THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF NIGERIA

INSIGHT
MARCH 2024 ATSWA EXAMINATIONS
PART II

Question Papers
Suggested Solutions
and
Examiners’ Comments
 TABLE OF CONTENTS

COVER PAGE ……………………………..………………….......... i

TABLE OF CONTENTS .…………………..……………………...... ii
TITLE PAGE ………………………………………………………... iii

PART II PAPERS
FINANCIAL ACCOUNTING …………………………………………. 1 - 26
PUBLIC SECTOR ACCOUNTING …………………………….…….. 27 - 48
QUANTITATIVE ANALYSIS ……………………………….......….. 49 - 85
INFORMATION TECHNOLOGY…………………………………...... 86 - 107

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AT/241/PII.5 Examination No...........................
THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2024 EXAMINATIONS (PART II)
FINANCIAL ACCOUNTING
PLEASE READ THESE INSTRUCTIONS BEFORE COMMENCEMENT OF THE PAPER

EXAMINATION INSTRUCTIONS
1. All solutions should be in ink. Any solution in pencil will not be marked.

2. Read all instructions on each part of the paper carefully before answering
the questions.

3. Ensure that you do not answer more than the number of questions
required for Section B (The Essay Section).

4. Check your pockets, purse and mathematical sets, 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, MARCH 26, 2024

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

iii
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2024
FINANCIAL ACCOUNTING
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. The accrual concept in accounts preparation means

A. Financial statements are always prepared on cash basis
B. Assets are only included in statement of financial position when they can
generate income for the company
C. Income and related expenditure are reported in the same accounting period
D. Liabilities are only included in financial statements when they are paid for
E. Loans are disclosed as off statement of financial position items

2. The revenue of Olu Nigeria Limited is N500 million and its receivable balance is
N25 million. What is the company’s receivable collection period in days during a
leap year?

A. 18.00
B. 18.25
C. 18.30
D. 18.35
E. 18.40

3. The conceptual framework on financial reporting deals with the following,

EXCEPT:

A. The objectives of financial reporting

B. Roles of financial accountants in business
C. Qualitative characteristics of useful financial information
D. Concept of financial and capital maintenance
E. Definition, recognition and measurement of elements of financial
statements

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4. Which of the following is a fundamental qualitative characteristics of financial
information?
A. Comparability and completeness
B. Timeliness and relevance
C. Verifiability and understandability
D. Faithful representation and neutrality
E. Relevance and faithful representation

5. Kofi operates a business as a sole trader. On July 1, 2020 the net assets of the
business is GHc 2,680,000. During the year to June 30, 2021 the business made
a profit of GHc 1,000,000 and Kofi withdrew GHc 880,000. Due to cash shortage
in the business he also injected additional capital of GHc 160,000. What is the
closing equity of the business as at June 30, 2021?
A. GHc 160,000
B. GHc 2,040,000
C. GHc 2,840,000
D. GHc 2,960,000
E. GHc 3,840,000

Use the following information to answer questions 6 and 7

The chart of account of company XYZ Limited is as shown below:

Code range

Non-current assets 100-199

Current assets 200-299
Non-current liabilities 300-399
Current liabilities 400-499
Equity 500-599
Income 600-699
Expenses 700-799

6. Which of the following has been wrongly coded by the accounts clerk assuming
company XYZ Limited sells motor vehicles?

A. Land purchased 130

B. Motor vehicle sales 192
C. Office rent prepaid 202
D. Loan repaid 352
E. Office stationery purchased 725

2
7. Which of the following is correctly coded?
A. Injection of share capital 521
B. Accrued expense 375
C. Staff loan granted 655
D. Taxation paid 170
E. Audit fee paid. 284

8. An item of property, plant and equipment cost N100,000 and has an expected
residual value of N20,000. What is the annual depreciation on straight line
basis, if the non-current asset has an estimated useful life of 5 years?
A. N4,000
B. N16,000
C. N20,000
D. N24,000
E. N25,000

9. The rules of accounting for property, plant and equipment are contained in IAS
16. The following are directly attributable cost of item of property, plant and
equipment recognised by the standard, EXCEPT
A. Cost of site preparation
B. Carriage in ward cost
C. Repairs and maintenance cost
D. Testing cost
E. Installation and assembly cost
10. IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, deals
with the following different issues in financial reporting, EXCEPT
A. Selecting and applying accounting policies
B. Corrections of errors in prior accounting period.
C. Working capital adjustments in cash flow for the period
D. Accounting for changes in estimates for the period
E. Voluntary changes in accounting policies
11. A business operates on the basis of a mark-up on cost of 40%. Calculate the
revenue for the year using the following information
Opening inventory Le 3,100
Closing inventory Le 4,000
Purchases Le 42,100
A. Le 16,480
B. Le 41,200
C. Le 45,260
D. Le 57,680
E. Le 113,200
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12. The values of working capital items of Young Shall Grow Nigeria Limited for the
year end December 31, 2021 are as follows:

Receivables Inventory Payables

Opening bal. N32,000 N49,000 N17,000

Closing bal. N27,000 N53,000 N11,000

Calculate the amount by which operating cashflows will increase or decrease?

A. N5,000 decrease
B. N5,000 increase
C. N10,000 decrease
D. N10,000 increase
E. N15,000 decrease

13. Kakaraka Limited made a loss on disposal of its Plants and Machinery of N8
million. The Plant and Machinery originally cost N50 million and at the date of
the disposal, accumulated depreciation on the Plant and Machinery was N20
million. What amount should be disclosed as investing activities in the
company’s statement of cash flows?

A. N8m inflow
B. N20m outflow
C. N22m inflow
D. N30m outflow
E. N50m inflow

14. X Y and Z are in partnership sharing profit or losses in the ratio 2:2:1. Y is
allowed a salary of N100,000 per annum and Z is allowed salary of N150,000.
The net profit for the year was N1,000,000

How should the profit be shared among the partners?

X. Y. Z.
A. N300,000 N300,000 N150,000
B. N300,000 N400,000 N300,000
C. N400,000 N400,000 N200,000
D. N425,000 N150,000 N425,000
E. N450,OOO N450,000 N100,000

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15. Which of the following is NOT a threat that may affect professional accountants
from complying with ethical behaviour?
A. Self-interest
B. Familiarity
C. Advocacy
D. Abnormality
E. Intimidation
16. Which of the following is NOT an advantage of computerised accounting
system?
A. Timely generation of report and accounting information
B. Confidentiality of data is maintained
C. Ensures effective control over the system
D. Efficient record keeping
E. Hackers having access to information

17. The IASB conceptual framework recognises which of the following methods for
measurement of elements of financial statements?
A. Net asset value method
B. Present value method
C. Dividend yield method
D. Discounted future profit method
E. Super profit method
18. Using cost price method, the necessary accounting entries required to record
goods returned from branch to Head office at cost are
Dr Cr
A. Branch inventory account Goods sent to branch account
B. Branch inventory account Branch adjustment account
C. Goods sent to branch account Branch inventory account
D. Branch trade receivables account Branch inventory account
E. Branch adjustment account Goods sent to branch account

19. Which of the following can be derived from statement of changes in equity of a
company?

A. Non -current assets

B. Current assets
C. Net assets
D. Non -current liabilities
E. Total equity and liabilities

5
20. A trial balance is made up of a list of debit balances and credit balances. Which
of the following is correct?
A. Assets are represented by debit balance
B. Liabilities are represented by debit balances
C. Every credit balance represents equity
D. Every debit balance represents an expense
E. Opening inventory is shown as a credit balance

21. Which of the following should be classified as current assets?

I. Assets which are expected to be realised, sold or consumed in its normal
operating cycle
II. Assets not held for trading purposes
III. Assets that is expected to be realised within 12 months
A. I
B. II
C. I and II
D. II and III
E. I and III
22. What is the double entry required to record accruals in the account?
DR CR
A. Assets Expense
B. Expense Liability
C. Liability Capital
D. Expense Assets
E. Capital Liability
23. IAS 16 Property, Plant and Equipment (PPE) requires the following disclosure in
the notes to the financial statements for each major class of the PPE, EXCEPT:
A. The measurement bases used
B. The depreciation method used
C. The class of the asset purchased on credit
D. The useful life of the class of assets
E. Opening and closing balance of gross carrying amounts and the
accumulated depreciation
24. A business operates on a gross profit margin of 331/3%, gross profit on sale was
N800,000 and expenses were N680,000. What is the net profit margin?
A. 3.00%
B. 5.00%
C. 11.25%
D. 22.67%
E. 32.50%
6
25. Which of the following will directly impact double entry of a company’s
accounting system?

A. Goods dispatched note

B. Customers’ statements
C. Sales order
D. Delivery note
E. Sales invoice

26. Which of the following items will appear in a Statement of cashflows prepared
in accordance with IAS 7?

A. Retained earnings
B. Capital reserve
C. Right issue of shares
D. Revenue reserve
E. Bonus issue of shares.

27. Which of the following is NOT an example of changes in accounting estimates in

accordance with IAS 8?
A. Provision for Bad debts
B. Determination of Inventory obsolescence
C. Fair valuation of financial assets
D. Capitalisation of certain types of expenditure
E. Determination of useful live of non-current assets

28. Statement of profit or loss and other comprehensive income can be prepared by
analysing expenses by their nature or by functions.
Which of the following is NOT a classification by nature?

A. Finance costs
B. Consumables used
C. Staff costs
D. Depreciation
E. Raw materials used

29. Which of the following transaction is a revenue expenditure?

A. Repaying bank overdraft
B. Purchasing non -current assets
C. Payment of interest on loan notes
D. Expenditure resulting in improvement to property
E. Buying shares as form of investment.

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30. Company XYZ Limited had the following transactions:
1. Goods in inventory which had cost N100,000 were sold for N150,000
2. A credit customer whose N50,000 debt had been written off paid the
amount in full
3. The company paid credit suppliers N100,000

What will be the combined effect of these transactions on company XYZ Limited
total net assets?

A. Net assets remain unchanged

B. Increase of N50,000
C. Increase of N100,000
D. Increase of N200,000
E. Increase of N300,000

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 concepts, conventions, laws and regulations that are used to prepare and
present financial statements are known as……………………….

2. TWO issues that statement of accounting standards provides guidance on in

respect of financial statement preparation are ........................ and
............................
3. TWO elements of financial statements are........................... and ..........................

4. Another name for receivable ledger control account is ....................................

5. An item of equipment cost N300,000 and has a residual value of N50,000.The

annual depreciation is N62,500. The useful life of the asset is .............................

6. The accounts clerk of Our turn Nigeria Limited carry out the following wrong
postings in the account
i. telephone expenses were wrongly posted into electricity account
ii. cost of plant and equipment was wrongly recorded as repairs of plant
and equipment

The types of errors committed in i and ii above are .................... and

.................... respectively.

8
7. A debit entry will increase assets while ……………entry will reduce equity

8. Working capital is ........................

9. TWO methods of preparing cash flow statement in accordance with the
provisions of IAS 7 are .......................... and ..........................

10. If net movement in cash and cash equivalent for the year is N40,800 inflow and
cash and cash equivalent for the year end is overdraft of N45,800. The balance
of cash and cash equivalent at the beginning of the year is ...................

11. The formula for quick ratio is ...................................

12. TWO items that should be accounted for in statement of changes in equity of a
limited liability company is ......................... and .......................

13. Break up basis of accounting is used by company going into liquidation while
……………………. basis of accounting should be used in going concern
companies.

14. Gain on property revaluation should be accounted for in the ……………………..

15. The TWO historical cost methods of valuation of inventory recognised by IAS 2 –
Inventory are ........................ and ..........................

16. The type of threat that can occur when a professional accountant promotes the
point of view of client is called ……………………………………
17. The specific set of rules set by the governing council of a professional
accountancy body is referred to as ………………………….

Use the following information to answer questions 18 and 19

The following figures were extracted from the statement of financial position of ATS
Nigeria Limited
Nm
Inventory 20
Receivables 30
Cash and cash equivalent 10
Payables 30
Loan notes (5years). 30
Share capital. 50

18. The current ratio is ...........................

19. The working capital is .............................
20. Error of commission is one of the errors that will not affect the agreement of a
trial balance. TWO other errors of this nature are ................... and ....................
9
SECTION B: ATTEMPT ANY FOUR QUESTIONS (50 MARKS)

QUESTION 1

The directors of Kakanfo Nigeria Limited are in the process of preparing the company’s
financial statement for the year to October 31, 2021. The following list of balances
were extracted from the company’s ledgers as at the year end.

Debit Credit
N`000 N`000

Property 50,000
Plant and equipment 462,000
Plant and equip- accm, Nov 1, 2020 87,000
Trade payables 91,000
Trade receivables 132,500
Development expenditure 80,000
Proceed on share issue 15,000
Cash at bank 26,650
Inventories Oct 31 2021 70,600
Retained earnings Nov 1,2020 179000
Share capital (N1 each) 37,500
Taxation over provision 5,500
8% loan (2023) 125.000
Revenue 961,000
Cost of sales 535,000
Distribution cost 46,750
Admin expenses 62,500
Interest paid 5,000
Dividend paid 30,000
Total 1,501,000 1,501,000

Additional information:

(1) No depreciation charge has yet been calculated for the year. On November 1,
2020, Kakanfo Nigeria Limited acquired a new property at a cost of N50 million.
This replaced a rented property that was occupied previously. For the purpose
of calculating depreciation only, the asset has been separated into the following
elements.

10
 Separate assets Cost Life span
N`000

Land 12,500 Freehold No limit

Cooling system 5,000 10years
Lift 7,500 15years
Building 25,000 50years

The depreciation elements of the property should be calculated on straight line

basis, (assuming a zero residual value).
Plant and equipment is depreciated at 20% on reducing balance basis. All
depreciation is to be charged to cost of sales.

(2) The development expenditure relates to previous year balance, the directors are
of the opinion that it should be written off as if the changes has occurred in
previous period in the accounting policies of the company in accordance with
provisions of IAS 8.

(3) Provision for taxation for year to Oct. 31, 2021 of N37.5miilion is required.

(4) The company issued 2.5 million new N1 shares on June 30 2021 at a premium
of N5 per share.

Required:
Prepare Kakanfo Nigeria Limited Statement of profit or loss and statement of changes
in equity for the year ended October 31, 2021. (Total 12½ Marks)

QUESTION 2

a. Define accounting standards and state its advantages (2½ Marks)

b. What are the duties of the IFRS foundation and the role of its advisory council?
(2½ Marks)
c. Write short notes on the following accounting concepts and their significance in
financial reporting;

i. Materiality
ii. Consistency
iii. Substance over form
iv. Going Concern
v. Offsetting (7½ Marks)
(Total 12½ Marks)

11
QUESTION 3

a. The control account is part of the double entry system, whereas the ledger
contains memorandum accounts which are not part of the double entry system.
However, both are updated using the same sources and therefore they should
agree.

Required:

State sources of these TEN items in the receivables ledger control accounts

S/N Items Sources

1 Credit sales
2 Sales returns
3 Cash received from customers
4 Cheque received
5 Discount allowed
6 Bad debt written off
7 Dishonoured cheque
8 Refund to customers
9 Set off to payables
10 Interest charged on overdue amount
(5 Marks)

b. The following information relates to Sahr’s receivable ledger control account,

which are reconciled with the individual ledger balances at the end of June 2022.
Information for the month of June is as follows:

(i) Individual ledger account balances at June 30, have been listed out and
totalled Le 138,362.
(ii) The receivables ledger control account balance at June 30, is Le 152,824.

