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  • What is a questionnaire? State advantages and disadvantages of questionnaire(Solved)

    What is a questionnaire? State advantages and disadvantages of questionnaire.

    Date posted: April 11, 2019.  Answers (1)

  • What are the control mechanisms put in place to enhance transparency in an organization?(Solved)

    What are the control mechanisms put in place to enhance transparency in an organization?

    Date posted: April 8, 2019.  Answers (1)

  • What is the role of management accounting in the overall performance of the organization?(Solved)

    What is the role of management accounting in the overall performance of the organization?

    Date posted: April 8, 2019.  Answers (1)

  • You are the author of what promises to be a successful novel. You have the option to either publish the novel yourself or through a...

    You are the author of what promises to be a successful novel. You have the option to either publish the novel yourself or through a publisher. The publisher is offering you USD20,000 for signing the contract. If the novel is successful, it will sell 200,000 copies. Else, it will sell 10,000 copies only. The publisher pays a $1 royalty per copy. A market survey indicates that there is a 70% chance that the novel will be successful. If you undertake publishing, you will incur an initial cost of USD90,000 for printing and marketing, but each copy sold will net you USD2. Based on the given information, would you accept the publisher’s offer or publish the novel yourself. Suppose that you contract a literary agent to conduct a survey concerning the potential success of the novel. From past experience, the agent advises you that when a novel is successful, the survey will predict the wrong outcome 20% of the time. When the novel is not successful, the survey will give the correct prediction 85% of the time. How would this information affect your decision?

    Date posted: March 26, 2019.  

  • Mr. Patel, the proprietor of Luthuli Electronics, had his shop broken into and goods worth millions of shillings stolen. He had taken a burglary policy...

    Mr. Patel, the proprietor of Luthuli Electronics, had his shop broken into and goods worth millions of shillings stolen. He had taken a burglary policy with Mambo Leo insurance Company Limited and the policy was in effect at the time of loss. He presented his claim to the insurer but it was declined on account of breech of utmost good faith at the time of proposal. As his insurer’s broker, advise Mr. Patel on the possible specific reasons the insurer could have declined the claim. What options are left to the insurer in the event of such a breach?

    Date posted: March 23, 2019.  

  • Identify four kinds of companies(Solved)

    Identify four kinds of companies.

    Date posted: March 13, 2019.  Answers (1)

  • Explain advantages of a cost accounting system.(Solved)

    Explain advantages of a cost accounting system.

    Date posted: March 4, 2019.  Answers (1)

  • Highlight the importance of quotations in literature review

    Highlight the importance of quotations in literature review.

    Date posted: February 27, 2019.  

  • Prepare a report for the managing director of your company explaining how costs may be classified by their behaviour, with particular reference...

    OUESTION ONE (a) Prepare a report for the managing director of your company explaining how costs may be classified by their behaviour, with particular reference to the effects both on total and on unit costs. Your report should: i) Say why it is necessary t classify costs by their behaviour (ii) Be illustrated by sketch graphs within the body of the report. (15 Marks)

    Date posted: February 12, 2019.  

  • Discuss the implications of Generation Z to Human resource practitioners

    Discuss the implications of Generation Z to Human resource practitioners

    Date posted: January 24, 2019.  

  • Zainab is an accountant at Samitsi Ltd. During the year ended 30th December 2014, she prepared a trial balance which did not balance. The debit...

    Zainab is an accountant at Samitsi Ltd. During the year ended 30th December 2014, she prepared a trial balance which did not balance. The debit side was lesser with sh 2240. She posted the difference to a suspense account. She then prepared the financial statements for the year. Net profit was 105,000 Upon investigating, the following errors were later discovered Purchases day book had been under cast by sh 3 million Cash sh 1560,000 received from a debtor had only been recorded in the cash book Discount received sh 150,000 had been recorded on the wrong side of the creditors account Closing stock had been under cast by sh 10 million Salary expense sh 850,000 had not been recorded Cash account balance was under cast by sh 500,000 An amount of sh 850,000 for private expense by the business owner had been debited to sundry expense account Required; Journal entries to correct the above errors; Suspense account; Statement of corrected net profit. (13 marks)

    Date posted: January 11, 2019.  

