December 18, 2022

TUESDAY: 6 December 2022. Afternoon Paper. Time Allowed: 3 hours. Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper. QUESTION ONE 1. Explain the term “risk infrastructure”. (2 marks) Enumerate FOUR benefits of quantitative risk analysis. (4 marks) 2. Describe the term “balance of payment”. (2 marks) Highlight FOUR causes of unfavorable balance of payment. (4 marks) 3.  Analyse FOUR elements of periodic credit risk review. (8 marks) (Total: 20 marks) QUESTION TWO 1. State FOUR objectives of credit risk management. (4 marks) 2. List SIX benefits of developing a risk assessment matrix. (6 marks) 3. Discuss FIVE types of company strategies. (10 marks) (Total: 20 marks) QUESTION THREE 1.  Explain the term “credit rating”. (2 marks) Outline FOUR factors that influence credit rating. (4 marks) 2. Define the term “reputation risk”. (2 marks) List FOUR actions of a credit officer that could trigger company reputation risk. (4 marks) 3. Examine FOUR factors that could influence barriers to new entrants to an industry. (8 marks) (Total: 20 marks) QUESTION FOUR 1. State SIX challenges encountered by credit analysts during cashflow-based loan assessment. (6 marks) 2. Identify the SIX principles of lending. (6 marks) 3. Describe FOUR types of qualitative risk assessment techniques. (8 marks) (Total: 20 marks) QUESTION FIVE 1. Explain the following terms: Value at Risk (VaR). (2 marks) Unexpected losses. (2 marks) Probability of default. (2 marks) 2. Enumerate SIX sources of strategic risk. (6 marks) 3. Discuss FOUR factors that influence an organisation’s level of risk appetite. (8 marks) (Total: 20 marks) QUESTION SIX 1. State FOUR details that should be included in a loan agreement. (4 marks) 2. List SIX benefits of a good credit risk grading system. (6 marks) 3. Explain the 5P’s of lending as used in credit assessment. (10 marks) (Total: 20 marks) QUESTION SEVEN 1. Describe THREE factors that could determine the intensity of competition among rivals in an industry. (6 marks) 2. Highlight FOUR types of exposure limits that should be clearly defined in a bank’s credit policy. (4 marks) 3. CCCPARTS is a model of credit risk assessment. Required: Explain the “PARTS” as applied in the model. (10 marks) (Total: 20 marks)

TUESDAY: 6 December 2022. Morning Paper. Time Allowed: 3 hours. Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper. QUESTION ONE 1. With reference to the law of contract, state FOUR circumstances under which a court might nullify or mitigate the hardship created by an exemption clause. (4 marks) 2. Explain FOUR benefits of carrying out a legal audit in a corporation. (4 marks) Describe TWO rules of statutory interpretation. (4 marks) 3. Discuss FOUR ways in which the right to lien as a remedy of unpaid seller might be lost. (8 marks) (Total: 20 marks) QUESTION TWO 1. In relation to the law of Torts, explain the following terms: Standard of care. (2 marks) Res ipsa loquitor. (2 marks) Strict liability. (2 marks) 2. Distinguish between “law” and “morality”. (4 marks) 3. Subordinate courts are bound to apply the decisions of superior courts in subsequent similar cases where they have been pleaded as law. Describe FIVE exceptions to this rule. (10 marks) (Total: 20 marks) QUESTION THREE 1. In relation to the law of contract: Define the term “consideration”. (2 marks) Outline FOUR circumstances in which a contract might be frustrated. (4 marks) 2.  Identify TWO differences between a “natural person” and an “artificial person”. (4 marks) 3.  Discuss FIVE types of precedents. (10 marks) (Total: 20 marks) QUESTION FOUR 1.  Outline FIVE conditions that are necessary for agency by ratification to arise. (5 marks) 2. Identify FIVE characteristics of unincorporated associations. (5 marks) 3. Using THREE examples, distinguish between a “negotiable instrument” and a “negotiable document of title”. (6 marks) In relation to the court system, highlight the jurisdiction of the International Court of Justice. (4 marks) (Total: 20 marks) QUESTION FIVE 1. Define the term “corporate governance”. (2 marks) Outline SIX principles of corporate governance. (6 marks) 2. State FOUR disputes that are not eligible for alternative dispute resolution mechanisms. (4 marks) 3. Explain FOUR rules governing presentation of a bill of exchange for payment. (8 marks) (Total: 20 marks) QUESTION SIX 1. In relation to intellectual property, identify TWO types of works that are eligible for copyright protection. (2 marks) Highlight FOUR advantages of tribunals. (4 marks) 2. With reference to the law of property, describe THREE forms of interest in land. (6 marks) 3. Describe FOUR characteristics of tenancies. (8 marks) (Total: 20 marks) QUESTION SEVEN 1. With reference to professional ethics: Outline FOUR ethical principles that underpin all professional codes of conduct. (4 marks) Distinguish between “morality” and “etiquette”. (4 marks) 2. In relation to the law of insurance, describe FOUR conditions which must exist for an insurer to be entitled to contribution. (4 marks) 3. Explain FOUR remedies in administrative law. (8 marks) (Total: 20 marks)

MONDAY: 5 December 2022. Afternoon Paper. Time Allowed: 3 hours. Answer any THREE questions in SECTION I and any TWO questions in SECTION II. ALL questions carry equal marks. Do NOT write anything on this paper. SECTION I QUESTION ONE 1.  Highlight FOUR advantages of oral communication. (4 marks) 2. Define the term “credit note”. (1 mark) Outline FIVE types of information that could be included in a credit note. (5 marks) 3. Explain FIVE demerits of written communication. (10 marks) (Total: 20 marks) QUESTION TWO 1. Identify FIVE factors that could contribute to a productive meeting. (5 marks) 2. Summarise FIVE techniques which a sender could apply to improve on verbal communication. (5 marks) 3. Discuss FIVE reasons that might lead to group formation in an organisation. (10 marks) (Total: 20 marks) QUESTION THREE 1.  Outline SIX factors that could inhibit group decision-making. (6 marks) 2. List SIX steps that could be followed while writing a business report. (6 marks) 3. Describe FOUR classifications of noise as a barrier to effective communication. (8 marks) (Total: 20 marks) QUESTION FOUR 1. Summarise THREE characteristics of nonverbal communication. (6 marks) 2. Outline SIX roles of a secretary in a meeting. (6 marks) 3. Analyse FOUR ways of enhancing group decision making. (8 marks) (Total: 20 marks) SECTION II QUESTION FIVE 1. Outline FIVE functions of management in handling customer complaints in an organisation. (5 marks) 2. Identify FIVE benefits of a customer-centered organisation. (5 marks) 3. Describe FIVE techniques that could be used to attract customers. (10 marks) (Total: 20 marks) QUESTION SIX 1. Identify SIX unethical practices in customer service. (6 marks) 2. Outline FOUR customer care management trends an organisation could apply to gain a competitive edge. (4 marks) 3. Explain FIVE traits of an effective negotiator. (10 marks) (Total: 20 marks) QUESTION SEVEN 1. Highlight FOUR techniques that an organisation could institute to increase customer satisfaction. (4 marks) 2. Summarise THREE types of reactions during the negotiation process. (6 marks) 3. Explain FIVE principles of a good customer service. (10 marks) (Total: 20 marks)

