CPA › Business Data Analytics › August 2023

CPA Business Data Analytics – August 2023 Past Paper & Answers

Unit: Business Data Analytics

25 Questions

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Questions

Download CPA Business Data Analytics August 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.

Access the full paper online, download the PDF, or study offline. Each question includes step-by-step solutions to help you understand key concepts in Business Data Analytics.

Other Business Data Analytics Past Papers

1
​​How fast data is processed and accessed is represented by which of the following V’s of Big Data?

A. Velocity
B. Validity
C. Virality
D. Veracity 
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2
​Data modelling is a process that helps one to understand the structures, form, and relationships of information. It requires one to first think of the model, then identify the model details and then how the model will be implemented. Which of the following is the correct name of data model implementation?

A. Conceptual
B. Logical
C. Physical
D. Rational
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3
​The following activities are included in the Cross-Industry Standard Process for data mining:

1. Data Preparation
2. Data Understanding
3. Data Deployment
4. Business Understanding
5. Data Evaluation
6. Data modelling

Which of the following is the proper sequence of these activities?
A. 2,1,3,5,6,4
B. 1,3,5,6,4,2
C. 1,6,5,2,3,4
D. 4,2,1,6,5,3
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4
​​Which of the following is NOT an activity in the modeling stage in the Cross-Industry Standard Process for Data Mining?

A. Build
B. Select
C. Design
D. Evaluate 
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5
For data visualisation, a bar chart will likely be classified as a______________.

A. Distribution
B. Relationship
C. Comparison
D. Composition 
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6
​​A data analyst would like to present data in the form of a distribution. He will likely use all the following EXCEPT? 

A. Line chart 
B. Histogram 
C. Scatter graph 
D. Pie Chart 
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7
​​Data Ethics are the norms of behaviour that promote appropriate judgements and accountability when acquiring, managing, or using data, with the goals of protecting civil liberties, minimising risks to individuals and society, and maximising the public good. All the following promote data ethics EXCEPT? 

A. Complying with the law  
B. Promoting transparency  
C. Respecting privacy and confidentiality 
D. Fairness
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8
​​Which of the following is NOT a concept of data integrity?

A. Data availability
B. Data currency
C. Data accuracy
D. Data validity
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9
​​With the high volume of data available for businesses, collecting meaningful data is a big challenge. To enable handling large volumes of data, data collection tools are critical. Which of the following will likely be a data collection software?

A. Excel
B. Python
C. R
D. Zoho 
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10
​​
A data analyst makes the following comments about functions in excel:

1. To determine the variance of a list of 10 numbers we use =VAR.P(A1:A10)
2. To determine the standard deviation of 10 numbers we use = VAR.P(A1:A10)
3. To determine the variance of a list of 10 numbers we use = VAR.S(A1:A10)

Which of the following statements is TRUE?

A. Only statement 1 is correct
B. Only statement 2 is correct
C. Only statement 3 is correct
D. All the statements are correct
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11
​​The following are the various phases of data models:

1. Physical
2. Logical
3. Conceptual

Which of the following represents the correct order of the models?

A. 1,2,3
B. 2,3,1
C. 3,1,2
D. 3,2,1
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12
​​Which of the following techniques is LEAST effective in obtaining data for easy storage and analysis? 

A. Interviews 
B. Self-administered email questionnaire 
C. Online questionnaire such as on google forms 
D. Recorded interviews 
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13
​​According to cross-industry standard process for data mining, data preparation involves:

A. Obtaining data and information from different sources, processing and storing for future reference.
B. Fixing or removing incorrect, corrupted, incorrectly formatted data and information.
C. Collecting data and information about business requirements from stakeholders and end users.
D. Creating a visual representation of either a whole information system or parts of it to communicate connections
between data points and structures. 
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14
​​The following statements are associated with big data:

(i) Big data is a collection of data that is huge in volume, yet growing exponentially with time.
(ii) Big data that can be stored, accessed and processed in the form of fixed format is termed as structured data.
(iii) Big data that is heterogeneous and contains a combination of simple text files and images is semi structured.

Which of the following choices is correct?

A. Statements (i) and (ii) are correct
B. Statements (i) and (iii) are correct
C. Statements (ii) and (iii) are correct
D. All the statements are correct 
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15
​​Which of the following is NOT the correct definition of one of the ‘V’s of Big Data? 

A. Velocity: The speed at which big data is collected and processed 
B. Value: The usefulness of the information obtained from analysing big data 
C. Veracity: Multifactor, unstructured and dynamic nature of big data 
D. Volume: The size of big data 
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16
​​The following are the different categories of data analytics: 

1. Diagnostic 
2. Predictive 
3. Descriptive 
4. Prescriptive   

Which of the following is the correct order of value? 

