control aggregate demand and

reduce inflationary pressures is

A. Expenditure Budget
B. Balanced Budget
C. Budget Surplus
D. Budget Deficit
E. Overhead Budget

40
23. Public Companies and Corporations are set up to
I. Beat down high prices charged by commercial business
II. Raise the standard of living of the people
III. Ensure the survival of some industries

A. I
B. II
C. III
D. I and II
E. I, II and III

24. Which of the following is NOT a source of supply to Government stores?

A. Local purchase
B. Transfer from other stores
C. Returned stores
D. Prisoners material
E. Conversion and manufacture.

25. Under Section 125(5) of the Constitution, the Auditor-General at the State
level has to report on Accountant General’s financial statements and
annual accounts to the House of Assembly within
A. Thirty days of receipt of the financial statements
B. Sixty days of receipt of the financial statements
C. Ninety days from first January of the financial year
D. Ninety days that ends on 31st December of the financial year
E. Ninety days of receipts of the statement

26. Which of the following classifications is NOT relevant in accounting for

Employee Benefits?

A. Short-Term Benefits
B. Termination Benefits
C. Long-Term Benefits
D. Award of Contract
E. Post-Employment Benefits

27. IPSAS 12 on inventories applies to all inventories relating to the following,

EXCEPT
A. Assets held for sale in the ordinary course of business
B. Inventories accumulated under long term construction contracts
C. Assets in the process of production for sale or distribution
D. Assets held for sale or distribution in the ordinary course of
operations
E. Assets to be consumed in the production of goods or services for sale

41
28. Which of the following statements is NOT correct about the subsequent
measurement of intangible assets?

A. An intangible asset with a finite useful life is amortised

B. Where a revaluation model is used in accounting for intangible
assets, all other assets in the same class use the same model
C. An entity can decide to use the cost model
D. Amortisation commences when the asset is ready for use
E. Amortisation ceases on the date the asset is held for sale though
derecognised at earlier date

29. Which of the following is NOT a type of fraud in government

establishment?

A. Round tripping
B. Misappropriation of assets such as cash and goods
C. Gratification for work done
D. Insider dealings
E. Advance fee fraud

30. The Report of the Board of Survey on cash and stamps are usually
embodied in

A. Treasury form 147

B. Store form 147
C. Store verification form 42
D. Treasury form 42
E. Store verification Receipt 147

SECTION A: PART II SHORT-ANSWER QUESTIONS

ATTEMPT ALL QUESTIONS
Write the correct answer that best completes each of the following questions/statements.
1. The .......................... warrant allows an officer to spend more than the
budgeted amount

2. The control concept that has to do with various measures that National
Assembly/Parliament can use for purpose of controlling use of public
fund is called ........................

3. The technique for ensuring that there is strict compliance with openness,
competitiveness, cost accuracy, rules and procedures in the award of
contract is called.............................

4. Audit of economy, efficiency and effectiveness is also called

..........................

42
5. The public fund set aside to mitigate the unforeseen circumstances such as
Ebola Disease, COVID ’19, Fire Control etc. is known as …………………....

6. In line with the Public Financial Management Reforms the monthly

transcript rendered or submitted by the Ministries, Extra-Ministerial
Department and Agencies (MDA’s) to the Accountant-General of the
Federation is now known as …..…………………….
7. The legal framework that provides for the “Prudent Public Financial
Management“ of the resources, in order to ensures accountability and
transparency in handling the nation’s resources is ……………………………

8. The ……………………… is an officer who is “accountable” for the receipts

and payments of government financial activities in the Ministry, Extra-
Ministerial Department and Agencies (MDA)

9. The appointment of the Auditor-General is subject to ……………….. by the

National Assembly

10. The Committee that is set up in accordance with Section 162(6) of the
Constitution to administer the Federation Account at the State Level is
called …………..………

11. Amount of money set aside to meet daily and routine cash payments, the
vouchers of which cannot be presented to a Sub-Accounting Officer
immediately is called ………………..…….

12. The authority that confers power on the officer controlling expenditure or
a vote to incur expenditure is called ……….……….

13. The materials purchased for general stock for which the final vote if
charged cannot be stated at the time of purchase is called ……………………

14. A period of service after an officer has served for a period not less than
the period for which he is qualified for pension or gratuity is called ….……

15. The sector of the economy that is concerned with the transactions of
Government is referred to as …………………….

16. Any officer found guilty of contravention of any of the provisions of the
Code of Conduct Tribunal shall appeal to …………………….

17. In the newly adopted Financial Statements (IPSAS 1), Balance sheet is now
replaced with …………………

18. The method of effecting payments from one year end to another, through
the medium of the computer without manual intervention beyond
inputting the payment date is called ………………….
43
19. The legislative organ that performs a post mortem function on the report
submitted by the Auditor-General is ………………………

20. Financial Reports prepared with intention to meet the information needs
of users who are unable to require the preparation of financial reports
tailored to meet their specific information needs is called ………………….

SECTION B: ATTEMPT FOUR QUESTIONS

QUESTION 1

The Fourth Schedule of the 1999 Constitution states the functions of key officers
of the Local Government

a. State FIVE functions of a Local Government Treasurer

b. State the responsibilities of the following standing committees of the
National Assembly

i. Public Account Committee

ii. Public Finance Committee
iii. Appropriation Committee
iv. Other Functional Committee
v. Concept of Appropriation

QUESTION 2

As the newly appointed Treasurer for Kaura-Namoda Local Government, the

Local Government Chairman and the Councillors have approved the
implementation of the Local Government Integrated Payroll and Personal
Information System (IPPIS) template into the Council 2021 Annual Estimate.

You are required:

a. State the financial procedures or steps involve in the implementation of the

IPPIS
b. State the functions of Payroll or IPPIS Unit in the Local Government

c. State the shortfall or challenges of the IPPIS

44
QUESTION 3

a. Enumerate FIVE functions of Director of Budget.

b. State TEN among the 31 Corporations, Agencies and Government-owned

Companies in Nigeria listed in the schedule to the Fiscal Responsibility Act

c. Money Laundering Prohibition Act 2011 listed a number of actions that

constitute money laundering offences. List these actions.

QUESTION 4

The following information are extracted from the records of TIMSEL University
for the year ended 31st December, 2018

(i) Income: N N
School Fees: Post Graduate Students 6,516,340
Others: Undergraduate students 9,917,302
Diploma students 2,153,866 12,071,168
Examination fees:
Undergraduate students 40,226,382
Diploma students 12,154,558 52,380,940
Investment Income 2,000,000
Government Subventions 2,629,206
Sundry Income 1,588,848
(ii) The Charges:
Establishment costs 1,738,068
Staff Costs 5,660,194
Administrative Expenses 10,152,628
Academic affiliation costs 2,311,912
Subvention to Agencies 50,000
Examination expenses 45,040,776
Education & Training expenses 4,092,312
Professional Charges 800,000
Contribution to research fund 1,157,828
General expenses 2,000,000
Publications 842,172

(iii) The examination expenses of N45,040,776 comprised of the following

Undergraduate students 34,390,516
Diploma students 10,650,260

45
 (iv) Provision for outstanding school fees of N2,478,720 written off against
income from post graduate students of N6,516,340.

(v) A transfer of N648,800 was made from Revenue Account to the Building
Fund which generated the sum of N567,200 as interest.

You are required to:

a. Determine the Surplus/Deficit from conducting Undergraduate and
Diploma Programmes by the University.

b. Extract the Revenue Account for the year ended 31 December, 2018.

QUESTION 5

Tenders Board is made up of public officers constituted to administer or award

contracts in respect of all Government awards.

You are required to:

a. State THREE types of Tenders Board

b. The composition of any TWO Tenders Board
c. Briefly explain the term "Contingencies Clause"
d. State the information on payment vouchers in respect of a contract
awarded through Tender

QUESTION 6
A cash flow statement shows the various sources of income and expenditure in
analytical form comprising inflows and outflows from operating activities,
investing activities and financing activities.

You are required to:

a. List FIVE examples of outflows from operating activities

b. List FIVE examples of inflows from investing activities

c. State the standard that describes the cash flow statement under IPSAS
Accrual Basis and how it should be treated as summarised by the Standard.

46
SECTION A
PART 1 MULTIPLE-CHOICE SOLUTION
1. E
2. D
3. E
4. A
5. E
6. E
7. E
8. E
9. D
10. A
11. B
12. C
13. D
14. D
15. E
16. A
17. B
18. C
19. D
20. D
21. D
22. C
23. D
24. D
25. E
26. D
27. B
28. E
29. C
30. D
47
EXAMINER’S COMMENT
This consists of 30 multiple-choice compulsory questions which covers the
entire syllabus. Being a compulsory question, almost all the candidates
attempted the questions.
Performance was above average, the commonest pit-fall was the inadequate
preparation for the examination.
Candidates are enjoined to familiarize themselves with previous diets’ past
questions as provided in the insight as well as the Study Text.

PART II SHORT-ANSWER SOLUTION

1. Supplementary Staturory General Warrant.
2. Legislative control
3. Due Process
4. Value for money
5. Contingency Funds
6. Cash/Main Transcript
7. Fiscal Responsibility Act
8. Accounting Officer or Permanent Secretary or Director-General or
Comptroller-General or Inspector-General or Post-Master- General or Any
equivalent
9. Ratification
10. Federation Accounts Allocation Committee (FAAC)
11. Imprest
12. Warrant
13. Unallocated Stores
14. Qualifying Service/Qualifying years
15. Public Sector
16. Court of Appeal
17. Statement of financial Position
18. E-payment
19. Public Accounts Committee (PAC)
20. General Purpose Financial Reports (GPFRs)

48
EXAMINER’S COMMENT
This consists of 20 compulsory short-answer questions that cover the entire
syllabus.
Majority of the candidates attempted it. Performance was good.
Common pit-fall observed was the inability of some candidates to understand
the requirements of the examiner.
Candidates are advised to be conversant with the entire areas of the syllabus.
They are enjoined to read the Study Text very well against future diets
examination.

SECTION B

SOLUTION1

A. Functions of Local Government Treasurer.

i. He is responsible for all the recipt and disbursement of funds.
ii. He is responsible for keeping accurate and timely Accounting records of
funds received and disbursed.
iii. He should ensure that all records kept by his subordinate officers are
checked routinely for accuracy.
iv. He is to intimate the Local Government of any economic policy that will
increase the Internally Generated Revenue (IGR) of the council.
v. He should exploit all opportunities available for the collection of all forms
of revenue as specified in the budget estimate.
vi. He is to ensure that all laid down procedures as regard the disbursement
of funds are followed.
vii. He should assist in the preparation of annual and supplementary budgets.
viii. He is to make recommendation to the council in his capacity as the
Financial Adviser.
ix. He is to be actively involved in the appraisal of all capital projects before
they are executed.
x. He is responsible for ensuring that the liquidity position of the council is
favourable at all times.
xi. He should ensure that payment vouchers are validly prepared and
presented for Payment.
xii. He should maintain all records of accounts in a form suitable for decision
making by the council.