MONDAY: 5 December 2022. Morning Paper. Time Allowed: 3 hours. Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper. QUESTION ONE 1. Describe the term “trade credit”. (2 marks) Outline FOUR features of trade credit. (4 marks) 2.  Explain the meaning of instalment loan. (2 marks) Summarise THREE benefits of instalment loans to a consumer. (6 marks) 3.  Explain THREE types of factoring. (6 marks) (Total: 20 marks) QUESTION TWO 1. Enumerate SIX tools used by skip tracers to locate runaway debtors. (6 marks) 2. List SIX roles of a credit manager in a company. (6 marks) 3. Explain FOUR factors that could influence the cost of borrowing. (8 marks) (Total: 20 marks) QUESTION THREE 1. State FOUR benefits of credit information sharing (CIS) to borrowers. (4 marks) 2. Assess FOUR sources of commercial risk information for businesses entering export markets. (8 marks) 3. Summarise FOUR types of information that should be incorporated in a collection letter. (8 marks) (Total: 20 marks) QUESTION FOUR 1.  Outline SIX purposes of a credit application form. (6 marks) 2.  State SIX ingredients of a computerised sales ledger system. (6 marks) 3. Explain FOUR roles of credit department in protecting investment in accounts receivable. (8 marks) (Total: 20 marks) QUESTION FIVE 1. Describe the term “digital lending”. (2 marks) With reference to the digital lending regulatory framework, identify THREE prohibited debt collection practices. (6 marks) 2.  State SIX issues that should be discussed in a credit and sales teams’ review meeting. (6 marks) 3. Identify THREE ways management can use accounts receivable aging report. (6 marks) (Total: 20 marks) QUESTION SIX 1. Highlight SIX collection practices that organisations could adopt. (6 marks) 2. List SIX benefits of trade credit insurance. (6 marks) 3. Analyse FOUR types of information included in a debtor statement of account. (8 marks) (Total: 20 marks) QUESTION SEVEN 1. State FOUR characteristics of an overdraft. (4 marks) 2. Outline SIX types of non-financial information used in consumer credit assessment. (6 marks) 3. Interpret the 5Cs of credit as used in risk assessment. (10 marks) (Total: 20 marks)

CREDIT MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view COMMUNICATION AND CUSTOMER RELATIONS DECEMBER 2022 PAST PAPER – Click to view INTRODUCTION TO LAW AND GOVERNANCE DECEMBER 2022 PAST PAPER – Click to view CREDIT RISK MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view PRINCIPLES OF ACCOUNTING DECEMBER 2022 PAST PAPER – Click to view BUSINESS ENVIRONMENT DECEMBER 2022 PAST PAPER – Click to view FINANCIAL STATEMENTS ANALYSIS FOR CREDIT MANAGERS DECEMBER 2022 PAST PAPER – Click to view CORPORATE CREDIT ANALYSIS DECEMBER 2022 PAST PAPER – Click to view COLLECTIONS MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view CREDIT GOVERNANCE AND COMPLIANCE DECEMBER 2022 PAST PAPER – Click to view LEADERSHIP AND MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view ADVANCED CREDIT RISK MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view ADVANCED COLLECTIONS MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view DEBT RECOVERY MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view

TUESDAY: 6 December 2022.      Morning Paper.            Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C or D) that represents the correct answer. Do NOT write anything on this paper. 1. Which one of the following is a variable of the product mix? A. Product range B. Product selling C. Product price D. Product marketing (2 marks) 2. Which of the following is a benefit of using a mobile phone in communication? A. Portability B. Inaccessibility C. Bulky D. Inefficiency (2 marks) 3. Identify a factor that influences the price of a commodity. A. The competitors’ prices B. Human resources C. Operation plan D. Company objective (2 marks) 4. Which of the following is an indicator of customer satisfaction? A. Repeat buying B. Customer service C. Market research D. Tastes and preferences (2 marks) 5. Which of the following is a communication barrier caused by the receiver? A. Technical language B. Physical noise C. Negative attitude D. Faulty media (2 marks) 6. Which one of the following is a benefit of market targeting? A. Control against fraud B. Variety of goods and services C. Promotes brand loyalty D. Control against competition (2 marks) 7. Identify one of the components of a marketing plan for a business. A. Product or service B. Business description C. Business strategy D. Service charter (2 marks) 8. Which of the following is contained in a notice of a meeting? A. Subject B. Position C. Product D. Resolutions (2 marks) 9. Which of the following is a disadvantage of video conferencing? A. Limited geographical coverage. B. Affected by lack of power C. Difficult to uses visual aids. D. High cost of travelling (2 marks) 10. Which one of the following indicates emotions in one’s voice? A. Anxiety B. Fear C. Tone D. Grapevine (2 marks) 11. Which one of the following is a merit of wireless networks? A. Inefficient B. Does not require skill C. Reduces paper work D. Visual disorder (2 marks) 12. Which one of the following is an advantage of trade fairs and exhibitions? A. Not very expensive B. Consumes a lot of time. C. Available all the time. D. It is persuasive. (2 marks) 13. Which one of the following explains the process of creating, communicating and delivering value to meet the needs of customers? A. Selling B. Marketing C. Marketing mix D. Business (2 marks) 