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a. Agency problems and conflicts are common in all organisations.
Required:
Explain the concept of agency problems and discuss FIVE types of agency conflicts that might exist in an organisation. (8 Marks)
b. Tucker‟s Five Question Model can be employed in training new professional accountants in ethics.
Required:
Explain the issues covered by the Tucker‟s Five Question Model. (7 Marks)
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Find Related Questions by Tags, levels, etc.
a. With the aid of an appropriate diagram, explain how organisations and management structures might change as a business grows using Greiner’s growth model. (10 Marks)
b. Explain briefly the concept of board diversity giving THREE examples of categories of diversity. (5 Marks)
c. Explain THREE benefits of the diversity of the board of a large company. (3 Marks)
d. Discuss TWO limitations of board diversity. (2 Marks)
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Mallam Danladi is a civil servant who has won a sum of one hundred million Naira in a lottery. Being a very conservative person who is averse to risks, Mallam Danladi is contemplating putting the money in a fixed deposit account at an interest rate of 14% per annum or into treasury bills at an interest rate of 18.5% per annum. These two options are considered to be virtually risk-free. Mr. Madoff, a risk consultant, advised him to invest in the production of shea butter, coconut oil, and black soap, with a promise of 52% profit per annum. In an attempt to convince Mallam Danladi to invest in the production of these items, Mr. Madoff tried to educate him on the nature of risks and how to effectively monitor and control them in ways that will ensure that business remains highly profitable.
Required:
a. Explain briefly the nature of risk in business to Mallam Danladi. (2½ Marks)
b. Discuss FOUR distinct means of controlling business risk. (10 Marks)
c. Explain briefly the purpose of monitoring risks in business. (3 Marks)
d. Discuss THREE ways of monitoring risks in business. (4½ Marks)
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Johnson and Scholes suggested that there is a cultural web within an organization.
Required:
a. Discuss the idea of the cultural web and its interrelated elements in a way that would assist a new employee to understand this concept in a business organization. (15 Marks)
b. As a professional accountant, explain any TWO ethical principles or requirements you would consider in deciding whether or not to keep a promise to maintain confidentiality with regards to information acquired from a client in the ordinary course of business. (5 Marks)
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Gbenga Alimi wants to establish a fast food restaurant in Koko, a state in Naijaland. A well-known global fast-food outfit in Naijaland has agreed to give him a franchise to operate the business in the state. However, the franchisor has requested Gbenga to present a viable business plan for assessment.
Required:
a. Outline the contents of a business plan addressing the proposed franchise’s viability. (20 Marks)
b. Use a graphical representation to educate Gbenga on the four stages of the classical product life cycle. (6 Marks)
c. Within an organizational context, distinguish between:
i. Narrow and wide stakeholders
ii. Active and passive stakeholders
(4 Marks)
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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
The accumulation of external debt is a common phenomenon in developing countries at the stage of development where external resources are needed to bridge budgetary gap.
Required:
a. Explain what is meant by External Debt. (3 Marks)
b. Discuss the causes and likely adverse consequences of the rising level of Nigeria’s total external debt stock. (12 Marks)
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Question:
A situation in which there is mass production of identical units of products and costs are not necessarily assigned to individual units of output is known as:
A. Job costing
B. Step costing
C. Joint costing
D. Process costing
E. Batch costing
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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Economic Order Quantity is a quantity of materials and components to be ordered which takes into account the optimum combination of all the following EXCEPT:
A. Stockholding costs
B. Amount of costs tied up in inventory
C. Order delivery time
D. Cost of processing the order
E. Consumption rate
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Find Related Questions by Tags, levels, etc.