49
B. (i). Public Account Committee.
The committee receives the audited Public Account and other special audit
reports, examines and debates the contents and submit its report in the
form of its finding and recommendation to the whole house (National
Assembly) which takes action on the Public accounts on the basis of
recommendation of the Committee.

ii.) Public Finance Committee.

This is a sub-committee of the National Assembly responsible for the
receipts of the Appropriation Bill which is made up of the annual revenue,
expenditure estimates and other proposal of Government for the
consideration of the National Assembly.

iii.) Appropriation Committee.

The Committee is responsible for the passing of the Appropriation Bill into
Appropriation Act in order to give authorization to the estimates after the
examination made by various Sub committees. The Appropriation
Committee is the whole House of the National Assembly when it sits to
pass the Appropriation Act.

iv.) Other Functional Committee.

This Committee of the National Assembly is responsible for the
examination of individual estimates of the organizations. They also
monitor the expenditure of relevant organizations.
Their role is a major mechanism and also known as oversight functions.

v.) Concept of Appropriation.

This refers to the procedure through which National revenue is made
available annually to the Executive arm of Government or government
organisations to finance their programmes or activities.

EXAMINER’S COMMENT
The question tests candidates’ knowledge and understanding of the 1999
constitution as regards the functions of key officers of the Local Government
and 1(b) on the responsibility of standing committee of the National Assembly.
Many candidates attempted the question. Performance in 1(a) was good,
however 1(b) was poorly performed, as many candidates could not differentiate
the responsibilities of the committee.
Common pit-fall observed was the inability of many candidates in differentiating
the committees responsibilities candidates are advised to be much exposed to
contemporary issues in the syllabus and make use of past questions as provided
in the insight.

50
SOLUTION 2

a. The financial procedures or steps involve in the implementation of the

Integrated Payroll and Personal Information System (IPPIS) include:
1. Biometric Data Enrolment or Capturing
Data captive equipment with finger print scanners for biometric enrolment
and camera for employee photographs
2. Staff or Personal Profile Update and Verification Exercise
Obtain the updated “Staff Nominal Roll” for the captured staff, and process
its personnel records.
3. Stored in the Centralized Personnel Data base of IPPIS.
The Local Government whose staff records a n d b i o m e t r i c d a t a h a ve
been captured, verified a n d s t o r e d in t h e centralized personnel data
base of IPPIS
4 Paid Directly into the Bank Accounts
Salaries are now paid directly into the bank accounts of public servants
whose records exist in the IPPIS database.
5 Payment of Third (3rd) Parties:
The relevant and appropriate deduction from employees’ payroll which
include, Statutory (PAYE, PENCOM, NHF, NHIS) and Non-Statutory (Union
Due, Cooperative and Loan) deductions to the appropriate government
agencies at source through on-line transfer

b. Functions of Payroll or IPPIS Unit in the Local Government

The functions of Payroll or IPPIS Unit in the Local Government include:
1. Preparation of employee’s payroll, corpers allowances and so forth
2. Preparation of biometric data for capturing of newly employed staff
3. Implementing all the variation advice raised by the Personnel or
Administrative or Human Resource Department on employees’ promotion,
upgrading or advancement and so on
4. Implementing the withhold or ceased payroll of all employees on
retirement, resignation, death, and so forth.

51
5. Controlling of Group Register for Junior and Senior Staff on Soft and Hard
Copies
6. Issue of IPPIS pay slip to staff
7. Implementing all Treasury Circulars or Guidelines on personnel cost
8. To maintain all treasury records, books of accounts and e-mandate (or
schedules) on Personnel Cost
9. To perform any other functions or duties as may be directed by Director of
Finance and Accounts

c. Shortfall of the IPPIS

The shortfall of the IPPIS are:
1. Lack of Audit Trail
2. Lack of Segregation of Duties: because all financial and accounting
activities or control is mainly carried out by the Accountant –General of the
Federation
3. Weak Password or PIN: which is being shared among various user within an
organization .
4. Control of Users: the entire IPPIS staff are being managed and controlled by
the consultants who have access to all the MDA’s financial information
5. Validation of Data: the gross or total pay should be from the grade level and
steps, the completeness, accuracy and validity of the transaction is not
known due to unavailability of the salary payment chart
6. Lack of effective and efficient internet facility
7. Rigid deadline submission for Payroll Variation Control or Advice
8. Poor management control

EXAMINER’S COMMENT
The question tests candidates’ knowledge and understanding of Integrated
Payroll and Personnel Information System (IPPIS).
Candidates are expected to state the procedures for implementation of IPPIS, as
well as its functions and challenges in the Local Government.
Many of the candidates attempted the question and the general performance was
average.
52
Common pit-fall was gross misinterpretation of the requirements of the question
by many of the candidates.
Candidates are advised to comply with the requirement of the questions as
provided in the insight and also, take the advantage of the Study Text.

SOLUTION 3

3a Functions of the Director of Budget

i. Monitoring of revenue generation and collection by the agencies of
government.
ii. Revenue estimation and publication in the budget book.
iii. Comparing of actual revenue received from oil and non-oil sectors with
the estimated figure.
iv. Estimating revenue from Joint Venture operations in relation to oil
explorations, production and personnel administration.
v. Implementing the budget through the issuance of Authority to Incur
expenditure papers or Warrants, for both capital and recurrent
expenditure.
vi. Assembling, collating and arranging all data, information and other
necessary inputs required for budget preparation.
vii. Rendering reports on the performance of the yearly budget and
assessing its impact on the economy.
viii. Collection and analysis of expenditure returns.
ix. Establishing and maintaining a data bank in the budget office.
x. Monitoring and evaluating the performance of programmes funded
through the budget.
xi. He is the liaison officer between the President, Ministries and
Departments during budget preparation
xii. Formulating fiscal, monetary and economic policies required to develop
the economy.

3b. List of Corporations, Agencies and Government-Owned Companies

The schedule to the Fiscal Responsibility Act contains the following 31
names of corporations, Agencies and government owned companies in
Nigeria.
1. Nigerian National Petroleum Corporation.
2. Nigeria Deposit Insurance Corporation.
3. Bureau of Public Enterprises.
4. National Agency for Science and Engineering Infrastructure.
5. Nigerian Social Insurance Trust Fund.
6. Corporate Affairs Commission.

53
 7. National Clearing and Forwarding Agency.
8. Nigeria Unity Line.
9. Nigerian Airspace Management Agency.
10. Nigerian Shippers Council
11. National Maritime Authority.
12. Raw Material Research and Development Council.
13. Nigerian Civil Aviation Authority.
14. National Sugar Development Council.
15. Nigerian Postal Service.
16. Nigerian Ports Authority.
17. Federal Airport Authority of Nigeria.
18. Nigeria Mining Corporation.
19. Nigeria Re-insurance.
20. Niger dock Nigeria Plc.
21. Securities and Exchange Commission.
22. National Insurance Corporation of Nigeria.
23. Nigeria Re-insurance Corporation.
24. Nigerian Telecommunication.
25. National Automotive Council.
26. Nigerian Tourism Development Corporation.
27. National Communication Commission.
28. National Agency for Food & Drug Administration & Control.
29. Nigerian Customs Service.
30. Federal Inland Revenue Service.
31. Central Bank of Nigeria.

3c. Money Laundering offences

Money Laundering Prohibition Act 2011 listed a number of actions that
constitute money laundering offences. Money laundering offence is
committed by a person who:-

1. Converts or transfers resources or property derived directly or

indirectly from illicit traffic in narcotic drugs or psychotropic
substances, with the aim of either concealing or disguising the illicit
origin of the resources or property, or aiding any person involved in
the illicit traffic of narcotic drugs or psychotropic substances to evade
the legal consequences of his action; or

2. Collaborates in concealing or disguising the genuine nature, origin,

location, disposition, movement or ownership of the resources,
property or rights thereto derived directly or indirectly from illicit
traffic in narcotic drugs or psychotropic substances, is guilty of an
54
 offence under this section and liable on conviction to imprisonment
for a term of not less than fifteen years or more than 25 years.

3. Director or employee of a financial institution who warns or in any

other way intimates the owner of the funds involved in the
transaction referred to in section10 of this Act about the report he is
required to make or the action taken on it or who refrains from
making the report as required under that section; or

4. Destroys or removes a register or record required to be kept under

this Act; or

5. Carries out or attempts under a false identity to carry out, any of the
transactions specified in section 1 to 5 of this Act; or

6. Makes or accepts cash payments greater than the amount authorized

under this Act; or

7. Fails to report an international transfer of funds or securities

required to be reported under this Act;

EXAMINER’S COMMENT
The question tests candidate’s knowledge and understanding of financial
responsibilities of finance officers of Government as well as on Fiscal
Responsibility Act and Money Laundering offences. Many of the candidates
attempted the question and performance was average common pit-fall was that
candidates did not have proper understanding of the requirements of the
question.

55
SOLUTION 4

a) TIMSEL UNIVERSITY
STATEMENT OF SURPLUS /DEFICIT FOR THE YEAR 31 DECEMBER 2018
Undergraduate ¼ Diploma ¼ Total ¼
N N N
Examination Fees 40,226,382 ¼ 12,154,558 ¼ 52,380,940 ¼
School Fees 9,917,302 ¼ 2,153,866 ¼ 12,071,168 ¼
50,143,684 ¼ 14,308,424 ¼ 64,452,108 ¼
Less: Examination Expenses
(Note (iii) 34,390,516 ¼ 10,650,260 ¼ 45,040,776 ¼
Surplus 15,753,168¼ 3,658,164 ¼ 19,411,332 ¼
========== ========== ==========

b) TIMSEL UNIVERSITY
Extraction of Revenue Account for the Year Ended 31 December, 2018
Total
N N
Income:
School Fees: Postgraduate 6,516,340
Less: Outstanding to be written off (Note iv) (2,478,720)
4,037,620
Other Students 12,071,168
Examination Fees 52,380,940
Investment Income 2,000,000
Government Subvention 2,629,206
Sundry Income 1,588,848
Interest-building Fund 567,200
Total Revenue 75,274,982
Less Charges
Establishment Costs 1,738,068
Staffs Costs 5,660,194
Administrative expenses 10,152,628
Academic affiliation Costs 2,311,912
Subvention to Agencies 50,000
Examination expenses 45,040,776
Education & Training expenses 4,092,312
Professional Charges 800,000
Contribution to Research fund 1,157,828
General Expenses 2,000,000
Publication 842,172
(73,845,890)
Less: Transfer to Building Fund (Note v) 1,429,092
Surplus for the year c/f (648,800)
780,292

56
EXAMINER’S COMMENT
The question tests candidates’ knowledge and understanding of the preparation
of statement of Surplus/Deficit and the Revenue Accounts of a tertiary
institution.
Many candidatures’ attempted the question and the performance was average.
Those who failed to earn pass marks affected postings unto the Revenue Account
on the reverse sides.