14. Identify one method of enhancing customer feedback. A. Fair pricing. B. Use of technology C. Product accessibility D. Product branding (2 marks) 15. Pendo Ltd sells children’s clothes and toys. Which type of market segmentation has it adopted? A. Demographic B. Junior. C. Psychographic D. Behavioural (2 marks) 16. Identify one objective of a marketing plan. A. To document the business idea. B. To get a clear picture of the business C. To set out the management team D. To state and review the marketing mix (2 marks) 17. What term is given to the willingness of a customer to engage and repeatedly purchase a product? A. Customer satisfaction. B. Customer experience. C. Customer loyalty D. Customer relations (2 marks) 18. Which of the following strategies could assist a business in market penetration? A. Training employees. B. Mass production. C. Price adjustment. D. Low transport cost (2 marks) 19. What is the other name given to concentrated marketing? A. Niche marketing. B. Mass marketing. C. Segmented marketing. D. Differentiated marketing (2 marks) 20. Which of the following represents a strategy of attracting new customers? A. Building customer relationships B. Creating a loyalty program C. Offering cash discounts D. Personalised market offerings (2 marks) 21. Which of the following is a correct definition of ‘target market’? A. Market segment which is served by competitors B. Customers for whom a particular marketing mix is designed C. Process by which marketers focus on an individual customer D. Identifying, capturing and retaining new customers (2 marks) 22. Identify an objective of market research. A. Serves as a foundation of marketing plan B. Describes the marketing-mix of a business C. Outlines the purpose of running a business D. Undertaken after preparing the marketing plan (2 marks) 23. Which of the following marketing concept stresses customer loyalty and long term customer management? A. Selling concept B. Transactional concept C. Strategic concept D. Relationship concept (2 marks) 24. Which of the following is a benefit of customer complaints? A. Help identify difficult customers B. Boosts the image of the business C. Enhances competitive advantage D. Helps in adjusting customer experience (2 marks) 25. The following are steps of the marketing process. (i) Building customer relationships. (ii) Capturing customer value. (iii) Understanding the market place and customer needs. (iv) Construct an integrated marketing plan and program. (v) Design a customer driven marketing strategy. Which of the following sets represent the correct order of steps of the marketing process model? A. (iv), (ii), (iii), (v), (i) B. (iii), (v), (iv), (i), (ii) C. (ii), (iii), (iv), (v), (i) D. (iii), (iv), (v), (i), (ii) (2 marks) 26. Which element of the marketing-mix is also referred to as market communication? A. Publish B. Process C. People D. Promotion (2 marks) 27. Which of the following is a challenge associated with the implementation of a marketing plan? A. High prices of competitors B. Unanticipated market changes C. Availability of demand D. Robust customer service (2 marks) 28. Identify one barrier to effective customer service. A. Lack of customer data B. Having many customers C. Stiff industry competition D. Lack of product promotion (2 marks) 29. Which marketing concept focuses on continual product improvement? A. Product concept B. Production concept C. Innovation concept D. Marketing concept (2 marks) 30. Which of the following is the correct definition of customer need? A. Driver of customer’s purchase decision B. Benefits that a brand promises to deliver C. Goods and services a customer intend to buy

MONDAY: 5 December 2022.        Afternoon paper.        Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C or D) that represents the correct answer. Do NOT write anything on this paper. RATES OF TAX (Including wife’s employment, self-employment and professional income rates of tax). 1. Which of the following dividends are NOT fully exempted from taxation? A. Dividends received by an insurance company from its life fund B. Dividends received from registered companies and Sacco C. Dividends received from outside Kenya D. Dividends received when a company is winding up (2 marks) 2. Which one of the following fall under classification of tax by rate? A. Income taxes B. Rental taxes C. Production taxes D. Progressive taxes (2 marks) 3. Which one of the following is NOT a right of Commissioner of VAT? A. To expect that information obtained in the course of duty by the VAT officers shall be treated in confidence B. To demand security from any taxable person for the unpaid tax C. To retain books of account for a period long enough for him to complete his examination D. To take samples of goods of a taxable person without payment (2 marks) 4. Which of the following is a method of tax avoidance? A. Buying assets to enjoy capital allowances instead of leasing B. Importing business to avoid high local production cost C. Use of own capital to avoid interest charge by financial institutions D. Overstating expenses to reduce taxable income. (2 marks) 5. For the purpose of computing housing benefit, employees are classified into three categories. Which one is not among the categories? A. Ordinary employee and a wholetime service director B. Agricultural employee C. Directors other than whole time service director D. Ordinary employee and low-income employee (2 marks) 6. Which one of the following is a source of revenue for a county government? A. Advance tax B. VAT tax C. Fees and charges D. Stamp duty (2 marks) 7. Which one of the following is NOT a positive role of excise duty in an economy? A. Protect local industries from cheap imports B. It raises revenue for the government C. Discourage consumption of harmful products D. Discourages growth of local industries (2 marks) 8. Which of the following rates is NOT applicable for advance tax for vans, pick-ups, trucks, prime movers and lorries A. For public service vehicles higher of Sh.1,500 per ton load capacity per annum or Sh.2,400 per annum B. For passenger carrying vehicles for every driver Sh.3,600 and for every conductor Sh.1,200 per annum C. For minibus, station wagons and saloon cars higher of Sh. 60 per passenger capacity or Sh.2,400 per annum D. For passenger carrying vehicles higher of Sh.250 per passenger capacity or Sh.2,400 per annum (2 marks) 9. Which one of the following conditions must be fulfilled for passage to be excluded from taxation of an employee’s income ? A. The employee must be a citizen of Kenya B. The employee must be recruited or engaged in Kenya C. The employee must get travel allowances from the employer D. The employee must be solely in Kenya to serve the employer (2 marks) 10. The following are offences under the value added tax (VAT) Act EXCEPT? A. Failure to register when eligible B. Failure to supply taxable goods C. Failure to issue a tax invoice D. Failure to keep proper records (2 marks) 11. Which one of the following is NOT an objective of taxation? A. To raise revenue B. Equal distribution of resources C. To bring peace D. Economic stability (2 marks) 12. Which one of the following is a factor affecting tax shifting? A. Type of market B. Type of government C. Type of company D. Amount of revenue required (2 marks) 13. Which of the following is a tax-free benefit? A. School fees paid by the employer for the employee’s children if it was taxed on the employer. B. Employer contribution to unregistered pension scheme on behalf of an employee. C. School fees paid by employer on behalf of employees’ children which has be expensed in employers’ books of accounts. D. Medical benefits of senior staff in a company. (2 marks) 14. Explain the tax position of benefits in kind received from employer? A. It is a tax-free benefit. B. It is a tax-free benefit if it does not exceed Sh. 36,000 per annum. C. It is allowable deduction up to Sh. 36,000 per annum. D. It is a taxable benefit up to Sh. 36,000 per annum. (2 marks) 15. What is the tax position of contribution made to National Housing Development Fund under the affordable housing scheme? A. It reduces the tax liability by 15% of the gross contribution subject to a maximum of Sh.108, 000 per annum B. It is allowable deduction up to Sh.108,000 per annum C. It is allowable deduction whereby the allowable amount is 15% of the gross contribution D. It is allowable deduction up Sh.96,000 per annum (2 marks) 16. Which of the following transactions do NOT require a KRA Personal Identification Number (PIN)? A. When applying for affidavit B. When applying for passport C. When registering a motor vehicle D. When applying for insurance cover (2 marks) 17. The following machineries qualify for investment allowance at the rate of 50% EXCEPT? A. Lawnmower B. Conveyor belt C. Boiler D. Transformer (2 marks) 18. What is the tax position of monthly pension income received by an individual aged 65 years and above? A. Tax free up to Sh. 25,000 per month B. Tax free up to Sh. 20,000 per month C. Tax free up to Sh. 30,000 per month D. Tax free in full (2 marks) 19. The following changes occurring to a registered VAT trader must be notified to the commissioner within 14 days EXCEPT? A. Change of physical address of the business B. Changes of

MONDAY: 5 December 2022.     Morning Paper.        Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C or D) that represents the correct answer. Do NOT write anything on this paper. 1. Who among the following is NOT an internal user of accounting information? A. Chief Executive Officer of the company B. Production manager C. Company inventory clerk D. The investor of the company (2 marks) 2. Which is the correct double entry for a motor vehicle purchased on credit from General Motors Limited? A. Debit Motor vehicle expense account, Credit General Motors Limited account B. Debit Purchases account, Credit General Motors Limited account C. Debit Motor vehicle account, Credit General Motors Limited account D. Debit Motor vehicle account, Credit bank account (2 marks) 3. Revenue, incomes and expenditure incurred by business in a financial period are supposed to be recorded in which financial statement of account? A. Statement of financial position B. Statement of profit or loss C. Cash flow statement D. Statement of changes in equity (2 marks) Use the information below to answer question 4 and 5. Baraka Ltd. prepares its financial statements every year. In the year 2021, the total accounts receivables amounted to Sh.768,000. In the same year, debtors owing Sh.42,000 were declared bankrupt and they were written off. It is the policy of the company to provide 5% of the accounts receivable as doubtful debts. 4. Calculate the balance of the accounts receivable after the adjustment. A. Sh.689,700 B. Sh.729,600 C. Sh.726,000 D. Sh.768,000 (2 marks) 5. Calculate the amount of the doubtful debts for the year 2021. A. Sh.38,400 B. Sh.36,300 C. Sh.42,000 D. Sh.78,300 (2 marks) 6. Which of the following information is NOT provided by the accounting equation (Assets = Capital + Liabilities) A. List of creditors B. List of debtors C. Supplies of the resources of the business D. Dates when the items were acquired (2 marks) 7. Define book of original entry. A. It is a book that records prime entries B. It is a book that checks the arithmetic accuracy of accounts C. It is a book that corrects errors D. It is a book that shows the totals of accounts (2 marks) 8. The following are reasons why the bank statement shows an overdraft while the cash book shows a debit balance on the same date EXCEPT? A. Cheques from customers recorded in the cash book but not credited B. The bank has paid as per the standing orders C. Cheques recorded in the cash book but returned by the bank D. Cheques paid to suppliers but not presented to the bank (2 marks) 9. Define the term reserve. A. Appropriation of profit made for general or specific purpose B. Appropriation of profit shared among owners C. Appropriation to increase the dividends D. Appropriation to replace non-current assets (2 marks) 10. Which of the following statement is TRUE about depreciation? A. The method fails to take into consideration the efficiency of the asset which declines as it gets old B. It does not reduce the non-current asset to its residual value C. The combined effects of depreciation is most felt in later years D. It is difficult to depreciate additional non-current assets in the course of the year (2 marks) 11. Which of the following is NOT an adjustment in the appropriation section of the partnership income statement. A. Salary to partners B. Drawings C. Interest on drawings D. Commission to partners (2 marks) 12. Interest on partners’ capital can be defined as: A. Amount given to partners depending