On further investigation, the following errors are discovered:

• The total of discount allowed for the month amounting to Le 12,005, has not
been entered in the control account but has been entered in the individual
ledger accounts.
• On listing out, an individual debit balance of Le 1,435 has been incorrectly
treated as a credit.
• A cash received from a customer amounting to Le 441 has been correctly
treated in the control account, but no entry has been made in the
customer’s individual ledger account.
12
 • The sales day book total for June has been under cast by Le 14,000.
• Set off with the payables ledger, amounting to Le 14,028 have been
correctly treated in the individual ledger accounts but no entry has been
made in the control account.
Required:
i. Prepare the receivables ledger control account reflecting the above
information. (5 Marks)
ii. Prepare a statement reconciling the original total of the individual balances
with the corrected balance in the control account. (2½ Marks)
(Total 12½ Marks)

QUESTION 4

a. State the criteria to be satisfied for an item to be recognised as property, plant

and equipment in accordance with IAS 16- Property, Plant and Equipment.
(3 Marks)

b. The following information relates to property, plant and equipment of Bonjour

Limited.

Cost at January 1, 2021: Le’000

Land and building ( Land Le 100 million) 280,000
Plant and machinery 80,000
Motor vehicles 30,000
Accumulated depreciation January 1, 2021:
Building 80,000
Plant and machinery 10,000
Motor vehicles 8,000

Additional information:

(i) During the year ended December 31, 2021, Bonjour Limited bought a
new motor vehicle costing Le 5,000,000. The vendor accepted a car in
part exchange by the company at value of Le 700,000. The vehicle sold
originally cost Le 4,000,000 while the accumulated depreciation at the
date of disposal was Le 3,400,000.

(ii) The depreciation rates are as follows:

• Building 2% on cost
• Plant and machinery 20% on cost
• Motor vehicle 25% on the reducing balance

13
 Required:
i. Calculate the gain or loss on the disposal of the old car. (2½ Marks)
ii. Prepare the notes to (schedule of movement in) the property, plant and
equipment in accordance with IAS 16, for the year ended December 31,
2021. (7 Marks)
(Total 12½ Marks)

QUESTION 5

A, B and C were partners sharing profits or losses in ratio 3:2:1. The partners were to
be credited with interest on capital and charge with interest on drawings. The
balances extracted from the books as at December 31, 2021 after the balances on the
nominal accounts had been transferred to the income statement were:
Dr. Cr.
N N
Capital Accounts
A 396,000
B 420,000
C 324,000
Non Current Assets 1,500,000

Profit for the year 600,000

Bank Balance 240,000
1,740,000 1,740,000

No entries had been made in the books in respect of the followings:

(i) Goods withdrawn for personal use by ‘B’ N20,000
(ii) Business travelling expenses of N15,000 paid by ‘C’ from private purse.
(iii)Interest on capital for the year: ‘A’ N15,000; ‘B’ N20,000 and ‘C’ N10,000
(iv) Interest on drawings for the year; ‘A’ N4,000; ‘B’ N5,000 and ‘C’ N6,000
(v) Cash Drawings: ‘A’ N25,000; ‘B’ N15,000 and ‘C’ N10,000
(vi) ‘B’ is entitled to salary of N60,000 per annum with 5% commission on trading
profit after charging salary and commission, but before charging interest on
capital
Required:

a. Determine the actual net profit or loss for the year ended December 31, 2021.
(2 Marks)
b. Prepare the appropriation account and partners’ current accounts in columnar
form. (10½ Marks)
Show all workings. (Total 12½ Marks)
14
QUESTION 6

a. Write short notes on

i. Data creation (1 Mark)
ii. Data manipulation (1½ Marks)

b. Present procedural flow charts for the use of Tally to prepare; (i) Ledgers; (ii)
Trial Balance and (iii) statement of financial position. (10 Marks)
(Total 12½ Marks)

SOLUTION A: PART I

MULTIPLE-CHOICE SOLUTIONS

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

2. 25/500 x 366 = 18.30days

5. 2680 + 1000 + 160-880 = 2960
8. N100,000 – 20,000 ÷ 5 = N16,000
11. Le 3,100 + Le 42,100 – Le 4,000 = Le 41,200 x 140% = Le 57,680
12. N5,000 - N4,000 - N6,000 = N5,000
13. N50m – N20m = N30m – N8m = N22m inflow
14. N1,000,000 – 250,000 = 750,000 share × 300,000
Y = 300,000 +100,000, Z = 150,000 +150,000
24. 800 - 680 = 120/ (800/.3333) x 100 = 5%

Examiner’s comment
Being compulsory questions, all the candidates attempted these questions and
performance was good.

SECTION A: PART II

SHORT-ANSWER SOLUTIONS

1. Generally Accepted Accounting Principles (GAAP)

2. i. Recognition
ii. Measurement
iii. Presentation
iv. Disclosure

3. i. Assets
ii. Liabilities
iii. Equity
iv. Income
v. Expenses

4. Sales ledger control account or Debtors ledger control account

5. 4years = N300,000-N50,000/N62,500

6. i. errors of commission
ii. errors of principle

7. Debit

8. Current assets less current liabilities

9. i. Direct method
ii. indirect method

16
10. N45800+ N40800= N86600 Overdraft

11. current assets- inventory/ current liabilities

12. i. Dividend paid

ii share capital issued
iii. share premium
iv. gain on revaluation of assets

13. Accrual or cash basis

14. Statement of other comprehensive income or Statement of changes in equity

15. i. First in first out method -FIFO

ii. Weighted average cost method

16. Advocacy threats or Client-Centric Bias

17. Code of professional conduct / professional Standard

18. 2:1

19. N30m

20. i. Errors of principles

ii. Compensating error
iii. Error of Omission
iv. Error of Original entry

Workings

18. (20m + 30m + 10m) = 60 : 30 = 2 : 1

19. (20m + 30m +10m) – 30m = N30m

Examiner’s comment
Also being compulsory questions all the candidates attempted the questions and
performance was average.

17
SECTION B

SOLUTION 1
KAKANFO NIGERIA LIMITED

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED
OCTOBER 31, 2021

NOTE NGN'000 NGN'000

Revenue 961,000

Cost of Sales
Cost of sales given 535,000
PPE Depreciation 76,500
Cost of sales (W1) (611,500)
Gross Profit 349,500

Expenses
Distribution expense 46,750
Administrative expenses 62,500

Total operating expense (109,250)

Operating Profit 240,250
Finance cost (10,000)
Profit before tax 230,250
Income Tax (W2) (32,000)
Profit for the year 198,250

Workings:
W1 Cost of sales N`000
Bal per trial bal 535,000
Depreciation Property 1,500
Depreciation-plant (462000-87000) x 75000
20%
Total 611,500

(W2) Income Tax N`000

Current Tax 37,500
Prior year over provision (5,500)
Profit or Loss 32,000

18
 Kakanfo Nigeria Limited
Statement of changes in equity for the year ended October 31, 2021

Share Share Retained Total

capital premium earnings equity
N`000 N`000 N`000 N`000
Bal at Nov 1 2020 37,500 - 179,000 216,500
Prior year adjustment - - (80,000) (80,000)
Adjusted balance 37,500 - 99,000 136,500
Profit for the year - - 198,250 198,250
Share issue 2,500 12,500 - 15,000
Dividends - - (30,000) (30,000)
Bal at Oct. 31 2021 40,000 12,500 267,250 319,750

Examiner’s comment
The question tested candidates’ ability to prepare statement of profit or loss and
statement of changes in equity for a company. About 75% of the candidates attempted
this question and the performance was only average. The major pitfall was
preparation of statement of changes in equity as only about 40% of the candidates
understood how to prepare it.

SOLUTION 2

a) Accounting Standards

These are common sets of principles and procedures that define the basis of
financial accounting policies and practices. They apply to the whole spectrum of
an entity’s financial transaction and other events, including assets, liabilities,
revenue, expenses and equity.

Advantages of accounting standards

(i) Improve the reliability of financial statements because their reliability of the
statement can be tested against the prescription of the relevant standards.
(ii) Allow interpretation of financial statements by users.

(iii) Allow for inter-firm and intra-firm comparisons

(iv) Ensure uniformity in the presentation of financial statements of entities
within the same industry
(v) Ensure financial statements are prepared in a transparent manner based on
rules and principles
(vi) Ensure that the financial statements of entities are prepared in consistent
manner every year
19
 (vii) Prevent frauds and Accounting malpractices
(viii) Assists Auditors

b) DUTIES OF IFRS FOUNDATION

(i) It is responsible to raise funds needed to finance standard setting
(ii) It is responsible for the appointment of members to the IASB, IFRS
interpretation committee, and the IFRS Advisory council.
(iii) It oversees and supervises the standard setting work
(iv) It oversees and supervises the IFRS structure and strategy
(v) It is responsible for the review of the constitution
(vi) It is in charge of governance of the standard setting and IFRS strategy.

IFRS Advisory Council

The council is the formal advisory body or unit to the IASB and trustees of the
IFRS Foundation. It consists of a group of organizations and individuals with
relevant knowledge in international financial reporting. Members are from
different geographical locations and have wide variety of background and they
include user groups, auditors, regulators, professional accounting bodies,
investors etc.

The major role of the council is to advise the trustees of the IFRS foundation and
IASB on financial reporting issues especially on prioritization of its work and on
the implication on proposed standards for users and preparers of financial
statement. The IASB also consult the council on board decisions.

a) Short notes

i. Materiality; Information is material if its omission or mis-statement in

the financial statements could influence the economic decision of
users. Whether an item is material or not depends on the magnitude or
its nature or both in the context of specific circumstances of the
business. Items that are considered material need to be disclosed in
the financial statements. Financial Statements could become
misleading or confusing if material items are excluded.

ii. Consistency; The concept of consistency holds that when an entity

selects an accounting policy it should continue to use that policy in
subsequent periods. The concept ensures that the accounting treatment
of like items to be the same from one accounting period to another, to
allow for comparison.
iii. Substance over form; This requires that business transactions should
be recognized in the financial statements in accordance with their
20
 economic realities to the reporting entity rather than their legal form. If
the economic reality is followed, then the financial statement will
represent faithfully, the financial transactions that have occurred.
iv. Going concern; The going concern is the fundamental assumption of
financial reporting. An entity is considered a going concern if the
business entity is capable of earning a reasonable net income and
there is no intention or threat from any source to curtail significantly
its line of business in the near future. When financial statements are
not prepared on a going concern basis, it should disclose the fact
together with the basis on which they were prepared and the reason
why the entity is not regarded as a going concern.
v. Offsetting; IAS 1 requires that assets and liabilities and income and
expenses should not be offset against each other instead they should
be reported separately. Not offsetting would help to compare the
amount of assets to liabilities and the income to expenses.
Offsetting is only possible when it is permitted by a standard or it
reflects the economic substance of a transaction.

Examiner’s comment
The question was a theory and it examined understanding of accounting standard, its
advantages and duties of IFRS and the major role of IFRS Advisory Council. The
question also tested candidates’ understanding of accounting conventions.
About 95% of the candidates attempted this question and they performed well.
However, few of the candidates could not explain in clear terms some of the
accounting conventions and the duties of IFRS Foundation.

SOLUTION 3

a) Sources of these ten (10) items in the receivables ledger control accounts

S/N Items Sources

1 Credit sales Sales day book
2 Sales returns Returns inward book
3 Cash received from customers Cash book (debit side)
4 Cheque received Cash book (debit side)
Discount column cash book
5 Discount allowed (debit side)
6 Bad debt written off The journal
7 Dishonoured cheque Cash book (debit side)
8 Refund to customers Cash book (credit side)
9 Set off to payables The journal
10 Interest charged on overdue amount The journal

21
b)
i. Receivables Ledger control account
June 2022 Le June 2022 Le
Balance b/d 152, 824 Discount allowed 12,005
Sales 14,000 Payable ledger(Contra) 14,028
Balance c/d 140,791
166,824 166,824
Balance b/d 140,791

ii. Reconciliation of individual balances with control account.

Le
Balances as per extracted 138,362
Debit balance incorrectly treated as credit (1,435 x 2) 2,870
cash received from customer (441)
Net total agreeing with control account 140,791

Examiner’s comment
This question assessed candidates’ knowledge of control accounts and source
documents of major transactions. About 70% of the candidates attempted this question
and performance was good. However, some candidates could not determine books of
original entry and this affected their performance.

SOLUTION 4

4(a) Item of property, plant and equipment should be recognised as asset if it satisfies
the following conditions:
i. It is probable that the future economic benefit associated with the asset will
flow to the entity;
ii. The cost of the asset can be measured reliably; and
iii. The entity have control over the asset.

b (i) Bonjour LTD

Calculation of gain or loss on disposal of motor vehicle

Le’000 Le’000
Sales proceed 700
Original cost of vehicle sold 4,000
Accumulated depreciation (3,400)
Carrying amount (600)
Gain on disposal _100_

22
b(ii) BONJOUR LTD

Notes to property, plant and equipment for the year ended December 31, 2021
Land & Plant & Motor Total
building machinery vehicles amount
Le’000 Le’000 Le’000 Le;000
Cost:
Balance January 1, 2021 280,000 80,000 30,000 390,000
Addition 5,000 5,000
Disposal (4,000) (4000)
Balance December 31, 2021 280,000 80,000 31,000 391,000
Depreciation:
Balance January 1, 2021 (80,000) (10,000) (8,000) (98,000)
Disposal 3,400 3,400
Charge for the year (3,600) (16,000) (6,600) (26,200)
Balance December 31, 2021 (W1) (83,600) (26,000) (11,200) (120,800)

Carrying amount December 31, 2021 166,400 54,000 19,800 270,200

Carrying amount January 1, 2021 200,000 70,000 22,000 292,000

(W1) Workings:
Calculation of depreciation:
Building Le180 million x 2% = Le3.6 million
Plant and machinery Le80 million x 20% = Le16 million
Motor vehicle Le[31 – (8-3 .4)] millionx25% = Le6.6 million

Examiner’s comment
The question appraised candidates’ understanding of IAS 16 particularly as it relates
to the conditions to be met for recognition of items as part of property, plant and
equipment. It also tested candidates’ knowledge of calculating gains or loss on
disposal of assets.
About 85% of the candidates attempted the question but performance was poor.

SOLUTION 5
A, B, C
Adjusted Income Statement
N N
Current Account: C (ii) 15,000 Balance b/d 600,000

Net Profit 605,000 Current Account B (i) 20,000

620,000 620,000

23
 Appropriation Account
N N N N
Current Accounts (iii) Net Profit b/d 605,000
A 15,000 Current Accounts (iv)
B 20,000 A 4,000
C 10,000 B 5,000
45,000 C 6,000
15,000
Current Accounts (vi)
B commission 25,950
B salary 60,000
85,950

Current Accounts:
Share of profits
A (3/6 x N489,050) 244,530
B (2/6 x N489,050) 163,010
C (1/6 x N489,050) 81,510
489,050 _______
620,000 620,000

Current Accounts
A B C A B C
N N N N N N
Appropriatio Appropriat
n: ion:
Int. on 4,000 5,000 6,000 Share of 244,530 163,010 81,510
Drawings Profit
Appropria
tion:
P or l: Goods 20,000
Bank 25,000 15,000 10,000 Int. on 15,000 20,000 10,000
Capital
Balance c/d 230,530 228,960 90,510 P or L (ii) 15,000
Appropriat
ion:
Commissio 25,950
n
Salary 60,000

259,530 268,960 106,510 259,530 268,960 106,510

24
Notes
Commission to B: (N605,000 – N60,000) X 5 ÷ (100 + 5) = N25,950

Examiner’s comment
This question was on Partnership appropriation and partnership current account.
About 85% of the candidates attempted the question. The performance was good but
the major pitfall was the inability of the candidates to differentiate between what is to
be posted to partner’s current account and partner’s capital account and what should
be treated in the. This made them to loose some marks.

