CPA › Business Data Analytics › December 2023

CPA Business Data Analytics – December 2023 Past Paper & Answers

Unit: Business Data Analytics

25 Questions

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Questions

Download CPA Business Data Analytics December 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
​​Which of the following formulas in Excel will provide a subtotal of variables provided in a list of vertically listed cells?

A. =sum (A1:H20)
B. =sum (A1:A20)
C. =sum (A1;H20)
D. =sum (A;A20) 
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2
​​Which of the following shortcut keys will enable an analyst to view the formula in a cell?

A. Ctrl + ;
B. Ctrl +:
C. Ctrl + ‘
D. Ctrl + ] 
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3
​​Which of the following is the CORRECT one for the HLOOKUP function in excel?

A. = HLOOKUP(lookup_value, [range_lookup], table_array, column_index_num)
B. = HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])
C. = HLOOKUP(lookup_value, column_index_num, [range_lookup], table_array)
D. = HLOOKUP([range_lookup], lookup_value, table_array, column_index_num) 
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4
​​The following statements relate to the ‘Vs’ of big data:
1. Volume: It refers to the size of big data.
2. Veracity: It refers to the assurance of integrity or credibility of the data.
3. Value: How useful the data is in decision making.

Which of the following statements is CORRECT?
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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5
​​Which of the following ‘Vs’ of data provides for data as being authentic, trustworthy and original?

A. Veracity
B. Value
C. Variability
D. Variety
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6
​​The following are activities that are included in data modelling:

1. Physical
2. Conceptual
3. Logical
4. Implementation

Which of the following represents the CORRECT steps in data modelling?
A. 1,2,3,4
B. 2,3,4,1
C. 2,3,1,4
D. 3,1,2,4
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7
​​Which of the following is NOT a data cleaning technique?

A. Remove duplicates.
B. Remove irrelevant data.
C. Standardise capitalisation.
D. Convert data from text to numeric 
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8
​​Part of the Cross-Industry Standard Process for data mining requires business understanding. Which of the following is the CORRECT description of business understanding?

A. Defining specific goals and requirements for data mining
B. Obtain an overview of the available data and their quality
C. Data preparation for further validation
D. Data is reviewed in the context of the business 
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9
​​Which of the following questions is NOT relevant in the understanding of data as per the Cross-Industry Standard Process for data mining?

A. Is the data complete (does it cover all the cases required)?
B. Does the data contain errors?
C. Are there missing values in the data?
D. Is the data current? 
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10
​​Data analytics can be analysed at four levels:  

1. What happened? 
2. What could happen? 
3. What should happen?  
4. Why it happened? 
 
Which of the following is the alternative description of Level 4? 

A. Predictive 
B. Descriptive 
C. Diagnostic 
D. Prescriptive 
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11
​​Mhasibu is using data analytics to make management decisions. Some decisions and types of analytics are as follows:

1. Prepare variance analysis report (Descriptive Analytics)
2. Prepare flexible budgets evaluating various scenarios (Prescriptive)

Which of the following statement(s) is (are) TRUE?
A. Statement One only
B. Statement Two only
C. Both Statements are True
D. None of the statements are True 
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12
​​Which of the following software does NOT focus only on data visualisation tools?

A. Google Charts
B. Python
C. Grafana
D. Tableu
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13
​​A pie chart will likely be classified as what type of data visualisation?

A. Relationship
B. Distribution
C. Composition
D. Comparison 
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14
​​Under data ethics, when algorithms are used to predict past decisions by human beings, this may lead to which unethical behaviour?

A. Human bias
B. Discrimination
C. Intrusion to privacy
D. Lack of transparency 
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15
​​While data protection deals solely with personal data, data security is directed to protect all sorts of information, regardless of whether it's digital or analog, comes from the natural person or not.

Which of the above is CORRECT?
A. The definition of data protection only
B. The definition of data security only
C. Both definitions
D. None of the definitions 
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16
​​Which one of the following concepts does NOT apply in data protection of digital platforms?

A. Encryption of personal data.
B. Anonymization of personal data.
C. Pseudonymization of personal data.
D. Biometric access 
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17
​​Which of the following will NOT lead to a challenge in data privacy in an organisation?

A. Data Privacy regulations
B. Poor data visibility
C. Too much data
D. Too many devices
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18
​​Companies must do everything they can to use customer data ethically, preserve customers' privacy, keep them informed of how their data is being used, provide consumers with options to opt in or out, and walk the fine line between serving up relevant, targeted content and overstepping boundaries.

This definition will likely be?

A. Data confidentiality
B. Data Security
C. Data Privacy
D. Data protection
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19
​​Which of the following is NOT a benefit of data analytics?

A. Customer retention
B. Strategic analysis
C. Profitability
D. Risk identification
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20
​​Despite the appreciation and adoption of big data and analytics by organisations, which of the following is a risk of poor use of big data and analytics?

