Series: OCT 2022

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QMDDM – OCT 2022 – L2 – Q3 – Digital TV Subscription Transition Analysis

Given a transition matrix for subscribers between Star-Television, Multi-Television, and none, with initial populations, compute the subscriber numbers after 3 years, 5 years, and the long-run equilibrium.

Two competing companies ( Star-Television and Multi-Television) offer digital television service to
a city of 100,000 households. The changes in digital TV subscriptions each year are shown by the
transition matrix P below:

S M None

0.70 0.15 0.15

0.20 0.80 0.15

0.10 0.05 0.70

S

P M

None

The current populations in the three states is

15,000

20,000

65,000

X

.

(a) If P remains the same year after year, find the number of subscribers after
(i) 3 years  (ii) 5 years  (b) If P remains the same year after year, find the number of subscribers in the long run.

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QM – OCT 2022 – L2 – Q2 – Summary Statistics for Weekly Food Expenditure

Using data on weekly food expenditures from families in Accra, calculate the 20th and 80th percentiles, interquartile range, mean, median, standard deviation, and coefficient of skewness; provide a brief description and interpretation of these statistics in the context of the survey results.

The following data were obtained from a survey requesting Thirty (30) different families in Accra
to list their weekly expenditure on food:

105 85 72 64 106 86 87 78 108 145 102 86 74 72 103 94 63 73 89 75 88 88 107 101

(a) Calculate

(i) The 20th percentile expenditures (ii) The 80th percentile expenditures (iii) The interquartile range

(b) Calculate

(i) The mean   (ii) Median   (iii) Standard deviation   (iv) Coefficient of skewness

(c) Write a brief description of the survey results; interpret each of the values of the

statistics in (a) and (b) above

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POM – OCT 2022 – L1 – Q8 – Total Quality Management in Microfinance

Present reasons for preferring TQM, explain characteristics of quality for TQM planning, and factors influencing TQM success in addressing microfinance challenges like queues and staff issues.

Digitized Microfinance Company Limited is encountering quality management challenges and asa result, the top twenty (20) profitable customers are threatening to close their accounts if solutionsare not forthcoming. The challenges are:

(i) Long queues in the ten (10) banking halls,

(ii) High incidence of idle time of ATMs,

(iii) High tardiness among tellers and

(iv) Staff ignorance of policies and standard operating procedures.

The management of Digitized Microfinance Company Limited has approached you to use Total Quality Management (TQM) skills to rectify the situation.

(a) Make a presentation to the management stating five (5) reasons why TQM is preferred to any other management concept? [5 Marks]

(b) List and explain five (5) characteristics of quality that can be considered in the planning and designing of the TQM programme? [10 Marks]

(c) List and explain five (5) factors that can influence the success of the TQM implementation? [10 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q7 – Strategies for Pension Company Management

As General Manager of Awake Pension Company, describe strategies to address high customer complaints, staff conflicts, limited knowledge of organizational design, no strategic direction, and high attrition.

The Board of Directors of Awake Pension Company in Ho has hired you as the General Manager. Upon assumption of duty, you made this observation in the Awake Pension Company:

(a) High customer complaints,

(b) High incidence of conflict among staff,

(c) Staff limited knowledge of importance of the organizational design,

(d) No strategic direction and

(e) High staff attrition rate.

As the General Manager, describe strategies you will operationalize to rectify these anomalies in the Awake Pension Company?

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q6 – Functional Areas of Management

Write short notes on key functional areas: Organizational Behaviour, Marketing Management, Production Management, Operations Management, and Human Resource Management.

Write short notes on the following functional areas of Management:

(a) Organizational Behaviour [5 Marks]

(b) Marketing Management [5 Marks]

(c) Production Management [5] Marks

(d) Operations Management [5 Marks]

(e) Human Resource Management [5 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q5 – Planning and Controlling Functions

Distinguish between planning and controlling, list reasons for planning, and describe limitations of planning in banks.

