CPA Business Data Analytics – December 2025 Past Paper & Answers
Unit: Business Data Analytics
25 Questions
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Download CPA Business Data Analytics December 2025 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.
1
You have a dataset where the first row (row 1) contains product codes and the second row (row 2) contains
product prices as follows:
| A | B | C | D | E |
| Code | P101 | P102 | P103 | P104 |
| Price | 50 | 75 | 100 | 125 |
You want to retrieve the price of the product with code "P103".
Which one of the following HLOOKUP formulas will return the correct price?
A. =HLOOKUP("P103", A1:E2, 2, FALSE)
B. =HLOOKUP("P103", A1:E3, 1, TRUE)
C. =HLOOKUP("P103", A1:E2, 1, FALSE)
D. =HLOOKUP("P103", A1:E2, 2, TRUE)
2
Which one of the following data modeling techniques is primarily used to organise data into entities and relationships in a database?
A. Time series analysis
B. Entity-Relationship (ER) modeling
C. Regression analysis
D. K-Means clustering
3
Which one of the following statements BEST describes the difference between a “Logical Data Model” and a “Conceptual Data Model”?
A. A logical data model includes specific data types and relationships while a conceptual data model focuses on high-level entities and their relationships
B. A conceptual data model contains detailed attributes and normalisation whereas a logical data model only defines business rules
C. A logical data model is independent of technology whereas a conceptual data model is specific to a database system
D. A conceptual data model includes implementation details while a logical data model is only used for brainstorming ideas
4
Which one of the following statements is TRUE with regard to the data preparation phase in the Cross-Industry Standard Process for Data Mining (CRISP-DM) framework? Data preparation _____________________.
A. is optional if raw data is available
B. is the final phase of CRISP-DM before deployment
C. does not include data transformation or feature engineering
D. involves selecting, cleaning, constructing and formatting data for modeling
5
Which one of the following statements is FALSE with regard to the data understanding phase in the Cross Industry Standard Process for Data Mining (CRISP-DM)?
A. It involves collecting initial data and assessing its quality
B. It includes exploring the data through visualisation and statistical summaries
C. It focuses on transforming and preparing the data for modeling
D. It aims to understand the data’s characteristics and potential patterns
6
Which one of the following CORRECTLY matches one of the Vs of Big Data with its definition?
A. Volume – The speed at which data is generated and processed
B. Variety – The different types and sources of data such as structured and unstructured data
C. Velocity – The trustworthiness and quality of data
D. Veracity – The large amount of data generated from various sources
7
The following statements relate to the Vs of Big Data:
Statement1: Velocity refers to the speed at which data is generated, processed and analysed.
Statement 2: Veracity refers to the different types and formats of data such as structured, semi-structured and unstructured data.
Which one of the following choices is CORRECT?
A. Both statements are correct
B. Both statements are incorrect
C. Only Statement 1 is correct
D. Only Statement 2 is correct
8
Which one of the following data visualisation types is BEST suited for comparing values across categories and showing trends over time?
A. Bar chart and line chart
B. Scatter plot and pie chart
C. Histogram and heatmap
D. Box plot and radar chart
9
Which one of the following statements CORRECTLY describes the principle of "informed consent" in big data ethics?
A. Users must be told that their data is being collected and give explicit permission
B. Organisations can use data freely as long as it is anonymised
C. Companies must collect as much data as possible for better analytics
D. Data collection must always be hidden to avoid influencing user behaviour
10
Which one of the following BEST describes the data principle of attributable? Data should be ______________.
A. complete, consistent and accurate
B. recorded in a way that clearly links it to its source or author
C. accessible and retrievable when needed
D. protected from unauthorised access and alterations
11
Which one of the following is NOT one of the data protection principles under the Data Protection Act, 2023?
Personal data must be _____________________.
A. processed lawfully, fairly and transparently
B. stored indefinitely for future reference
C. accurate and kept up to date
D. collected for specified, explicit and legitimate purposes
12
Which one of the following is considered a key quality of effective data visualisation in data analytics?