SOLUTION 6

(a)i. Data Creation

Data creation encompasses the generation of new information or records through
processes such as data entry, capture, or generation. It involves converting raw data
into a usable digital format, whether through manual input, automated systems, or
sensor technologies. Quality assurance is essential to ensure the accuracy and
reliability of newly created data, supporting its usefulness for decision-making and
analysis. Metadata creation provides additional context and information about the
data, aiding in its organisation and interpretation.

ii. Data Manipulation

Data manipulation involves altering, organising, or transforming data to derive
insights or fulfill objectives, often through operations like filtering, sorting,
aggregating, and transforming. It is a crucial step in data analysis, enabling the
extraction of meaningful information and facilitating informed decision-making.

(b) Procedural Flow Chart for the use of tally to prepare;

i. Ledger

25
 ii. Trial Balance

iii. Statement of financial position

Examiner’s comment
The question tested candidates’ understanding of data creation, data manipulation
and the procedural flow chart for the use of tally using accounting software.
About 10% of the candidates attempted this question and the performance was poor.
The few candidates that attempted it could not properly define data creation and data
manipulation in accounting context. Likewise, they could not prepare the flowchart.

26
AT/241/PII.6 Examination No..................................
THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2024 EXAMINATIONS (PART II)

PUBLIC SECTOR ACCOUNTING

PLEASE READ THESE INSTRUCTIONS BEFORE COMMENCEMENT OF THE PAPER

EXAMINATION INSTRUCTIONS
1. All solutions should be in ink. Any solution in pencil will not be marked.

2. Read all instructions on each part of the paper carefully before answering
the questions.

3. Ensure that you do not answer more than the number of questions required
for Section B (The Essay Section).

4. Check your pockets, purse and mathematical sets, 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.

WEDNESDAY, MARCH 27, 2024

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

27
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2024
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. ................... is responsible for the preparation of Medium – Term Expenditure

Framework
A. The Accountant-General
B. The Minister of Finance
C. The Auditor-General
D. National Assembly
E. The Civil Society

2. The underlisted are the ‘key’ users of the ‘zero-based’ budgeting technique in
government with the exception of

I. The Legislature
II. The Executive
III. The various Ministries, Extra-ministerial departments and parastatals
IV. The Judiciary

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

3. Which of the following is NOT part of the objectives of budgetary control?

A. Bureaucrats often do not trust the approach and hence frustrate its
effectiveness
B. To decentralise responsibility to each manager
C. To co-ordinate all the activities of a business or organisation.
D. To channel capital expenditure in the most profitable manner
E. To show management where action is needed to remedy a situation.

28
4. Which of the standard listed below requires a comparison between budgeted
amount and the actual amount arising from execution of the budget to be
included in the financial statements of entities, which are required to make
the government accountable to the public?

A. IPSAS 4
B. IPSAS 24
C. IPSAS 14
D. IPSAS 2
E. IPSAS 12

5. The original budget adjusted for all reserves, carry over amounts, transfer,
allocations, supplementary appropriations, and other authorised legislative,
or similar authority, changes applicable to the budget period, published
forward estimates or projections for periods beyond the budget period is
called
A. Budget Control
B. Final Budget
C. Budgetary basis
D. Annual budget
E. Original budget

6. Which of the following is NOT a function of the Budget Office of the

Federation?
A. Developing reasoned economic assumptions and forecast
B. Issuing budget guidelines to ministries and extra-ministerial
departments
C. Compiling total revenue and expenditure estimates
D. Determining the amount to be included in the estimates submitted and
ratified by the National Assembly
E. Drafting the budget speech

7. Which of the following is NOT the purposes of revenue budget in Public

Sector?
A. To determine the level of aggregate income receivable to the government
B. To plan the cash flow of the government
C. To identify the major sources of income to the government
D. To determine the level of expenditure acceptable to the government
E. To determine the population of the people living in the country

8. Which of the financial management function in GIFMIS does NOT cover the
entire financial management?
A. General Ledger
B. Budget execution and treasury management
C. Payment and account receivable
D. Asset management
E. Payroll management

29
9. The Financial Reporting Council of Nigeria Act 2011 (as amended) stipulates
that the Chairman and other members of the board shall hold office for a
term of 4 years in the first instance and may be reappointed for a further
term of ........... and no more

A. 3 years
B. 4 years
C. 5 years
D. 7years
E. 10 years

10. The auditing of payment of gratuities and pension is to ensure that all the
claims are bonafide and free from errors and manipulation. The audit is
conducted by the pension office of
A. Auditor General‘s office
B. Accountant General’s office
C. Secretary General’s office
D. Federal Ministry of Finance
E. Federal Ministry of Humanitarian affairs and disaster management

11. The process that embraces the review of previous year’s work by carefully
laying out how to go about the work of the current year, developing general
strategy for the anticipated nature, extent and logistics is known as
A. Audit trail
B. Audit planning
C. Audit working paper
D. Continuous audit
E. Adhoc audit

12. The use of deception to obtain unjust or illegal financial advantage whether
or not accompanied by misstatement of accounting records is referred to as
A. Error
B. Fraud
C. Tapping
D. Mistake
E. Suspicion

13. The Act that provides for the prudent management of the Nation’s resources
to ensure long term macro-economic stability of the national economy, ensure
greater accountability and transparency in fiscal operation is known as

A. Fiscal Responsibility Act

B. Public Procurement Act
C. Code of Conduct Bureau Act
D. ICPC Act
E. EFCC Act

30
14. Which of the following is NOT a true definition of public sector entity?

A. Public sector consists of organisations where control lies in the hand of

the public
B. The objectives of public sector involve the provision of services
C. Profit making is not a primary objective in the public sector
D. All organisations in the public sector are not privately owned and
operated
E. Performance measurement in the public sector is enhanced by lack of
profit motive

15. The global organisation for the accountancy profession is known as

A. International Accounting Standards Board

B. International Public Sector Accounting Standard Board
C. International Association of Accountants
D. International Federation of Accountants
E. Association of Certified Chartered Accountants

16. One basic advantage and outcome of the adoption of IPSASs by public sector
entities is that

A. It permits easy identification of those who authorise payments and

collect revenue
B. It allows for comparison between the amount provided in the budget
and that actually spent
C. It makes allowance for the diminution in the value of assets employed
to generate revenue
D. It permits the delegation of work in certain circumstances
E. Improvement in both the quality and comparability of financial
information reported

17. Parastatals are companies established by

A. Registering with Corporate Affairs Commission

B. Enabling Act or Law
C. Registering with Civil Societies Group
D. Registering with National Assembly Commission
E. Registering with Local Government Authority

18. Which of the following is NOT a check and balance of keeping Imprest Accounts?

A. Imprest money must not be used for other purposes

B. Any balances on imprest must be retired at the end of the fiscal year
C. Any expenditure on imprest must be properly authorised and approved
D. Imprest money must be under the custody of the Chief Internal Auditor
E. Payment vouchers must be raised for all disbursements from the imprest
money

31
19. The stores that have a life span of about two to five years and are used in the
day-to-day activities of an organisation is
A. Expendable Stores
B. Commercial Stores
C. Consumable Stores
D. Non-Expendable Stores
E. Raw Material Stores

20. Which of the following is NOT a power of National Pension Commission?

A. Formulate, direct, and oversee the overall policy on pension matters in
Nigeria
B. Fix the term and condition of service, including remunerations of the
employees of the Commission
C. Charge and collect such fees, levies or penalties as may be specified by the
commission
D. Establish standards and rules and regulation for the management of the
pension funds
E. Power to share revenue accruing to the Federation Account
21. Differences between the balance in the cash book and that of the bank statement
may arise due to
I. Wrong posting in the cash book
II. Standing order giving to the bank for payment of insurance premium
III. Bank charges, and direct lodgements
A. I
B. II
C. I and II
D. I , II and III
E. II and III
22. Which of the following is NOT the objective of Pension Reform Act 2014?

A. Establish a uniform set of rules, regulations and standards for the

administration and Payment of retirement benefit for the public service of
the federation, the public service of the state government, the public
service of Federal Capital Territory, the public service of Local government
council and the private sector
B. Make provision for the smooth operation of the contributory pension
scheme
C. Ensure that every person who work in either in the public service of the
federation, the public Service of Federal Capital Territory, the public service
of state government, the public service of local government council and
private sector receives their benefits as at when due
D. Assist improvident individuals by ensuring that they save in order to cater
for their live hood during old age
E. Provision of social amenities and ensuring good standard of living for
Nigerians

32
23. Which of the following is NOT a tool of interpretation of accounts in government
parastatals?
A. Profitability ratios
B. Solvency ratios
C. Ownership Equity ratios
D. Prudence Principle
E. Current ratios
24. The document containing instructions which shall be observed and complied
with by all Local Governments for corporate governance and management of
resources is known as
A. Fiscal Responsibility Act 2007
B. Public Procurement Act 2007
C. The Financial Memoranda
D. Staff Rules and Regulations
E. Estimates

25. The document used to support the posting of unserviceable and obsolete stores
in a ledger is
A. Receipt Book Issue Note
B. Store Requisition Note
C. Store Receipt Voucher
D. Store Issue Voucher
E. Consignment Note

26. The general supervision of store is the responsibility of

A. Head of Accounts
B. Head of Internal Audit
C. The External Auditors
D. The Accounting Officer
E. Head of Board of Survey
27. In line with the Nigeria Constitution, 1999 (as amended), which of the
following is NOT exclusive legislative item?
A. Currency
B. Prison
C. Passport
D. Culture
E. Foreign Mission
28. The accounting standards applicable to Government Business Enterprises
(GBEs) is
A. IPSAS
B. IAS
C. FIRS
D. SIRS
E. IFRS

33
29. A default by a customer who owes N2,000 to an entity having Net Assets worth
N20 million is ……………………………. to the financial statements
A. Material
B. Reliable
C. Immaterial
D. Relevant
E. Cardinal

30. Which of the following is NOT a source of revenue for the Federation Account?
A. Petroleum Profit Tax
B. Company Income Tax
C. Royalty on Oil
D. Rent on Government Property
E. Excise Duties

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. When cash basis is used for recording revenue and accrual basis is used for
recording expenditure, the basis of accounting used is……..
2. An Officer other than a Sub-Accounting Officer who is entrusted with the
disbursement of public money for which vouchers cannot be presented
immediately to Sub-Accounting Officer and who is required to keep a Cash
Book is called……………………..

3. The document that is used to transfer items of stores from one store to another
where there is shortage of items in one store is called ……………………..

4. The percentage of contribution by Military Staff into Pension Scheme (Pension

Reform Act) 2014: (a) is.………………….while that of the government: (b)
is…………………
5. The method used in inventory control system to arrive at a balance between
holding too much or too little inventory is called ……………………

6. The invitation for bids must be advertised on the notice board of the procuring
entity, on the official websites of the procuring entity and in at
least………………. national newspaper.
7. Payment made on hire purchase transaction is made up of two parts, They are
called .................................... and.................................

8. Two inventory valuation methods that should not be used in the preparation
of financial statements recommended in IPSAS 12 – Inventories are ...............
and .......................

34
 Use the following information to Answer Questions 9-11.
Prof Emmanuel Agbesanya Fagbohun (Director Legal) in the Federal Ministry
of Justice provides you the following information on his IPPIS payslip:
N/Month
Basic emolument 265,850.00
PAYE 18,900.00
Union dues 23,500.00
Allowances 165,740.00
9. TWO benefits in cash are………………… and ………………….
10. TWO deferred payments benefits are……………...... and ………………

11. Deductions from his emolument is………………………………

12. Notwithstanding anything to the contrary in any other enactment apart from
the Money Laundering Prohibition Act 2011, a financial Institution shall
disclose and report to the Agency in writing any single transaction lodgement
or transfer of funds in excess of N5,000,000 and N10m for individual and body
Corporate within .......... days

13. An independent appraisal activity within an organisation of the review of

accounting, financial and other operations as a basis for services to
management is known as....................
14. A unified structure that gives consolidated view of government cash resources
with a view to strengthening effective budget implementation is known as
.....................
15. The Act which imposes obligations on all Public Sector establishments to
comply with stipulations of the law in acquiring goods and services within the
thresholds of naira outlay by appropriate organs of Government is
called............
16. The draft estimates that is sent to the National Assembly or the State
Legislature, is in the form of……………….
17. The budgeting technique that involves the use of decision-package approach,
based on the identification of activities, and also provides for systematic
consideration of all activities and programmes is known as………………….
18. The standard that requires disclosure and explanation on the reasons for
material differences between the budgeted and actual amount in the
presentation of budget information in financial statements is ……………….

19. The budgeting technique that focus on results or output achieved, rather than
how much has been expended is ...................
20. A budget in which government intends to incur more expenditure or more
spending than revenue to be generated from taxes and other sources is called
…………………..

35
SECTION B: ATTEMPT ANY FOUR QUESTIONS (50 MARKS)

QUESTION 1

Bell Ayo is one of the States in the Federal Republic of PIPE and is currently preparing
its year 2022 budget by all the Ministries and Extra Ministerial Departments for
submission to the State budget department.

The following information relating to the personnel cost of the Ministry of Commerce
& Industries was made available to you by the Permanent Secretary:

No. In Grade level Salary

post N
Job titles
Director of commerce Nil 16 22,000 x 2,500
Deputy Director of Commerce 1 15 18,000 x 1,500
Assistant Director of Commerce 2 14 17,000 x 1,500
Assistant Chief Accountant 2 13 14,000 x 1,450
Principal Accountant 4 12 12,000 x 1,400
Senior Commercial Officer 8 10 10,000 x 1,000
Commercial Officer I 6 09 8,500 x 900
Commercial Officer II 8 08 7,500 x 500
Principal Trade Officer 12 10 10,000 x 1,000
Senior Trade Officer 10 09 8,500 x 900
Higher Trade Officer 12 08 7,500 x 500
Trade Officer (Headquarters) 15 07 5,000 x 350
Field Trade Officer II 21 06 4,500 x 350
Senior Clerical Officer 18 05 4,000 x 250
Clerical Officer 25 04 3,500 x 250
Assistant Clerical Officer 20 03 2,500 x 200
Office Assistants 5 03 2,500 x 200
Driver 10 03 2,500 x 200
Cleaners 15 03 2,500 x 200

The following relevant information is also available:

(i) All the salary levels shown above are step one of each grade and it is
management policy to forward personnel cost budget based on step (3)
three of the grade level.
(ii) The Deputy Director of Commerce and one of his Assistant Directors are
due for promotion during the budget year.
(iii) During the year 2022, four Senior Commercial Officers will be employed to
strengthen the Commercial department.
(iv) Staff allowances constitute 30% of staff salary.

Required:
Prepare in summary form Personnel Cost Budget for the Ministry for the year 2022
based on the above information. (Total 12½ Mark)

36
QUESTION 2

a. i. Define Public Sector Audit (1½ Marks)

ii. Write short notes on the THREE main types of audit in the public
sector (6 Marks)
b. State FIVE factors that contribute to an effective audit (5 Marks)
(Total 12½ Marks)
QUESTION 3

a. You are among the Senior Accountant in your office who had attended the
training workshops on International Public Sector Accounting Standards
(IPSAS), organised by office of the Accountant-General in your State.
You are required to:
Design a suitable template for the “Monthly IPSAS Accrual Basis Compliant
Trial Balance” for the Finance and Accounts Department for your Ministry or
Extra-Ministerial Department or Agency. (3½ Marks)

b. The following balances were extracted from the books of account in the Ministry
of Waterside, for the month of July 2020.