on the amount of money each has in the business B. Amount given to partners equally C. Amount given to partners to compensate them for using their money in business D. Amount given to partners as a percentage of the money each partner has in the business (2 marks) 13. Why do organisations maintain petty cash book using the imprest system? A. To control petty cashier and petty cash B. To record expenses C. To show the totals of all business expenses D. To pass the entries through the books of original entries (2 marks) 14. At the time of balancing accounts, the totals on both side of the account are double underlined. Why is this done? A. To close the account B. To balance the account C. To get the balancing figure D. To prevent any more entries being made in the account (2 marks) 15. Balance the following account and state whether it’s a credit or a debit balance. A. A debit balance of Sh.1,610,400 B. A credit balance of Sh.1,557,400 C. A debit balance of Sh.1,557,400 D. A credit balance of Sh.1,610,000 (2 marks) 16. Proposed dividends are reported in which financial statement? A. Income statement only B. Retained earnings statement C. Statement of financial position only D. Income statement and statement of financial position (2 marks) 17. Which of the following principles assumes that a business will continue for the foreseeable future? A. Historical cost B. Periodicity C. Objectivity D. Going concern (2 marks) 18. Invoices received for goods purchased on credit from suppliers would first be entered in the_________________. A. Purchases day book B. Sales day book C. Purchases account D. Sales account (2 marks) 19. The following entries appeared in the last statement of financial position of Dualmax Ltd.: Plant and machinery at cost Sh.18,000,000 and the accumulated depreciation at Sh.7,200,000 as at 30 September 2021. It is the practice of the company to depreciate machinery at 20% per annum diminishing balance. Calculate the depreciation charge for the year ended 30 September 2022. A. Sh.2,160,000 B. Sh.8,640,000 C. Sh.9,360,000 D. Sh.10,800,000 (2 marks) 20. The following are reasons for preparing bank reconciliation statement EXCEPT? A. Ensure all unpresented cheques are presented B. Explains the difference between the cash book balance and the bank statement C. Ascertains the correct balance at the bank

TUESDAY: 6 December 2022.     Afternoon Paper.        Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Do NOT write anything on this paper. 1. Round off 562 to the nearest number of hundreds. A. 500 B. 550 C. 560 D. 600 (2 marks) 2. Round off 23.89543 to two decimal places. A. 23.00 B. 23.89 C. 23.90 D. 23.91 (2 marks) 3. What type of fraction is 103/7? A. Improper fraction B. Mixed fraction C. Proper fraction D. Whole number (2 marks) 4. Convert 55/8 into a percentage? A. 62.5% B. 500% C. 562.5% D. 600% (2 marks) 5. A construction company hired 40 workers to construct and complete a project in 200 days. However, due to heavy rains there was a delay of 40 days in starting the work. Determine the number of extra workers to be hired in order to complete the work on time after the delay. A. 8 B. 10 C. 160 D. 200 (2 marks) 6. During drought, 1⁄5 of the animals in a certain village died and 1,200 were left. Determine the number of animals that died? A. 300 B. 1,500 C. 4,800 D. 6,000 15. Differentiation is used to determine the____________________________ of a function. A. y intercept B. Gradient C. Value D. Range (2 marks) 17. Two matrices can be multiplied if and only if: A. The number of columns in the first matrix is equal to the number of rows in the second matrix B. They are of the same order C. The number of rows in the first matrix is equal to the number of columns in the second matrix D. Has equal number of rows and columns (2 marks) 18. A square matrix in which all elements in the principal diagonal are the same, but all other elements are zero is referred to as: A. Square matrix B. Diagonal matrix C. Null matrix D. Scalar matrix (2 marks) 21. Convert a margin of 3/10 to a mark-up. A. 3/13 B. 3/7 C. 3/5 D. 7/10 (2 marks) 22. Noah sells X watches at a total price of Sh.2,016,000. He makes a profit of 40% on cost price of all the watches. If the cost per watch is Sh.4,000, determine the number of watches that Noah sold. A. 202 B. 302 C. 360 D. 504 (2 marks) 23. Bella bought a pick-up for Sh.2,000,000. The pick-up depreciated at the rate of 20% per annum on a straight line basis. It has a residual value of Sh.400,000. Calculate the value of the pick-up after 3 years. A. Sh.800,000 B. Sh.960,000 C. Sh.1,040,000 D. Sh.1,200,000 (2 marks) Use the information below to answer question 24 to 26. Mr Mutie bought a machine for Sh.3,600,000. After using it for 150,000 hours, he can sell it for Sh.2,100,000. 24. What is the rate of depreciation of the machine per hour? A. Sh.10 B. Sh.14 C. Sh.24 D. Sh.38 (2 marks) 25. What is the linear depreciation equation in terms of hours worked by the machine? A. r = 2,100,000 – 10t B. r = 3,600,000 – 24t C. r = 3,600,000 – 10t D. r = 3,600,000 – 14t (2 marks) 26. What is the book value of the machine after running for 240,000 hours? A. Sh.240,000 B. Sh.1,200,000 C. Sh.2,400,000 D. Sh.3,360,000 (2 marks) 27. A business imported goods worth 123,500 US Dollars, the prevailing exchange rate was 1 US Dollar = Ksh.110. Calculate the value of the goods in Kenya Shillings. A. Ksh.12,350 B. Ksh.1,235,000 C. Ksh.1,358,500 D. Ksh.13,585,000 (2 marks) 28. John Kitavi bought a car from a Japanese friend for 5,640,000 Yen. Given that 100 Japanese Yen = 83 Kenya Shillings, determine the amount in Kenya Shillings that John Kitavi paid for the car. A. Ksh.56,400 B. Ksh.67,952 C. Ksh.4,681,200 D. Ksh.6,795,181 (2 marks) 29. An employee earns a taxable income of Sh.80,000. If the rate of tax is 15% for the first Sh.20,000 and 25% for any amount above Sh.20,000, calculate his net income. A. Sh.18,000 B. Sh.62,000 C. Sh.65,000 D. Sh.77,000 (2 marks) 30. An employee is paid Sh.250 per hour for a 40 hours week. He then earns overtime at time-and-a-half. During a certain week, his total weekly wage was Sh.13,000. How many hours of overtime did he work? A. 4 hours B. 8 hours C. 12 hours D. 44 hours (2 marks) 31. Monthly taxable pay Rate of tax per month 1 – 24,000 10% 24,000 – 32,333 25% Excess over 32,333 30% From the above table, compute the total tax payable by an employee