A. Cost optimisation
B. Staff dependence
C. Infrastructure upgrade
D. Poor heuristics
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21
​ ​ ​​Fanisi Limited, a listed company, has provided the following trial balance as at 30 June 2023.

Sh."000"Sh."000"
Revenue-662,000.00
Purchases417,000.00-
Inventory as at 1 July 2022111,000.00-
Distribution Costs128,000.00-
Administration Expenses86,500.00-
Interest on Loanstock paid1,500.00-
Rent Income-12,000.00
Land and Buildings210,000.00-
Accumulated depreciation as at 1 July 2022-30,000.00
Plant and equipment64,500.00-
Accumulated depreciation as at 1 July 2022-31,500.00
Investment Property137,000.00-
Trade Receivables130,000.00-
Cash and Cash Equivalents8,000.00-
Ordinary Share Capital-25,000.00
Share Premium-61,000.00
Retained Earnings as at 1 July 2022-188,250.00
Dividends Paid6,500.00-
General Reserve-142,500.00
8% Loan stock-37,500.00
Trade Payables-108,500.00
Proceeds on sale of equipment-1,750.00
1,300,000.001,300,000.00

Further information to be taken into account:
1.Inventory is provided at Sh.97,000,000 at cost and Sh.95,250, 000 at net realisable value.
2.At the beginning of the year, Fanisi Limited disposed of some old equipment for Sh.1,750,000.
The equipment had cost Sh.3,750, 000 and had accumulated depreciation brought forward at 1 July 2022 of Sh.750,000.
There were no other additions or disposals to property, plant and equipment in the year.
3.The company classifies depreciation on plant and equipment as a cost of sale and on land and buildings as an administrative cost.
Depreciation rates are as follows:
Buildings- Straight line over 50 years
Plant and equipment- 20% reducing balance

Fanisi Limited's accounting policy is to charge a full year's depreciation in the year of an asset's purchase and none in the year of disposal.
Fanisi Limited's land and buildings were eight years old as at 1 July 2022.
4.On 30 June 2023, the company revalued its land and buildings to Sh.190,000,000 (including Sh.2,500,000 for the land). The company follows the revaluation model of IAS 16 for its land and buildings, but no revaluations had been carried out. The company wishes to treat the revaluation surplus as being realised on disposal of the assets.
5.Expected credit loss (an administration expense) is on average 10% of the trade receivables
6.The income tax charge (current and deferred tax) for the year is estimated at Sh.11,250,000 (of which Sh.4,250,000 relates to future payable tax on the revaluation of land and buildings to be charged to other comprehensive income (and the revaluation surplus).
7.On 1 January 2023, Fanisi Limited made a 1 for 4 bonus issue, capitalising its general reserve. This transaction had not yet been accounted for. The fair value of the company's shares on the date of the bonus issue was Sh.37.50 per share.
8.Fanisi Limited uses the fair value model of IAS 40. The fair value of the investment property as at 30 June 2023 was Sh.147,000,000.

Required: 
As per IAS 1:

(i).   Statement of Profit or Loss and other comprehensive incomes for year ended 30 June 2023.

(ii).  Statement of changes in Equtity for the year ended 30 June 2023.

(iii). Statement of financial position as at 30 June 2023.
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22
​ ​ ​ ​ ​ ​ ​ ​ ​​Safari Limited is evaluating a project with the following details:

Initial InvestmentSh.100,000,000
Residual ValueSh.10,000,000
Year 1 Project Cash FlowsSh.25,000,000
Annual Cash Flow growth rate from Year 210%
Project Life5 Years

Required:
(a)Compute the following Project Metrics:
(i)The Payback Period.
(ii)The Net Present Value (NPV) (Assume a discount rate of 12%).
(iii)The Profitability Index (PI) (Assume a discount rate of 12%).
(b)Using a graph, determine the project's Internal Rate of Return.
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23
​ ​ ​ ​​Freshian Limited manufactures and sells fresh juice. 

The company has provided the following data for the year 2022

Quantities
Produced		Production
Costs
Sh."000"
Jan-22300,00036,000.00
Feb-22240,00028,000.00
Mar-22400,00046,000.00
Apr-22340,00038,000.00
May-22240,00032,000.00
Jun-22500,00060,000.00
Jul-22440,00054,000.00
Aug-22180,00022,000.00
Sep-22360,00048,000.00
Oct-22600,00064,000.00
Nov-22560,00058,000.00
Dec-22700,00072,000.00

Required:
(a) Generate the regression output from MS Excel with the following information:
     (i)   Regression Statistics.
    (ii)   Analysis of Variance (ANOVA).
    (iii)  Intercept and slope coefficients with their details including lower and upper bounds at 95% confidence level.

(b) Prepare a schedule showing the quantities, actual cost and predicted costs given the above quantities. Include the lower and upper boundaries at 95% confidence interval.