Codes Descriptions N
0x94 Bonds and sureties 2,507,000
0x85 Payable 56,500
0x76 Short term loans 25,900
0x67 Public funds 150,000
0x58 Long term borrowing 120,000
0x49 Provision for depreciation-dams 4,000
0x81 Statutory allocation 5,247,550
0x72 Grant-in-Aid 10,750
0x63 Debt forgiveness 8,900
0x45 Tax revenue 25,450
0x45 Non-Tax Revenues 40,750
0x36 Royalty on Gemstone 5,750
0x27 Profit on disposal of assets 3,550
0x18 Investment Incomes 7,500
0x73 Non-Current assets 2,950,000
0x64 Amory Stores (Ammunition & others) 150,000
0x55 Printed materials 75,000
0x46 Receivable-Personal advances 120,000
0x37 Internal accounts transfer 950,000
0x82 Overhead cost 550,000
0x73 Personnel cost 2,350,000
0x64 Social benefits 280,000
0x55 Bad debt charge 48,750
0x46 Subsidy 724,300
0x37 Depreciation charge 10,550
0x28 Utility general 5,000

37
 Required:
Prepare and present a suitable monthly return in accordance with the “IPSAS
Accrual Basis Compliant Trial Balance” for July 2020. (9 Marks)

NOTE: Ignore the Colum for “Analysis of Economic Items Accounting to

Sources”. (Total 12½ Marks)

QUESTION 4

At the State level, the Personal Income Tax Act 1993 established the State Board of

Internal Revenue Services (SBIRS)

Required:

a. State FOUR of the responsibilities of the State Board of Internal Revenue

Services. (8 Marks)

b. List THREE revenues Federal Inland Revenue Services collect on behalf of the
Federal Government. (4½ Marks)
(Total 12½ Marks)

QUESTION 5

Nigeria Customs Service (NCS) statutory functions can be broadly classified into two
main categories: “Core functions” and “Other functions”

Required:
a. List TWO of the “Core Functions” (2½ Marks)
b. List FIVE of the “Other Functions” (10 Marks)
(Total 12½ Marks)

QUESTION 6

a. Discuss in details, THREE main objectives of public sector accounting.

(7½ Marks)
b. To bridge the gap between public and private sectors, many international
pronouncements have been made about public sector accounting.

Highlight FIVE of such pronouncements. (5 Marks)

(Total 12½ Marks)

38
SECTION A: PART I

MULTIPLE-CHOICE SOLUTIONS

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

Examiner’s comment
This consists of 30 marks compulsory Multiple-Choice Questions which covers the
entire syllabus. It requires the candidates to write only alphabet (A, B, C, D or E) that
corresponds to the correct option for the questions/statements.

About 100% of the candidates attempted the question and over 80% of them scored
above 50% of total marks obtainable. The commonest pitfalls was the lack of
preparation for the exams by the candidates. Candidates are enjoined to prepare well
in subsequent examinations and make use of the Study Text of the Institute.

39
SECTION A: PART II

SHORT-ANSWER SOLUTIONS

1. Modified accrual basis

2. Imprest Holder
3. Store Transfer Requisition book
4. 8% and 12.5%
5. Economic Order Quantity (EOQ)
6. 2
7. Principal or cash price and purchase Interest
8. i. Lower of cost
ii. Net Realisable value
9. Benefit in cash are: Acting Allowance and Overtime Allowance
10. Deferred Payment Benefit are: PAYE and Union Dues
11. Total Deduction =N42,400
12. 7 Days
13. Internal Audit
14. TSA
15. Public Procurement Act
16. Appropriation Bill
17. Zero-Based Budgeting Technique (ZBB)
18. IPSAS 24
19. Performance Based Budget
20. Deficit Budget

Examiner’s comment
This consists of 20 marks Compulsory Short-Answer questions which covers the entire
syllabus. It requires the candidates to write the correct answer that best completes
each of the questions/statement. About 100% of the candidates attempted the
question and above 35% of them scored 50% of total marks obtainable.
The commonest pitfalls was the lack of adequate preparation by many of the
candidates for the examination.
Candidates are enjoined to make good use of the Study Text of the Institute and also
familiarise with the Past questions of previous diets’ examinations.

40
SECTION B

SOLUTION 1

BELLO AYO STATE OF THE FEDERAL REPUBLIC OF PIPE MINISTRY OF COMMERCE &
INDUTRIES PREPARATION OF PERSONNEL COST BUDGET FOR THE YEAR 2002

JOB TITLE No IN POST GRADE LEVEL SALARY BUDGETED COST

(₦)
Director of commerce 1 16 22,000 x 2,500 27,000
Deputy Director of 1 15 18,000 x 1,500 21,000
Commerce
Assistant Director of 1 14 17,000 x 1,500 20,000
Commerce
Assistant Chief Accountant 2 13 14,000 x 1,450 33,800
Principal Accountant 4 12 12,000 x 1,400 59,200
Senior Commercial Officer 12 10 10,000 x 1,000 144,000
Commercial Officer I 6 9 8,500 x 900 61,800
Commercial Officer II 8 8 7,500 x 500 68,000
Principal Trade Officer 12 10 10,000 x 1,000 144,000
Senior Trade Officer 10 9 8,500 x 900 103,000
Higher Trade Officer 12 8 7,500 x 500 102,000
Trade Officer 15 7 5,000 x 350 85,500
(Headquarters)
Field Trade Officer II 21 6 4,500 x 350 109,200
Senior Clerical Officer 18 5 4,000 x 250 81,000
Clerical Officer 25 4 3,500 x 250 100,000
Assistant Clerical Officer 20 3 2,500 x 200 58,000
Office Assistants 5 3 2,500 x 200 14,500
Driver 10 3 2,500 x 200 29,000
Cleaners 15 3 2,500 x 200 43,500
Personnel Cost 1,304,500
Staff allowance @ 30% 391,350
Total Personnel Cost Budget 1,695,850

Examiner’s comment
The question tests the candidates’ knowledge and understanding of the preparation
of Personnel Cost Budget from the available information provided.
Many Candidates avoided this area of the syllabus as about 45% of them attempted
the question. The performance was poor as about 20% of the candidates scored 50%
of the total marks obtainable.
The commonest pitfalls was the inability of some of the candidates to interpret the
additional requirements of the questions.
Candidates are enjoined to endeavour to cover all areas of the syllabus. They are also
advised to make use of the Study Text of the Institute as well as the past-questions
of previous diets’ examination questions.

41
SOLUTION 2

ai. Public Sector audit can be described as a systematic process of objectively

obtaining and evaluating evidence to determine whether information or actual
condition conform to established criteria
aii.
i. Financial audit
ii. Compliance audit
iii. Performance audit

FINANCIAL AUDIT
It is an audit to determine whether an entity‘s financial information is presented in
accordance with an applicable financial reporting and regulatory framework. While
doing financial audit, auditors look out for misstatements and errors that can have
material impact on the information presented in the financial statement.

COMPLIANCE AUDIT
It is an independent assessment of whether a particular subject matter is in
compliance with what applicable authorities identified as criteria. Auditor
performing compliance audit look for deviations / departures from criteria which is
based on laws, regulations, and principles of financial management. Compliance
audit promotes transparency by providing reliable reports as to whether funds have
been administered and citizens’ rights to due process are honoured as required by
appropriate authorities. Hence Compliance auditing promotes good governance in
the Public Sector by considering the risk of fraud in relation to compliance.

PERFORMANCE AUDIT
This is also known as value for money audit. It is an independent objective and
reliable examination of whether the Government undertaking, systems, operations,
programs, activities or organisations are operating in accordance with principles of
economy, efficiency and effectiveness and whether there is room for improvements.

2b. FACTORS THAT CONTRIBUTE TO EFFECTIVE AUDIT

i. Independence of the auditor - he should be given free hand to do a good

job. He should not be under the influence / control of management.
ii. The adequacy and scope of the auditor’s power – The authority of the
auditor should be guaranteed. He must be given adequate authority to
discharge his responsibilities.
iii. The auditor should be adequately trained, versatile and skilful at his job.
iv. There should be enough funds at the disposal of the auditor to carry out
his assignment
v. Freedom of reporting and the qualitative nature of reports –Reports should
be timely and effective decisions in order to comply with professional
audit standards.

42
 vi. Unrestricted access – Audits should be conducted with complete and
unrestricted access to employees property and records.
vii. Stakeholders’ support – The legitimacy of the audit activity and its mission
should be understood and supported by a broad range of elected and
appointed government officials as well as media and involved citizens.

Examiner’s comment
The question tests the candidates’ knowledge and understanding of Public Sector
Audit. It requires the candidates to: (i) Define Public Sector Audit, (ii) Types of audit
in the Public Sector and (iii) Factors that contributes to an effective audit. About 70%
of the candidates attempted the question and about 35% of them scored 50% of total
marks obtainable.
The commonest pit-falls was as a result of the apparty which many candidates
developed in this area of the syllabus.
Candidates are advised to endeavour to cover all areas of the syllabus. And should
prepare well in subsequent examinations. They should endeavour to make use of the
Institute’s Study Text as well as the previous diets’ examination questions.

SOLUTION 3
a. TEMPLATE FOR MONTHLY IPSAS ACCRUAL BASIS COMPLIANT TRIAL BALANCE

Economic codes Description Debit Credit

01 Revenue xx
02 Expenditures Xx
03 Assets Xx
04 Liabilities xx
Total Xx xx

Names Position Signature

1 Prepared by:
2 Checked by:
3 Approved by:

43
b. MINISTRY OF WATERSIDE

TRIAL BALANCE FOR THE MONTH ENDED JULY 2020

Codes Descriptions DEBIT CREDIT

01 Revenues
0X81 Statutory Allocation 5,247,550
0X72 Grant-in-Aid 10,750
0X63 Debt forgiveness 8,900
0X45 Tax Revenue 25,450
0X45 Non-Tax Revenues 40,750
0X36 Royalty on Gemstone 5,750
0X27 Profit on disposal of assets 3,550
0X18 Investment Incomes 7,500

02 Expenditure
0x82 Overhead cost 550,000
0x73 Personel cost 2,350,000
0x64 Social benefits 280,000
0x55 Bad debt charge 48,750
0x46 Subsidy 724,300
0x37 Depreciation charge 10,550
0x28 Utility General 5,000

03 Assets
0X73 Non-current assets 2,950,000
0X64 Amory Stores (Ammunition & others) 150,000
0X55 Printed materials 75,000
0X46 Receivables-Personal advances 120,000
0X37 Internal accounts transfer 950,000

04 Liabilities
0X94 Bonds and sureties 2,507,000
0X85 Payable 56,500
0X76 Short Term Loans 25,900
0X67 Public funds 150,000
0X58 Long Term borrowing 120,000
0X49 Provision for depreciation -dams 4,000
8,213,600 8,213,600
Examiner’s comment
The question tests the candidates’ knowledge and understanding of the preparation
of the Monthly IPSAS Accrual Basis Compliant Trial Balance for the Finance and
Accounts Department of a Ministry/Extra-Ministerial Department or Agency.
About 25% of the Candidates attempted the question and about 50% of them scored
50% of total marks obtainable.

44
The commonest pitfalls was the lack of understanding of the requirements of the
examiner in the question.
Candidates are thus advised to endeavour to cover all areas of the syllabus in future
diet examinations. They should also avail themselves with Study Text of the Institute
as well as the previous diets’ examination questions.

SOLUTION 4

(a) RESPONSIBILITIES OF THE STATE BOARD OF INTERNAL REVENUE SERVICES

(SBIRS)
i. Assessing, collecting and accounting for all taxes and levies in the State.
ii. Supervising the collection of all revenue due to the state government with
other Ministries, Extra Ministerial Departments, Parastatals and Government
Companies.
iii. Revising all obsolete rates collectible by the Board and initiate review and
advice the government on it.
iv. Administering the provision of the Personal Income Tax Act 1993 as amended
and the relevant tax laws in the state.
v. General control of the management of the service on matters of policy subject
to the provision of the edicts, and imposing discipline on employees of the
State Internal Revenue Service.
vi. Liaising on tax and revenue matters with the federal government directly
through the Joint Tax Board and make recommendations where appropriate
to the Joint Tax Board on tax policy, tax reform, tax registration, tax treaties
and exemptions as may be required from time to time.

(b) REVENUES COLLECTED BY FEDERAL INLAND SERVICES ON BEHALF OF FEDERAL

GOVERNMENT
i. Company Income Tax of Corporate Bodies.
ii. Petroleum Profit Tax.
iii. Value Added Tax
iv. Capital Gain Tax of Corporate Bodies.
v. Stamp Duties of Corporate bodies and residents of Federal Capital-Abuja.
vi. Hydrocarbon Tax.
vii. Personal Income Tax of Nigeria Police Force, members of Armed Forces as
well as staff of Ministry of Foreign Affairs and Non-Residents.

Examiner’s comment
The question tests the candidates’ knowledge and understanding of the State Board
of Internal Revenue Services and the Federal Inland Revenue Services. It specifically
required candidates to state the responsibilities of the State Board of Internal services
and revenues that the Federal Inland Revenue Services collect on behalf of the

45
Federal Government. About 75% of the candidates attempted the question and about
55% of them scored 50% of total marks obtainable.
The commonest pitfalls was the failure of some candidates to differentiate between
responsibilities of the State Board of Internal services and Federal Inland Revenue
Services. Candidates are enjoined to cover whole areas of the syllabus. They are also
advised to make adequate use of the Study Text of the Institute as well as other
relevant reference materials. Candidates should familiarise themselves with the
previous diets’ examination questions.

SOLUTION 5

(a) CORE FUNCTIONS

i. Collection of revenue i.e. Import and Excise duties and accounting for
revenue collected.
ii. Prevention and Suppression of smuggling

(b) OTHER FUNCTIONS

i. Implementation of fiscal measures
ii. Generation of statistical data for planning purpose
iii. Trade facilitation
iv. Collection of levies and charges
v. Collaborative functions with government agencies including CBN, FIRS,
POLICE, etc
vi. Implementation of bilateral and multilateral agreements enter into by
government.

Examiner’s comment
The question tests the Candidates’ knowledge and understanding of the Nigeria
Customs Service Statutory functions.
About 80% of the candidates attempted the question and about 40% of them scored
50% of total marks obtainable.
The commonest pitfalls was the poor performance by some candidates for this diets’
examination.
Candidates are advised to prepare early and prepare better for future diets
examinations. They are also enjoined to make good utilization of the Study Text of
the Institute. And also, they should make good use of the previous diets’ examination
questions.

46
SOLUTION 6

(a) The main objectives of public sector accounting are as follows:

i. Determining the legitimacy of transactions and their compliance with the
statutes and accepted norms: Public sector disbursements should accord
with the provisions of the Appropriation Act and Financial Regulations.
There should be due authorisation for all payments so as to avoid
misappropriation.
ii. Providing evidence of stewardship: The act of rendering stewardship is
being able to account transparently and diligently for resources entrusted.
Government and public sector officers are obliged to display due diligence
and sense of probity in the collection and disposal of public funds.
iii. Assisting planning and control: The future is full of risks and uncertainties.
Therefore, mapping out strategic plans prevents an organisation from
drowning in the tides. Plans of actions provide the focus of activities,
which are being pursued. The unforeseen circumstance is built into plans
so as to prevent or at least reduce corporate failure. Public sector
establishments should act in accordance with the ‘mandate theory’ of
governance. Control measures are adjuncts to skillful planning. They assist
in avoiding unnecessary deviations from the pursuit of the original
objectives set.
iv. Ensuring objective and timely reporting: Users of public sector accounting
information are anxious to bridge their knowledge gaps on government
activities. They therefore treasure prompt and accurate statistics to
evaluate government performance.
v. Evaluating the costs incurred and the benefits derivable: In public sector
organisations, it is difficult to measure costs and benefits in financial
terms. The analysis of cost-benefit assesses the economic and social
advantages (benefits) and disadvantages or inconveniences (costs) of
alternative courses of actions, to ensure that the welfare of the citizens are
well provided for.