SOLUTION 5

5a.
1. Departmental Tender Board:
This is a Tender Board that award contracts within a department. The
board has the power to award any contract of N250,000 but not up to
N500,000.
The Federal Ministry of Finance circular No.15775 of 27/06/01 abrogated
the Departmental Tenders Board and replaced it with another which
states that contract of works, services and purchases of up to N100,000
may be approved by the Permanent Secretary/Chief Executive of the
ministry without an open tender.

2. Ministerial Tender Board.

It is the Tender Board vested with the power to award contracts of
between N500, 000-N5, 000,000.

3. Council of Ministers/ Federal Executive Council.

The Board can award any contract from N5, 000,000 and above.

b. (i) Composition of each Tender Board;

Departmental Tender Board is made up of 7 members;
i. Director (other than the Department's Director as Chairman).
ii. One Deputy Director.
iii. One Assistant Director.
iv. Chief Accountant of the Department.
v. Three (3) other members.

ii. Ministerial Tenders Board Composition.

 All Directors of the Ministry with Permanent Secretary (Chairman).

iii. Council of Ministers (Federal Executive Council)

 All Ministers with the President as Chairman.

57
c.) "Contingencies Clause".
This States that if the Contractor has taken reasonable care in executing
the work and an unexpected situation develops, the contractee should
bail out the contractor by making money available or review upward the
contract sum otherwise the contractor will bear the cost.

d.) i. Amount to be paid based on the Contract Valuation Certificate and

the certificate number.
ii. Name or Title of the project.
iii. Contract Number.
iv. Authority for payment
v. Name of the contractor
vi. Vote of Charge
vii. Contract amount

EXAMINER’S COMMENT
The question tests candidates’ knowledge and understanding of Tender Board as
well as some clauses therein, and information on payment vouchers for contract
awarded through Tender.
Only few candidates attempt it and performance was on the average.
Their commonest pit-fall was their lack of grasp of the provisions of the act.
Candidates are advised to take seriously to every aspect of the syllabus by
working hard for future examinations. They are also enjoined to make use of the
Study Text and past questions as provided in the insight.

SOLUTION 6

a. Outflows from operating Activities

1. Salaries and Wages
2. Social Benefits
3. Overhead Cost
4. Grants and Contributions
6. Transfer to other Government Entities
7. Finance Cost
8. Cash payment to suppliers for good and services
9. Cash payment for claims, annuities and other policy benefits
10. Cash payments of local property taxes or income taxes in relation to
operating activities

58
 11. Cash payments from discontinued operations
12. Cash payments in relations to litigation settlements.
b. Inflows from Investing Activities

1. Proceeds from sales of PPE

2. Proceeds from sales of investment property

3. Proceeds from sale of intangible Assets

4. Proceeds from sale of investment

5. Dividends Received

6. Cash receipts from sales of equity or debt instruments of other

entities and interest in joint ventures (other than advances and
loans made by a public financial institution)

7. Cash receipts from future contracts, forward contracts, option

contracts and swap contracts except when the contracts are held
for dealing or trading purposes.

8. Cash receipts from repayment of advances and loans to other parties

apart from public financial institution.

c.

i. Cash flow statement is described under IPSAS 2

ii. Summary of the Standard;

a. Requires the presentation of information about historical changes

in a public sector entity’s cash and cash equivalent using cash flow
statement.

b. The Standard describes how to classify cash flows during the

period to: operating, investing and financing activities.

EXAMINER’S COMMENT
The question tests candidates’ knowledge and understanding of compositions of
the activities of Cash Flow statement as well as the relevant IPSAS and summary
of the standard.
Many of the candidates attempted the question. The performance was above
average common pit-fall was the inability of many candidates in inflow and
outflow from the operating and investing activities.
Candidates are advised to be acquainted with the 32 International Public Sector
Accounting Standards (IPSAS) that are currently issued because of the emerging
global relevance of them.
Candidates should be more exposed by reading the Study Text.
59
AT/221/PII.7 Examination No............................

THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2022 EXAMINATIONS (PART II)
QUANTITATIVE ANALYSIS
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, mathematical set, etc to ensure that you do
not have prohibited items such as telephone handset, electronic storage
device, wrist watches, programmable devices or any form of written
material with you in the hall. You will be stopped from continuing with
the examination and liable to further disciplinary actions including
cancellation of examination result if caught.
5. Do not enter the hall with anything written on your docket.
6. Insert your examination number in the space provided above.
WEDNESDAY, 30 MARCH, 2022

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

60
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2022
QUANTITATIVE ANALYSIS
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 number of people infected by a deadly virus in a locality comprises 5

divisions: A, B, C, D & E are presented in a pie chart. If 150 infected people
are from division B with an angular representation of 60 on the pie chart,
then the population of infected people in the locality is

A. 600
B. 750
C. 900
D. 1,050
E. 1,200

2. Which of the following is normally used to draw a frequency polygon?

A. Ogive
B. Histogram
C. Bar graph
D. Lorenz curve
E. Z- chart

3. Which of the following sampling techniques allows fair representation of

various categories without biases?

A. Systematic Sampling
B. Quota Sampling
C. Stratified Sampling
D. Cluster Sampling
E. Simple Random Sampling

61
4. The authority of a particular local government area distributes cash relief
packages to some aged individuals residing in 5 wards of the council
during a lockdown. The following pieces of information were gathered
from the council’s accountant and presented in the table below:

Ward A B C D E

Number of aged individuals 30 20 25 20 35

Amount given per person(N’000) 10 12 11 12 7

What is the mean amount spent by the authority on one aged person?

A. N8, 666.67
B. N 10,000
C. N 11,000
D. N 12,000
E. N 25,000

5. Given that the variance of a set of scores is 81 and the coefficient of

variation is 2.25%, find the mean

A. 1
B. 2
C. 3
D. 4
E. 5

6. The numbers of chartered accountants among the graduates of accounting

programme from 6 different universities in a particular year are given as
follows: 15, 12, 10, 11, 13, and 17. What is the mean deviation of this data?

A. 0
B. 1
C. 2
D. 3
E. 4

7. Which of the following is NOT a basic step in formulating a linear

programming problem?
A. Identify the objective function
B. Identify the slack variables
C. Identify the constraints
D. Identify the decision variables
E. Identify the linearity of the objective function and constraints

62
8. The following pieces of information are obtained from 5 pairs of data set ( x, y ) :
 x  50 ,  y  100 ,  x 2
 502 , y
 1854 and  xy  1001 . If the fitted
2

simple linear regression equation is y  a  bx , then the estimated value of a is

A. 0
B. 0.5
C. 15
D. 20
E 25

9. Which of the following is NOT true of Least Squares Method in Time series
analysis?

A. It can be used for forecasting

B. It is free from subjective error
C. Extreme values are not lost
D. Effect of cyclical fluctuations is completely removed if it is equal to
the average period of cycles
E. It is good for linear trend

10. If the price of milk in 2009 was N250 and the price in 2015 was N350,
using 2009 as the base year, the price relative index is

A. 100%
B. 110%
C. 120%
D. 130%
E. 140 %

11. Which of the following statements best describes mutually exclusive

outcomes of events A and B ?

A. A and B are dependent events

B. A and B are independent events
C. The occurrence of event A excludes the possibility of event B from
happening
D. Events A and B happen at the same time
E. Occurrence of an event A has a significant effect on event B

12. Which of the following does NOT necessitate the use of Z-test in statistical
hypothesis testing?

A. n is equal to or greater than 30.

B. sampling distribution is normally distributed
C. n< 30
D. sampling distribution is approximately normal
E. standard deviation of the population is known or unknown

63
 2x 1 2
13. Find the range of values of x which satisfy the inequality  .
x3 3
3
A. x
5
3
B. x
5
3
C. x
4
3
D. x
4
3
E. x
4

14. If x  2 y  4 and x  2 y  6, then 3x is

A. 5
B. 10
C. 15
D. 20
E. 30

15. Suppose the total monthly revenue (Le’00,000) of FAFAWA Limited. for a
commodity is described by the function R( x)  125,000,000(0.2) x , where x (in
Le’0,000) is the total amount spent on overheads. If the total revenue of
the company for the month of April is Le200,000, then the amount spent
on overheads is

A. Le 10,000
B. Le 12,500
C. Le 20,000
D. Le 40,000
E. Le 62,500

16. Which of the following does NOT depict break-even point of a firm?
A. Total revenue is equal to total cost
B. Difference between revenue and cost is zero
C. Profit function is equal zero
D. Sales level is equal to profit level
Fixed Cost
E. q
Selling price  average var iable cos t

64
17. Find the simple interest on N450 for 9 months at 3.5% per annum
A. N9.81
B. N 11.81
C. N 13.81
D. N 14.81
E. N 15.81

18. The present worth of an investment is L$500,000. If it is estimated to

grow at the rate of 20% per annum, then its worth in the 6th year is
A. L$600,000
B. L$1,100,000
C. L$1,500,000
D. L$1,244,160
E. L$1,492,992

19. The following are the main stages involved in Operations Research,
EXCEPT
A. Identification of problems and objectives
B. Construction of a model
C. Identification of variables
D. Documentation of result
E. Implementation of result

20. The feasible region houses the

A. Initial Solution
B. Slack Solution
C. Feasible Solution
D. Linear Solution
E. Problem Solution

21. Find the minimum value of Z in the following linear programming problem:
Minimise: 𝑍 = 40𝑎 + 50𝑏
𝑆𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜 3𝑎 + 5𝑏 ≥ 70
𝑎 + 𝑏 ≥ 20
𝑎, 𝑏 ≥ 0
A. 1500
B. 950
C. 850
D. 800
E. 700

65
22. How many corner points are there in a graphical solution of an unbounded
feasible region of a minimisation linear programming problem with three
linear constraints?

A. 6
B. 5
C. 4
D. 3
E. 2

23. The annual demand for a commodity is 128,245 units and the cost of an
order is Le34. If the annual holding cost per commodity is Le6.00, the
average stock for the commodity (to the nearest whole number) is

A. 108
B. 275
C. 317
D. 603
E. 620

24. In a typical inventory control problem, Q = 3,000, d = 150,000, c = Le 400

and h = Le 60 (where all the symbols bear their usual meanings). What
is the total annual cost?