(c) Prepare a chart for the information in part (b).
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24
​ ​ ​ ​ ​ ​ ​​Your new audit client, Safari Limited, began operations in 2021. Unfortunately, Safari Limited has not availed the audited financial statements for 2021 due to a disagreement with the former auditor. After observing all the protocols, you proceed to audit the financial statements for year 2022. The client uses a part time accountant whose work is to update  prime records, prepare bank reconciliations and some aspects of the ledgers.

After analysing the records, you are able to extract the following information:

Cash at the Bank
Sh."000"Sh."000"
Balance as at 1.1.20225720Trade payables100,070.00
Trade Receivables185,790.00Distribution expenses29,500.00
Cash In Hand146,050.00Administration expenses54,300.00
--Other operating expenses25,940.00
--Interest on loan15,000.00
--Dividends52,000.00
Balance as at 31.12.202212,250.00Motor vehicles73,000.00
349,810.00349,810.00

Cash in Hand
Sh."000"Sh."000"
Balance as at 1.1.2022620.00Trade Payables18,500.00
Trade Receivables163,000.00Administration Expenses3,750.00
Capital5,850.00Cash at Bank146,050.00
--Operating Expenses670.00
--Balance as at 31.12.2022500.00
169,470.00169,470.00

Trade Receivables
Sh."000"Sh."000"
Balance as at 1.1. 202218,500.00Cash in hand163,000.00
Sales350,990.00Cash at the Bank185,790.00
--Balance as 31.12.202220,700.00
-369,490.00-369,490.00

Trade Payables
Sh."000"Sh."000"
Cash in Hand18,500.00Balance as at 1.1.202212,500.00
Cash at Bank100,070.00Purchases120,270.00
Balance at 31.12.202214,200.00--
-132,770.00-132,770.00

1 January 202231 December 2022
Sh."000"Sh."000"
Land at valuation100,000.00?
Buildings at cost140,000.00140,000.00
Accumulated depreciation - Buildings15,000.00?
Furniture and equipment at cost100,000.00100,000.00
Accumulated depreciation - Furniture and equipment25,000.00?
Inventory56,500.0059,900.00
Share capital100,000.00?
Share premium3,000.00?
10% Long-term loan150,000.00150,000.00

Additional information:
1.The owners introduced additional capital by cash of which Sh.850,000 was agreed as share premium.
2.Land is to be revalued upwards by Sh.10 million.
3.The following amounts have been agreed for depreciation.
Sh."000"
Buildings5,000.00
Motor Vehicles14,600.00
Furniture and Equipment10,000.00
4.The following adjustments are necessary:
Sh."000"
Accrued administration expenses650.00
Prepaid Operating Expenses2,100.00
Income Tax Expense15,600.00
Credit Loss1,700.00
Expected Credit Loss on balance10%
 
Required:
Prepare the audit working schedule having 5 sections for beginning trial balance, end year draft trial balance, adjustments, profit or loss items and statement of finacial position item. Each section should have the debit and credit columns (therefore 8 columns).

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25
​ ​ ​​Musemi, an electronics engineer, retired from active employment in early 2021. He set up a factory in Thika on 30 September 2021 to produce mechanical and auto spare parts at a cost of Sh.120 million. 
The factory commenced operations in January 2022. 

The cost of the factory comprised the following:
Sh."000"
Factory building46,875.00
Office (within the factory building)15,625.00
Reinforcement of concrete floor to affix machinery4,125.00
Land20,000.00
Architect's fee6,075.00
Parking bay2,475.00
Electrical wiring3,700.00
Conveyer belt3,000.00
Lift and escalators10,000.00
Special shafts for lifts8,125.00
120,000.00

Additional structures and works constructed and utilised from 1 January 2022 were as follows:

Sh."000"
Residential house2,400.00
Workplace nursery3,000.00
Drawing and design room1,800.00

To improve perfomance in the factory, an Oracle database that provides cloud service was installed at a cost of Sh.1,125,000. The computers in the drawing and design room had a Computer Aided Design (CAD) application installed at a cost of Sh. 675,000. installed it in the building.

A building that had been constructed at a cost of Sh.30,000,000 was leased from Salama manufacturers Ltd. for five years. The annual lease rental was agreed at Sh.7,000,000. Musemi imported processing machinery from  China at a cost of Sh.13,000,000 and Two warehouses were constructed at a cost of Sh.5,625,000 and utilised from 1 September 2022.

The following assets were purchased or constructed during the year:

Sh."000"
Furniture and fittings (including Sh.550,000 for the workplace nursery)1,550.00
Library fixtures (stocked with mechanical engineering volumes)1,200.00
Computers and electronic adding machines2,100.00
Motor vehicle (a second-hand BMW)5,750.00
Lorry (four tonnes)7,000.00
Tuk-tuk for the messenger450.00
Backhoe loader9,200.00
Additional processing machinery22,500.00
Mobile crane4,750.00

Required:
Capital allowances due to Musemi for the year ended 31 December 2022. 
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