(b) International pronouncements made about public sector accounting include the
following:
i. A United Nations survey was conducted and recommendations made for
improvements in the government accounting systems of ‘third world’
countries, especially in budgeting practices, training, data classifications,
methods and accounting procedures.
ii. In the United States of America, the National Committee on Government
Accounting issued a manual titled “Government Accounting, Auditing and
Financial Reporting (GAAFR).” The manual is generally referred to as “The
Blue Book.” The Blue Book and other pronouncements of the committee
set forth the basic accounting and reporting principles covering the
following areas, viz:

47
 • Basis of accounting;
• Legality;
• Funds and fund accounting;
• Budgetary, planning and control;
• Tangible assets and depreciation;
• Terminologies and accounting/classifications; and
• Financial reporting.
iii. In the United States, the National Committee on Government Accounting
recommended the accrual basis of accounting for public enterprises,
capital projects and trust funds; the modified accrual basis for special
revenue and debt service funds and that depreciation is not chargeable
on tangible assets.
iv. Other pronouncements:
• The International Federation of Accountants (IFAC) issued
International Public sector accounting Standards, effective from year
2003.
• The Nigerian Public Sector Auditing Standards, effective from
December 1997 were issued by the Auditor General for the
Federation and Auditors-General for the States.
• The American Institute of Certified Public Accountants (AICPA)
recommended that the financial statements of each governmental
Unit should be prepared in accordance with the generally accepted
accounting principles while supplementary schedules should accord
with legal compliance.

Examiner’s comment
The question tests the candidates’ knowledge and understanding of the main
objectives of Public Sector Accounting as well as the International Pronouncement
that have been made about Public Sector Accounting.
About 80% of the Candidates attempted the question and 25% of them scored 50% of
total marks obtainable.
The commonest pitfalls was the inability of some candidates to correctly interpret the
requirements of the examiner.
Candidates are enjoined to make good use of the Study Text of the Institute. They
should also familiarise themselves with previous diets’ examination questions.

48
AT/241/PII.7 Examination No............................

THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2024 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 and mathematical sets, 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.

WEDNESDAY, MARCH 27, 2024

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

WEDNESDAY,04 MARCH, 2020

49
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2024

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. A table showing the number of times a value or group of values has

occurred in a given set of data is known as

A. Frequency table
B. Times table
C. Probability table
D. Contingency table
E. Four-figure table

2. The first and the last points on a polygon have………frequencies

A. Zero
B. Cummulative
C. High
D. Low
E. Undefined

3. The ogive can be used to estimate all of the following, EXCEPT

A. Median
B. Quartiles
C. Deciles
D. Percentiles
E. Mode

Use the following table to answer questions 4, 5 and 6

X 1 2 3
Y 9 5 7

In the regression line y = a + bx

50
4. The value of b is
A. -1
B. -2
C. -3
D. -4
E. -5

5. The value of a is
A. 6
B. 7
C. 8
D. 9
E. 10

6. y is a/an……………variable while x is a/an………… variable.

A. Constant, dependent
B. Constant, independent
C. Dependent, independent
D. Independent, dependent
E. Dependent, constant

Use the following table to answer questions 7–10

Time(t) Value of Series(Y) Moving Average order 3

1 15
p
2 20
3 25 q
4 36
r
5 42
6 48 s

7. The value of P is
A. 20
B. 15
C. 10
D. 5
E. 0

51
8. The value of q is
A. 43
B. 36
C. 27
D. 14
E. 12

9. The value of r is
A. 18.54
B. 27.54
C. 30.25
D. 34.33
E. 28.02

10. The value of s is

A. 47
B. 42
C. 37
D. 32
E. 27

11. If E1 and E2 are independent events, which of the following is incorrect?

A. P(E2 /E1 ) = P(E2 )

B. P(E1 /E2 ) = P(E1 )
C. P(E1  E2 ) = P(E1 ).P(E2 /E1 )
D. P(E2 ).P(E1 /E2 ) = P(E1 ).P(E2 )
E. P(E2 ).P(E2 /E1 ) = P(E1 ).P(E2 )

12. The probability that an employee does not come late to work on any given day
is 0.21. The probability that an employee is a female in the company is 0.45.
Obtain the probability that an employee, selected from the company, is a female
late comer?

A. 0.3050
B. 0.3555
C. 0.3558
D. 0.3562
E. 0.3655

52
13. A bookseller bought a book for N1,200, his marked price is N1,777.78. If he has
allowed 10% discount, find the percentage profit.
A. 30.00%
B. 32.22%
C. 33.33%
D. 41.33%
E. 43.33%

14. A company, owned by Mr. AY, produces items m, n, p and q. If it costs N350 to
produce a n i t e m and the sale price of an item is N1,250, the profit made by
the company is
A. N 900
B. N 1,400
C. N 3,400
D. N 3,600
E. N 5,000

15. The interest, that accrued on N30,000 at 17% per annum simple interest at the
end of 9 months, is

A. N3,285
B. N3,295
C. N3,528
D. N3,825
E. N3,925

Use the Euler-Venn diagram shown to answer questions 16 and 17

T O

12 7 8

16. 𝑇 𝑐 ∪ 𝑂𝑐 is

A. {7, 8, 12}
B. {12}
C. {8}
D. {7, 8}
E. {8, 12}

53
 n (T c  O c )
17. is
A. 1
B. 2
C. 3
D. 4
E. 5
0
18. Evaluate the integral given by  100e
0.05 x
dx
−

A. 4,000
B. 3,000
C. 2,000
D. 1,000
E. 0

19. In a network diagram, the critical activities have

A. Free float only

B. Independent float and free float
C. Independent float only
D. Total float
E. No float

Use the data given in the table below to answer questions 20 and 21

The computer sets that are used in a company have resistors with a life span of
3 months. The failure rates (in percentages) of these resistors are given in the
following table:
Months 1 2 3
Percentage of Failures 20 35 45

If 675 resistors are fixed for use at a time, then

20. The average life span of the resistor is

A. 1.25 months
B. 2.25 months
C. 3.25 months
D. 4.25 months
E. 5.25 months

54
21. The average number of monthly replacements is
A. 300
B. 350
C. 400
D. 450
E. 500

22. Which of the following is a policy in the replacement of equipment or items that
fail suddenly?
A. Gradual replacement policy
B. Individual replacement policy
C. Group replacement policy
D. B and C
E. A and B

23. Which of the following is NOT a resulting effect of gradual failure or deterioration
of items?
A. The output of the equipment
B. Its production capacity
C. The maintenance and operating costs
D. The value of the sale price of the item
E. The efficiency of the equipment

24. Which of the following is correct about a balanced transportation problem?

A. Dummy is always zero
B. The total quantity demanded by the destination = total
quantity available at the destination
C. Dummy is always greater than zero
D. The total quantity demanded by the destination is greater
than the total quantity available at the destination
E. The total quantity demanded by the destination is less than
the total quantity available at the destination

25. In order to make an unbalanced transportation problem balanced, there is a

need to create a dummy ………………… or ……………………. for the difference
between total supply and demand with zero cost
A. Origin (row) or destination(column)
B. Origin (column) or destination(row)
C. Origin (demand) or destination(supply)
D. Origin (supply) or destination(demand)
E. Origin (supply) or destination (supply)

55
26. The following are advantages of simulation, EXCEPT
A. Simulation is suitable for analysing large and complex real-life problems
which may not be solved by the usual quantitative methods
B. Simulation can also be used for sensitivity analysis on complex systems
C. It makes the decision-maker to note and study the interactive system and
effect changes where possible
D. Simulation is a trial-and-error approach, and as such it is very simple
E. Simulation experiments make use of model not the system itself

27. Which of the following subroutines is NOT required in the implementation of a

simplex method on a computer?

A. Determining the zeroes of polynomial function

B. Determining the adjoint of a matrix
C. Obtaining the solution of a linear equation
D. Solving for the eigenvalue of a matrix
E. Determining the matrix

28. There are four factories situated at F1, F2, F3 and F4 and four warehouses
located at W1, W2, W3 and W4. The supplies from F1, F2, F3 and F4 are 30, 29,
38 and 23 units respectively while the demands required at W1, W2, W3 and W4
are 20, 40, 35 and 15 respectively. In solving this transportation problem,
A. A dummy destination of capacity 10 units is needed
B. A dummy source of capacity 10 units is needed
C. No dummy is needed
D. A dummy of capacity of ID units is needed
E. It is noticed that the problem is degenerate and therefore no solution exits

29. Which of the following is correct about simplex method for solving linear
programming problems?
A. It makes use of all the points within the feasible region
B. It uses only the corner points in the feasible region
C. It makes use of the intermediate points in the feasible region
D. It uses only the interior points within the feasible region
E. It can only be applied when the decision variables is exactly three
30. Economic Order Quantity is a tool for controlling
A. Expenses
B. Labour
C. Inventory
D. Cost
E. Capital

56
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. In an unbalanced Transportation Problem, the total quantity demanded

is.......................... the total quantity supplied.

2. The weekly demand pattern of a production company for XYZ products and the
associated probabilities are shown below:

Daily Demand 1 8 11
Quantity

Probabilities 0.04 0.44 0.52

The random number interval corresponding to the daily demand quantity

of 8 is………

3. When using the Hungarian method for solving an assignment problem, it

MUST be ensured that the given………….is balanced and it must be a
…………..

4. The failure rates of resistors in a computer having a lifespan of three months are
given in the following table:

Months 1 2 3
Failures rates 0.3 0.45 0.25

If 100 resistors are fixed for use at a time, the replacement at the end of the second
month is……………

5. The amount of time by which the duration of an activity can be extended without
affecting the time available for succeeding activities or preceding activities is
referred to as …………..

6. A petty trader bought goods for N1,000, spent N1,100 on transportation from the
market, paid N500 for the rent of the space where he sells his goods. His profit or
loss percent if he sells the goods for N1,580 would be ................

57
7. If two variables 𝑥 and y are not equal, then 𝑥 is.............or …………than y.

8. The sum of the present values of all periodical payments is known as…………….

9. The present value of an annuity of N50,000 for 10 years at 5% compounded annually

is………………

10. Data derived from existing published or unpublished records of government

agencies, trade associations, research bureaus, magazines, and individual
research work are regarded as ………………data.

11. The probability that an employee of a particular company comes regularly to work
on any given day of the week is 0.35. The probability that an employee is a male
in the company is 0.53. The probability that an employee selected from the
company is a female and does not come to work regularly is……………

12. In order to have a fair index number, it is necessary to take into account the varied
relative importance of items in the construction of index numbers. True/False?

13. In time series, a variation that repeatedly occurs during a corresponding month or
period of successive years is called ……………….

14. Two or more events are said to be…………. if they cannot occur at the same time.

15. If E1 and E2 are two events such that there is an intersection between E1 and E2 ,
and that P( E1 )  0 , then, the probability of E 2 given that E1 has occurred or
happened can be expressed as ………and it can be evaluated by…………..

16. The scores of four candidates in QA examinations are as follows: 71, 73, 75 and 77.
The quartile deviation for the scores is…………….

17. Non-acceptance of the hypothesis which ought to be accepted and acceptance of

hypothesis which ought to be rejected are respectively referred to
as…………and………..

18. If A and B are two events defined on a sample space, then, using the multiplication
rule, P ( A  B ) equals …………and if the additive rule is used, P ( A  B ) equals
…………

19. A method that is used to predict one variable from the knowledge of another
variable is called ………………………

58
20. With the information given in the table below, the value of b using regression
y = a + b 𝑥 line is ………………

X 2 3

Y 54 46

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

QUESTION 1
The scores of 60 candidates in a QA examination are shown below.
Scores 11-20 21-30 31-40 41-50 51-60 61- 71- 81- 91-
70 80 90 100
Number of 2 4 7 3 12 15 8 2 7
candidates

You are required to calculate the

i. Mean using the Mid-point value method (3½ Marks)
ii. Median (3 Marks)
iii. Standard deviation (3 Marks)
iv. Coefficient of variation (3 Marks)
(Total 12½ Marks)

QUESTION 2

a. The unit prices (N’000), spent by a family on commodities Q, R, X, Y and Z,

during the period 2019-2021, are given in the following table:
Commodities Price per unit (Naira 1000 )

Year 2019 Year 2020 Year 2021

Q 18 10 13

R 14 13 15

X 8 10 12

Y 10 14 20

Z 17 11 21

59
 Use the year 2019 as the base year to determine

i. Simple Aggregate Price Index (SAPI) for each of the years 2020 and 2021
(31/2 Marks)
ii. Simple Average of Relative Price Index (SARPI) for each of the years
2020 and 2021. (4 Marks)

b. The following table gives the quantities of four items: A, B, C, D, and their
respective unit prices (in Naira) purchased by Mr. ASHD in a supermarket in the
years 2019 and 2020:
2019 2020
Items
Price (N'00) Quantity Price (N'00) Quantity

A 32 35 25 45

B 30 45 20 35

C 20 25 15 25

D 25 30 10 20

You are required to calculate the Fisher Ideal price index taking 2019 as
the base year. (5 Marks)
(Total 12½ Marks)

QUESTION 3
A production company wants to ship its products from the production points S1, S2, and
S3 to the consumers located at points D1, D2, and D3. The kilometers, from the supply
points to the destinations, are shown in the following table:

Destinations Supply

D1 D2 D3

S1 5 1 7 10

Sources S2 6 4 6 80

S3 3 2 5 50

Demand 75 20 50

60
If the shipping cost is N10 per load per kilometer, use Vogel’s Approximate Method to
calculate the initial basic feasible total cost of transportation.
(Total 12½ Marks)
QUESTION 4

ADEK Nigeria Plc. requires 2,600 units of raw materials which costs N20 per unit for a
project and the cost of placing an order is N500. If the carrying costs are 10% per year
per unit of the average inventory.

You are required to calculate the:

a. Economic Order Quantity (EOQ) (21/2 Marks)
b. Number of orders per annum (21/2 Marks)
c. Holding cost per annum (2 Marks)
d. Ordering cost per annum (11/2 Marks)
e. Total cost per annum (2 Marks)
f. Cycle time (2 Marks)
(Total 12½ Marks)

QUESTION 5

The activities and the preceding activities required to complete a project by the XYZ
company are shown below:

Activity Preceding activity Duration(Months)

A - 5
B A 4
C - 6
D A, C 3
E B 4
F D,E 7
G B 5
H G 4
I F,H 5
J G 6
K I, J 4
L J 6
M K, L 2
N L 3

61
You are required to:

a. Draw an Activity-On-Arrow project diagram (AOA) network for the project

(5 Marks)
b. List all the paths and determine their durations (7 Marks)

c. Identify the critical path and determine its duration (1/2 Marks)
(Total 12½ Marks)

QUESTION 6

105 candidates were interviewed on which subjects they registered for in a professional
Accounting Certification in a certain diet. 25 registered for Economics (E), 60 registered
for Quantitative Aptitude (Q), 39 registered for Financial Accounting (A). 22 registered
for E and Q, 18 registered for E and A, 16 registered for A and Q while 15 registered for
all the three subjects.