A. Le 80,000
B. Le 90,000
C. Le 100,000
D. Le 110,000
E. Le 120,000

25. Which of the following is NOT a reason for holding stock?

A. It enables production processes to flow smoothly and efficiently
B. It acts as a buffer for variations in demand new usage
C. It ensures that the store is filled up at all times
D. It absorbs variations in production and demand
E It takes advantage of bulk purchasing discount

26. The maximum time that any non-critical activity may overrun without
impacting on the critical path is called
A. Float
B. Free Float
C. Critical
D. Slack
E. Duration

66
27. The table below shows the Earliest Finish Times (EFT), Latest Finish
Times (LFT), Earliest Start Times (EST), Latest Start Times (LST) and
durations of a project:
Activity EFT LFT EST LST Duration
P 3 3 0 0 3
Q 8 8 3 3 5
R 8 8 3 3 2
S 14 15 8 8 6
T 16 16 8 8 8
U 16 16 14 15 1
V 22 22 14 15 5
W 22 22 16 16 6

Identify the critical path of the project

A. P, Q, R, T, U, V, W
B. P, Q, T, W
C. P, Q, R, S, T, W
D. Q, R, S, T, W
E Q, T, W

28. A component used in an electronic circuit camera has different failure

rates because the component life time is limited. The cumulative
percentages of failures and months after replacement are given in the
table below:
Months after replacement 1 2 3 4
Cumulative percentage of failures 20 55 85 100

What is the monthly average life of the component?

A. 1.20
B. 2.40
C. 4.00
D. 5.40
E 7.85

29. Calculate the present value of an annuity of Le60,000 for 12 years at 8.5%
compounded annually

A. Le400,872.35
B. Le420,682.35
C. Le430,682.35
D. Le440,682.35
E. Le450,682.35

67
30. Which of the following is NOT a method of obtaining solution of a
transportation problem?

A. Least Cost Method

B. Vogel’s Approximation Method
C. NWCM
D. Simplex Method
E. Stepping Stone Method

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

ATTEMPT ALL QUESTIONS
Write the correct answer that best completes each of the following questions/statements
1. The type of correlation that exists between two variables when an
increase in one variable is associated with a decrease in the other variable
is called ……….
2. The deposits (N ‘000) of a certain group of customers in a microfinance
bank on a particular day are 13, 19, 16, 15, 14, 26 and 16. The average of
the mean and the median deposits is ………………………
3. The probability of rejecting the null hypothesis when it is true is
………………
4. The coefficient of skewness is ................ for a symmetrical or normal
distribution while it is .............. for an Asymmetrical distribution.
1
5. In a competitive market, the supply price is P1  3  q and demand price is
4
3
P2  15  q. Determine the market price at equilibrium.
4
6. An arrangement whereby a fixed amount of money is paid in exchange for
regular amounts to be received at fixed interval for a specific period is
called ……………….
7. An activity which does not link into the completion overall activities of the
project is called………………..

8. To solve a Linear Programming problem, using simplex method, the two

variables that are used to convert an INEQUALITY constraint to an
EQUALITY constraint are ………………. and ……………….

9. A solution in which there are at most m zero values in a linear

programming problem that has n variables and m constraints (m<n). is
known as the ……………

68
10. An inventory model in which all factors are known with certainty is called
...................
11. The type of data involving the record of the number of passengers on a
train is called ………………….

12. The total monthly revenue of Layink enterprise (in Naira) is given by the
equation 𝑅 = 300,000 0.5 0.7𝑥 , where 𝑥(𝑁 ′ 000) is the amount spent on
overheads. What is the maximum revenue?

13. The variables involved in any Operations Research technique can be

grouped into …………….. and …………

14. The process of eliminating the trend from the observed series is called
………………

15. The aim of the marginal function is to measure the extra amount of
resources it takes to produce …………..
16. If every item is replaced during a single stoppage whether it has failed or
not, then the process is called………
17. In transportation problem analysis, the condition that arises when the
number of filled (occupied)cells is less than the number of rows (m) plus
the number of columns (n) minus one, is known as ……………….
18. The probabilities of candidate A and candidate B passing an interview are
respectively 0.6 and 0.75 . The probability that only one will pass the
interview is …………………

19. If two coins and a die are tossed together, then the number of elements in
the sample space is …………………
20. The simulation method developed on the basis of the principle of
experiments, which makes use of sampling and probability distribution
theories, is called …………

69
SECTION B: ATTEMPT ANY FOUR QUESTIONS IN THIS SECTION (50 MARKS)
QUESTION 1
The following table shows the cost per bag and number of bags of five types of
food stuff supplied by a food vendor to a private school with boarding facility for
two consecutive months in year 2019:

June July
Price Price
(per Quantity (per Quantity
bag) bag)
Food (No of (No of
stuff (N’00) bags) (N’00) bags)

Rice 120 10 125 12

Beans 155 5 160 6

Garri 80 10 85 11

Flour 110 6 105 7

Yam 135 9 130 10

flour

By using June as the base month, calculate the

a. Simple Aggregate Price Index (21/2 Marks)
b. Simple Aggregate Quantity Index (21/2 Marks)
c. Marshall Edgeworth’s Index (7 1/2 Marks)
(Total 121/2 Marks)

QUESTION 2
a. The following data represent scores of 50 students in a Statistics test:

73 73 94 71 60 79 75 66 74 81
58 68 73 58 84 77 75 57 69 68
75 77 80 73 62 73 74 77 68 49
72 54 68 66 100 84 70 62 73 69
66 52 76 69 76 67 78 62 65 75

i. Prepare the frequency distribution table with the first class having a
lower class of 40 and a class width of 10 (4 Marks)
ii. Draw the histogram for this data set and use it to estimate the mode
(41/2 Marks)

70
b. The following table shows the monthly profits of 100 randomly selected
small scale enterprises in some West African cities in thousands of Leone:
Profit (inLe'000) Number of
Enterprises
150 – 169 8
170 - 189 19
190 - 209 34
210 - 229 24
230 - 249 10
250 - 269 5

Construct the ogive for the data (4 Marks)

1
(Total 12 /2 Marks)

QUESTION 3
The estimated average cost function of a manufacturing company for a commodity is
810,000
AC  q 2  15q  and the demand function for the commodity is
q

4 2
P q  30q  5,400 , where q denotes the quantity produced and sold.
3
Calculate:
a. The marginal revenue, the marginal cost and hence, the production level
that maximises the company’s profit (61/2 Marks)
b. The maximum profit (3 Marks)

c. The price elasticity of demand at the production level that maximises

profit and comment on your result in (c) (3 Marks)
(Total 121/2 Marks)

QUESTION 4

A manufacturing company has the annual demand of 120,000 units, the handling
and phoning costs each time the order is made amount to N100 with the unit
price of N150 together with the storage cost including (insurance premium) of
20 ½ % of unit price.
Determine the
a. Optimum units to keep per time (71/2 Marks)
b. Total cost of ordering (5 Marks)
(Total 121/2 Marks)

71
QUESTION 5

The palliative loan, due to the Covid-19 pandemic, is being given to small scale
traders by GJG bank in Lagos and Abuja. The level of the loan and the number of
traders in each branch are summarised in the table below:

Loan Amount No of traders

(N’000) Lagos Abuja
14 less than 18 11 19
18 less than 22 37 30
22 less than 26 69 25
26 less than 30 77 41
30 less than 34 56 35

You are required to:

a. Compute the mean and standard deviation of the loan given to the
traders in Lagos and Abuja. (10 Marks)

b. Estimate the coefficients of variation for the two cities. (2 Marks)

c. Comment on the relative dispersion between the distributions based on

your answers in (b). (1/2 Mark)
(Total 121/2 Marks)

QUESTION 6
a. A pharmaceutical company has decided to make a chart to know the
minimum amount of fats, carbohydrates, and proteins which a man needs
on a daily basis to fulfil his requirement for medical awareness. The
choice is to be made from four different types of foods: P, Q, R and S. The
yields per unit for different types of foods are given as follows:
Type of food Yield per unit Cost per unit
Fats Carbohydrates Proteins (Le)
P 2 13 12 147
Q 5 5 6 130
R 8 7 12 162
S 16 13 7 130
Minimum 2600 430 1800
requirement

You are required to formulate the given problem as a standard Linear Programming
Problem. ( 6 Marks)

72
b. A manufacturer produces three types of plastic fixtures 1, 2 and 3. In order
to obtain a maximum profit (Z), he decided to formulate the problem as a
linear programming problem as follows:
Maximise : Z = 11x1  16 x2  12x3
Subject to: x1  5x2  2 x3  8,000
8x1  2 x2  3x3  3,800
4 x1  6 x2  7 x3  4,200
x1 , x2 , x3  0

You are required to:

i. Set up the initial simplex tableau for the problem. (5 Marks)

ii. Identify the entering variable, leaving variable and the pivot
(11/2 Marks)
1
(Total 12 /2 Marks)

73
 FORMULAE

 x  x 
2
2
Sample variance, s =
n 1
Economic Order Quantity

2cd
Q=
n
x
Zcal =

n
Slope of a regression equation
n xy   x y
b=
n x 2   x 
2

 p  dq 
Elasticity of demand, e     
 q  dp 
The 95% confidence interval for 
s
 x  t  ,n1
n
The trend equation, y = a + bt, where t = xi - xm

b=
 ty  a = y  bx , xm = median of x values
t2
m

 Pn 
  P 100 
SARPI =  o 
N

SAPI 
Pni
 100
Poi

p
t 
pq
n

74
EOQ with stock-out

2cd h  cs
Q 
h cs

LPI 
pq 1 o
 100
p q o o

p  pˆ
Z 
pˆ (1  pˆ )
n

 iN 
   f Qi 
Qi  LQi   4 c
 f Qi 
 
 

 iN 
   f Di 
Di  LDi   10 c
 f Di 
 
 

 iN 
   f Pi 
Pi  LPi   100 c
 f Pi 
 
 
Spearman’s rank correlation coefficient

6 d 2
r  1
n(n 2  1)
EOQ with gradual replenishment

2cd
Q
 d
h1  
 r

75
 Q
Length of Inventory cycle 
d
d
Number of production runs 
Q

Production cost  Ordering cos t  Holdering cos t

 1 
Mode  Lmo   c
 1   2 

76
MULTIPLE- CHOICE (MCQ) SOLUTION

1. C
2. B
3. B
4. B
5. D
6. C
7. B
8. C
9. D
10. E
11. C
12. C
13. D
14. C
15. D
16. D
17. B
18. D
19. D
20. C
21. E
22. C
23. D
24. D
25. C
26. A
27. B
28. B
29. D
30. D

77
WORKINGS (MCQ)

1. Let x be the population of infected people

60
 x  150
360
150  360
x
60

x  900 (C)

4. mean 
 fx
f
(30  10)  (20  12)  (25  11)  (20  12)  (35  7)
mean 
30  20  25  20  35
(30  10)  240  275  240  245
mean 
130
1300
mean   10
130