earning Sh.56,000 in a month. A. Sh.4,483.25 B. Sh.7,100.1 C. Sh.11,583.35 D. Sh.16,800 (2 marks) 32. A company pays its salesmen Sh.8,000 per month as basic pay plus a commission of X% on the gross sales monthly. In the month of November, one salesman earned Sh.298,460 after making gross sales of Sh.2,420,500. Determine the rate of commission as a percentage. A. 0.12% B. 0.13% C. 12% D. 13% (2 marks) 33. Grace borrowed a loan of Sh.1,200,000 at a compound interest rate of 8% per annum. Calculate the interest paid after 5 years. A. Sh.480,000 B. Sh.563,193.69 C. Sh.1,763,193.69 D. Sh.2,963,193.69 (2 marks) 34. Simple interest is calculated based on__________________________________. A. Accumulated interest B. The principal amount C. The principal amount plus accumulated interest D. The principal amount minus the accumulated interest (2 marks) 35. Mary Muinde invested Sh.55,000 for 18 months at a simple interest rate of 11.5% per annum. Find the maturity value of the principal. A. Sh.9,487.5 B. Sh.64,487.5 C. Sh.113,850 D. Sh.168,850 (2 marks) Use the following data to answer question 36 to 38. The earnings per share (EPS) for 5 companies are tabulated below: Company Earnings per share (EPS) (Sh.) A 2.5 B 4 C 2.5 D 3 E 3.25 36. What is the arithmetic mean earning per share? A.

TUESDAY: 6 December 2022.      Morning Paper.       Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C or D) that represents the correct answer. Do NOT write anything on this paper. 1. A person who writes computer software for running the hardware of a computer is called a___________________. A. Systems analyst B. Programmer C. Systems designer D. Data processor (2 marks) 2. The purpose of computer software is to turn data into_____________________. A. Information B. Program C. Knowledge D. Object (2 marks) 3. A set of parallel wires or electronic pathway used to transmit data, address and control signals in between the CPU and other components of the motherboard are known as___________________. A. Bus B. Register C. Processor D. Port (2 marks) 4. Identify an advantage of information communication technology (ICT) in the education sector. A. ICT use in the classroom can be a distraction B. ICT can detract students from social interactions C. ICT use motivates learning D. ICT can foster cheating (2 marks) 5. The type of an operating system which allows a single CPU to execute what appears to be more than one program at the same time is called__________________. A. Multiprocessing B. Multiprogramming C. Multiuser D. Parallel (2 marks) 6. Which of the following is NOT part of a Computer processor? A. Register B. Cache C. Bus D. RAM (2 marks) 7. What is the name given to a computer network for interconnecting electronic devices within an individual person’s workspace? A. Personal area network (PAN) B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Virtual private network (VPN) (2 marks) 8. The following are basic file operations by an operating system EXCEPT____________________. A. Create B. Read C. Delete D. Manage (2 marks) 9. Which of the following is NOT a feature of third generation of computers? A. Technology used was of integrated circuits B. Smaller, cheaper, more efficient and faster than second generation computers C. Single-chip processor and the single-board computer emerged D. Used high-level programming languages (2 marks) 10. Which of the following devices converts analogue signals to digital signals and vice versa? A. Hub B. Modem C. Router D. Switch (2 marks) 11. Which of the following refers to a security measure system that acts as a trap for hackers and can be used to study hacking attempts on a system? A. Honeypots B. Encryption C. Backups D. Controls (2 marks) 12. Which of the following terms refer to a computer animation technique used to convert images from one form to another? A. Modeling B. Framing C. Morphing D. Scarping (2 marks) 13. Identify two advantages of using new technology in businesses. I. Easier, faster and more effective communication II. Increased dependency on technology III. Require regular updates IV. Ability to develop new, innovative approaches A. I and II B. II and III C. I and IV D. II and IV (2 marks) 14. A set of step-by-step instructions, used to solve a problem or perform a computation is known as _____________. A. Algorithm B. Flowchart C. Artefact D. Accumulator (2 marks) 15. Which one of the following is NOT an example of an antivirus software? A. Kaspersky B. McAfee C. Acrobat D. Avira (2 marks) 16. The main part of the computer that contains all the essential hardware components is known as _______________. A. System unit B. Monitor C. Processor D. Power supply (2 marks) 17. A__________________ consists of two or more computers connected together. A. Network B. Server C. Client D. Cable (2 marks) 18. Which of the following devices can be used to input sound into a device? A. Speakers B. Sound card C. Microphone D. Earphones (2 marks) 19. The Internet is an example of a _____________. A. Metropolitan Area Network B. Campus Area Network C. Wide Area Network D. Local Area Network (2 marks) 20. Which of the following attacks involve a hacker intercepting and relaying messages between two parties who believe they are communicating with each other? A. Advanced persistent threats B. Man-in-the-middle attack C. Drive-by attacks D. AI powered attacks (2 marks) 21. Which of the following statements is CORRECT? A. A translator translates object code to source code B. Interpreter translates entire program before execution C. Interpreter saves the object program D. Interpreter is effective in statement by statement error correction (2 marks) 22. Which of the following is NOT an advantage of command line interface? A. Command line interface can handle repetitive tasks easily B. Command line interface requires less memory than other interfaces C. Command line interface does not require windows and a low-resolution monitor can be used D. Command line interface is very user friendly (2 marks) 23. Which of the following statements is correct as used in ICT? A. Machine language use mnemonics B. Machine language use abbreviations C. Machine language use binary notation D. Assembly language use binary notation (2 marks) 24. What is the function of uninterruptible power supply (UPS)? A. It is a device that stores chemical energy and converts it to electrical energy B. It provides enough electricity to a computer during a power outage so that the user can save files before shutting down the computer C. It is a device which converts mains AC to low-voltage regulated DC power for the internal components of a computer D. It means electric energy or capacity supplied by an electric utility to replace electric energy ordinarily generated by a qualifying facility’s own electric generation equipment during an unscheduled outage of the qualifying facility (2 marks) 25. Which of the following software acquisition statements is FALSE? A. Off-the-shelf software is cheap B. Off-the-shelf software is less error prone C. Off-the-shelf software has high quality documentation D. Off-the-shelf software rarely gives an organisation competitive advantage (2 marks) 26. Which of the following is the major limitation of bus topology? A. Uses a lot of cabling in comparison to other