Every employee is required to perform basic management functions such as planning, organizing, directing and controlling functions at the workplace.

(a) Distinguish between “Planning” and “Controlling” at the workplace? [5 marks]

(b) List five (5) reasons associated with planning at the workplace? [10 Marks]

(c) Describe five (5) limitations linked to planning in banks? [10 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q4 – Organizing Function in Business

Explain and differentiate organizing and organization, elements for designing a bank's structure, and benefits of organizational structure in banking.

Organizing function in any business organization serves as the “architect” that facilitates the implementation of the game plan and for that matter the achievement of the strategic direction.

(a) In your own words how will you explain and differentiate between these two concepts: “Organizing” and “Organization”? [5 Marks]

(b) State and briefly explain five (5) elements you will consider when designing an organizational structure for a named bank in Ghana? [10 Marks]

(c) Describe five (5) benefits associated with organizational structure of a bank? [10 Marks]

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q2 – Organizational Culture in Banking Competition

Discuss how organizational culture can help a named Ghanaian bank compete in the dynamic financial sector, especially against stiff competition through innovation and agility.

The savings and loans company wing of the financial and banking industry of Ghana continues to face stiff competition from other financial institutions; and as a result, the former must search for innovative strategies, including digitalization to remain agile and competitive.

Discuss means through which organizational culture can facilitate a named bank in Ghana to compete in this dynamic financial landscape?

[Total Marks – 25]

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POM – OCT 2022 – L1 – Q1 – Business Environment in Banking

Discuss the external and internal environments of a bank, factors influencing them, and how SWOT analysis can drive changes in Ghana's banking sector.

The Ghanaian business environment has become very dynamic, hence all managers of business

organizations must be conversant with the factors, rate of change and effects on the economy.

(a) Describe what is meant by the external environment and the internal environment of a named bank? [5 Marks]

(b) List any three (3) factors of the internal environment and two (2) factors of the external environment and mention their importance in managing a bank? [10 Marks]

(c) List and explain with examples, how SWOT Analysis can bring about change(s) of the banking industry of Ghana? [10 Marks]

[Total Marks – 25]

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PBL – OCT 2022 – L1 – Q8 – Rule in Rylands v Fletcher and Defences

Discuss the Rule in Rylands v Fletcher and available defences.

(a) Discuss the Rule in Ryland’s v. Fletcher 1868. (10 marks)

(b) What are the Defences available to the Rule in Ryland’s .V. Fletcher? (10 marks)

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IA – OCT 2022 – L1 – Q4 – Bank Reconciliation

Prepare adjusted cash book, reconcile with bank statement, and state reasons for differences using given records.

  • The Bank Statement of Donfa Ltd for the month of July 2022 is reproduced below:
    February
    | Date | Particulars | Amount GH¢000 | Balance GH¢000 | |——|————-|—————|—————-| | 1 | Balance b/d | | (779,550) | | 8 | K Adusah | 18,300 | (797,850) | | 16 | Cheque | 36,600 | (761,250) | | 21 | Kakra | 31,200 | (792,450) | | 22 | Cheque | 49,950 | (742,500) | | 28 | Bongoman – trade’s credit | 8,550 | (733,950) | | 28 | Standing Order – Employers’ Association | 7,350 | (741,300) | | 28 | Bank charges| 4,200 | (745,500) |

The Cash Book for the same Company also showed the following record for the same period.
Cash Book (Bank Column only)

Date Particulars Bank GH¢000 Date Particulars Bank GH¢000
Feb. Feb.
16 Abotre Ent. 36,600 1 Balance b/d 779,550
22 K. Abebrese 49,950 4 K. Adusah 18,300
28 K. Boni 24,000 25 Kakra 31,200
28 Balance c/d 792,000 25 Okanididi Ent. 73,500
902,550 902,550

From the above records you are required to:
a) Prepare the adjusted cash book (5 marks)
b) Reconcile the bank statement with the Cash Book (5 marks)
c) State five reasons why the balance of the Cash Book may not be the same as the balance of the bank statement. (10 marks)
(Total: 20 marks)

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IA – OCT 2022 – L1 – Q3 – Purposes, Users, and Definitions in Accounting

State purposes of accounting information, identify users and their needs, and define trial balance and bank reconciliation statement.