The mean amount is N 10,000 (B)

𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
5. 𝐶𝑜𝑟𝑟𝑒𝑙𝑎𝑡𝑖𝑜𝑛𝑜𝑓𝑣𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑚𝑒𝑎𝑛

𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒
=
𝑚𝑒𝑎𝑛
81
2.25 =
𝑚𝑒𝑎𝑛
9
2.25 =
𝑚𝑒𝑎𝑛
9
𝑚𝑒𝑎𝑛 = =4 (𝐴)
2.25

6. x
 x  15  12  10  11  13  17  78  13
n 6 6

Mean deviation, MD 
 xx
n
15  13  12  13  10  13  11  13  13  13  17  13
MD 
6
2  1  3  2  0  4 12
MD   2 (C)
6 6

78
8. a
 y b x
n n

n xy   x y
where b 
n x 2   x 
2

5(1001)  (50)(100) 5005  5000 5

b    0.5
5(502)  (50) 2 2510  2500 10

100  50 
 a  0.5   20  5  15 (C)
5  5

10.
𝑃𝑜 = 𝑏𝑎𝑠𝑒𝑦𝑒𝑎𝑟
𝑃𝑛 350
𝑃𝑟𝑖𝑐𝑒𝑟𝑒𝑙𝑎𝑡𝑖𝑣𝑒𝑖𝑛𝑑𝑒𝑥 = × 100 = × 100 = 140 % (𝐸)
𝑃𝑜 250

13.
2x 1 2

x3 3
 3(2 x  1)  2( x  3)

6x  3  2x  6
4x  3
3
x  ( D)
4
14.
x  2y  4
x  2y  6
2 x  10
x5

Hence , 3x  3  5  15 (C )

79
15. 125,000,000(0.2) x  200,000

200,000
(0.2) x 
125,000,000

(0.2) x  0.0016

(0.2) x  (0.2) 4

x4

The total amount spent on overhead is N 4,000 (D)

16. TC = TR (for break even)

TC= FC + VC

FC + VC = TR

FC = TR – VC

FC = q.SP – q.AVC

FC = q (SP –AVC)

FC
Therefore q= depicts Break-even point.
SP −AVC

Hence, option D is the correct option.

9
17. 9 months  yr  0.75 yr
12
PRT 450  0.75  3.5
SI    N11.81 ( B)
100 100

80
18. This is a geometric progression i.e GP, where

a = 500,000

r = 1+20% =1+0.2 = 1.2

n=6

Tn  ar n 1

T6  500,000(1.2) 61
T6  500,000(1.2) 5  N 1,244,160 (D)

21. By solving the simultaneous equations

3𝑎 + 5𝑏 = 70 … … … . 𝑖
𝑎 + 𝑏 = 20 … … … . 𝑖𝑖
𝑚𝑢𝑙𝑡𝑖𝑝𝑙𝑦 𝑒𝑞𝑛 𝑖𝑖 𝑏𝑦 3 𝑔𝑖𝑣𝑒𝑠
3𝑎 + 3𝑏 = 60 … … … . 𝑖𝑖𝑖
𝑠𝑢𝑏𝑡𝑟𝑎𝑐𝑡 𝑒𝑞𝑛 𝑖𝑖𝑖 𝑓𝑟𝑜𝑚 𝑒𝑞𝑛 𝑖
2𝑏 = 10
𝑏=5
𝑠𝑢𝑏𝑠𝑡𝑖𝑡𝑢𝑡𝑒 𝑓𝑜𝑟 𝑏 𝑖𝑛 𝑒𝑞𝑛 (𝑖𝑖)
𝑎 + 5 = 20
𝑎 = 15
𝑍 = 40𝑎 + 50𝑏
40 15 + 50(5)

600 + 250 = 850 (𝐶)

Q
23. Average stock 
2

2Co D
where Q
Ch

2  34  128,245
Q
6

8,720,660
Q
6

81
 Q  1,453,443.33

Q  1,205.588

1,205.588
Average stock   602.79
2

Average stock  603 (D)

cd Qh
24. Total annual cost  
Q 2

400  15,000 3,000  60

Total annual cost  
3,000 2

Total annual cost  20,000  90,000

Total annual cost = Le 110,000 (D)

27. Total float = LFT - EST - Duration

Activity EFT LFT EST LST Duration Total float

P 3 3 0 0 3 0

Q 8 8 3 3 5 0

R 8 8 3 3 2 3

S 14 15 8 8 6 1

T 16 16 8 8 8 0

U 16 16 14 15 1 1

V 22 22 14 15 5 3

W 22 22 16 16 6 0

The critical activities are activities with total float of zero, which are P, Q, T, W (C)

82
28.

Cumulative

Month after Percentage of Percentage of

replacement Failure Failure

1 20% 20%  0.20

2 55% 35%  0.35

3 85% 30%  0.30

4 100% 15%  0.15

Monthly average life  (1  0.20)  (2  0.35)  (3  0.30)  (4  0.15)

Monthly average life  0.20  0.70  0.90  0.60

Monthly average life  2.40 (B)

A 1−(1+r)−n 
29. P=
r
60,0000  1−(1+0.085)−12 
P=
0.085
60,0000  1−(1.085)−12 
P=
0.085

P = N 440,682.35 (D)

EXAMINER’S COMMENT
MCQ
All the 30 questions set cover syllabus reasonably well. Majority of the
candidates performed fairly well in this part of the paper.

83
SHORT- ANSWER QUESTION (SAQ) (SOLUTION)

1. Negative correlation

2. N 16,500

3. Significance level

4. Zero, positive/negative (in that order)

5. 6

6. Annuity

7. Dandler

8. Slack, Surplus (either way) Variables

9. Basic Solution

10. Deterministic model

11. Discrete

12. 𝑁300,000

13. Controllable, uncontrollable (either way)

14. Detrending

15. One more unit/ extra one unit/ Additional unit/ a unit more

16. Group replacement/ Mass replacement

17. Degeneracy

18. 0.45 Accept 0.5

19. 24

20. Monte Carlo Simulation method

84
WORKINGS (SAQ)

13  19  16  15  14  26  16 119
2. mean  
7 7

mean  17

Arranging the data in ascending order

13, 14, 15, 16, 16, 19, 26

 n 1 7 1
median position   th  th  4th
 2  2

median  16

mean  median 17  16 33
Average     16.5
2 2 2

Average  N 16,500

5. Demand price = Supply price

15 – 0.75q = 3 + 0.25q

15 – 3 = (0.75 + 0.25)q

q = 12.

Hence P = 3 + 0.25(12) = 6

OR

At equilibrium, P1 = P2

1 3
= 3 + 4 𝑞 = 15 − 4 𝑞

1 3
= 𝑞 + 4 𝑞 = 15 − 3
4

85
 q = 12

Hence, market price at equilibrium,

1
P==3+ 12 = 3 + 3 = 6
4

0.7𝑥
12. 300,000 0.5 , maximum revenue occurs when nothing is spent on
overheads that is;
0.6 0
𝑥 = 0; 𝑅 = 300,000 0.5
𝑅 = 𝑁300,000

18. P( A)  0.6 , P( A)  1  0.6  0.4

P( B)  0.75 , P( B )  1  0.75  0.25
P(only one of them will pass)  P( A only pass)  P( B only pass)

P(only one of them will pass)  P( A  B )  P( A  B)

P(only one of them will pass)  P( A) P( B )  P( A) P( B)

P(only one of them will pass)  (0.6  0.25)  (0.4  0.75)

P(only one of them will pass)  0.15  0.3

P(only one of them will pass)  0.45

19.
1 2 3 4 5 6

HH HH 1 HH 2 HH 3 HH 4 HH 5 HH 6

HT HT 1 HT 2 HT 3 HT 4 HT 5 HT 6

TH TH 1 TH 2 TH 3 TH 4 TH 5 TH 6

TT TT 1 TT 2 TT 3 TT 4 TT 5 TT 6

 n( s )  24

EXAMINER’S COMMENT
SAQ
86
The 20 questions set in this part cover very important parts of the syllabus.
Generally, candidates’ performance was a little bit below the average score.

SOLUTION 1

a. Using the month of June as the base month,

Simple Aggregate Price Index, SAPI=

p July

100
p June 1

125  160  85  105  130 100

SAPI= 
120  155  80  110  135 1

605 100
SAPI= 
600 1

SAPI= 100.83%

b. Using the month of June as the base month,

Simple Aggregate Quantity Index, SAQI=

q July

100
q June 1

12  6  11  7  10 100
SAQI= 
10  5  10  6  9 1

46 100
SAQI= 
40 1

SAQI= 115%

87
c. Using the month of June as the base month,

p0 q0 p1 q1 p0 q0 p0 q1 p1q0 p1 q1

120 10 125 12 1,200 1,440 1,250 1,500

155 5 160 6 775 930 800 960

80 10 85 11 800 880 850 935

110 6 105 7 660 770 630 735

135 9 130 10 1,215 1,350 1,170 1,300

p q 0 0  p q 0 1  pq 1 0  pq 1 1 

4,650 5,370 4,700 5,430

Marshall Edgeworth’s Index =

 P (q 1 0  q1 ) 100
 
 P q  P q
1 0 1 1

100
 P (q 0 0  q1 ) 1 P q  P q
0 0 0 1 1

4,700  5,430 100

Marshall Edgeworth’s Index = 
4,650  5,370 1

10,130 100
Marshall Edgeworth’s Index = 
10,020 1

Marshall Edgeworth’s Index = 101.1%

EXAMINER’S COMMENT

This question is on Index Numbers. It tests candidates’ knowledge of Price

and Quantity indexes.
It is a popular question as about 94% of all the candidates attempted the
question. About 97% of these candidates obtained marks in excess of the
average score. The part (c) of the question is on Marshall Edgeworth’s Index.
About 55% of the candidates scored above average.
The only pitfall identified was in the inability of the candidates to
differentiate po from p1 and qo from q1.

88
SOLUTION 2

a.i.

Class interval Frequency Class boundary

40 – 49 1 39.5 - 49.5
50 - 59 5 49.5 - 59.5
60 - 69 16 59.5 - 69.5
70 - 79 22 69.5 - 79.5
80 - 89 4 79.5 - 89.5
90 - 99 1 89.5 - 99.5
100 – 109 1 99.5 - 109.5

b.i.

Class boundary F CF
149.5 - 169.5 8 8
169.5 - 189.5 19 27
189.5 - 209.5 34 61
209.5 - 229.5 24 85
229.5 - 249.5 10 95
249.5 - 269.5 5 100

EXAMINER’S COMMENT

This question tests candidates’ knowledge of Histogram and Ogive

constructions. About 97% of the candidates attempted this question out of
which about 65% scored above average.
The major pitfall of the candidates in this question was their inability to form
the required classes with the given constraint: lower class of 40 and a class
width of 10.