A. 3,1,4,2 
B. 3,4,2,1 
C. 2,3,4,1 
D. 1,3,2,4
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17
​​David Mongare is the audit manager of Mkaguzi Auditors. He is carrying out analytical reviews at two stages: at planning and at substantive testing. Which type of analytics relates to the two stages? 

A. Predictive analytics for planning and diagnostic analytics for substantive testing 
B. Diagnostic analytics for planning and predictive analytics for substantive testing 
C. Descriptive analytics for planning and diagnostic analytics for substantive testing 
D. Predictive analytics for planning and descriptive analytics for substantive testing 
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18
​​Which of the following is NOT a strategy that the data analyst will use in handling missing data to enable data analysis:

A. Drop observations that have missing values
B. Estimate the missing value using other observations
C. Assign an integer that will enable the values to be processed as null values
D. Highlighting the observation with a tag  
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19
​​You are given the following categories of data visualisation: 

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

 Which of the following choices represents the order from simple to complex in terms of analysing data for visualisation? 

 A. 5,3,2,4,1
 B. 4,3,2,1,5
 C. 2,3,1,4,5
 D. 1,5,4,3,2
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20
​​Which of the following data visualisation charts will likely present more than two variables over time effectively?

A. Scatter Graph
B. Bubble Chart
C. Column Chart
D. Line Chart
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21
​ ​​Zeddy Limited has just completed its strategic plan for the next five years commencing 1 January 2023. The company is optimistic about future performance and would like to prepare forecast financial statements for the years 2023 to 2027. 

The actual financial statements for the year ended 31 December 2022 with the projected growth rates are provided as follows:

Statement of profit or loss for the year ended 31 December 2022:
Sh."000"Annual growth rate in %
Revenue3,000.0010%
Cost of sales(2,000.00)10%
Gross profit1,000.00
Administration expenses(250.00)5%
Distribution costs(200.00)10%
Finance costs(50.00)
Profit before tax500.00
Income tax expense(120.00)
Profit for the year380.00
Dividends paid(100.00)
Retained profit for the year280.00
Retained profit b/f520.00
Retained profit c/f800.00

Statement of financial position as at 31 December 2022:
AssetsSh."000"Annual growth rate in %
Non current assets:
Property, plant and equipment4,000.005%
Current assets:
Inventory310.0010%
Receivables450.0010%
Cash and bank120.005%
880.00
Total assets4,880.00
Equity and liabilities:
Equity:
Ordinary share capital1,000.00
Share premium500.00
Retained profits800.00
Total equity2,300.00
Non current liabilities:
Bank loans2,000.00
Current liabilities:
Trade payables580.0010%
Total liabilities2,580.00
Total equity and liabilities4,880.00

Additional information: 
1. Finance cost is 5% of the previous period's bank loans. 
2. Tax will be on average 25% of the profit before tax. 
3. The company will maintain the same dividend pay out. 
4. Apart from the beginning of year 2025 when the company will raise more equity comprising share capital Sh.500,000 and Sh.100,000 share premium, the balancing figure in the financial statements is the bank loans. 

Required: 
(a) The forecast financial statements for each of the years from 2023 to 2027. 

(b) Construct appropriate graphs/charts that will appear in the company's dashboard summarising the following: 

(i)     Revenue. 
(ii).   Profit after tax.
(iii).  Total assets.
(iv).  Total equity.
(v).   Net profit margin
(vi).  Debt ratio.
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22
​ ​​Riziki Limited is considering a project with the following details

Sh.
Initial capital cost40,000,000
Residual value2,500,000
Selling price per unit1,100
Variable cost per unit500
Fixed costs per year5,000,000

Addational information:
1. Annual number of units sold are 30,000. 
2.The project has a useful life of 5 years. 
3. The company uses a weighted average cost of capital (WACC) of 12%. 

Required: 
(a) Compute the base net present value (NPV). 

(b) Carry out a sensitivity analysis of NPV assuming an adverse variance of 5% for all the inputs except project life and weighted average cost of capital (WACC). 

(c) Prepare an appropriate chart to indicate the different NPVs for each scenario in (b) above. 

     NB: Adverse variance in this case means a decrease in cash inflows or an increase in cash outflows
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23
​ ​​Delaware Limited would like to evaluate its performance for the next five years commencing from the year 2023 based on the company's revised strategy. 

The following details relate to its main product "Lottus" and estimated changes in prices and costs per annum:

2023
Growth rate
Average annual demand in units50,00010%
Selling price per unit (Sh.)500.005%
Direct material cost per unit (Sh.)90.0010%
Direct labour cost per unit (Sh.)200.0010%
Variable production overheads per unit (Sh.)40.010%
Fixed production overheads (Sh."000")100,000.005%
Administration overheads (Sh."000")80,000.005%
Variable selling and distribution cost per unit (Sh.)30.0010%
Fixed selling and distribution costs (Sh."000")60,000.005%

Required:
(a) Prepare the forecast statement of profit or loss given the current projections.

