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CPA Business Data Analytics – April 2023 Past Paper & Answers

Unit: Business Data Analytics

25 Questions

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Questions

Download CPA Business Data Analytics April 2023 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.

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Other Business Data Analytics Past Papers

1
​​The acronym “CRISP” stands for: 

 A. Cross-industry standard process for data mining 
 B. Cross-industry statistical process for data mining 
 C. Cross-industry standard practice for data mining 
 D. Cross-industry statistical package for data mining
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2
​​You are given the following formulas for computing variance and standard deviation of a population and sample:

1. =VAR.S( )
2. =VAR.P( )
3. =STDEV.P( )
4. =STDEV.S( )

Which of the following statements in CORRECT?
A. Statements 1 and 3 contain the formulas for variance and standard deviation of a population
B. Statements 2 and 4 contain the formulas for variance and standard deviation of a sample
C. Statements 1 and 4 contain the formulas for variance and standard deviation of a sample
D. Statements 2 and 3 contain the formulas for variance and standard deviation of a sample 
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3
​​Which of the following focuses on the discovery of previously unknown properties on the data? 

A. Data mining 
B. Big data 
C. Data wrangling 
D. Data archiving
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4
​​A data analyst would like to determine the number of times revenues have exceeded Sh.10 million over the past 10 years. If the revenues are listed vertically in column A (From Cell A2 to Cell A11) of Excel, which of the following formulas will provide the correct output? :

A. COUNTIF(A2:A11,“=10”)
B. COUNTIF(A2:A11,“>10”)
C. COUNTIF(A2:J11, “>10”)
D. COUNTIF(“>10”, A2:A11) 
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5
“Alteryx” is an example of a____________________________.

A. Data management tool
B. Data cleaning tool
C. Data visualisation tool
D. Data analysis tool
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6
​​Which of the following approaches to data collection will require SIGNIFICANT data cleansing?

A. Online administered questionnaire
B. Email administered questionnaire
C. Physically administered questionnaire
D. All of the above 
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7
​​Which of the following function can be used to find data with unique codes arranged in the top-most row of the dataset in MS Excel.

A. MATCH
B. HLOOKUP
C. VLOOKUP
D. SET UP 
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8
​​Which of the following reasons will make an organisation AVOID cloud computing as a means for data management? 

A. Data Costs 
B. Data Scalability 
C. Data Integrity 
D. Data Safety
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9
​ ​​Correlation analysis is an example of:

A. Predictive analytics
B. Prescriptive analytics
C. Descriptive analytics
D. Exploratory analytics
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10
The following are the main examples of data visualisation:

1. Comparison
2. Composition
3. Relationship
4. Distribution

Which of the following summarises the order of the examples from simple to complex?
A. Distribution, comparison, composition, relationship
B. Distribution, composition, comparison, relationship
C. Comparison, composition, distribution, relationship
D. Relationship, composition, distribution, comparison
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11
​​One or more of the following activities is/are not from Phase 1 of Data Science Life Cycle.

A. Learning the target domain
B. Developing initial hypothesis
C. Visualise initial hypothesis
D. All of the above  
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12
​​The following statements relate to the ‘Vs’ of big data:

1. Variability is the evolving nature of data sources
2. Variability is the different types of data structures

Which of the following statements is CORRECT?
A. Only statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are wrong 
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13
​​The following is considered by many to be the most important language for Data Science:

A. Ruby
B. R
C. Java
D. MS Excel 2010 
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14
​​Which of the following choices best represents the correct flow of data models:

A. Conceptual, logical and physical
B. Physical, logical and conceptual
C. Logical, physical and conceptual
D. None of the above
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15
​​Choose the correct keyword for this definition: A graphical representation of a data set:

A. Data Set
B. Investigative Cycle
C. Visualisation
D. Data Plot 
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16
​​The_____________________ data model gives the data analyst the chance to gain an overview of the system to be analysed without being concerned with the details of how it will be analysed.