89
SOLUTION 3

4 2
a. P q  30q  5,400
3
Re venue  price  quantity

R  Pq

4 
R   q 2  30q  5400 q
3 
4
R  q 3  30q 2  5400q
3
dP
M arginal Revenue, MR 
dq
dP
MR   4q 2  60q  5400
dq
810,000
AC  q 2  15q 
q
C
But , AC 
q
 C = AC x q
 810,000 
C   q 2  15q  q
 q 

C  q 3  15q 2  810,000
dC
M arginal Cost , MC 
dq
dC
MC   3q 2  30q
dq
For maximum profit, MR  MC

 4q 2  60q  5,400  3q 2  30q

 4q 2  60q  5,400  3q 2  30q  0

 q 2  30q  5,400  0
Solving by factorization
90
  5,400q 2   90q ,  60q

q 2  90q  60q  5,400  0

q(q  90)  60(q  90  0

 (q  90)(q  60)  0

 q  90 or q  60

Since q cannot be negative

 The production level that maximizes the profit is q  90

b. Profit funtion,   R  C

4 3
  q  30q 2  5,400q  (q 3  15q 2  810,000)
3
4 3
  q  30q 2  5,400q  q 3  15q 2  810,000
3
1 3
  q  15q 2  5,400q  810,000
3
At q  90,

1
   (90) 3  15(90) 2  5,400(90)  810,000
3
   243,000  121,500  486,000  810,000

   N 445,500

1 P
c. Price elasticity of demand , ed   
dP q
dq

4 2
P q  30q  5,400
3
dP 8
  q  30
dq 3

91
 4 2
q  30q  5,400
1 3
 ed   
8 q
q  30
3

4 5,400 
 q  30  
 3 q 
 ed  
8
q  30
3
At q  90,

4 5,400 
 (90)  30  
 ed    3 90 
8
(90)  30
3
(120  30  60)
 ed  
240  30
30
 ed  
210
 ed  0.14

Since ed   0.14  0.14  1

This implies an inelastic demand i.e an increase in price will cause an increase in revenue

EXAMINER’S COMMENT

Candidates’ knowledge of the basic rule of differentiation bordering on

marginals is tested. Surprisingly, about 37% of candidates attempted the
question with about 40% scoring marks above average. Majority of the
candidates did not understand the concept of Elasticity of demand and the
Profit Function part of the question.

92
SOLUTION 4

a.

D  120, 000units, C  N100, H  0.205 150  30.75

2 DC 2 120,000 100
EOQ  
H 30.75

24,000,000

30.75

 780, 487.8049

 883.45

= 884 units.

b.

QH DC
TC  PD  
2 Q

883.45 x 30.75 120,000 x 100

 (150 x 120,000)  
2 883.45

 18, 000, 000  13,583.04  13,583.11

 N18, 027,166,15

EXAMINER’S COMMENT
Inventory Control is tested in the question. Candidates are expected to
calculate the Economic Order Quantity in order to calculate the optimum units
to keep per time and total cost of ordering. Some of the candidates that
attempted the question could not calculate the correct total cost of ordering.

93
SOLUTION 5

a. For Lagos city:

Mid-
Loan Frequency
point
Amount f 
x  fx xx x  x 2 f x  x 
2

(Col1) (Col3)
(Col2) (Col4) (Col5) (Col6) (Col7)
14 < 18 16 11 176 -10.08 101.6064 1,117.6704
18 < 22 20 37 740 -6.08 36.9664 1,367.7568
22 < 26 24 69 1,656 -2.08 4.3264 298.5216
26 < 30 28 77 2,156 1.92 3.6864 283.8528
30 < 34 32 56 1,792 5.92 35.0464 1,962.5984
250 6,520 5,030.4000

Since Mean ( x ) 
 fx ,
f
where  fx  6,520 (Col4) and  f  250 (Col3).

6,520
Therefore, x
250
x  26.08
Hence, the mean loan amount for Lagos = N 26.08 1000 = N 26,080

Since Standard Deviation ( ) 

 f x  x 
2

f
where  f (x  x) 2
 5,030.40 (Col7) and f  250 (Col3).

5,030.40
Therefore,  
250

  20.1216
  4.4857
Hence, the standard deviation loan amount for Lagos = N 4.48571000 = N 4,485.7
94
For Abuja city:

Mid-
Loan Frequency
point
Amount f 
x  fx xx x  x 2 f x  x 
2

(Col1) (Col3)
(Col2) (Col4) (Col5) (Col6) (Col7)
14 < 18 16 19 304 -9.15 83.7225 1,590.7275
18 < 22 20 30 600 -5.15 26.5225 795.6750
22 < 26 24 25 600 -1.15 1.3225 33.0625
26 < 30 28 41 1,148 2.85 8.1225 333.0225
30 < 34 32 35 1,120 6.85 46.9225 1,642.2875
150 3,772 4,394.775

Since Mean ( x ) 
 fx ,
f
where  fx  3,772 (Col4) and  f  150 (Col3).

3,772
Therefore, x
150
x  25.1467
Hence, the mean loan amount for Lagos = N 25.14671000 = N 25,146.7

Since Standard Deviation ( ) 

 f x  x 2

f
where  f (x  x) 2
 4,394.775 (Col7) and f  150 (Col3).

4,394.775
Therefore,  
150

  29.2985
  5.4128
Hence, the standard deviation loan amount for Abuja = N 5.41281000 = N 5,412.8

95
 Standard Deviation
b. Since Coefficient of variation Coefficient of Variation (CV) 
Mean
For Lagos city, Standard Deviation  4.4857 and Mean  26.08 .
4.4857
CV   100%
26.08
CV  17.20%
For Abuja city, Standard Deviation  5.4128 and Mean  25.1467 .
5.4128
CV   100%
25.1467
CV  21.52%

c. The results obtained for the coefficients of variation in Lagos and Abuja
in (b) show that the relative dispersion between the distributions is not
too wide because, there is no significant difference between the means
of the distributions.

EXAMINER’S COMMENT
This is an application of both measures of Central Tendency and Variation.
Candidates are expected to know how to calculate the Mean, the Standard
Deviation. These measures will enable them to calculate the coefficient of
variation.
I noticed that the solution required for the question is too long. All the
candidates that attempted the question had their work marked with full
marks for either Lagos or Abuja but not both. About 65% of the candidates
attempted the question with 55% of them scoring a little above average.
Some candidates did not know how to calculate the Coefficient of variation.

96
SOLUTION 6

a. Let x1, x2, x3, x4 be the decision variables. That is, the number of units of
food types P, Q, R and S respectively.
The main objective is to minimize the cost.
Therefore, the objective function is
Minimize Z = Le (147x1+ 130x2+ 162x3+ 130x4)
Constraints are on the fulfillment of daily requirements of the various
constituents.
The standard Linear Programming Problem is formulated as follows:
Minimize Le (147x1+ 130x2+ 162x3+ 130x4)
Subject to
Fats requirement: 2x1 + 5x2+ 8x3 + 16x4  2600
Carbohydrates requirement: 13x1 + 5x2 + 7x3 + 13x4  430
Protein requirement: 12x1 + 6x2 + 12x3 + 7x4  1800
Non-negativity requirement: x1, x2, x3, x4  0

b. (i) To set up the initial simplex tableau, we reformulate the problem by

introducing the slack variables s1, s2 and s3 as follows:
Maximize Profit = 11x1 + 16x2 + 12x3 + 0s1 + 0s2 + 0s3
Subject to x1 + 5x2+ 2x3 + s1 = 8000
8x1 + 2x2 + 3x3 + s2 = 3800
4x1 + 6x2 + 7x3 + s3 = 4200
x1, x2, x3, s1, s2, s3  0

97
 The initial simplex table can therefore be set up as shown below:
x1 x2 x3 s1 s2 s3 B R Basic
Variables
1 5 2 1 0 0 8000 1600 s1
8 2 3 0 1 0 3800 1900 s2
4 6 7 0 0 1 4200 700 s3
-11 -16 -12 0 0 0

(ii) From the initial simplex tableau set up in (i) above, the
Entering variable is x2
Leaving variable is s3
Pivot is 6

EXAMINER’S COMMENT
Linear Programming is the subject matter of this question bordering on
formulating the given problem as a standard programming problem. The
second part of the question deals with setting up an initial tableau based on
simplex method.
About 50% of the candidates attempted the question with 35% of them
scoring above average.
Majority of the candidates that attempted the question were unable to
identify both the entering and leaving variables.

98
 AT/221/PII.8 Examination No.........................

THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2022 EXAMINATIONS (PART II)
INFORMATION TECHNOLOGY
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, mathematical set, etc, to ensure that you do
not have prohibited items such as telephone handset, electronic storage
device, wrist watches, programmable devices or any form of written
material on you in the examination hall. You will be stopped from
continuing with the examination and liable to further disciplinary actions
including cancellation of examination result if caught.
5. Do not enter the hall with anything written on your docket.
6. Insert your examination number in the space provided above.
TUESDAY, 29 MARCH, 2022

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

99
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

PART II EXAMINATIONS – MARCH 2022

INFORMATION TECHNOLOGY

Time Allowed: 3 hours

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

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. Combination of elements, which are integrated to each other by means

of their inputs and outputs is known as

A. System
B. Management
C. Database
D. Record
E. File

2. A measure of the degree or extent of the dependence of the subsystems

on one another is called

A. Tight
B. Coupling
C. Decoupling
D. Double
E. Twice

3. Which of the following is NOT a basic element of control in a business

system?

A. Planning
B. Collecting facts
C. Comparison
D. Corrective Action
E. Leading

100
4. Which of the following is NOT a feature of an information?

A. It must be detailed
B. It must be imprecise
C. It must be accurate
D. It must be easily understood by the recipients
E. It must be timely

5. The smallest unit of data in a Computer System is

A. Bit
B. Byte
C. Word
D. Nibble
E. Character

6. Which of the following is NOT a direct input device?

A. Barcode
B. Optical Mark Reader (OMR)
C. Optical Character Reader (OCR)
D. Touch screen
E. Keyboard

7. Which of the following is NOT a function that can be performed by a

mouse?

A. Hovering
B. Dragging
C. Clicking
D. Picking
E. Selecting

8. Which of the following is NOT an advantage of Flat Panel Display?

A. They are crude

B. They are lightweight
C. They are compact
D. They provide better resolution than CRT
E. They are modern

101
9. Which of the following is NOT a classification of printers?

A. Character Printer
B. Plot Printer
C. Page Printer
D. Ink-Jet Printer
E. Line Printer

10. The Keyboard consists of the following keys, EXCEPT

A. Alphabetical Keys
B. Numerical Keys
C. Control Keys
D. Pointing Keys
E. Special Character Keys

11. Which of the following is NOT the main component of an Operating

System?