MONDAY: 5 December 2022.    Afternoon Paper.        Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C or D) that represents the correct answer. Do NOT write anything on this paper. 1. Which of the following is NOT an element of a valid contract? A. Offer and acceptance. B. Legality C. Consideration D. Utmost good faith (2 marks) 2. Which of the following statements is not true about ‘morale’. A. It is a form of ‘attitude’ B. It is reflected in positive feelings about the work group C. It instills confidence that difficult goals can be achieved easily D. It is the knowledge of the distinction between right and wrong action (2 marks) 3. Which type of law establishes rights between natural persons and provides for redress for violation of those rights? A. Criminal Law B. Civil Law C. The Uniform Commercial Code D. Stare decisis (2 marks) 4. In the context of contract law, which of the following statements is the best description of ‘agreement’? A. Something of value passing from one party to another in return for a promise to do something B. An offer by one party and an acceptance by the other C. The amount of money paid in a contract D. The parties must intend that their promises create legally enforceable obligations (2 marks) 5. Which of the following statements is correct concerning the “reasonable person” standard in tort law? A. The reasonable person standard varies from person to person B. The reasonable person standard focuses on the defendant’s subjective mental state rather than on the defendant’s behavior C. A person with a physical disability must act as would a reasonable person with the same disability D. A person with a mental disability must act as would a person with the same mental disability (2 marks) 6. The law as a regulatory tool in a society is important for the following number of reasons, EXCEPT? A. Prescribes what people cannot do. B. Informs people of what they can do. C. Informs people what they must do. D. Awards a losing party (2 marks) 7. What are the two main general sources of law? A. Courts and constitution B. Constitution and legislations C. Governments and Parliaments D. Parliament’s statutes and statutes of general application (2 marks) 8. Which of the following is the most accurate meaning of the ‘obiter dictum’ of a case? A. “Let the decision stand” B. “Through lack of care” C. “A matter which has been adjudicated upon” D. “A saying by the way” (2 marks) 9. The diverse range of interests which the law of torts protects includes the following EXCEPT? A. Liability for failure to abide by the terms of a contract. B. Direct interferences with persons and property. C. Liability for breach of duty to take reasonable care. D. Breach of statutory duty (2 marks) 10. Which of the following is the correct definition of a ‘tort’? A. A right to sue another person for damages B. An infringement of the interests of a person which entitles them to compensation C. A civil wrong involving a claim for breach of contract D. A civil wrong other than a claim for breach of contract (2 marks) 11. In regards to the distinction between morality and law, which of the following statements is INCORRECT? A. The implementation of morality is more mandatory than law B. Morality is produced earlier than law C. The scope of moral adjustment is wider than that of law D. The expression of morality is not as strict as law (2 marks) 12. Which of the following is NOT one of the methods which differentiates civil law from criminal law? A. In a civil case the party bringing the action is called the Plaintiff; while in a criminal case it is the Republic B. In a civil case the party bringing the action must establish their case on the balance of probabilities; in a criminal case they must establish their case beyond all reasonable doubt C. The outcome of a civil trial is usually punishment of the defendant; the outcome of a criminal trial is usually compensation paid by the defendant to the victim D. Civil law is concerned with disputes between citizen and citizen; criminal law is concerned with disputes between the State and an accused (2 marks) 13. The concept of insurance is? A. to share losses by many B. to make money out of death C. to earn interest D. to earn a status (2 marks) 14. Which of the following is the best definition of premium? A. Payment for insurance, which the policyholder is obliged to pay to the insurer in accordance with the contract or the law B. The amount of money paid by the insurer to the insured upon the occurrence of an insured event C. The amount of money specified in the insurance contract or established by law in the amount of insurance liability assumed by the insurer D. None of the above (2 marks) 15. Which is the lowest court of the land? A. Employment and Labour relations Court B. Court of appeal C. Magistrate Court D. High Court (2 marks) 16. Which of the following is NOT a way of terminating an agency by the parties? A. Revocation B. Suing in court C. Mutual consent D. Renunciation (2 marks) 17. Which of the following actions does not amount to breach of ‘Professional Ethics’? A. A physician who refers patients to a specialist in return for monetary favours B. An auditor who discloses fraud activities to the relevant authorities C. A lawyer who lies to the Judge D. A reporter who spreads fake news (2 marks) 18. Identify which among the following is NOT related to sale of goods. A. Stoppage in transitu B. Right to lien C. Right to quiet possession D. Right to fair hearing (2 marks) 19.

