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Cms 205 Finance Computer Packages -Saturday Class Question Paper
Cms 205 Finance Computer Packages -Saturday Class
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2011
1
UNIVERSITY EXAMINATIONS: 2010/2011
EXAMINATION FOR THE BACHELOR OF COMMERCE
CMS 205 FINANCE COMPUTER PACKAGES -SATURDAY CLASS
DATE: DECEMBER 2011 TIME: 2 HOURS
INSTRUCTIONS: Answer question One and any other Two questions
QUESTION ONE
a) Financial forecasts can be made using quantitative or qualitative techniques. Explain the
difference between these two techniques. (4 marks)
b) With appropriate examples distinguish between correlation and regression analysis.
(4 marks)
c) Describe how the net present value method can be used in making investment decisions
(4 marks)
d) In Excel, the IF function returns one value if a specified condition evaluates to TRUE, or
another value if it evaluates to FALSE. Write down and explain the syntax for the IF function.
(4 marks)
e) Distinguish between return on assets and return on equity ratios indicating their importance in
financial analysis (4 marks)
f) Outline the steps followed in developing an information system (10 marks)
QUESTION TWO
You are trying to create a budget to optimize the use of a portion of your disposable income. You
have a maximum of $1,500 per month to be allocated to food, shelter and entertainment. The
amount spent on food and shelter combined must not exceed $1,000. The amount spent on shelter
alone must not exceed $700. Entertainment cannot exceed $300 per month. Each dollar spent on
food has a satisfaction value of 2, each dollar spent on shelter has a satisfaction value of 3, and
each dollar spent on entertainment has a satisfaction value of 5.
Required:
(a) Drawing your examples from the above problem describe the three parts of an optimization
model. (6 marks)
2
(b) Explain how to set up a spreadsheet to solve the above problem. (6 marks)
(c) Explain how you can use Microsoft Excel’s solver tool to obtain the optimal solution.
(8 marks)
QUESTION THREE
(a) (i) Select a business with which you are familiar and identify five business processes involved
in the finance functional area. (5 marks)
(ii) Describe how information systems support each of the business processes identified above.
( 5 marks)
(iii)The following are highly simplified financial statements of Express Ltd for last year:
Profit and loss account for the year ended 31 December:
£ 000
Turnover 80
Cost of sales (60)
Gross profit 20
Operating expenses (10)
Operating profit 10
Balance sheet as at 31 December:
£ 000 £ 000
Fixed assets 70
Current assets 20
Creditors: amounts falling due within one year (12)
Net current assets 08
78
Capital and reserves 78
Required:
Calculate any five ratios that the information provided will allow. (8 marks)
QUESTION FOUR
Explain how the following tasks can be accomplished in QuickBooks:
I. Adding a customer
II. Turning on stock and purchase orders
III. Backing up and restoring data
IV. Entering a cash sale
V. Receiving payments in QuickBooks
VI. Placing a purchase order
VII. Receiving items which had been ordered with bill
VIII. Purchase of items on cash
IX. Recording a sale on credit
X. Generating financial reports (profit and loss, balance sheets, sales analysis charts e.t.c.)
(2 Marks each : Total 20 marks)
QUESTION FIVE
(a) Disasters are disruptions that cause critical financial information resources to be inoperative for
a period of time, adversely impacting business operations. Identify any three causes of disasters
which may affect a financial information system and what strategy can be used to recover a
system in case of any disaster. (10 marks)
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(b) Explain how the following technologies and tools can be used to secure an organization’s
financial information system and data.
I. Firewalls (5 marks)
II. Encryption and Authentication (5 marks)
END OF EXAMINATION
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