(a) State three (3) purposes of accounting information.(6 marks)

(b) Identify four (4) users of accounting information and explain their information needs.(10 marks)

(c) Define the following.

• Trial Balance

• Bank Reconciliation Statement

(4 marks)

[Total: 20 marks]

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IA – OCT 2022 – L1 – Q2 – Accounting Concepts and Elements of Financial Statements

Explain five specified accounting concepts and the five elements of financial statements.

(a) Explain the following accounting concepts

i. Going Concern concept

ii. Accruals Concept

iii. Prudence Concept

iv. Materiality Concept

v. Substance over form

(10 marks)

(b) Briefly explain the five elements of financial statements.

(10 marks)

[Total: 20 marks]

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IA – OCT 2022 – L1 – Q1 – Preparation of Financial Statements from Trial Balance

Prepare the Income Statement for the year ended 31/12/2021 and the Statement of Financial Position as at 31/12/2021 for Kolikoli Enterprise using the given trial balance and additional information.

The following trial balance was extracted from the ledger of Kolikoli Enterprise as at 31/12/21.

Dr GH¢000 Cr GH¢000
Buildings at cost 750,000
Plant at cost 350,000
Provision for depreciation as at 1/1/2021 On buildings 100,000
Provision for depreciation as at 1/1/2021 On plant 190,000
Purchases 2,250,000
Sales 3,022,000
Stocks 01-01-2021 250,000
Discounts 40,000 24,000
Returns 11,000 75,000
Wages and salaries 294,000
Bad debts written off 23,000
Other expenses 114,000
Debtors 190,000
Creditors 180,000
Bank and Cash 8,000
Drawings 20,000
Provision for doubtful debts 2,500
Capital 706,500
Total 4,300,000 4,300,000

The following additional information is also made available:
a) Stocks at 31/12/2021 were valued at GH¢210,000
b) Wages and salaries accrued amounted to GH¢4,000
c) Other expenses prepaid amounted to GH¢1,500
d) Provision for doubtful debts is to be made at 2% of debtors at 31/12/2021
e) Depreciation for the year is to be provided as follows:
• Buildings 2% on cost
• Plant 25% reducing balance method

You are required to prepare the following:
i. Income Statement for the year ended 31/12/2021; and
ii. Statement of Financial Position as at 31/12/2021
[20 marks]

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CIBG – FRPA 2022 – L3 – Q6 – Characteristics of Good Corporate Governance

Explain five characteristics of a good corporate governance system.

Explain FIVE (5) characteristics of a Good Corporate Governance System.

(Total: 20 marks)

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CIBG – FRPA 2022 – L3 – Q5 – Abenwooha Ltd Budgets Preparation

Prepare production, direct materials cost, purchases, labour utilization, and wages cost budgets for Abenwooha Ltd using the given data.

Abenwooha Ltd. produces two products: products Asana and Pito. The two products use two materials: A and B in their production. Employees engaged to produce both products work in two departments: Dept. X and Dept. Y. The company uses a marginal costing system.

You have just assumed the post of Management Accountant at Abenwooha Ltd. After your induction week, the Financial Controller gives you the data below:

Budgeted Data Product Asana Product Pito GH¢’000 GH¢’000

Sales for the year 15,000 20,000

Standard data per unit of product: Standard price Product Asana Product Pito Direct materials GH¢ Per Kg Kg Kg A 2 50 100 B 4 100 50

Wages to direct workers: Standard wage rate Product Asana Product Pito GH¢ Per hour hours required hours required Dept. X 20 5 4 Dept. Y 40 4 5 The company’s budgeted total variable production overheads and fixed production overheads are GH¢6,000,000 and GH¢3,000,000 respectively. Budgeted labour hours is 600,000 hours. The company earns a markup of 20% on marginal production cost.

