Explain the following terms as used in index numbers: (i) Price index (3 marks) (ii) Quantity index (3 marks) (iii) Composite index (3 marks) (iv) Value index (3 marks)

Richex Limited has provided the following profit and loss account for the year ended 31 December 2005: Profit and Loss Account for the year ended 31 December 2005 Sh. Sh. Opening stock Purchases Manufacturing expenses Salaries and wages Supplies consumed General expenses Interest on loan Commission and brokerage Director’s fees […]

Regress S on ASVABC, SM, and SF, where S is the number of years schooling, ASVABC is a measure of cognitive ability, SM is the respondent’s mother’s schooling years, SF is the respondent’s father’s schooling years, and MALE is a dummy variable that is 1 for male respondents and 0 […]

Consider the following fitted model LGEARNˆ     = 1.31 + 0.08S + 0.02EXP + 0.001SEXP,         R2 = 0.139, (0.33)  (0.02)     (0.04)          (0.003) where the standard errors of parameter estimates are in brackets, LGEARN denotes the natural logarithm of hourly earnings measured in US $, S denotes number of years schooling, EXP […]

A researcher fitted an educational attainment model S = β1 + β2ASVABC + β3S M + β4SF + u, by regressing S, a measure of years of schooling (highest grade completed), on ASVABC, a measure of cognitive ability, SM, and SF, years of schooling (highest grade completed) of the respondents […]

Use the IS–LM model to explain both the short-run effects and the long-run effects of an increase in the money supply on national income, the interest rate, the price level, consumption, investment, and real money balances. Include graphical illustration(s) of your explanation.

Describe and discuss the difference between a 100% reserve requirements and a fractional reserve banking systems.

a) Explain the procedure a company has to follow when changing its auditors. In your discussion explain „dismissal‟ and „appointment‟ of auditors by a company? (12 marks) b) List the rights and duties of an independent auditor. (8 marks)

a) Why is an external audit necessary for companies registered under the Companies Act? Explain (5 marks) b) Under what circumstances is one ineligible for appointment as an auditor of a company? Discusss (10 marks)