  • Show the journal entries necessary to record the following items: 2003 May 1 bought a motor vehicle on credit from Motors Ltd for Sh.6, 790. 2003...(Solved)

    Show the journal entries necessary to record the following items: 2003 May 1 bought a motor vehicle on credit from Motors Ltd for Sh.6, 790. 2003 May 3 A debt of Sh.34 owing from N Smart was written off as a bad debt. 2003 May 8 Furniture bought by us for Sh.490 was returned to the supplier Wood Offices, as it was unsuitable. Full allowance will be given. 2003 May 12 we are owed Sh.150 by W Hayes. He is declared bankrupt and we received Sh.39 in full settlement of the debt. 2003 May 14 we take Sh.45 goods out of the business stock without paying for them. 2003 May 28 Some time ago we paid an insurance bill thinking that it was all in respect Of the business. We now discover that Sh.76 of the amount paid was in fact Insurance of our private house. 2003 May 28 Bought Machinery Sh.980 on credit from Xerox Machines Ltd.

    Date posted: December 14, 2018.  Answers (1)

  • On august 1 2005, airbus Ltd. (a company that records adjusting entries only once per year) issued bonds with the following characteristics: Sh.50, 000 total face...(Solved)

    On august 1 2005, airbus Ltd. (a company that records adjusting entries only once per year) issued bonds with the following characteristics: Sh.50, 000 total face value. 12% stated rate. 16% yield rate. Interest dates are February 1, May 1, August 1, and November 1. Bond date is October 31, 2004. Maturity date is November 1, 2009. Sh.1, 000 of bond issue costs were incurred. Required: 1) Provide all entries required for the bond issue through February 1, 2006, for Airbus using the interest method. 2) On June 1, 2007, Airbus retired Sh.20, 000 of bonds at 98 through open market purchase. Provide the entries to update the bond issue and to retire the bonds using the interest method. 3)Provide the entries required on August 1, 2007, under the following methods of discount amortization: i) Interest method ii) Straight-line method

    Date posted: December 12, 2018.  Answers (1)

  • The balance sheet of Spendthrift Ltd for the years ended 31 December, 2015 and 31 December 2015 were summarized and shown below: REQUIRED i. Prepare...

    The balance sheet of Spendthrift Ltd for the years ended 31 December, 2015 and 31 December 2015 were summarized and shown below: REQUIRED i. Prepare a cash flow statement using direct method ii. Prepare a cash flow statement using indirect method

    Date posted: November 23, 2018.  

  • a) Comment on whether the following individuals and companies were residents of Kenya for tax purposes for the year ended 31 Dec 2017. Justify your...

    a) Comment on whether the following individuals and companies were residents of Kenya for tax purposes for the year ended 31 Dec 2017. Justify your commend in each case: i) Mr. Charles Owino has a permanent home in Kenya. He works for a company based in the United Kingdom. He came to Kenya for a one month holiday on 1st September 2017but had not returned to the UK by 31 Dec 2017

    Date posted: November 22, 2018.  

  • Coogee ltd is a medium sized engineering company with an annual turnover of £23million. Most of its sales are on credit. At its financial year...

    Coogee ltd is a medium sized engineering company with an annual turnover of £23million. Most of its sales are on credit. At its financial year end 31 December 2007 its sales ledger contained 2,000 accounts with balances ranging from £50 to £10,000 and totaling £2,300,000. As a staff member of coogee’s external auditors you have been assigned to the audit provision for bad and doubtful debts which has been set as £120,000. Your initial enquiries established that £80,000 relates to the provision against specific bad and doubtful debts and £40,000 is a general provision determined as a percentage of overdue debtors with an increasing percentage being applied against the longest overdue accounts. You are aware that International Standard on Auditing (ISA) on Audit of accounting estimates is likely to be relevant to your audit of the provisions for bad debts. Required: a) Explain the approaches adopted by auditors in obtaining sufficient appropriate audit evidence regarding accounting estimates. (5marks) b) Describe the procedures you would apply in verifying the general provision for bad and doubtful debts. (12marks) c) Describe the procedures you would apply in verifying the specific provision for bad and doubtful debts. (8marks)

    Date posted: November 11, 2018.  