A. A supervisor
B. A command language translator
C. An input/output control system
D. A librarian
E. An Analyst

12. Another name for User’s code is

A. Object code
B. Machine code
C. Source code
D. Intermediate code
E. Binary code

13. A program which converts a user’s code written in high level language
into a machine code is called

A. Assembler
B. Compiler
C. Debugger
D. Moduler
E. File Manager

102
14. Which of the following is NOT considered when acquiring an
application package?

A. Purchase price of the package

B. Type of hardware and Operating System
C. After sales maintenance
D. Access to user’s code
E. Technology version of the package

15. Which of the following CANNOT be performed by word processing

packages?

A. Text manipulation
B. Mail merging
C. Spell checking
D. Create bar chart
E. Create Tables

16. Which of the following is NOT a different type of file organisation?

A. Serial
B. Sequential
C. Indexed Sequential
D. Random
E. Spiral

17. Which of the following is NOT a type of Computer processing

technique?

A. Batch
B. Real time
C. Multiprocessing
D. Time Sharing
E. Distributed time

18. Centralised processing method provides the following, EXCEPT

A. All terminals and other devices are connected to a Server

B. Better control over the processing
C. More experienced IT staff
D. Economics of scale that is cheaper to run
E. Departmental secrecy

103
19. Which of the following is NOT a challenge of decentralised processing
method?

A. Less communication cost associated with distribution of

information
B. Complexity of coordinating data among the departments
C. Increase in administrative cost
D. Increase in machinery/hardware costs
E. Greater difficulty in implementing effective control

20. Which of the following is NOT a challenge of network?

A. Access to databases
B. Failure of the server
C. Cable break may stop the entire network
D. Maintenance cost may be prohibitive
E. Need for compatibility of equipment in the network

21. A good password should include

A. Character alone
B. Number alone
C. Special character and Number
D. Character and Special character
E. Character, Number and Special character

22. Which of the following is NOT a wireless media?

A. Bluetooth
B. Infrared
C. Radiowaves
D. Microwaves
E. Guided media

23. Which of the following is NOT a social media platform?

A. Facebook
B. Instagram
C. Whatsapp
D. Linkedln
E. Netflix

104
24. The acronym SMTP means

A. Simple Message Transfer Protocol

B. Special Message Transfer Protocol
C. Simple Mail Transfer Protocol
D. Special Mail Transfer Protocol
E. Soft Message Transfer Protocol

25. PaaS is an acronym for

A. Parallel as a Site
B. Protocol as a Site
C. Platform as a Service
D. Parallel as a Service
E. Platform as a site

26. Who is the right person to write the feasibility study report?
A. Administrative Officer
B. Project Manager
C. Programmer
D. Data Processing Manager
E. System Analyst

27. A detailed document which sets out what the client expects and what is
expected of the software system which is being developed is

A. Feasibility study report

B. Executive summary
C. System specification
D. Evaluation report
E. Terms of reference

28. Which of the following is NOT a type of feasibility study?

A. Operational feasibility study

B. Evaluation feasibility study
C. Economic feasibility study
D. Technical feasibility study
E. Social feasibility study

105
29. Expenses associated with the maintenance and administration of a new
system is

A. One-off cost
B. Operating cost
C. Direct cost
D. Fixed cost
E. Variable cost

30. A practice in which a company hires another company or an individual

to perform tasks, handle operations or provide services that are either
usually executed or had previously been done by the company’s own
employees for a fee is

A. Hiring
B. Servicing
C. Managing
D. Outsourcing
E. Crowdsourcing

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

ATTEMPT ALL QUESTIONS

Write the correct answer that best completes each of the following
questions/statements

1. Recorded facts and events about activities occurring in an environment

is called ………………………

2. A combination or collection of people, hardware, software,

communication networks and data resources that collect, transform and
provide information to managers at all levels in all functions to allow
timely and effective decision making in an organisation is known as
…………………………

3. The technology used in the 2nd generation computers is …………………

4. The Processor is the combination of ALU and ……………………..

106
5. A small and very fast computer memory designed to speed up the
transfer of data and instructions to a processor and stores frequently
used computer programs, applications and data is called
………………………

6. A physical electronic card that has an embedded integrated chip that

acts as a security token and it’s used to control access to a resource is
known as …………………..

7. There are two types of editors, namely text editor and ……………………..

8. A software that builds, manages and allow easy storage and retrieval of
data is called ……………………

9. In program flowchart symbols, the rectangle shaped box depicts …………

10. A technology that allows two or more users in different locations to

negotiate business deals by using computer networks to transmit audio
and video data is known as ………………………

11. The time interval between the moment the command is given to transfer
data from disk to main storage and the moment the transfer is
completed is known as …………………………

12. The frequency with which records are added or deleted from a file is
called …………………

13. The third layer of OSI model is known as ……………………..

14. The process of extracting or getting information, files and documents

from the internet for use is called …………………..

15. A network security system designed to prevent unauthorised access to

or from a private network based on predetermined security rules is
called …………………

16. The act in which someone works for an organisation from home and
communicates with the main office and customers by phone, computer
and email is known as …………………….

17. A network that operates in a confined geographical area usually within

a kilometer is called ……………………..

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18. A network ……………… is the arrangement with which Computer
systems or network devices are connected to each other.

19. A standard network protocol used for the transfer of Computer files
between a client and server on a Computer network is called
……………………

20. The practice of fitting the setup of the computer and the workspace to
fit the users and the user’s work needs in order to minimise physical
stress on the computer users is known as ………………………

SECTION B: ATTEMPT ANY FOUR QUESTIONS (50 Marks)

QUESTION 1

a. What is an Information System? (2 Marks)

b. Describe THREE types of Decision Structures that exists in an
organization (7½ Marks)

c. State THREE features of fifth generation computers (3 Marks)

(Total 12½ Marks)

QUESTION 2

a. Define
i. Direct Input device (2 Marks)
ii. Indirect Input device (2 Marks)
b. List FIVE examples of an input device (2½ Marks)
c. State TWO benefits of Display equipment (2 Marks)
d. State FOUR challenges of Display equipment (4 Marks)
(Total 12½ Marks)

QUESTION 3

a. Define Operating System (1½ Marks)

b. State FIVE basic functions of an Operating System (5 Marks)
c. State THREE examples of Operating Systems (3 Marks)
d. State THREE advantages of Interpreters over Compilers (3 Marks)
(Total 12½ Marks)

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QUESTION 4

4ai. What is Batch processing? (2½ Marks)

4aii. State TWO other processing techniques (2 Marks)
b. State FOUR advantages of Batch processing (4 Marks)
c. State FOUR disadvantages of Batch processing (4 Marks)
(Total 12½ Marks)

QUESTION 5

a. What is a Computer network? (2½ Marks)

b. Briefly describe each of the following
i. Hub/Switch (2 Marks)
ii. Bridges (2 Marks)
iii. Routers (2 Marks)
iv. Gateway (2 Marks)
v. Repeaters (2 Marks)
(Total 12½ Marks)

QUESTION 6

a. What is prototyping? (2½ Marks)

b Enumerate TWO benefits of prototyping (2 Marks)
c. Enumerate THREE challenges of prototyping (3 Marks)
d. State FIVE reasons for computer forensics (5 Marks)
(Total 12½ Marks)

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MULTIPLE CHOICE QUESTIONS (MCQ)

1. A
2. B
3. E
4. B
5. A
6. A
7. D
8. A
9. B
10. D
11. E
12. C
13. B
14. D
15. D
16. E
17. E
18. E
19. A
20. A
21. E
22. E
23. E
24. C
25. C
26. E
27. A
28. B
29. B
30. D

EXAMINER’S COMMENTS

This consists of thirty multiple choice questions with five solution options for
each question. The questions are all within the content of the syllabus and the
performance is fair.

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SHORT ANSWER QUESTIONS

1. Data
2. Information system (IS)/ Management Information System (MIS)
3. Transistor
4. Control Unit (CU)
5. Cache memory
6. Smart card
7. Linkage editor
8. Database Management System (DBMS)
9. Process symbol
10. Video conferencing
11. Access time or response time
12. Volatility
13. Network layer
14. Downloading
15. Firewall
16. Telecommuting
17. Local Area Network (LAN)
18. Topology
19. File Transfer Protocol (FTP)
20. Ergonomics

EXAMINER’S COMMENTS
This section consists of twenty questions demanding for short answers. The
performance is generally below average.

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SECTION B

SOLUTION 1

a. Information System is a combination or collection of people, hardware,

software, communication networks and data resources that collect,
transform and provide information to managers at all levels in all
functions to allow timely and effective decision making in an
organisation.

b. Types of Decision Structures that exists in an organization are:

i. Highly Structured Decisions: They are repetitive routine and

understood well enough that they can be delegated to lower level
employees and infact such decisions can be automated. For
example, the decision to grant credit to established customers
requires the following:

- Personal Identification Number (PIN)

- Customer credit limit; and
- Current balance

ii. Semi-Structured Decisions are characterized by incomplete rules

for making the decision. There is need for subjective assessment
and judgements to supplement formal data analysis. Such
decisions can be made using Computer Based Decision Aids such
as Neural systems, Decision Support Systems (DSS), Executive
Support System (ESS) etc. For example, setting a marketing
budget for a new product requires:

- The marketing status of the other products

- The level of advertisement and
- Other subjective decisions

iii. Unstructured Decisions are non-recurring and non-routine.

Examples include:

- Choosing a cover for a magazine

- Hiring senior management staff
- The choice of basic research project to undertake

In this case, no framework or model exists to solve such problems.

Instead, they require considerable judgement and intuition.
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 Nevertheless, they can be supported by Computer Based Decision
aids that facilitate gathering information from diverse sources.

c. Features of fifth generation computers are:

1. Use of ULSI (Ultra Large Scale Integration) technology

2. It consume less power and generate less heat
3. Development of artificial intelligence
4. Speed: remarkable improvement of speed, accuracy and reliability
5. Development of Natural language processing
6. Advancement in Parallel Processing
7. Advancement in Superconductor technology
8. More user-friendly interfaces with multimedia features
9. Availability of very powerful and compact computers at cheaper prices
10. Ruggedness and very reliable
11. Voice and touch sensitive input and voice output – Voice Recognition
12. Intelligent capabilities as evidenced in electronic system.
13. Robotics
14. Neural Network
15. Expert Systems
16. Less costly
17. Portable
18. Smaller in size
19. User friendly
20. Generate less heat
21. High response
22. More reliable.

EXAMINER’S REPORT

This question tests the candidates’ knowledge on Information Systems, types

of decision structures and the general features of the fifth generation
hardware of the Computer System.

Over 60% of the candidates attempted this question and the performance is
below average. 45% of the candidates scored below 50% of the allotted
marks.