You are required to:

i. Represent the information on a Venn-diagram (3½ Marks)

ii. Calculate the number of students who registered for E and Q only and those
who registered for E and A only (3 Marks)
iii. The number of students who registered for one subject only (3 Marks)
iv. The number of students who registered for none of the three subjects (3 Marks)
(Total 12½ Marks)

62
 FORMULAE
 (x − x )
2

Sample variance, s2 =
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 
 o 
SARPI =
N

SAPI =
P ni
 100
P oi

p
t =
pq
n
EOQ with stock-out
2cd h + cs
Q= 
h cs

LPI =
pq 1 o
 100
p q o o

63
 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

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 

64
SECTION A: PART I

MULTIPLE-CHOICE SOLUTIONS

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

MCQ Workings

x 1 2 3 x = 6
y 9 5 7  y = 21
x2 1 4 9  x 2 = 14
xy 2 9 10 21  xy = 40

65
 n xy −  x y 3(40) − (6)(21) 120 − 126 −6
4. b= = = = = −1 Option A
n x − (  x ) 3(14) − (6) 2 42 − 36
2
2 6

5. a = y − bx = 7 − (−1)(2) = 7 + 2 = 9 Option D

15 + 20 + 25
7. p= = 20 Option A
3

20 + 25 + 36
8. q= = 27 Option C
3

25 + 36 + 42
9. r= = 34.33 Option D
3
36 + 42 + 48
10. s= = 42 Option B
3

12. Let the

E1 = P(an employee comes late to work) = 1-0.21 = 0.79

E2 = P(an employee is a female) = 0.45

Then,
P(E1  E2 ) = P(E2 ).P(E1 /E2 )
P(E1  E2 ) = 0.45  0.79 = 0.3555 Option B

13.
Marked price = N1,777.78
10% discount = N1,777.78 x 10
100
= N177.78
 Selling price = N1,777.78 - N177.78
= N 1,600
 his profit = N1,600 – N1,200
= N400

profit 100 SP − CP 100

profit % =  %= 
CP 1 CP 1
400 100
=  = 33.33 Option C
1200 1

66
14. Total cost price, C = N350 x 4 = N1,400

Total revenue, R = N1250 x 4 = N5,000

Profit, P = R - C = N (5,000 – 1,400) N3,600 Option D

15. I=PxRxT
I = 30000 x 17/100 x 9/12
I = 30000 x 0.17 x 0.75
I = 3825 Option D

16.
T O

12 7 8

T c = 8
O c = 12 Option E
(T c  O c ) = 8,12

17.

T O

12 7 8

T c = 8
O c = 12
Option B
(T c c Oc )c = 8,12
n (T  O ) = 2

67
 0
0
100e0.05 x 
18.  100e
0.05 x
dx =  
−  0.05  −

100e0.050 100e0.05−
= −
0.05 0.05

But e0.050 = 1 and e0.05− = 0

100 1 100  0 100 100 x100

0

 100e
0.05 x
dx = − = −0= = 2,000 Option C
−
0.05 0.05 5 5
100

20.
Monthly(Xi) Percentage of Probabilities PiXi
Failure (Pi)
1 20 0.20 0.20
2 35 0.35 0.70
3 45 0.45 1.35
100 1.00 2.25

T=
PX i i

P i

2.25
T= = 2.25 months Option B
1

21.
Monthly (Xi) Percentage Probabilities PiXi
Failure (Pi)
1 20 0.20 0.20
2 35 0.35 0.70
3 45 0.45 1.35
100 1.00 2.25

T=
PX i i

P i

2.25
T= = 2.25 months
1

N
R=
T

675
R= = 300 Option A
2.25

68
28. Total supply at the sources = 30 + 29 + 38 + 23 = 120 units

Total demand at the destinations = 20 + 40 + 35 + 15 = 110 units

Since the supply at the source is greater than the demand at the destination, a
dummy is therefore required at the destination for the transportation problem to
be balanced.

The capacity of the dummy required = 120 – 110 = 10 units

Option A
Examiner’s comment
All the 30 questions in this section averagely covered the entire syllabus.

They are all compulsory questions. Hence, all the candidates attempted them.

Generally, the performance of the candidates was fairly good. About 90% of the candidates
obtained between 16 and 18 marks out of the 30 marks allocated to the section.

Most of the questions are straightforward to provide a reasonable opportunity for an average
candidate to obtain a pass mark.

SECTION A: PART II

SHORT-ANSWER SOLUTIONS

1. Not equal to
2. 04 - 47
3. Cost table, square matrix (in that order)
4. 54
5. Float
6. Loss percent of 39.23
7. Greater, less (in any order)
8. Annuity
9. N386,086.75
10. Secondary
11. 0.3055
12. True
13. Seasonal variations
14. Mutually exclusive
P(E1  E2 )
P(E1 / E1 ) =
15. P(E1 )
16. 2
69
17. Type I error, Type II error (in that order)
18. P( A) . P(B ) , P( A) + P(B ) (in that order)
19. Regression method
20. -8

SAQ Workings
2.
Daily Probability Cumulative Random Number
Demand Frequency Intervals

1 0.04 0.04 00-03

8 0.44 0.48 04-47
11 0.52 1.00 48-99

4.
Given that N=100

Months 1 2 3
Failures rates 0.3 0.45 0.25

Let Ni represent the number of items replaced at the end of the 1 th month and
N0=100 Therefore, we have the following replacements in the subsequent
months:
N0=100 (initial)

At the end of1st Month, N1=N0P1 =1 0 0 x 0.3=3 0

At the end of 2nd Month, N2=N0P2+N1P1 =1 0 0 x 0.45+30 x 0.3 =5 4

6. Cost of goods = N1,000

Cost of transport = N1,100
Cost of renting space = N500
Selling price = N1,580
 Total cost = N(1,000 + 1,100 + 500)
= N2,600
 Loss = N2,600 – N1,580
= N1,020
 % Loss = 1020/2600 x 100

= 39.23%

70
9. P=

A 1 − (1 + r )
−n

r
But A = 50, 000 , r = 0.05 and n = 10

P=

50, 000 1 − (1 + 0.05 )
−10

0.05
50,000  0.386
P=
0.05
P = N386,086.75

11. Let A = event of an employee comes regularly

B = event of an employee is male
C = event of an employee does not come regularly ∴ P ( C ) = 1 – 0.35 = 0.65
D = event of employee is female ∴ P ( D ) = 1 − P ( B ) = 1-0.53 = 0.47
Since these events are independent, ∴ Probability of female employee not coming
regularly is P ( C  D ) = P (C )  P ( D ) = 0.65 x 0.47 = 0.3055

16.
Scores 71 73 75 77
Cumulative 71 144 219 296

The quartile deviation is

Q3 − Q1
Qd =
2
where
N
Q1 =   th value = the lower half of the given data (i.e, the score at 25% position).
 4 
 296 
Q1 =   = 74 value . This lies between 71 and 73 scores.
th

 4 

By interpolation, the actual  73 − 71  6

Q1 = 71 +   ( 74 − 71) = 71 + 73 = 71.08
 144 − 71 
 3N 
Q3 =   th value = the upper half of the given data (i.e, the score at 75% position).
 4 
 3  296 
Q1 =   = 222 value . This lies between 75 and 77 scores.
nd

 4 

By interpolation, the actual  77 − 75  6

Q3 = 75 + 
−  ( 222 − 219 ) = 75 + 77 = 75.08
 296 219 

Quartile deviation is
75.08 − 71.08 4
Qd = = =2
2 2

71
ALITER

 n +1  4 +1
th th

Median position =   =  = 2.5

th

 2   2 

Q1 Position = integral part of median position + 1

2
th
 2 +1
=  = 1.5
th

 2 

From the data: 71, 73, 75, 77

Taking position in ascending order i.e from
71 + 73 144
Q1 = = = 72
2 2

Q2 Position = integral part of median position + 1

2
th
 2 +1
=  = 1.5th
 2 
From the arranged data: 71, 73, 75, 77
Taking position in descending order i.e from highest to smallest.

Q3 = 75 + 77 152
= = 76
2 2

Q3 − Q1 76 − 72
Quarter deviation, QD = =
2 2

4
= =2
2

x 2 3 x =5
y 54 46  y = 100
xy 108 138  xy = 246
x2 4 9  x 2 = 13

n xy −  x y 2(108 + 138) − (5)(100) 492 − 500 −8

b= = = = = −8
n x 2 − (  x ) 2(4 + 9) − (5) 2 26 − 25
2
1

72
Examiner’s comment
Similar to the MCQ section, all the 20 questions in this section are compulsory.
All the questions cover the syllabus fairly. The performance of the candidates was generally poor
as about 9% of them scored a little bit above the average mark. Candidates’ scores range
between zero and 15 marks.

SECTION B

SOLUTION 1

Cumulative
Class Frequency fx x2 fx 2
Frequency ( cf )
x
interval (f)

10– 20 2 2 15.5 31.0 225.00 480.00

21– 30 4 6 25.5 102.0 650.25 2601.00

31 – 40 7 13 35.5 248.5 1260.25 8821.75

41– 50 3 16 45.5 136.5 2070.25 6210.75

51– 60 12 28 55.5 666.0 3080.25 36963.00

61– 70 15 43→Median class 65.5 982.5 4290.25 64353.75

71– 80 8 51 75.5 604.0 5700.25 45602.00

81– 90 2 53 85.5 171.0 7310.25 14620.50

91– 100 7 60 95.5 668.5 9120.25 63841.75

60 3,610 243,495.75

(i) Mean =
 fx
f
3610
Mean = 60

Mean = 60.17

73
  N −  f1 
(ii) Median = L1 +  2 C
 Fmedian 
 
N
=
f =
60
= 30
2 2 2

Therefore, the median class is 61– 70 and L1 = 60.5 .

f 1
= 28 , C = 10 and Fmedian = 15

 30 − 28 
Median = 60.5 +    10
 15 
 20 
Median = 60.5 +  
 15 
Median = 60.5 + 1.3333
Median = 61.8333  61.83 or 61.8

(  fx )
2

 fx 2
−
(iii) Standard deviation ( SD ) =
f
f
( 3610 )
2

243495 −
Standard deviation ( SD ) = 60
60
243495 − 217201.6666667
Standard deviation ( SD ) =
60
26293.333333
Standard deviation ( SD ) =
60

Standard deviation (SD) = 438.22222

Standard deviation (SD ) = 20.933757952  20.93

Accept 20.9 – 21

SD
(iv) Coefficient of variation ( CoV ) = 100
Mean
20.933757952
Coefficient of variation ( CoV ) = 100
60.16667
Coefficient of variation ( CoV ) = 34.79%

Accept 34.7% - 34.9%

74
Examiner’s comment
The content of this question tests the candidates’ knowledge of the Measures of Location such
as the Mean and the Median.
It also tests their knowledge of the Variation or Dispersion such as Standard Deviation and Co-
efficient of Variation.
The question was attempted by about 92% of the candidates with an average score of 8 marks.
Generally, the candidates, who attempted the question, demonstrated good understanding of
the question.
Some of them had difficulty in using the appropriate class boundaries in calculating the Median.

A number of them failed to use the required Mid-point Value to calculate the Mean.

SOLUTION 2

(a) (i)

Commodities Price per unit (Naira 1000 )

Year 2019 Year 2020 Year 2021
Q 18 10 13
R 14 13 15
X 8 10 12
Y 10 14 20
Z 17 11 21
p 2019 i = 67
 p2020i = 58 p
2021i = 81

But SAPI = p ti

100
p 0i 1

where the base year is 2019 i.e.  p0i =  p2019i = 67

For the year 2020,

∑𝑝 100 58 100
𝑆𝐴𝑃𝐼2020 = ∑ 𝑝2020𝑖 × = 67 × = 86.57%
2019𝑖 1 1

For the year 2021,

SAPI 2021 =
p 2021i

100 81 100
= 
p 2019i 1 67 1

= 120.895522388  121%

75
(ii)

Commodities Year Year Year p1 p2

2019 2020 2021 p0 p0

p0 p1 p2

Q 18 10 13 0.56 0.72
R 14 15 15 0.93 1.07
X 8 10 12 1.25 1.50
Y 10 14 20 1.40 2.00
Z 17 11 21 0.65 1.24
p   p2 
 1  = 4.79  p  = 6.53
 po   0

 pti 
 p   100
But, SARPI =  0i 
n
Using the year 2019 as the base year, for 2020,
 p1 
 p  100
SARPI 2020 =  0
n
4.79  100
SARPI 2020 =
5
SARPI 2020 = 95.8%

Using the year 2019 as the base year, for 2021,

 p2 
 p  100
SARPI 2021 =  0
n
6.53 100
SARPI 2021 =
5
SARPI 2021 = 130.6%

76
 (b)

Year 2019 Year 2020 poqo p0q1 p1qo p1q1

Unit Unit
Items Quantity Quantity
price price
(qo) (q1)
(po) (p1)
A 32 35 25 45 1120 1440 875 1125
B 30 45 20 35 1350 1050 900 700
C 20 25 15 25 500 500 375 375
D 25 30 10 20 750 500 300 200
3720 3490 2450 2400

  p1q0    p1q1 
Fisher’s Price Index =      x 100
  p0 q0    p0 q1 

where pq 1 o = 2450 , pq1 1 = 2400 , p q

o o = 3720 and p q
o 1 = 3490

Therefore,
 2450   2400 
Fisher’s Price Index =     100
 3720   3490 

Fisher’s Price Index = 65.86  68.77 100

= 4529.19  100

= 67.3%  100
Accept 67.2% – 67.3%

Examiner’s comment
This question is on Index Numbers in which candidates are expected to calculate the Simple
Aggregate Price Index (SAPE), Simple Average of Relative Price Index (SARPI) and the Fisher
Ideal Price Index (FIPI) using the specified base years.
About 87% of the candidates attempted the question.
They demonstrated a fairly good understanding of the question though some of them had
difficulty in differentiating between SAPI and SARPI.
In the same vein, some of them quoted wrong formula to calculate the Fisher Ideal Price Index.
Generally, the average mark obtained by candidates hovered around 8 marks.

77
SOLUTION 3

Total supply (TS) = 10 + 80 + 50 = 140

Total demand (TD) = 75 + 20 + 50 = 145

This is an unbalanced transportation problem since the TS is not equal to TD. Therefore,
it needs to be converted to a balanced transportation problem by creating a dummy
row with a capacity of 5 and zero costs.

The solution is as follows:

Destinations Row penalties

Iteration number
D1 D2 D3 Supply 1 2 3 4 5 6
S1 5 1 7 4 4 - - - -
10
10
S2 6 4 6 2 2 2 2 2 4
Sources 80
25 10 45
S3 3 2 5 1 1 1 - - -
50
50
Dummy S4 0 0 0 0 - - - - -
5
5
Deman 75 20 50
145
d

1 3 1 5
Column penalties
Iteration number

2 2 1 1
3 3 2 1
4 6 4 6
5 6 4 -
6 - 4 -

The initial basic feasible total Transportation Cost (TC) is

TC = (110 + 6  25 + 4 10 + 6  45 + 3  50 + 0  5 ) 10

TC = N6,200

78
Tutorial

79
80
5th Iteration

Destination
D1 D2 D3 Supply Row
Sources penalty

S1
10 0
S2 6 4 45 10 2
25 45

S3 0
50

Dummy 5 0

Demand 0 10 45 0

Column
6 4
penalty

The initial basic feasible total Transportation Cost (TC) is

TC = (110 + 6  25 + 4 10 + 6  45 + 3  50 + 0  5 ) 10

TC = N6,200
81
Examiner’s comment
Candidates’ knowledge of using Vogel’s Approximate Method to solve a typical transportation
problem is tested in this question.
About 60% of the candidates attempted the question.
The average mark scored by the candidates was between 5 and 7 marks.

The major difficulty of some of the candidates, who attempted the question, was in their
inability to set up appropriate Penalty Factors in both Row and Column directions.