Finished goods inventories are valued at standard marginal production cost per unit and are as follows:

Product Asana Product Pito GH¢’000 GH¢’000

Opening inventories 720 840 Closing inventories 432 798

You are required to: Use the data given above to prepare the following budgets:

(a) Production budget in units

(b) Direct materials cost budget

(c) Direct materials purchases budget

(d) Direct labour utilization budget

(e) Direct wages cost budget

(Total: 20 marks)

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CIBG – FRPA 2022 – L3 – Q4 – OJB Ltd Transactions Treatment Report

Present a report on the treatment of specified transactions in OJB Ltd's financial statements per appropriate accounting standards.

At the last Annual General Meeting of OJB Ltd. the shareholders were unhappy about the delay in submitting the audited accounts to them for study before the meeting. Management of OJB Ltd attributed the delay in finalizing the accounts to the time spent by the External Auditors in auditing the accounts. It has been discovered that the delay in presenting the accounts for audit is because the Accounts Officer was not sure of the treatment of the following transactions in the financial statements of OJB Ltd. for the year ended 31st December 2016.

  1. Stocks of raw materials and finished goods in the company’s warehouse have the following details: GH¢000 Stocks of finished goods Direct cost 50,000 Proportion of fixed overhead 10,000 Proportion of selling expenses 5,000 Net Realizable Value 62,000
  2. A customer who owed OJB Ltd. an amount of GH¢25,000,000 lost all his business assets through a fire outbreak. OJB Ltd. had not taken an insurance cover over receivables.
  3. Research and Development expenditure capitalized during the year amounted to GH¢100,000,000. On further examination, it was noted that an amount of GH¢25,000,000 relating to market research was included in the Research and Development cost capitalized.
  4. The company entered into a non-cancellable lease which covered the useful life of the asset. At the inception of the lease, the fair value of the asset was GH¢45,000,000 and was equal to the present value of the minimum lease rentals. The lessee was responsible for both insurance and maintenance of the lease asset. The accounts officer has included only the annual lease rentals of GH¢9,000,000 as a charge in the Statement of Profit and Loss.

You are required to:

Present a report that details out the treatment of the above transactions in accordance with appropriate accounting standards. (20 marks)

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CIBG – FRPA 2022 – L3 – Q3 – Smart Co Ltd Financial Position Report

Prepare a report commenting on the financial position of SMART Co Ltd using gearing and liquidity ratios, highlighting areas for further investigation.

SKY CO LTD. is considering acquiring an interest in its competitor. SMART Co LTD. The managing director of SKY Co LTD. has obtained the statements of financial position of SMART Co LTD. for the last three years as shown below. SMART Co LTD. – Statement of financial position at 31st December

2019 (GH¢000) 2020 (GH¢000) 2021 (GH¢000)
Non-current assets
Land and buildings 11,460 12,121 11,081
Plant and equipment 8,896 9,020 9,130
20,356 21,141 20,211
Current assets
Inventories 1,775 2,663 3,995
Trade receivables 1,440 2,260 3,164
Cash 50 53 55
3,265 4,976 7,214
Total assets 23,621 26,117 27,425
Equity
Share capital 8,000 8,000 8000
Retained earnings 6,434 7,313 7,584
14,434 15,313 15,584
Non-current liabilities
12% debentures 2022-2025 5,000 5,000 5,000
Current liabilities
Trade payable 390 388 446
Bank 1,300 2,300 3,400
Income taxes payable 897 1,420 1,195
Dividend payable 1,600 1,696 1,800
4,187 5,804 6,841
Total equity and liabilities 23,621 26,117 27,425

You are required to: Prepare a report for the managing director of SKY Co LTD. commenting on the financial position of SMART Co Ltd. and highlight any areas that require further investigation (using gearing and liquidity ratios only). (20 marks)

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CIBG – FRPA 2022 – L3 – Q2 – Adjebinge Ltd Cash Flow Statement

Prepare the statement of cash flows for Adjebinge Ltd for the year ended 31 March 2022 using the provided financial extracts.