The major pitfall is lack of adequate knowledge on decision structures of the

organisation.

Candidates are advised to prepare for further examinations using ICAN study
pack and other standard relevant texts.
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SOLUTION 2

ai. DIRECT INPUT DEVICES:

These are devices that read data from a source that is provided and
transfer it directly to the computer system. The devices interface with
computer system without intermediary device, that is, they
accept data in machine readable form. It requires less human
interaction in order to get data into the computer. They can also be
called Direct Data Entry (DDE)

ii. INDIRECT INPUT DEVICES:

These are the devices that can send data into the computer for
processing through intermediary devices. It requires human
interaction with the device in order to get or send data into the
computer.

b. Examples of input devices include:

i. Keyboard
ii. Mouse
iii. Touch screen
iv. Tracker ball
v. Joy stick
vi. Graphic Tablet
vii. Scanner
viii. Digital camera
ix. Microphone
x. Video digitizer
xi. Light pen
xii. Webcam
xiii. Magnetic Stripe Reader
xiv. Chi and PIN Reader
xv. Bar code Reader
xvi. Optical Mark Reader
xvii. Optical Character Reader
xviii. Magnetic Ink Character Recognition
xix. Card Reader
xx. Harddrive/disk/diskette/tape/flashdrive

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c. A display equipment is also known as monitor or visual
display unit Benefits of display equipment include:

i. It gives easy access to vast amount of data

ii. It does not encourage paper wastage
iii. It allows users to see what they have typed in and how the system
is responding
iv. It produces very bright images
v. It produces soft copy

d. Challenges of display equipment:

i. Computer output cannot be removed from the screen

ii. One cannot output with a pencil or pen
iii. One must be physically present at the display screen site to see
the output it provides
iv. The amount of output that can be handled will depend on the size
of the screen
v. Radiation from display equipment can cause health hazard to
the user such as eye problem, fatigue, burning sensation and
headache.

EXAMINER’S COMMENT

This question tests candidates’ knowledge on input and display devices.

This question is very popular among students as over 80% of the candidates’
attempted the question and the performance is excellent as over 70% of the
candidates scored over 65% of the allotted marks.

SOLUTION 3

a. OPERATING SYSTEM (OS)

This is a program that acts as an interface between the user and the
hardware and allows the user to run other application packages. It
provides the users with features that make it easier for him or her
to code, test, execute, debug and maintain his or her programs while
efficiently managing the hardware. It offers the ease of users of the
hardware with minimum human intervention.

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 Operating system must be resident in the main memory prior to
the commencement of any processing operation. It manages the
computer resources, application programs and the computer
network in the best possible way.

b. FUNCTIONS OF OPERATING SYSTEMS

(1) Control of communications between the computer system and

operator, other computer systems within the network
(2) Keeping operation log of all the processing activities
(3) Control of application software which are online
(4) Control of multi programming
(5) Allocating memory and loading programs
(6) Job scheduling and loading in a multi programming environment
(7) Control of peripheral devices
(8) Error correction and reporting
(9) Resource sharing
(10) It controls the input and output of data between the computer
(CPU) and the peripheral input and output devices (like
keyboard and monitor)
(11) It connects the application software to the hardware, making it
possible for the user to use the application software to control
the hardware to process jobs.
(12) It allows the application software to operate in the computer.
(13) It tests the main components of the computer whenever it is
powered on. This is the post operation or power on self-test.
(14) It prepares the main memory for the loading of application
programs. This process is known as booting the computer.

c. Examples of operating system include:

i. WINDOWS 95, 98, 2000, XP, 7, 8

ii. Window Vista
iii. UNIX
iv. Apple Mac OS (Formerly OS X)
v. Chrome OS
vi. Google Android OS
vii. XENIX
viii. Novell’s Netware
ix. OS/2
x. WINDOW NT

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d. Advantages of interpreter over compiler include:

i. It is faster and easier to use

ii. Less Random Access Memory space is required than
compiler hence it is memory efficient
iii. It stops the compilation if any error occurs therefore debugging is
easier
iv. It produces superior messages that are very easy to trace
v. It is useful for small program writing
vi. It is very cheap
vii. It is suitable for interactive work which can allow programmer
to test program online in segment

EXAMINER’S REPORT

This question tests the candidates’ understanding on operating system and

the language translator.

This question is also very popular among the candidates as over 70% of the
candidates attempted this question and the performance is very good as over
70% of the candidates scored over 50% of the allotted marks.

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SOLUTION 4

ai. BATCH PROCESSING:

This is a processing technique by which items to be processed must be

coded and collected into groups or batches prior to processing. A
batch consists of a convenient number of records or a collection of
records relating to a given period e.g. daily, weekly, and monthly and
so on or after a specified number is attained to justify updating of a
master file. The result of processing a particular item of data will not
be known until the result of the batches is known. Batch processing is
suitable for accounting and business applications such as payroll
accounts, stock control, invoicing, and purchases e.t.c. in which
master files are updated with new transactions periodically and
output is produced according to predetermined processing cycle.

aii. Other processing techniques include:

i. Centralised processing
ii. Decentralised processing
iii. Distributed processing
iv. Online processing
v. Remote job entry (RJE)
vi. Real time processing
vii. Time sharing or interactive processing
viii. Multi processing
ix. Multi tasking
x. Multi programming

b. ADVANTAGES OF BATCH PROCESSING

i. It is efficient
ii. It is cost effective
iii. It is good for companies that will not require immediate result for
further processing
iv. The output can be identified through the batch number
v. Processing can be carried out very fast without user interactions
vi. Processing can be done off line
vii. Proper documentation of transaction data can be done easily
viii. Independent review can be carried out
ix. System breakdown will have less impact on processing
x. Specific time can be scheduled for processing

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c. DISADVANTAGES OF BATCH PROCESSING

i. Due to the gap between data capture and information

generation renders this mode of processing unacceptable in
organization that requires immediate result or
information to influence other operations or decisions.
ii. Errors detected after batch processing may take some additional
time to correct.
iii. Debugging may be problematic
iv. It is not suitable for organization that will require immediate
result for further action
v. It requires some degree of delay
vi. Data processing staff may be working under pressure due to
accumulation of data

EXAMINER’S REPORT

This question tests candidates’ understanding on Batch processing.

This question is also very popular among the candidates as over 85% of the
candidates attempted the question and the performance is good as over 65%
of the candidates’ scored over 50% of the allotted marks.

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SOLUTION 5

a. COMPUTER NETWORK

A computer network is defined as the interconnection of m a n y

computer systems with data communication devices in order to
share resources such as hardware and software. Networking
reduces duplication of computer resources thus enabling the
scarce resources to be shared among the computer systems.
Therefore it allows the sharing of files, applications, software
products, printers, disk space, modem, faxes, CD-ROM drives and e-
mail facilities.

b. Hub/Switch:
i. A network hub is a common connection point for devices in
a network. Hubs are devices commonly used to connect
segments of a LAN. The hub contains multiple ports. When a
packet arrives at one port, it is copied to the other ports so
that all segments of the LAN can see all packets. It is a device
that broadcast any signal or communication that enters it to all
devices on the network.

ii. Bridge:
It is a device for connecting LANs (Local Area Networks) with
similar logical topologies so that they form a single logical
network. It allows the segmentation of a large network into a
smaller and more efficient network. It connects two
networks such as LAN to the internet or WAN (Wide Area
Network)

iii. Router:
It is a network device for connecting two or more networks
of LAN (Local Area Network), it routes or transfers data
packets across the LANs or MANs in a Wide Area Network or
internet. It sends any signal that enters it to the next available
router or system on the network.

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 iv. Gateway:
It is a device for connecting two networks with dis-similar
protocol together so that they can communicate with each
other. It converts protocols from one computer network to
protocols used in the other network.

v. Repeater:
It is a device for connecting different LANs (Local Area
Networks), it regenerates, amplifies, empowers or recreate
and cleans corrupted digital signals and forward them to their
destination computers without data loss.

EXAMINER’S REPORT

This question tests candidates’ knowledge on general Computer Network

and the terminal equipment.

Over 60% of the candidates attempted the question but the performance is
very poor as below 40% of the candidates scored 30% of the allotted marks.

The major pitfall is the poor descriptive knowledge of the candidates about
the terminal equipment.
Candidates are advised to use the ICAN study pack very effectively for
further examinations.

SOLUTION 6

a. PROTOTYPING

Prototyping is an approach to develop a small or pilot version of a

system called a prototype of an entire system or a part of it. It is
an act of using 4th generation language (4th) development tool to
quickly produce a simulation of the output required from a proposed
or completed system.

b. BENEFITS OF PROTOTYPING

i. Early visibility of the prototype gives users an idea of what the

final system looks like
ii. Encourages active participation among users and producer
iii. Enables a higher output for user
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 iv. Cost effective (Development costs reduced)
v. Increases system development speed
vi. Assists to identify any problems with the efficacy of earlier
design, requirements analysis and coding activities
vii. Helps to refine the potential risks associated with the delivery of
the system being developed
viii. Various aspects can be tested and quicker feedback can be got
from the user
ix. Helps to deliver the product in quality easily
x. User interaction is available during development cycle of
prototype

c. CHALLENGES OF PROTOTYPING

i. Producer might produce a system inadequate for overall

organization needs
ii. User can get too involved whereas the program cannot be to a
high standard
iii. Structure of system can be damaged since many changes could
be made
iv. Producer might get too attached to it (might cause legal
involvement)
v. Not suitable for large applications
vi. Over long periods, can cause loss in consumer interest and
subsequent cancellation due to a lack of market for the
product (for commercial products)

d. REASONS FOR COMPUTER FORENSIC EVIDENCE OR

INVESTIGATION

There is wide range of computer misuses or crimes that can be

committed that will require forensic evidence, some of which are:

i. In legal cases, computer forensic techniques are frequently used

to analyse computer systems belonging to defendants (in
criminal cases) or litigants (in civil cases)

ii. To recover data in the event of hardware or software failures

iii. To analyse a computer after a break-in e.g to determine how the

attackers gain access and what the attackers did

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 iv. To gather evidence against an employee that an organisation
wishes to terminate

v. To gain information about how computer systems work for the

purpose of debugging, performance optimisation and so on.

EXAMINER’S COMMENT

This question tests candidates’ understanding on computer prototyping and

reasons for the use of computer forensics investigation.

Less than 30% of the candidates attempted this question and the
performance is very poor as less than 40% of the candidates scored less
than 30% of the allotted marks.

The major pitfall is the lack of knowledge on prototyping as compared to the

knowledge on System Development Life Cycle (SDLC) and other System
Development techniques.

Students are advised to pay more attention to Systems Development because

it is a major topic in the syllabus, students should use ICAN study pack and
other standard textbooks for further examinations.

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