(b) Determine the break even levels in units and revenues for each of the next five years.

(c) Using suitable graphs, present a summary of revenues, profits and breakeven revenues for each of the next five years.
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24
​ ​​Your audit client, Hazina Limited, is yet to finalise the financial statements for the year ended 30 June 2023. The company recruited a new accountant, who has been in the company for just two months. 

To avoid delaying the audit, the accountant has provided the following list of balances with additional information:

Sh."000"
Ordinary share capital60,000.00
Preference share capital20,000.00
Revaluation reserve12,000.00
Retained earnings as at 1st July 202222,120.00
Inventory as at 1 July 202235,600.00
Trade receivables17,600.00
Cash and bank8,900.00
Trade payables10,860.00
10% Loan stock8,000.00
Sales320,100.00
Purchases261,300.00
Credit loss/bad debts1,700.00
Salaries and wages11,100.00
Insurance705.00
Postage and telephone310.00
Light and heat1,105.00
Loan stock interest paid400.00
Directors'emoluments1,250.00
Dividends paid - Ordinary12,000.00
Dividends paid - Preference1,600.00
General expenses4,590.00
Motor vehicles at cost19,700.00
Accumulated depreciation as at 1 July 20226,300.00
Office furniture and equipment32,320.00
Accumulated depreciation of office furniture and equipment as at 1 July 2022
8,600.00
Land25,000.00
Buildings45,000.00
Accumulated depreciation of buildings as at 1 July 20227,200.00
Suspense account5,000.00

Additional Information:
1.The suspense account relates to an issue of ordinary share capital at par value.
2.
Land is to be revalued upwards by Sh.4,000,000
3.Inventory on 30 June 2023 amounted to Sh.43,150,000.
4.Additional credit loss of Sh.1,000,000 is reported, while expected credit loss is estimated at Sh.2,500,000
5.Salaries and wages excludes an amount of Sh.520,000 due to casual employees hired in June 2023.
In addition, the audit fees are estimated at Sh.1,200,000.
6.The loan stock interest paid is for the half year.
7.General expenses include prepaid amounts of Sh.350,000
8.Depreciation is charged as follows:
% per annumBasis
Motor Vehicles30Reducing Balance
Office Furniture and Equipment10Straight Line
Buildings2Straight Line
9.Estimated Corporation tax is Sh.6,500,000

Required: 
Prepare an audit working schedule having 4 sections for draft trial balance, adjustments, profit or loss items and statement of financial position items. Each section should have the debit and credit columns (therefore 8 columns).  
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25
​ ​ ​​Wakili, Safari and Filamu trade as Wasafi Enteprises. The following is a summary of the statement of profit or loss for the business for the year ended 31 December 2022:

IncomesSh."000"Sh."000"
Gross profit496,000.00
Investment income9,000.00
Other incomes6,300.00
511,300.00
Expense
Administration expenses31,360.00
Legal fees7,200.00
Trade expenses7,600.00
Depreciation2,200.00
Partners' salaries244,000.00
Interest on partners' capital16,600.00
Other expenses12,600.00(321,560.00)
Net profit189,740.00

Additional information:
Sh."000"
1.Investment Income is made up of:
Interest on bank deposits4,200.00
Dividends from investment in listed companies2,600.00
Interest charged on partners' drawings2,200.00
9,000.00
Note: Interest charged on drawings:
Wakili - Sh. 1 million, Safari - Sh.800,000 and Filamu - Sh.400,000.
2.Other incomes include:
Sh."000"
Gain on sale of old furniture and equipment3,900.00
Insurance Compensation for cash lost2,400.00
6,300.00
3.Administration expenses include:
Sh."000"
Rent16,000.00
Billboard advertisement5,000.00
General expenses10,360.00
31,360.00
4.Legal fees include Sh.3 million paid for Safari in a private legal case.
5,Trade expenses include:
Sh."000"
Repairs to buildings1,200.00
VAT3,400.00
Subscriptions to a trade association3,000.00
7,600.00
6.Capital allowances for the year ended 31 December 2022 agreed with the tax authorities amounted to Sh.9,600,000.
7.Partners' salaries and interest on capital are given as follows:
SalariesInterest on capital
Sh."000"Sh."000"
Wakili
80,000.004,000.00
Safari
90,000.006,000.00
Filamu74,000.006,600.00
244,000.0016,600.00
8.Other expenses comprise the following:
Sh."000"
Motor vehicle maintenance2,400.00
Donations to Wazee wa Banado8,400.00
Debt collection fees1,800.00
12,600.00
9.The partners share profits and losses in the ratio of 2:2:1 for Wakili, Safari and Filamu respectively.

Required: 
Compute the tax payable by each partner for the year ended 31 December 2022.(Assume that the business income is the only source of income). 
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