A. Using as many colours and shapes as possible to enhance visual appeal
B. Displaying data without any labels or legends to keep the focus on the chart itself
C. Simplifying complex data into clear, easy-to-understand visual formats that convey the message
D. Including every possible data point even if it overcomplicates the visual representation
13
Which one of the following statements BEST describes the difference between distribution charts and relationship charts?
A. Distribution charts show how variables correlate while relationship charts display the frequency or spread of data
B. Distribution charts focus on the frequency or spread of a single variable while relationship charts depict the interaction between two or more variables
C. Relationship charts show how data is clustered while distribution charts are used for time-series analysis
D. Distribution charts can only display categorical data while relationship charts are limited to continuous data
14
Which one of the following programming languages is MOST commonly used for statistical analysis in data analytics?
A. C++
B. R
C. Java
D. HTML
15
Which one of the following statements defines the term "data wrangling" in data analytics?
A. Archiving old datasets for future use
B. Combining multiple data sources into a single dataset
C. Cleaning and organising raw data into a usable format
D. Creating predictive models using past data
16
What is the meaning of “ETL” in the context of data analytics?
A. Extract, Transfer, Load
B. Evaluate, Transform, Load
C. Extract, Transform, Load
D. Export, Transform, Learn
17
Which one of the following statements defines the term a “logical data model”? It is a model that ____________.
A. shows the physical design of a database
B. shows the logical design of a database
C. describes the relationships between data elements
D. shows the business requirements of a database
18
What formula should be entered in cell A3 to display the results as shown below?
A. ="Income Statement"&A1
B. ="Income Statement "&A1
C. ="Income Statement "+A1
D. ="Income Statement "&"A1"
19
Which “V” of Big Data analytics refers to the trustworthiness and quality of data?
A. Volume
B. Variety
C. Veracity
D. Value
20
Which stage in the CRISP-DM process involves cleaning and transforming data for analysis?
A. Business understanding
B. Deployment
C. Data preparation
D. Data collection
21
You are a finance manager working for Minerva Limited. Your task is to prepare a comprehensive financial model and conduct an analysis of the company's financial statements. The company's management has provided you with historical financial data and you are responsible for creating forecasted financial statements.
You have been provided with the following information:
| 1. | The information in the statement of financial position for the year ended 31 December 2024 is as follows: |
| Assets: | |
| · The company's property, plant and equipment (PPE) is valued at Sh.19,500,000. | |
| · Account receivables amount to Sh.1,750,000. | |
| · Inventory stands at Sh.650,000. | |
| · The company holds Sh.3,100,000 in cash. | |
| Liabilities: | |
| · The outstanding debt is Sh.15,000,000. | |
| · There are Sh.1,000,000 in accounts payable. | |
| Equity: | |
| · The equity capital is Sh.1,000,000. | |
| · The retained earnings are Sh.8,000,000. | |
| 2. | The projected revenue for the year 2025 is Sh.30 million. |
| 3. | Revenue is expected to grow at the rate of 8% annually. |
| 4. | Cost of goods sold (COGS) is estimated to be 42.5% of revenue. |
| 5. | Operating expenses are estimated to be 17% of revenue. |
| 6. | The income tax rate is 30%. |
| 7. | Depreciation expenses are estimated to be 12.5% of total assets, assuming a straight-line depreciation method. |
| 8. | Capital expenditures (CapEx) are estimated to be 2.5% of revenue. |
| 9. | The company's working capital assumptions are as follows: |
| Accounts receivable turnover is 12. | |
| Inventory turnover is 24. | |
| Accounts payable turnover is 12. | |
| 10. | The debt brought forward has the following terms: |
| Terms outstanding: 5 years. | |
| Interest rate: 12% of principal outstanding. | |
| The loan is fully armotised with evenly distributed payments over the remaining loan term. | |
| 11. | The company does not intend to take on additional debt over the next five years. |
| 12. | The company’s dividend payout rate is 40%. |
Required:
Develop a five-year forecast for the company's statement of profit or loss, statement of financial position and statement of cash flows and their supporting schedules, such as a depreciation schedule, a working capital schedule and loan amortisation schedule that provide detailed calculations for your forecasts.