A. Conceptual
B. Logical
C. Physical
D. Rational 
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17
​​A bank collected data on visitors' viewing habits at the bank's website. Which technique can be best used to identify pages commonly viewed during the same visit to the website?

A. Clustering
B. Classification
C. Association rules
D. Panel analysis 
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18
​​1. Predictive data mining is a type of analysis that extracts data that may be helpful in determining an outcome.
2. Description data mining is a type of analysis that informs users of that data of a given outcome.

Which of the following is CORRECT?
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements 1 and 2 are true
D. Both statements are not true
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19
​​Which of the following steps is performed by a data scientist after collecting the data?

A. Data integration
B. Data replication
C. Data cleansing
D. Data manipulation  
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20
​​Which of the following best describes the work of a data architect?

A. Utilise large sets of data to gather information that meets their company’s needs
B. Work with businesses to determine the best usage of the information yielded from data
C. Develop data solutions that are optimised for performance and design applications
D. Evaluate data to reach at logical conclusions 
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21
​ ​ ​ ​​Miwani Limited plans to invest in a 5-year project in the year 2024. However, the information on the project is not reliable.
The company would wish to carry out a scenario analysis:
The following data is available given three scenarios. The optimistic and pessimistic scenarios reflect the % variance from expected.

Initial Investment
Expected
Sh.
OptimisticPessimistic
Initial Investment100,000,000-20%+30%
Before tax residual value20,000,000+10%-10%
Initial working capital15,000,000-5%+5%
Revenues140,000,000+10%-15%
Direct costs60,000,000-20%+20%
Incremental fixed costs40,000,000-10%+10%
Capital allowance30%N/AN/A
Inflation rate5%3%8%
Tax rate30%30%30%
Additional information:
1. The inflation rate applies to revenues, direct costs, incremental fixed costs and working capital.
     Working capital will be recovered at the end of the project.
2. Revenues and costs arise from year 1.
3. The capital allowance rate is on reducing balance basis.
4. Tax will be applied on the gain/loss on disposal of the asset.
5. The weighted average cost of capital for the company is 15%.

Required:
Compute the following for each of the three scenarios:

(a) Net Present Value (NPV).
(b) Internal Rate of Return (IRR).
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22
​ ​ ​ ​ ​​You work as the management accountant for Majani Limited which deals in tea production and export. Before embarking on next year’s budgeting, you are tasked with analysing past revenue and price trends. As a starting point, your supervisor has provided you with historical price and production data as shown in the worksheet mgt.xls.