SOLUTION 4

(a) The Economic Order Quantity (EOQ) is

2  d  Co
EOQ = Q =
h
2  2600  500
EOQ =
20  0.1

EOQ = 1140.175425
EOQ=1,140 units
(b) Number of orders per annum is
Annual demand
N=
EOQ
d
N=
EOQ
2600
N=
1140
N = 2.28070175
N  3 orders per year

(c) The holding cost per annum is

cd
Ch =
Q
500  2600
Ch =
1140
Ch = 1140.350877
Ch  1,140.35
hQ
(d) The ordering cost per annum is
2
= (0.2  20)1,140/ 2

= 1,140
82
(e) Total cost per annum = ordering cost per annum + holding cost per annum
= 1140.35 + 1400
= 2,280.35
I 52Q
(f) The cycle time = T = =
N d
1
= = 0.4386 years
2.28

52
= = 22.8 weeks
2.28
22.8
= = 5.7 months
4
12
= = 5.26 months
2.28

Examiner’s comment
This question, which tests candidates’ knowledge of Inventory and Production Control, was
attempted by over 57% of the candidates.
Generally, their performance was poor as about 35% of them obtained marks ranging between
zero and 10 marks.
The major pitfall of those candidates who attempted the question arose from the fact that they
did not substitute correct values into the given formular.
Some of these candidates confused Holding Cost with Ordering Cost.

SOLUTION 5

(i) The Activity-On-Arrow (AOA) network for the project is as shown below:

where D1, D2 and D3 are the dummies

83
(ii) List all the paths and calculate their durations.
Paths Durations (months)
5 + 4 + 5 + 6 + 6 + 3 = 29
A, B, G, J, L, N
5 + 0 + 3 + 7 + 5 + 4 + 2 = 26
A, D1, D, F, I, K, M
6 + 3 + 7 + 5 + 4 + 2 = 27
C, D, F, I, K, M
5 + 4 + 4 + 7 + 5 + 4 + 2 = 31
A, B, E, F, I, K, M
5 + 4 + 5 + 4 + 5 + 4 + 2 = 29
A, B, G, H, I, K, M
5 + 4 + 5 + 6 + 0 + 4 + 2 = 26
A, B, G, J, D2, K, M
5 + 4 + 5 + 6 + 6 + 0 + 2 = 28
A, B, G, J, L, D3, M

(iii) The critical path is A, B, E, F, I, K, M with duration of 31 months.

Examiner’s comment
This is a Constructing Network Diagram based on Activity - On - Arrow (AOA) project concept.
The candidates are expected to list out all the possible paths together with their durations.
They are also required to identify the Critical Path together with its Duration. About 32% of the
candidates attempted the question.
The candidates, who attempted the question, demonstrated a very poor understanding of what
is involved in the question. The average mark obtained by the candidates, who attempted the
question, was about 3 marks.
The major pitfall of the candidates was the inability of the candidates to introduce appropriate
Dummies.

84
SOLUTION 6

(i) The Euler-Venn diagram to display the given information in (a).

n( ) = 105

E = 25 Q= 60

22-15
=7

15
16-15 =1
18-15 =3
=7

A = 39

(ii) number of candidates who registered for E and Q only (from the diagram)
= 22-15=7
number of candidates who registered for E and A only (from the diagram)
= 18-15=3

(iii) n(E only) = 25 − (7 + 15 + 3) = 0

n(Q only) = 60 − (7 + 15 + 1) = 37
n(A only) = 39 − (15 + 3 + 1) = 20
Total = 0 + 20 + 37 = 57

(iv) n( None) = 105 − (25 + 60 + 39 + 0 + 7 + 37 + 1 + 3 + 20)

= 105 − 83
= 22

Examiner’s comment
Knowledge of Set Theory is tested in this question.
It is based on Euler-Venn Diagram. About 78% of the candidates attempted this question.
They put up fairly good performance as about 45% of those who attempted the question obtained
marks in the range of between 0.5 and 12.5 marks. Their major difficulty was in the
interpretation of the data given and their inability to interprete the word “ONLY”.

85
AT/241/PII.8 Examination No...........................

THE ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA

ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA

MARCH 2024 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 and mathematical sets, 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, MARCH 26, 2024

DO NOT TURN OVER UNTIL YOU ARE TOLD TO DO SO

86
 ASSOCIATION OF ACCOUNTANCY BODIES IN WEST AFRICA
ACCOUNTING TECHNICIANS SCHEME, WEST AFRICA
PART II EXAMINATIONS – MARCH 2024
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. Which of the following is NOT an objective of a business organisation?

A. Generate a reasonable financial return for shareholders

B. Maintain a low market share
C. Increase productivity annually
D. Acknowledge social responsibilities
E. Develop a reputation as a responsible employer

2. When Systems are decoupled

A. They become too complex to understand
B. They become too complex to operate
C. They are difficult to administer
D. They are more flexible
E. They become difficult

3. Which of the following is NOT TRUE about data?

A. Data is raw and unchanged fact

B. Data by itself is significant
C. Data serves as input into the computer system
D. Data is the lowest level of knowledge
E. Observation and recording are done to produce data

4. Which of the following is NOT a benefit of an information system?

A. Operational efficiency
B. Functional effectiveness
C. Better product selection
D. Competitive advantage
E. Ease of fraud

87
5. Which of the following is NOT a feature of the Fifth Generation of computers?

A. Development of Artificial Intelligence

B. Development of Natural Language Processing
C. Advancement in parallel processing
D. More user-friendly interfaces with multimedia features
E. Storage media is magnetic storage

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

A. Touch screens
B. Light Pens
C. Voice Recognition system
D. Barcode
E. Joystick

7. Keyboard contains the following, EXCEPT

A. Alphabetic keys
B. Numeric Keys
C. Control Keys
D. Function keys
E. Leading Keys

8. Which of the following is NOT an example of an image input device?

A. Graphic Tablet
B. Image Creator
C. Cross hair cursor
D. Image Scanner
E. Digitising Camera

9. Which of the following is NOT an advantage of flat panel display?

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

10. VGA is an acronym for

A. Video Graphic Array

B. Video Graphic Adapter
C. Versatile Graphic Array
D. Versatile Graphic Adapter
E. Visual Graphic Array
88
11. Which of the following is NOT carried out by the Arithmetic Logic Unit (ALU)?
A. Repetition
B. Movement of data
C. Comparison
D. Addition and subtraction
E. Multiplication and Division

12. Which of the following is NOT stored in the primary memory?

A. Programs that contain instructions that will be used for processing
B. Raw facts and figures
C. Data that has been read from an input device or a secondary storage device
D. Intermediate results
E. Output information that is ready to be sent to an output device or a secondary
storage device.

13. Which of the following is NOT a type of system software?

A. Operating System
B. Editors
C. Browsers
D. Loaders
E. Compilers

14. Which of the following is NOT an advantage of interpreters over compilers?

A. They are fast and easier to use
B. It takes longer time for a program to run
C. They are cheaper
D. They are suitable for interactive work
E. They are very useful for small program writing

15. Which of the following is NOT an example of an electronic spreadsheet?

A. Multimate
B. Multiplan
C. Quattro Pro
D. Supercalc
E. Excel

16. Which of the following is NOT a feature of machine language?

A. Machine language code is in the form of binary digits represented by zero (o)
and one (1)
B. An instruction code in machine language consists of an operation code and
operand address.
C. Machine language is the first-generation language
D. It is machine independent
E. It is only written by highly skilled programmers
89
17. Which of the following is NOT an advantage of Object Oriented Programming?
A, It uses graphical interface
B. It’s not easy to use
C. Faster program development
D. Enhanced programmer productivity
E. Programs produced are more reliable

18. Which of the following is NOT a resource used in Office Automation?

A. Typewriter
B. Word Processing
C. Desktop Publishing
D. Facsimile
E. Teleconferencing

19. Which of the following is NOT a characteristic of files?

A. Hit Rate
B. Volatility
C. Robustness
D. Size
E. Access time

20. Which of the following is NOT a method of storing data on disk?

A. Serial
B. Sequential
C. Indexed Sequential
D. Random
E. Indirect
21. Which of the following is NOT a feature of Multiprocessing technique?
A. If one processor (CPU) fails, the processing system can shift work to the
remaining CPU
B. The system provides fast throughput for jobs
C. It pays particular attention to individual tasks/jobs to give them rapid service.
D. Inability to share memory among the CPU
E. If a task/job requires more resources than the one available on any of the
systems, all the resources can be pooled together to serve only one processor

22. A processing technique in which data is processed from terminals connected to the
central processor is called
A. On-line processing
B. Real-time processing
C. Batch processing
D. Centralized processing
E. Distributed processing
90
23. Which of the following is NOT a major role available in an Information
Technology (IT) department?
A. Software engineer
B. Software technologist
C. System Analyst
D. Network engineer
E. Technical support

24. Which of the following is NOT possible for user on the Computer networks?
A. Share peripheral devices
B. Share programs
C. Ability to control the network
D. Engage in better communication
E. Share data

25. Which of the following is NOT a network equipment?

A. Router
B. Switch
C. Bridge
D. Gateway
E. Panel

26. The set of rules and procedures for exchanging information between computers on
the network is called
A. Ethernet
B. Internet
C. Protocol
D. Network
E. Intranet

27. SMTP is an acronym for

A. Simple Mail Transfer Protocol
B. Simple Message Transfer Protocol
C. Simple Mail Transfer Packet
D. Simple Message Transfer Packet
E. Simple Message Total Packet

28. The 5th layer of the OSI model is

A. Physical
B. Network
C. Session
D. Transport
E. Application
91
29. Which of the following is NOT a social media platform?
A. Facebook
B. Twitter
C. Whatsapp
D. Instagram
E. DOS
30. A Computer crime that uses psychological manipulations to trick users into making
security mistakes or divulging confidential information is
A. Social engineering
B. Salami Technique
C. Hacking
D. Denial of service attack
E. Masquerading

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

ATTEMPT ALL QUESTIONS
Write the correct answer that best completes each of the following
questions/statement
1. A combination of interrelated elements organised in such a way to function as a
whole is known as .........................

2. A system that interacts with its environment for the collection of information is
known as .......................
3. A system in which some states or activities can be predicted with varying degrees
of probabilities is called .........................

4. The smallest unit of data in a computer system is ........................

5. The standard coding form in which each character is coded using 8 bits is known as
.......................
6. The Technology used for 1st generation computers is ...................

7. The physical unit, which is the connection of electronic components of the computer
system is ....................
8. A sequence of instructions written in a particular computer language, that is carried
out by the hardware to solve a given problem is called ......................
9. A hardware device that is designed to transform graphical images such as drawings,
photographs, and maps into machine readable form is known as ......................
10. The collection of programs that manages the Computer Based Information System
(CBIS) resources in the wisest manner possible is known as ..................
92
11. A program that translates a source program written in low-level language into
machine code is known as ......................

12. Software that builds, manages, and provides access to a database is called
....................
13. A finite sequence of instructions/procedures to solve a given problem is ..................

14. The smallest element in a file that can be alphabetic, numeric or special symbols is
...................
15. A department or office that is manned by technically skilled staff that assist the
Information System (IS) department staff with regard to user requests and
complaints is .........................

16. A person who uses a computer or network service without the technical expertise
required to fully understand it is called ...................

17. A sequence of characters to be entered into a computer system in order to gain

access to the system is known as ....................

18. The physical materials and nonphysical means used to establish communication
through which data is transmitted from one computer/device to another
computer/device is called ........................

19. A collection of related web pages, including multimedia content, typically identified
with a common domain name and published on at least one web server is
.......................
20. The act of browsing the internet by going from one page to other using hyperlinks
is called ......................

SECTION B: ATTEMPT ANY FOUR QUESTIONS (50 MARKS)

QUESTION 1

a. Define the following with an example each

i. Quantitative Information (2 Mark)
ii. Qualitative Information (1½ Marks)

b. Describe briefly FIVE benefits of Information system to an organisation.

(5 Marks)
c. Describe briefly FOUR challenges of Information system in a business environment
(4 Marks)
(TOTAL 12½ MARKS)

93
QUESTION 2

a. What is an Output device? (1 Mark)

b. Describe FOUR features of Impact printers as an output device (4 Marks)
c. Identify and explain FIVE output devices different from a printer (7½ Marks)
(Total 12½ Marks)

QUESTION 3
a. Describe briefly an application package? (1 Mark)
b. Enumerate FIVE advantages of off-the-shelf application package over In-house
package (5 Marks)
c. Enumerate FIVE disadvantages of off-the-shelf application package over In-house
packages (5 Marks)
d. Enumerate TWO differences between System Software and Application Packages
(1½ Marks)
(Total 12½ Marks)

QUESTION 4
a. Explain Realtime data processing with an example. (2½ Mark)
b. Enumerate FIVE benefits of Realtime data processing to an organisation (5 Marks)
c. Enumerate FIVE challenges of Realtime data processing to a business environment
(5 Marks)
(Total 12½ Marks)

QUESTION 5
a. What is a Computer Network? (1 Mark)
b. What is cloud computing? (2½ Marks)
c. List and describe briefly THREE technologies deployed in cloud computing
(9 Marks)
(Total 12½ Marks)

QUESTION 6

a. What is safety and security in a workplace? (1 Mark)

b. List and describe THREE health issues that can happen to a user of computer in a
workplace. (9 Marks)
c. List FIVE basic steps/techniques involved in Forensics Processes (2½ Marks)
(Total 12½ Marks)
94
SECTION A: PART I

MULTIPLE-CHOICE SOLUTIONS

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

Examiner’s comment
This section contains thirty (30) multiple choice questions which cover the entire syllabus.
All the questions are compulsory.
The candidates are very familiar with the questions and the performance is very good as
over 80% of the candidates scored over 70% of the allotted marks.

95
SECTION A: PART II

SHORT-ANSWER SOLUTIONS

1. System
2. Open system
3. Probabilistic or stochastic system
4. Binary digit (Bit)
5. EBCDIC – Extended Binary Coded Decimal Instruction Code
6. Vacuum tube
7. Hardware
8. Program
9. Scanner/Image input device
10. Operating System (OS)
11. Assembler
12. Database Management System (DBMS)
13. Algorithm
14. Character
15. Information centre or Help desk
16. End user/User
17. Personal Identification Number (PIN)/ Password
18. Channel/transmission media/communication media
19. Website
20. Web surfing/surfing

Examiner’s comment
This section contains twenty (20) short answer questions which cover the whole syllabus.
All the questions are compulsory and the solutions are one word answer each. The
performance was poor as less than 40% of the students scored below 35% of the allotted
marks.
This section demands for the exact meaning of concepts and the definitions of some key
terms in INFORMATION TECHNOLOGY.
Students are advised to be more familiar with the definitions of terms in Information
Technology.
Students should use standard Textbooks and in particular the ICAN INSIGHT for
future examinations.

96
SECTION B

SOLUTION 1

a.i. Quantitative Information

This deals with the magnitude of variables, their variabilities or absolute values.
Examples of Quantitative information include:

i. Annual sales of Production in a Company

ii. Variation in the wages of staff in an organisation
iii. Number of people who log in within a specified period by checking the system
log
iv. Number of employee work report for work through the use of clocking machine
v. Prices of goods
vi. Number of hours worked on a production line
vii. Number of people who download a particular application from the App Store.

ii. Qualitative Information:

This is an information that is related to the attributes of an entity in respect of quality
factors. This type of information is not exact in nature but it is very useful for
comparative measurement.

Examples of qualitative information include:

i. Notes taken during a focus group on the quality of the food at Cafe
ii. Responses from an open-ended questionnaire
iii. Standard of finished product in respect of paintwork
iv. Variation of tolerances of manufactured equipment
v. Colours of items
vi. Human emotions.

b. Information systems provide numerous benefits to organizations including:

1. Improved decision-making:
Information systems provide timely and accurate data that can be used by
managers to make informed decisions, leading to better outcomes for the
organisation.

2. Increased efficiency:
Automation of tasks and processes through information systems can streamline
operations, reduce manual errors, and save time and resources.
3. Enhanced communication:
Information systems facilitate communication and collaboration among
employees, departments, and even external stakeholders, leading to better
coordination and teamwork.
97
 4. Better customer service:
Information systems enable organizations to track customer interactions,
preferences, and feedback, allowing them to tailor products and services to meet
customer needs more effectively.