  • You are currently working as an audit assistant with AB partner of a firm of certified public accountants.During the audit of XYZ co you have...

    You are currently working as an audit assistant with AB partner of a firm of certified public accountants.During the audit of XYZ co you have been allocated Audit of motor vehicles for year ending September 2018.You are required to highlight the substantive procedure you would undertake in your audit of motor vehicle.

    Date posted: October 24, 2018.  

  • You are currently working as the audit assistant at AB partners certified public accountant. During the audit of XYZ company you have been allocated audit...(Solved)

    You are currently working as the audit assistant at AB partners certified public accountant. During the audit of XYZ company you have been allocated audit of motor vehicles for year ending September 2018. You are required to highlight the substantive procedures you would undertake in your audit of motor vehicle

    Date posted: October 20, 2018.  Answers (1)

  • Ochieng died on 31st October 2003 and left his estate as follows: KShs Household furniture 45,000 Cash in House 1,000 Cash in Bank 125,000 10,000 ordinary shares of Shs.10 each in BAT Kenya...

    Ochieng died on 31st October 2003 and left his estate as follows: KShs Household furniture 45,000 Cash in House 1,000 Cash in Bank 125,000 10,000 ordinary shares of Shs.10 each in BAT Kenya Ltd. Valued at Shs.15 150,000 per share. Investments at 5% on freehold property shares (interest thereon paid on 30th 200,000 June 31st December 2003) Share in Business of Patrick Ochieng & Company valued at date of death 613,200 Sundry debtors 10,000 His liabilities amounted to 2,500 Funeral expenses amounted to 5,000 A legacy of Shs10,000 was bequeathed to his Executor and was paid on 28th January 2004. The residue of the estate was left in trust to his infant son. 2 The household furniture was sold on 15th December 2003 for Shs.48,000. The shares were sold on the same date at Shs.14.50 Ex Div. A dividend being received on 25th January 2004 at 10% for the year ending 31st December 2003. Interest on investment in freehold property shares was received on 31st December 2003, on which date the share in the business of Patrick Ochieng and Company was received with interest at 5% PA. The liabilities and funeral expenses were discharged on 20th December 2003 on which date Shs.5000 of the debtors due were received, the balance being unpaid at the date of preparation of the accounts: Required: (a) Journal entries to record the above transaction. (10 marks) (b) The Estate’s Cash Book (8 marks) (c) The Estate’s Capital Account (10 marks) (d) The Estate’s Income Account (2 marks)

    Date posted: October 16, 2018.  

  • Listed below are selected transactions for Hern limited relating to its current liabilities during the fiscal year 2017 :10 January purchased merchandise 250000 a discount...

    Listed below are selected transactions for Hern limited relating to its current liabilities during the fiscal year 2017 :10 January purchased merchandise 250000 a discount of 2% is offered by suppliers.the company records purchases and account payable net of discounts and uses the periodic inventory system.19 January 166600 on invoice of 10 January ,the invoice was billed to the company for 170000 and was paid within the discount period.1 April issued a 1year promissory note to the suppliers in settlement of an invoice 100000 debited 31 March. the invoice was recorded net of 2% purchase discount that is 98000,the face amount of the note was 111680 including interest at 15% on 98000 for one year the note was recorded at face amount. required ,prepare journal entries to record above transactions.

    Date posted: October 14, 2018.  

  • List four advantages that would accrue to members of an accounting professional body from "peer review"(Solved)

    List four advantages that would accrue to members of an accounting professional body from "peer review".