DateProduction (million) KgsPrice per kg
2010-01-0132.80182.39
2010-02-0123.60192.25
2010-03-0115.00192.19
2010-04-0119.30188.50
2010-05-0126.00182.09
2010-06-0119.50196.95
2010-07-0118.90204.48
2010-08-0119.90191.95
2010-09-0126.40195.41
2010-10-0131.60200.48
2010-11-0127.00200.00
2010-12-0132.90205.22
2011-01-0131.10202.82
2011-02-0128.10198.10
2011-03-0128.90191.78
2011-04-0129.40177.95
2011-05-0128.40186.62
2011-06-0123.90186.59
2011-07-0118.60190.73
2011-08-0118.90206.45
2011-09-0123.00240.73
2011-10-0127.40201.76
2011-11-0132.00192.50
2011-12-0134.60201.78
2012-01-0134.10236.67
2012-02-0125.80258.10
2012-03-0124.80241.52
2012-04-0129.10190.71
2012-05-0128.80200.32
2012-06-0124.00223.41
2012-07-0120.80201.38
2012-08-0121.80211.83
2012-09-0126.90224.41
2012-10-0132.30211.57
2012-11-0130.00194.77
2012-12-0129.80201.86
2013-01-0117.90225.00
2013-02-0111.70278.90
2013-03-0119.90259.74
2013-04-0130.40230.45
2013-05-0126.40238.26
2013-06-0127.70250.14
2013-07-0123.80263.81
2013-08-0123.20247.22
2013-09-0128.60229.81
2013-10-0134.80224.27
2013-11-0131.60213.23
2013-12-0134.40239.57
2014-01-0141.60249.70
2014-02-0134.80212.50
2014-03-0132.20203.27
2014-04-0130.70192.05
2014-05-0132.10190.04
2014-06-0127.30202.05
2014-07-0122.70211.91
2014-08-0122.70210.39
2014-09-0128.90231.25
2014-10-0135.20224.30
2014-11-0132.30209.64
2014-12-0128.80206.05
2015-01-0129.70229.70
2015-02-0124.10264.67
2015-03-0116.90246.29
2015-04-0127.40260.91
2015-05-0136.40265.14
2015-06-0122.80284.52
2015-07-0124.20287.48
2015-08-0124.50321.90
2015-09-0132.00321.59
2015-10-0135.30282.39
2015-11-0134.40241.00
2015-12-0137.90228.48
2016-01-0125.50261.59
2016-02-0121.50270.00
2016-03-0118.80262.86
2016-04-0118.30277.41
2016-05-0129.80288.00
2016-06-0125.30287.14
2016-07-0121.50337.65
2016-08-0121.20328.38
2016-09-0127.40374.41
2016-10-0132.80344.77
2016-11-0135.90361.05
2016-12-0136.10374.22
2017-01-0137.70338.67
2017-02-0134.80332.35
2017-03-0139.20332.61
2017-04-0135.90313.59
2017-05-0135.60286.14
2017-06-0129.80262.36
2017-07-0124.40259.18
2017-08-0123.10315.09
2017-09-0128.80337.18
2017-10-0134.10339.86
2017-11-0137.00331.68
2017-12-0138.30352.13
2018-01-0135.90368.10
2018-02-0126.70349.75
2018-03-0122.40330.65
2018-04-0131.40325.33
2018-05-0132.80327.68
2018-06-0128.90334.05
2018-07-0126.30356.14
2018-08-0124.40358.17
2018-09-0130.50362.27
2018-10-0139.90357.14
2018-11-0136.80351.27
2018-12-0141.30333.36
2019-01-0136.20337.27
2019-02-0118.40341.00
2019-03-0117.80341.00
2019-04-0118.10341.00
2019-05-0137.30341.00
2019-06-0130.20341.00
2019-07-0124.30345.59
2019-08-0131.90353.18
2019-09-0133.50358.23
2019-10-0140.20368.16
2019-11-0139.90368.11
2019-12-0141.40351.44
2020-01-0145.30338.87
2020-02-0138.50320.90
2020-03-0133.30297.40
2020-04-0138.20266.31
2020-05-0139.60272.37
2020-06-0130.50258.71
2020-07-0126.20256.16
2020-08-0126.30248.04
2020-09-0132.80230.49
2020-10-0144.30221.72
2020-11-0135.50235.26
2020-12-0141.70245.69
2021-01-0144.90249.00
2021-02-0133.70256.98
2021-03-0133.30237.73
2021-04-0139.90223.41
2021-05-0141.10219.52
2021-06-0131.90223.70
2021-07-0130.80232.39
2021-08-0126.80235.78
2021-09-0133.30232.95
2021-10-0145.40256.19
2021-11-0138.60243.34
2021-12-0145.10243.31
2022-01-0141.70269.62
2022-02-0124.30296.35
2022-03-0115.70307.56
2022-04-0123.80290.74
2022-05-0137.50313.81
2022-06-0132.20355.88
2022-07-0130.94403.03
2022-08-0128.41387.33
2022-09-0136.84371.21
2022-10-0141.34391.84
2022-11-0140.38353.77

Required: 
(a) Plot a line graph for price against time/dates. Insert a linear trend line displaying the equation and R-squared on the chart. Briefly discuss your results. 