5. Competitive advantage:
Organizations that effectively leverage information systems can gain a
competitive edge by innovating faster, responding to market changes more
swiftly, and delivering superior products and services.

6. Data analysis and insights:

Information systems help organizations collect, store, and analyze large
volumes of data, enabling them to identify trends, patterns, and opportunities
for improvement.

7. Risk management:
Information systems can help organizations identify and mitigate risks by
providing real-time monitoring, compliance tracking, and predictive analytics.

8. Cost savings:
By streamlining processes, reducing errors, and optimizing resource allocation,
information systems can help organizations lower operational costs and improve
profitability.

c. Challenges of information system include:

1. Loss of valuable data due to virus infection, end users mistakes or deliberate
action by the user.
2. Users activities will be system dependent, therefore if the system breaks down
activities of the user will be affected.
3. Unauthorised access due to hacking or eavesdropping to enhance the
fraudulent activities of fraudsters.
4. GIGO phenomenon (Garbage-in Garbage-out) which means whatever you feed
into a system will be processed by the system. Therefore, if wrong data is fed
into the system wrong information will be produced.
5. Users may be prone to some health hazard such as eye strain, finger strain,
wrist paid and general tiredness.
6. Information produced and not well understood or explained can lead to wrong
use.
7. It can lead to staff redundancy.
8. The use of information system requires some level of computer literacy.
9. High cost of acquisition.
10. High cost of maintenance.

98
Examiner’s comment
This question tests the knowledge of the candidates on the types of information. viz
Quantitative and Qualitative information. It also demands for the benefits and constraints
of information systems to an organisation.
Around 95% of the candidates attempted this question and the performance is excellent as
over 65% of the candidates scored above 50% of the allotted marks.
Information systems is central to the syllabus and more students are advised to pay more
attention.

SOLUTION 2

a. Output devices are devices that bring out computer output or information from
the central processing unit to the outside world such as monitor, printer or speaker.

b. Features of impact printer as an output device include:

i. There is physical contact with the paper to produce an image
ii. It makes noise when printing
iii. It cannot print a page at a time
iv. It does not have good quality print out
v. It is very slow
vi. It uses ink ribbon so multiple copies can be produced

c. Examples of output devices include:

1. Monitor or Visual Display Unit
2. Computer Output on Micro form (COM)
3. Voice response (Audio response unit)
4. Graph Plotter
5. Speaker
6. Projector
7. Headphone

1. MONITOR:
This is a device that displays computer output on its screen (sometimes in
colours) in the form of text, graph, diagram or picture. The Visual Display Unit
output is called softcopy output and is only suitable for data of temporary use.

2. COMPUTER OUTPUT ON MICROFORM (COM)

Computer Output on Microform is a form of computer output whereby the
output is projected onto a cathode ray tube and photographed into a very much
reduced form i.e. into a microform. Microform is readable but it requires a
magnifying reading device or photographic development before it can be
viewed.

99
 3. VOICE RESPONSE (AUDIO RESPONSE UNIT):
A voice response system is also known as an audio response unit or a voice
answer back machine and is one of the least familiar peripherals. It has a
restricted vocabulary of fixed words that are produced as audio output to sound
like a human voice.
4. GRAPH PLOTTER:
This is a device used for the output of graphical information on large and small
computers. The most common type is the drum plotter. Continuous paper lies
over the surface of the drum with the pen in a cradle that will move auxiliary
with respect to the drum.
5. SPEAKERS: It is an output device that produces sound from the computer.

6. PROJECTOR: It magnifies computer output on screen so that it can be viewed

by a group of people.

7. HEADPHONE: Its work is similar to a speaker that produces audio from the
computer and it is worn on the head and which will also cover the ears.

Examiner’s comment
This question tests the candidates’ understanding of the input and output systems of the
computer. It demands for the features of these systems.
This question is very popular among the candidates as over 85% of the candidates
attempted the question and the performance is excellent as over 60% of the candidates
score above 50% of the allocated marks.
Input and output systems are also very central in the syllabus, so students are advised to
pay more attention.

SOLUTION 3
a. Application package
Application packages is a software that consists of programs which are written to
solve specific user’s problems. It consists of programs which direct the computer
system to solve specific data processing activities required for the solution of
business and other problems of the computer user.

b. ADVANTAGES OF OFF THE SHELF APPLICATION PACKAGES OVER IN- HOUSE

PACKAGES INCLUDE:

1. Cost-effectiveness:
Off-the-shelf applications are often less expensive than custom-developed
software since the development costs are spread across multiple users. This
makes them an attractive option for small and medium-sized businesses with
limited budgets.
100
2. Quick implementation:
Since off-the-shelf applications are pre-built and ready to use, they can be
implemented much faster than custom solutions. This allows businesses to start
using the software sooner and realize benefits more quickly.
3. Proven reliability:
Off-the-shelf applications are typically thoroughly tested and used by a large
number of customers, which means they are likely to be more reliable and
stable than custom-developed software.

4. Regular updates and support:

Most off-the-shelf software vendors provide regular updates, patches, and
technical support to address bugs, security vulnerabilities, and compatibility
issues. This ensures that the software remains up-to-date and continues to
meet the needs of the business.

5. Scalability:
Off-the-shelf applications are often designed to scale with the needs of the
business, allowing users to easily add additional features or licenses as their
requirements grow.

6. Lower maintenance overhead:

Since off-the-shelf applications are maintained by the software vendor,
businesses do not need to allocate resources to develop, test, and maintain
the software themselves. This reduces the ongoing maintenance overhead
and allows businesses to focus on their core activities.

7. Access to advanced features:

Off-the-shelf applications often include a wide range of features and
functionalities that would be costly and time-consuming to develop in-
house. This allows businesses to access advanced capabilities without
investing significant time and resources.

8. Reduced risk:
By choosing a well-established off-the-shelf application with a proven
track record, businesses can mitigate the risks associated with custom
software development, such as project delays, cost overruns, and quality
issues.

101
c. DISADVANTAGES OF OFF THE SHELF APPLICATION PACKAGES OVER IN HOUSE
PACKAGES INCLUDE:
1. Limited customisation:
Off-the-shelf applications are designed to meet the needs of a broad range of
users, which means they may not fully align with the specific requirements or
workflows of a particular business. Customisation options are often limited,
making it difficult to tailor the software to fit unique business processes.
2. Dependency on vendor:
Businesses using off-the-shelf software are dependent on the vendor for
updates, support, and maintenance. If the vendor discontinues support for the
product or goes out of business, it can leave the business vulnerable to security
risks, compatibility issues, and lack of updates.
3. Potential for feature bloat:
Off-the-shelf applications may include features and functionalities that are not
relevant to the business, leading to unnecessary complexity and confusion for
users. This can impact usability and productivity if users have to navigate
through irrelevant features to find what they need.
4. Lack of control over updates:
While regular updates can improve security and add new features, they can
also introduce bugs, compatibility issues, or changes in functionality that
disrupt workflows. Businesses may have limited control over when updates
are applied or may need to test updates thoroughly before deploying them.
5. Security concerns:
Off-the-shelf applications are used by a large number of customers, making
them attractive targets for hackers and cybercriminals. Security vulnerabilities
discovered in the software canput businesses at risk of data breaches, malware
infections, and other security incidents.
6. Integration challenges:
Off-the-shelf applications may not seamlessly integrate with existing systems
or third-party software used by the business. This can result in data silos,
duplicate data entry, and inefficiencies in workflows.
7. License costs:
While off-the-shelf software is generally less expensive than custom
development, businesses still need to purchase licenses for each user or
device. As the number of users grows or additional features are needed,
license costs can become significant over time.
8. Vendor lock-in:
Once a business has invested time and resources into implementing an off-
the-shelf application, switching to a different solution can be costly and
disruptive. Businesses may feel locked into the software vendor's ecosystem,
limiting their flexibility and ability to adapt to changing needs.
102
d. Differences between system software and application software include:

S/N SYSTEM SOFTWARE APPLICATION SOFTWARE

1 It is a software that manages and It is a software developed to

controls the hardware and solve users specific problems
provides a platform for
running applications

2 It includes operating systems, It includes word processing

device drivers, utility programs, software, spreadsheet software,
and middleware desktop publishing
software etc

3 It interacts directly with the It does not directly manage

hardware and provides essential hardware or provide core
services such as memory services to the computer system;
management, file management, instead, they utilize the services
process management, and security. provided by the underlying
operating system.

4 It runs in the background and is They are designed to be user-

essential for the operation of the friendly and provide interfaces
computer system itself. that allow users to interact with
and manipulate data.

Examiner’s comment
This question tests the students’ understanding of the computer software. It demands for
the differences between the system software and the application packages. It also
demands for the advantages of the off-the-self packages over the in-house packages.
This question is very popular among the candidates as over 70% of the candidates
attempted this question and the performance is very encouraging as over 50% of the
candidates score above 50% of the allotted mark.
Computer software is very central in the syllabus and students are advised to take it
seriously.

SOLUTION 4

a. Real-time Processing
In realtime processing, data are captured electronically, edits for accuracy and
completeness, process it instantly and produces result. Output from realtime
processing is generated immediately so that it can be used to influence the current
activities.
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 Examples of realtime processing include:
i. Reservation of hotel booking
ii. Cash withdrawal from automated teller machine
iii. Mobile money transfer
iv. Booking and reservation of airline ticket
v. Space exploration

ii. Benefits of realtime processing include:

i. Result is made available immediately
ii. It enhances paperless transaction
iii. In realtime processing, several databases can be updated concurrently
iv. It enables users to see the cumulative effect of all transactions for decision
making
v. It avoid costly and time consuming data preparation and control
vi. It is interactive
vii. It enhances quick decision making due to immediate result from the system

iii. Challenges of realtime processing include:

i. It is very complex to design and implement
ii. Processing activities will be network dependent
iii. It is prone to security challenges such as hacking and eavesdropping
iv. There is no enough time to adequately check input data for error
v. Organisation with critical realtime applications have to pay a high cost
premium for the security of fault tolerant computer system
vi. It is expensive to implement
vii. Users may be prone to some ergonomic risk factors such as eye strain
viii. Implementation of realtime processing requires a lot of expertise

Examiner’s comment
This question tests candidates’ knowledge on processing techniques. It demands for the
benefits and demerits of the Real-time processing technique in an organisation.
Over 60% of the candidates attempted this question but the performance is just average as
less than 45% of the candidates score below 50% of the allotted mark.
The major pitfall is that majority of the students confused or misinterpreted On-line
processing for Real-time processing. It is true that Real-time is On-line but not all On-line
are Real-time.
Most critical activities are now Real-time, so students must pay more attention to
distinctions between Real-time and Ordinary On-line processing.
All processing techniques are important, and students should pay more attention.

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SOLUTION 5

a. Computer Network
A computer network is a collection of computers and other devices interconnected
by communication channels that allow them to share resources, exchange data,
and communicate with each other.

b. Cloud Computing
Cloud computing is an internet-based computing whereby shared resources, software
and information are provided to computers and other devices on-demand, like a
public utility. It allows consumers and business to use applications without
installation and access their personal files at any computer with internet access. This
technology allows for much more efficient computing by centralised storage,
memory, processing and bandwidth.

c. Technologies used in Cloud Computing include:

i. Infrastructure – as – a – service (IaaS)
ii. Platform-as-a-service (PaaS)
iii. Software-as-a-Service (SaaS)

i. Software-as-a-Service (SaaS) - In the past, the end-user would generally

purchase a license from the software provider and then install and run the
software directly from on-premise servers. Using on-demand service, the end-
user pays the software a subscription fee for the service. The software is hosted
directly from the software provider servers and is accessed by the end-user over
the internet. Some of the companies that offers SaaS business include: Sales
force.com, Google, NetSuite, Info Technologies, Canada software.net.

ii. Platform as-a-Service (PaaS) – The platform segment of cloud computing refers
to products that are used to deploy applications. Platforms serves as an
interface for users to access applications provided by partners or in some cases
the customers. Examples of platforms are salesforce.com platform, NetSuite,
Amazon, Google, Sun Oracle, Microsoft etc.

iii. Infrastructure-as-a-Service (IaaS) – This is the backbone of the entire concept

where the vendors provide the physical storage space and processing
capabilities that allow for all the services described above. Major infrastructure
vendors are:
i. Google – managed hosting, development environment
ii. International Business Machine (IBM) – managed hosting
iii. Terremark – managed hosting
iv. Amazon.com – cloud storage
v. Rackspace Hosting – manages hosting and cloud computing

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Examiner’s comment
This question tests the candidates’ understanding of Network computing particularly Cloud
computing.
It also demands for the various technologies deployed in Cloud Computing.
This topic is just evolving, and students are yet to have a complete grip. It is not popular
among the students. The performance is not encouraging as over 40% of the candidates
score less than 25% of the allotted mark.
Students need to read more on this topic. Consult ICAN INSIGHT for more details.

SOLUTION 6

a. Safety and security in workplace:

This is a set of measures put in place to protect an employee from work related illness
and injury and to make the workplace safe, secure and conducive for employees.
Safe and secure working environment can be provided by using thorough security
system including access control systems, CCTVs (Closed Circuit Televisions), keycards,
clean environment, emergency exits, training the employees about security
procedures, constant improvement of the system as well as using security guards to
physically guard the entire work place.

b. Health issues that can happen to a user of a computer in a work place include:
i. Eye strain
ii. Back pain
iii. Finger strain and wrist pain
iv. Repetitive Stress Injury (RSI)
v. Obesity
vi. Stress and mental health issue
vii. Electromagnetic radiation exposure

i. Eye strain:
Focusing eyes at the same distance point for long periods of time causes eye
problem. The human eye structurally prefers to look at objects more than six
metres away, so any work performed close up puts extra demands on the eye
muscles.

The illuminated computer screen can also cause eye fatigue therefore,
computer users may get symptoms such as blurred vision, temporary inability
to focus on faraway objects and headaches.

ii. Back pain:

Improper use of furniture and use of chair without back rest can cause back
pain which may result to miscarriage in pregnant women. User must constitute
the habit of using proper furniture with back rest.
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 iii. Finger strain and wrist pain:
Improper positioning of keyboard and using inability to rest the wrist on the
table when using the keyboard may lead to finger strain as well as wrist pain.

iv. Repetitive Stress Injury (RSI):

This consists of wrist, hand, arm and neck injury resulting when muscle are
forced through fast and repetitive motion. Repetitive stress injury can as well
lead to damage to the nerves and tendons in the hands.

v. Obesity
This is state of being grossly fat or overweight due to prolong sitting when using
the computer system. Prolong use of the system will prevent the user from doing
regular exercise which may lead to obesity. To prevent this, regular exercise is
required to burn the excess fat.

vi. Stress and Mental Health Issues

Excessive use of computers and digital devices, along with constant
connectivity and information overload, can contribute to stress, anxiety, and
mental health issues such as depression and burnout. Taking regular breaks,
practicing stress management techniques, and setting boundaries for
technology use can help mitigate these issues.

vii. Electromagnetic Radiation Exposure

Some people are concerned about potential health risks associated with
prolonged exposure to electromagnetic radiation emitted by computers and
electronic devices. While research on this topic is ongoing, there is currently
no conclusive evidence linking computer use to adverse health effects from
electromagnetic radiation.

c. The following are basic steps involved in forensic processes:

i. Preparation of investigator’s data
ii. Collection of the data
iii. Examination of data
iv. Analysis of data
v. Reporting

Examiner’s comment
This question tests students’ knowledge on the safety and security in a workplace. It also
demands for the basic steps involved in Forensic processes.
This is a familiar topic among the students. Any computer user is familiar with this topic
Over 75% of the candidates attempted this question and the performance is encouraging
as over 60% of the candidates score over 50% of the allotted mark.

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