22
Bella Katlego is the marketing director of Vesta Limited, a company that makes and sells electronic devices for use at home and in business. She is considering the launch of a new mobile model called "Trex".
The available data is not substantially reliable though she still feels she can make a decision on whether or not to launch Trex.
To start with, Trex is estimated to have a shelf life of 5 years commencing year 2026. Trex will require the purchase of a machine at a cost of Sh.100 million at the end of 2025, after which the machine will be sold for Sh.20 million at the fifth year.
Trex will have following price and cost structure (for the first year 2026) with expected inflation factors:
| Sh. | Inflation rate (%) | |
| Selling price | 500 | 2% from year 2 Onwards |
| Material costs | 200 | 4% from year 2 Onwards |
| Direct labor costs | 100 | 5% from year 2 Onwards |
| Incremental fixed cost (excludes depreciation) | 50 | 10% from year 2 Onwards |
The company is eligible for capital allowances (depreciation for tax purpose) at the rate of 25% reducing balance and at the end of the project when the machine is sold, any gain or loss on disposal will be considered for tax.
The tax rate on incomes and capital allowances is at 30% and for this purpose, assume that the tax for a given period is paid in the same year. The project will require an initial investment in working capital of Sh.20 million which will be increasing by Sh.5 million at the end of each year to cater for general inflation. But the whole amount together with the periodic increase will revert at the end of the project.
The following is the expected demand for the product for the next five years:
| Year | Units |
| 2026 | 30,000 |
| 2027 | 40,000 |
| 2028 | 40,000 |
| 2029 | 30,000 |
| 2030 | 30,000 |
Required:
(a) The payback period of the project.
(b) The discounted payback period assuming a discount rate of 15%.
(c ) The Net Present Value (NPV) of the project assuming the discount rate is 15%.
(d) The Internal Rate of Return (IRR) of the project.
(e) The Net Present Value (NPV) of the project given various interest rates from 1% to 25% and prepare a graph of the different NPVs.
23
Neptune Manufacturing Ltd. sells its 5 products (Orion, Nova, Titan, Vega and Zephyr) through different vendors across multiple plants.They recently onboarded an Enterprice Resource Planning (ERP) platform to allow tracking and managing the business data.The extracted sales data for the financial year 2025 is presented in a the sheet named 'Q23 - Data' (all values in Sh.).
Required:
| (a) | Data Cleaning and Transformation:
| ||||||
| (b) | Using the transformed loaded data from (a) above, create in the same sheet pivot table analysis schedules for the following items:
| ||||||
| (c) | Using the pivot summary from (b) above, create in the same sheet charts/graphs for the following:
| ||||||
24
Spicers Limited is a new audit client. You are about to conduct the audit for the year 2025. You have obtained the opening financial statements for the year 2025 and those of 2024 as follows:
| 2024 | 2025 | |
| Sh."million" | Sh."million" | |
| Revenue | 4,500.00 | 5,400.00 |
| Cost of sales | ||
| Direct materials | 2,275.00 | 2,800.00 |
| Direct labour | 765.00 | 995.00 |
| Production overheads | 545.00 | 690.00 |
| 3,585.00 | 4,485.00 | |
| Gross profit | 915.00 | 915.00 |
| Other expenses | ||
| Administration expenses | 140.00 | 180.00 |
| Marketing and selling expenses | 305.00 | 360.00 |
| Finance cost | 0.00 | 90.00 |
| 445.00 | 630.00 | |