(b) Using a suitable MS Excel function, show that the coefficients shown in the trendline in (a) above are in fact a result of a linear estimation between the historical prices and time. 

(c) You know that prices are affected by production. Because of this, you would like to run a regression between price, production and time. Use data analysis ToolPack to run regression analysis. Interpret your results. Be sure to discuss the coefficients and parameters. 
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23
​ ​ ​​The following draft financial statements relate to H Ltd. and its investment companies S Ltd. and A Ltd. for the year ended 31 December 2022:

H Ltd.S Ltd.A Ltd.
Non Current Assets:"Sh.000""Sh.000""Sh.000"
Property, plant and equipments2,110,000.00902,500.00
815,000.00
Intangible assets50,000.005,000.00-
Investments1,125,000.0010,000.00-
3,285,000.00917,500.00815,000.00
Current assets:
Inventory300,000.00130,000.00115,000.00
Trade receivables175,000.0070,000.0080,000.00
Cash at bank100,000.00-50,000.00
Total Assets3,860,000.001,117,500.001,060,000.00
Ordinary shares (Sh. 5 par)2,000,000.00500,000.00400,000.00
Retained profits1,385,000.00365,000.00470,000.00
Shareholders’ funds3,385,000.00865,000.00870,000.00
Non Current liabilities
10% Loan stock100,000.0075,000.0025,000.00
Current liabilities:
Trade payables350,000.00100,000.00135,000.00
Bank overdraft-37,500.00-
Current tax25,000.0040,000.0030,000.00
Total Liabilities475,000.00252,500.00190,000.00
Total Capital and Liabilities3,860,000.001,117,500.001,060,000.00

1.The following details relate to the acquisitions

CompanyDateCost of investmentRetained profitsPercentage
"Sh.000""Sh.000"
S Ltd1 January 2019750000.00200000.0080%
A Ltd1 January 2020300000.00300000.0030%

H Ltd. also invested in Sh.25 million of the loan stock in S Ltd. on 1 January 2021.

On the dates of their acquisition, the value of buildings in S Ltd. and A Ltd. were Sh.50 million and Sh.25 million above their carrying amounts. Buildings are depreciated at the rate of 2% per annum on reducing balance.

The fair value of the non controlling interest (Purchase consideration) can be estimated from the share price of S Ltd. that was Sh.80 on 1 January 2019.
2.On 1 January 2021, H Ltd. sold S Ltd. an item of plant at a selling price of Sh.75 million, reporting a profit mark-up of 50%. Plant is depreciated at 20% per annum on reducing balance
3.During the year, the companies traded as follows:
(i)S Ltd. sold goods at a selling price of Sh.20 million to H Ltd. at the normal gross profit margin. One quarter of these goods remained unsold at the year end.
(ii)H Ltd. sold goods at a selling price of Sh.40 million to A Ltd., reporting a profit of Sh.10 million. Half of the good sold to A Ltd. had been sold by the year end.

At the beginning of the year, H Ltd. had goods to the value of Sh.10 million purchased from S Ltd. in the year ended 31 December 2021.
4.Included in the trade receivables and payables of each the respective companies are the following inter-company balances:
"Sh.000"
● Due from H Ltd. to S Ltd.25,000.00
● Due from A Ltd. to H Ltd.25,000.00

A close check in S Ltd.’s books revealed that the receivables of S Ltd. had Sh.30 million due from H Ltd. This anomaly arose because H Ltd. sent a cheque of Sh.5 million to S Ltd. on 29th December 2022 but had not been received by S Ltd. as at 31 December 2022.

Meanwhile all the companies had paid their interest on loan stock by the year end
5.Goodwill where relevant had been impaired by 20% on cost at the beginning of year 2022. An additional impairment of 20% of the initial cost was again reported in year 2022.