ADJEBINGE LTD. (a) Adjebinge Ltd. is a wholesaler and retailer of office furniture. Extracts from the company’s financial statements are set out below:

Statement of comprehensive Income for the year ended:

31 March 2022 31 March 2021
GH¢ ‘000 GH¢ ‘000
Revenue:
— cash 12,800 26,500
— credit 53,000 28,500
65,800 55,000
Cost of sales (43,800) (33,000)
Gross profit 22,000 22,000
Operating expenses (11,200) (6,920)
Finance costs:
— loan notes (380) (180)
— overdraft (220) (180)
(600) (360)
Profit before tax 10,200 14,900
Income tax expense (3,200) (4,400)
Profit for the year 7,000 10,500
Other comprehensive income:
Gain on property revaluation 5,000 1,200
Total comprehensive income 12,000 11,700

Statement of changes in equity for the year ended 31 March 2022

Stated Capital Capital Surplus Income Surplus Total
GH¢ ‘000 GH¢ ‘000 GH¢ ‘000 GH¢ ‘000
Balances b/f 8,500 2,500 15,800 26,800
Share issue 12,900 12,900
Comprehensive income 5,000 7,000 12,000
Dividends paid (4,000) (4,000)
Balances c/f 21,400 7,500 18,800 47,700

Statements of financial position as at 31 March:

2022 2021
GH¢ ‘000 GH¢ ‘000
Asset
Non-current assets (see note)
Cost 93,500 80,000
Accumulated depreciation (43,000) (48,000)
50,500 32,000
Current assets
Inventories 5,200 4,400
Trade receivables 7,800 2,800
Bank 700
13,000 7,900
Total assets 63,500 39,900
Stated capital 21,400 8,500
Capital surplus 7,500 2,500
Income surplus 18,800 15,800
47,700 26,800
Non-current liabilities
10% loan notes 4,000 3,000
Current liabilities
Bank overdraft 3,600
Trade payables 4,200 4,500
Taxation 4,000 5,600
11,800 10,100
Total equity and liabilities 63,500 39,900

You are required to:
Prepare a statement of cash flows for Adjebinge Ltd. for the year ended 31 March 2022 in accordance with IAS 7: Statement of Cash Flows. (20 marks)

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CIBG – FRPA 2022 – L3 – Q1B – Easy Way Limited Financial Statements

Prepare the statement of comprehensive income and statement of financial position for Easy Way Limited as at 31 December 2021 using the given trial balance and additional information.

EASY WAY LIMITED

The list of balances of Easy Way Limited shows the following balances at 31st December 2021.

Dr GH¢000 Cr GH¢000
Share capital (600,000 shares) 320
General reserve 20
Accumulated profit 1 January 2021 50
Inventory (goods for resale) at 1 January 2021 60
Revenue 1,000
Purchases 540
Purchases returns 26
Sales returns 28
Carriage outwards 28
Warehouse wages 80
Sales representatives salaries 60
Administrative wages 40
Warehouse plant and equipment cost 126
Accumulated depreciation — 1 January 2021 50
Delivery vehicle hire 20
Goodwill 100
Distribution expenses 10
Administrative expenses 30
Directors’ salaries (charge to administrative expenses) 30
Rental income 16
Trade receivables 330
Cash at bank 60
Trade payables 60
1,542 1,542

The following additional information has been provided: (1) Inventory of goods for resale at 31 December 2021 amounted to GH¢100,000. (2) Annual depreciation on warehouse plant and equipment of GH¢32,000 should be provided. (3) Income tax expense for 2021 amounts to GH¢50,000. (4) The recoverable amount of goodwill was GH¢90,000.

You are required to prepare: a) the company’s statement of comprehensive income for the year to 31 December 2021; and b) a statement of financial position at that date in accordance with IAS 1: Presentation of Financial Statements. (20 marks)

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