| Profit before tax | 470.00 | 285.00 |
| Income tax expense | -125.00 | -60.00 |
| Profit after tax | 345.00 | 225.00 |
| Non-current assets | ||
| Property, plant and equipment | 1,100.00 | 1,600.00 |
| Accumulated depreciation | -225.00 | -325.00 |
| 875.00 | 1,275.00 | |
| Current assets | ||
| Inventory | 445.00 | 645.00 |
| Trade receivables | 600.00 | 770.00 |
| Cash and cash equivalents | 35.00 | 0.00 |
| 1,080.00 | 1,415.00 | |
| Total assets | 1,955.00 | 2,690.00 |
| Share capital (Sh.10 par value) | 1,250.00 | 1,250.00 |
| Researves | 500.00 | 500.00 |
| Total equity | 1,750.00 | 1,750.00 |
| Non-current liabilities | ||
| 15% Loan Stock | 0.00 | 600.00 |
| Current liabilities | ||
| Bank overdraft | 0.00 | 45.00 |
| Trade payables | 205.00 | 295.00 |
| 205.00 | 340.00 | |
| Total liabilities | 205.00 | 940.00 |
| Total equity and liabilities | 1,955.00 | 2,690.00 |
You have also obtained the following industry ratios for the year 2025:
| Efficiency | |
| Total assets turnover | 3 |
| Non-current assets turnover | 4.5 |
| Days of inventory | 62 days |
| Days of sales | 55 days |
| Costs and profitability ratios | |
| Costs as a % of sales | |
| Direct materials | 45% |
| Direct labour | 15% |
| Production overheads | 20% |
| Profits as a % of sales | |
| Gross profit | 25% |
| Profit before tax | 15% |
| Profit after tax | 10% |
| Other profitability ratios | |
| Return on investment | 12% |
| Return on equity | 20% |
| Liquidity ratios | |
| Current ratio | 4 |
| Quick ratio | 2.1 |
| Solvency | |
| Debt ratio | 30% |
| Debt equity ratio | 0.5 |
Required
(a) Compute the ratios for each year for Spicers Limited similar to those of the industry.
(b) Using the ratios for the two years and industry, highlight which components of the financial statements will require more attention during substantive tests .
25
James, Banda and Linda trade as Jabali Enterprises.The following is a summary of the statement of profit or loss for the business for the year ended 31 December 2024:
| Incomes | Sh."000" | Sh."000" |
| Gross Profit | 744,000.00 | |
| Investment Income | 13,500.00 | |
| Other Incomes | 9,450.00 | |
| 766,950.00 | ||
| Expense | ||
| Administration expenses | 47,040.00 | |
| Legal fees | 10,800.00 | |
| Trade expenses | 11,400.00 | |
| Depreciation | 3,300.00 | |
| Partners' salaries | 366,000.00 | |
| Interest on partners'capital | 24,900.00 | |
| Other Expenses | 18,900.00 | (482340.00) |
| Net Profit | 284,610.00 |
Additional Information:
| 1. | Investment Income is made up as follows:
(Interest charged on drawings: James -Sh. 1,500,000, Banda -Sh.1,200,000 and Jabali - Sh.600,000) | |||||||||||||||||||
| 2. | Other incomes include:
| |||||||||||||||||||
| 3. | Administration expenses include:
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| 4. | Legal Fees include Sh.4.5 million paid for Banda in a private legal case | |||||||||||||||||||
| 5. | Trade expenses include:
| |||||||||||||||||||
| 6. | Capital allowances for the year ended 31 December 2024 agreed with the tax authorities amounted to Sh. 14,400, 000. | |||||||||||||||||||
| 7. | Partners' salaries and interest on capital is given as follows:
| |||||||||||||||||||
| 8. | Other expenses comprise the following:
| |||||||||||||||||||
| 9. | The partners share profits and losses in the ration of 2:2:1 respectively. |
Required:
Compute the tax payable by each partner for the year ended 31 December 2024 assuming that the business income is the only source of income.
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