Required: 
Prepare the consolidated statement of financial position as at 31 December 2022
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24
​ ​ ​ ​​M Limited is currently making a bid for N Limited. 
The following information has been provided to enable you determine the various prices that M Limited can offer the stakeholders of N Limited:

Statement of Profit or Loss (extract ) for the year ended 31 December 2022:
Sh."000"
Revenue100,000.00
Cost of sales/administration and distributio(80,000.00)
EBITDA20,000.00
Depreciation and amortization(4,000.00)
EBIT16,000.00
Interest(2,000.00)
EBT14,000.00
Tax @30%(4,200.00)
Net Income9,800.00
Dividends(4,000.00)
Retained Profit for the year5,800.00
Retained profit b/f14,200.00
Retained profit c/f20,000.00

Statement of Financial Position as at 31 December 2022:
Sh."000"
Non current assets (Book value)56,000.00
Current assets24,000.00
Total assets80,000.00
Ordinary share capital16,000.00
Retained earnings20,000.00
Total equity36,000.00
Non current liabilities
Long-term debt24,000.00
Current liabilities20,000.00
Total liabilities44,000.00
Total capital and liabilities80,000.00

Additional information:
1.Currently N Limited has 4 million shares with a market price of Sh.15 per share.
2.The current market value of N Limited's debt is Sh.24 million.
3.N Limited's financial statements items are expected to grow as follows:
(i)Revenue at 10% for the next five years.
(ii)EBITDA/revenue margin is expected to remain the same.
(iii)Depreciation/amortization to grow at the same rate as non-current assests, that is, 15%.
(iv)Interest expense at about 10% of previous year's long-term debt which will grow at 20%.
(v)Retention rate is 60%. Any balancing figure in the forecast statement of financial position is long-term debt.
(vi)Current assets and current liabilities will grow at 10%.
4.The applicable weighted average cost of capital is 18%.
5.Assume that the free cash flows to the firm for N Limited will grow at 3% from year 2028.

Required: 
Determine the value of N Limited using the free cash flows to the firm model. 
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25
​ ​​Mr Alex Mawezi, an audit client, has been trading for several years. 
He has provided with you the following list of account balances as at 31 December 2022:

Sh."000"
Capital40,943,500.00
Revenue129,935,000.00
Trade payables9,920,000.00
Returns outwards6,703,500.00
Expected credit loss as at 1 January 20221,256,000.00
Discounts allowed1,153,000.00
Discounts received875,000.00
Purchases73,755,000.00
Returns inwards2,812,000.00
Distribution costs2,281,000.00
Drawings9,220,000.00
Rent, rates and insurance12,986,500.00
Heating and lighting5,505,000.00
Postage, stationery and telephone1,205,000.00
Advertising2,990,000.00
Salaries and wages19,260,500.00
Credit loss (bad debts)1,004,000.00
Cash in hand267,000.00
Cash at bank2,220,000.00
Inventory as at 1 January 20227,827,000.00
Trade receivables12,250,000.00
Property, equipment and furniture at cost60,370,000.00
Accummulated depreciation as at 31 December 202231,510,000.00
Depreciation expense for the year6,037,000.00

As you begin the audit process, you discover the following adjustments that should be made to finalise the financial statements as you carry out the substantive tests
Sh."000"
1. Closing inventor8,875,000.00
2. Insurance prepaid560,000.00
3. Heating and lighting accrued680,000.00
4. Prepaid rates2,717,500.00
5. End year expected credit loss is estimated as1,865,000.00

Errors/ommissions identified:
Sh."000"
1. An invoice for goods sold was not posted2,640,000.00
2. Drawings of goods not reflected in drawings450,000.00
3. An additional credit loss omitted220,000.00
4. Depreciation expense for the year is understated120,000.00

Required: 
Prepare an audit schedule for eight columns with the following headings: 

(i) The original trial balance without adjustments. 
(ii) The adjustments. 
(iii) The draft profit or loss items. 
(iv) The draft statement of financial position.

Each section should have the debit and credit columns duly balanced. 
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