    Date posted: October 12, 2018.  Answers (1)

  • Assuming that You have been invited by chamber of Commerce, so as to give a talk on sources of Finance...(Solved)

    Assuming that You have been invited by chamber of Commerce, so as to give a talk on sources of Finance, apart from the loans or overdrafts offered by financial institutions. You are requested to advice the participants on alternative forms of finance that are available to a local borrower.

    Date posted: September 10, 2018.  Answers (1)

  • Explain the following terms: (a) Materiality; (b) The duty of confidentiality; (c) Professional indemnity insurance; (d) Peer review; ...(Solved)

    Explain the following terms: (a) Materiality; (b) The duty of confidentiality; (c) Professional indemnity insurance; (d) Peer review; (e) Quality Control.

    Date posted: August 13, 2018.  Answers (1)

  • (a) Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer. (b) Does the...(Solved)

    a) Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer. b) Does the auditor require a codified definition of “reasonable care and skill” or should this be left to professional judgment? Explain. c) Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain. d) Discuss the proposition that the „expectations gap? has arisen because of the public?s ignorance and should therefore be resolved by the public themselves.

    Date posted: August 13, 2018.  Answers (1)

  • Outline the risks associated with cloud computing(Solved)

    Outline the risks associated with cloud computing.

    Date posted: August 10, 2018.  Answers (1)

  • Explain how you would verify the following: a) Investment income. b) Bank balances. c)...(Solved)

    Explain how you would verify the following: a) Investment income. b) Bank balances. c) Contingent liabilities. d) Petty cash balances.

    Date posted: August 8, 2018.  Answers (1)

  • Audit planning process allows the audit senior to acquire adequate knowledge about the entity. This process ensure an effective control of audit work. ...(Solved)

    Audit planning process allows the audit senior to acquire adequate knowledge about the entity. This process ensure an effective control of audit work. Required: a) Explain the auditor's planning process when planning for an audit of a new client. b) How does audit planning assist in the conduct of an audit? c) Explain the following controlling procedures in a well planned audit: i. Direction and supervision of work. ii. Review and co-ordinating of work. iii. Quality controls

    Date posted: August 8, 2018.  Answers (1)

  • You are the manager responsible for the audit of ABC Company, which has...(Solved)

    You are the manager responsible for the audit of ABC Company, which has a turnover of KShs 750 million. The company has been audited by your firm for a number of years and this is the second year you have been responsible as manager for the audit. However, owing to your responsibilities for other audits you are only intending to make periodic visits to the company during the course of the audit and you will not be involved in any of the detailed audit work. Required a) State the matters you would consider in planning the audit, prior to the commencement of the detailed audit work. b) Describe the way in which you would control the audit from the commencement of the work by the audit staff to the review stage by the partner immediately prior to him signing the audit report

    Date posted: August 4, 2018.  Answers (1)

  • a) In the context of a computer based accounting system, explain the meaning of the following terms: i. Application controls; ii. ...(Solved)

    a) In the context of a computer based accounting system, explain the meaning of the following terms: i. Application controls; ii. General controls b) Explain the importance of having proper systems documentation c) A Company wishes to change from an old computerised system to a new computer based accounting system. Explain how and why both systems should run parallel prior to the change over to the new system.

    Date posted: August 4, 2018.  Answers (1)

  • (a) Briefly explain the meaning of the term "control procedures". (b) What is the importance of...(Solved)

    (a) Briefly explain the meaning of the term "control procedures". (b) What is the importance of segregation of duties as a control procedure'? (c) In carrying out an audit, the auditor appraises and tests the system of internal control in order to ascertain that it is capable of processing transactions or determining quantities and values completely and accurately. The auditor further carries out substantive tests in an attempt to ensure that the transactions, assets and liabilities recorded in the accounting records upon which the figures in the financial statements are based, are completely and accurately recorded. Required: List and briefly explain the substantive tests the auditor would carry out to verify the values attributed to: (i) Trade debtors in a company's financial statements. (ii) Trade creditors in a company's financial statements.

    Date posted: August 4, 2018.  Answers (1)


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