A book-selling company has a head office and 25 shops, each of which holds cash (banknotes, coins, and credit card vouchers) at the balance sheet date. There are no receivables. Accounting records are held at shops. Shops make returns to head office and head office holds its own accounting records. […]

A small construction project involves the following activities: Normal Crash Activity Time (days) Cost (Sh.) Time (days) Cost (Sh.) 1-2 1-3 2-4 3-4 3-5 4-5 Clear ground Lay foundation Build walls Roofing and piping Painting Landscaping 6 5 3 7 4 2 60,000 30,000 10,000 40,000 20,000 10,000 5 3 […]

Explain the following terms as used in decision analysis. (a) decision making under risk versus uncertainty. (4 marks) (b) decision trees versus probability trees (4 marks) (c) minimax versus maximax criterion (4 marks) (d) pure strategy versus mixed strategy games (4 marks) (e) games with more than two person versus […]

A small company will be introducing a new line of lightweight bicycle frames to be made from special aluminum alloy and steel alloy. The frames will be produced in two models, deluxe and professional. The anticipated unit profits are currently Sh. 1,000 for a deluxe frame and Sh. 1,500 for […]

Internal control systems are designed, amongst other things, to prevent error and misappropriation. Required: Describe the errors and misappropriations that may occur if the following are not properly controlled: (i) Receipts paid into bank accounts; (2 marks) (ii) Payments made out of bank accounts; (3 marks) (iii) Interest and charges […]

The monthly electricity bill at the Chez Paul Restaurant over the past 12 months has been as follows: Month Amount (Sh.) December January February March April May June 30,660 27,190 30,570 30,640 29,730 31,530 29,720 July August September October November 33,070 30,010 27,550 30,130 27,940 Paul is considering using exponential […]

An increasing number of organizations operate sophiscated corporate planning models. Quite often these models feature integrated models for the production, marketing and finance sub-systems. While linkage between these models is important forecasts of the external environment are also needed and econometric models are frequently used to provide these forecasts. Required: […]

(a) Briefly explain each of the following distributions indicating whether it is a discrete or a continuous distribution. (i) Binomial distribution (3 marks) (ii) Poisson distribution (3 marks) (iii) Normal distribution (3 marks) (iv) Chi square distribution (3 marks) (v) Fisher (F) distribution (3 marks) (b) Give one example in […]

Write explanatory notes on the taxes listed below and in each case indicate whether the tax complies with the main principles of a good tax system. (a) Presumptive tax on agricultural produce. (5 marks) (b) Cess on agricultural produce. (5 marks) (c) Trade licence chargeable to professionals. (5 marks) (d) […]