Funke Limited’s management, based on the prudence principle, evaluated its trade receivables accounts over a period of three years ending on December 31 each year. The following were the extracts from the records of the outcome of the evaluation:
| Year | Trade Receivables (₦) | Bad Debts (₦) | Allowance for Doubtful Receivables (%) |
|---|---|---|---|
| 2014 | 654,000 | 24,000 | 2% |
| 2015 | 745,000 | 18,000 | 2% |
| 2016 | 585,000 | 22,000 | 2% |
The value stated for trade receivables was net of the bad debts but before the allowance for bad debts. There was no allowance for bad debt before 2014.
Required: Prepare the ledger accounts for Bad Debts and Allowance for Doubtful Receivables.
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Abode Limited has an insurance policy covering April 1 to March 31 of the following year, but its accounting period ends on December 31 each year. The insurance is paid on April 1 each year, and the record of payments for the two years, 2015 and 2016, were as follows:
2015: ₦64,000
2016: ₦84,000
Required:
Show the insurance account for 2016 and state the amount to be charged in the statement of profit or loss and the disclosure in the statement of financial position as at December 31, 2016.
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The account of Shakol Enterprises for the year ended September 30, 2016, has just been prepared. The profit for the year was N224,500, but the following errors were later discovered:
(i) Sales of N3,200 was posted as N320 to a customer’s account, but the correct amount was included in the day book.
(ii) Additional plant purchased during the year for N48,000 was posted to purchases account.
(iii) The sum of N4,850 representing wages paid to technicians who installed the plant was debited to the wages account.
(iv) To obtain the total in the returns outwards book, a total of N6,887 was carried forward as N8,876.
(v) The total of the sales account had been overcast by N8,190.
(vi) Furniture that cost N36,000 was posted to the repairs account.
(vii) Goods valued at N4,470 were returned but the returns were not entered in the books.
(viii) A sales invoice for N6,000 was completely omitted from the books.
(ix) N2,500 overdraft in the cash book was omitted in the trial balance.
(x) The amount of N3,200 paid to a supplier was correctly entered in the cash book but debited in the personal account as N2,300.
(xi) The debit side of the wages account was undercast by N8,005.
Required:
a. Prepare journal entries to correct the errors. (10 Marks)
b. Prepare the suspense account showing the amount by which the trial balance did not agree. (3 Marks)
c. Prepare a statement of the adjusted profit for the year ended September 30, 2016. (7 Marks)
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Ade, Olu, and Kola are in partnership sharing profits in the ratio 3:2:1 respectively. On March 31, 2016, their statement of financial position showed:
| Particulars | Amount (₦’000) | Amount (₦’000) |
|---|---|---|
| Capital accounts: | ||
| Ade | 1,511 | |
| Olu | 826 | |
| Kola | 578 | |
| Current accounts: | ||
| Ade | 1,008 | |
| Olu | 551 | |
| Kola | 386 | |
| Non-current assets: | ||
| Plant | 1,361 | |
| Vehicle | 907 | |
| Inventory | 1,134 | |
| Current assets: | ||
| Receivables | 1,758 | |
| Cash | 550 | |
| Current liabilities: | 850 | |
| Total: | 5,710 | 5,710 |
On April 1, 2016, Ade retired and the following terms were agreed according to their partnership deed:
i. Goodwill was valued at ₦1,572,000 and was not to be retained in the books of the continuing partners. Olu and Kola agreed to continue sharing profits in the ratio 2:1 respectively and to maintain their current accounts.
ii. Ade should take a car with carrying amount of ₦456,000 at a valuation of ₦324,000.
iii. Ade should receive a cash payment of ₦405,000 and retain the balance in a loan account bearing interest at 12% per annum.
Required:
i. Prepare the capital accounts, cash account, and loan account in the books of the old partnership. (6 Marks)
ii. Prepare the statement of financial position of the new partnership as at April 1, 2016, after giving effect to the retirement of Ade. (8 Marks)
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A number of factors will lead to the creation of goodwill in a partnership.
Required:
i. Define goodwill and explain its recognition in partnership accounts. (3 Marks)
ii. State THREE examples of circumstances in which goodwill may be created in a partnership. (3 Marks)
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