MONDAY: 5 December 2022.         Morning Paper.           Time Allowed: 2 hours. This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C OR D) that represents the correct answer. Do NOT write anything on this paper. 1. Which type of entrepreneur adopts to change only when it is important for survival? A. Drone B. Imitative C. Fabian D. Innovative (2 marks) 2. Select the statement that describes an intrapreneur. A. A person who detects an untapped opportunity to make own income B. A person who buys products at a certain price with a view to sell them at a higher price C. An individual who brings factors of production together to start a business D. An employee who uses entrepreneurial skills to generate profit for the venture (2 marks) 3. Which of the following is a role of entrepreneurship in economic development? A. Reduce the level of exports in the country B. Promote balanced regional growth C. Formulating favourable regulations D. Providing an enabling environment (2 marks) 4. Choose a benefit attained by a country with high levels of entrepreneurial activity. A. High levels of business formation B. High levels of cyclical unemployment C. High levels of business opportunities D. High levels of government intervention (2 marks) 5. Which of the following is a characteristic of an executive summary in a business plan? A. Summarises every chapter in the business plan. B. Prepared first before all other components C. Summarises the content of a marketing plan D. Appears on the cover page of a business plan (2 marks) 6. Which of the following is a role of business incubation? A. Generate business idea B. Controlling business ideas C. Enhance business success D. Lower business capacity (2 marks) 7. Select the set of qualities that describes a good business opportunity. A. Attractive, high gains, short cycle and minimal resources B. Durable, abnormal profits, long cycle and unique market C. Anchored on product, profitable, short cycle and timely D. Attractive, durable, anchored on product and timely (2 marks) 8. Choose the statement that describes a business idea. A. A thought or impression that may or may not become an opportunity B. A window of opportunity that meets the criteria for start-up C. An opportunity that meets the needs and demands of customers D. A notion containing factors that contribute to business success (2 marks) 9. Which business entry option could provide an entrepreneur exclusive rights to operate within a certain geographical region? A. Franchise B. Sole proprietorship C. Company D. Joint venture (2 marks) 10. Which of the following is a benefit of buying an existing business? A. Enables partnering with existing owners B. Helps to avoid challenges of running a business C. Allows easy implementation of changes and innovation D. Facilitates evaluation of business performance (2 marks) 11. Which of the following activity could an entrepreneur undertake before choosing a market entry strategy? A. Acquire finances B. Sales promotion C. Product distribution D. Market research (2 marks) 12. Select an advantage of running a sole proprietorship business. A. It is not easy to dissolve after registering B. It is very expensive to create the business C. Owner maintains complete control of it D. The losses are redistributed by the owner (2 marks) 13. What term is used to refer to collecting and analysing first hand data for decision making? A. Customer surveys B. Primary research C. Windshield research D. Industry research (2 marks) 14. Which of the following is a source of short-term finance? A. Share capital B. Equity finance C. Trade credit D. Debentures (2 marks) 15. Which of the following explains the meaning of retained earnings? A. Unpaid interest B. Profits earned C. Undistributed dividends D. Income from investment (2 marks) 16. Identify a service provided by microfinance institutions. A. Business appraisal B. Savings and credit C. Business registration D. Business identity (2 marks) 17. Identify a factor that venture capitalists could consider before investing in a business. A. Low profitability and low returns B. An average working capital C. Slow growth in the industry D. Strong management team (2 marks) 18. Why is it important for an entrepreneur to choose a suitable business location? A. Identify customer needs B. Market proximity C. Allow faster production D. Reduce distribution of goods (2 marks) 19. Which of the following increases customer engagement with a business? A. Customer analysis B. Selling quality products C. Use of technology D. Hiring competent employees (2 marks) 20. Choose the benefit realised by embracing social media marketing. A. The ability to obtain marketing financing B. The ability to market business at low cost C. The ability to borrow at low rates of interest D. The ability to make market differentiation (2 marks) 21. What name is given to a person who accomplishes objectives by directing the efforts of other people? A. Manager B. Entrepreneur C. Intrapreneur D. Director (2 marks) 22. Which management function involves putting together required resources in order to execute plans? A. Planning B. Controlling C. Staffing D. Organising (2 marks) 23. Which of the following is an interpersonal role of a manager? A. Monitoring role B. Spokesperson role C. Negotiation role D. Liaison role (2 marks) 24. Identify a way in which a manager performs the leading function in an organisation. A. Tasks and resources allocation B. Monitoring and evaluating performance C. Setting long and short-term goals D. Motivating and influencing people (2 marks) 25. Which of the following is an objective of planning in the management process. A. To ensure rational allocation of resources B. To ensure quality control and assurance C. To ensure the use of accurate standards D. To ensure improvement is a priority (2 marks) 26. Choose the role played by the top-level management in an organisation. A. Design and implement policies B. Set organisation schedules C. Allocate operational resources D. Formulate strategic goals (2 marks) 27. Which statement