QUESTIONS
- A business is required to maintain a healthy environment free from pollution. State four ways in which the environment may be polluted(4mks)
- State four characteristics of human wants.( 4mks)
- Outline four ways in which a developing country like Kenya may benefit from entrepreneurship. (4mks)
- Give four reasons why filing is important in an office. (4mks)
- Highlight four Factors which may render face to face communication ineffective. (4mks)
- State four banking services that the central bank of Kenya provides to the government. (4mks)
- Highlight four factors that may lead to an overcharge in an invoice (4mks)
- The following transactions relate to upendo enterprises for the month of July 2022
July 1 balance b\d cash 20000, bank over draft 5000
July 10 paid juma a creditor sh, 2000 cash in full settlement of his account of sh. 2100
July 20 received a cheque of sh. 30000 from Pato a debtor having deducted 20% cash discount
JULY 30 withdrew sh. 8000 from bank for office use
REQUIRED record the above transactions in a three column cash book (4mks) - Calculate the missing figures in the table below. (4mks)
Capital Assets Liabilities 80000 70000 300000 20000 600000 1000000 600000 40000 - State four reasons that account for the need for consumer protection.(4mks)
- Outline four features of a private limited company(4mks)
- Indicate the type of journal in which each of the following transaction would be recorded. (4mks)
TRANSACTION JOURNAL Good sold for cash Purchases of office furniture on credit Goods bought on credit Goods bought on credit returned to supplier - Indicate the type of utility created by each of the following activity.(4mks)
Milling wheat grain in to flour Transporting wheat grain Selling bread in a shop Storing grains in silos - Outline four disadvantages of a long chain of distribution of goods to a buyer. (4mks)
- State four benefits of advertising to a consumers(4mks)
- State four uses of national income statistics(4mks)
- Outline four ways in which a youthful population may be useful to a country.(4mks)
- The following information relates to Wakesho traders as at 31st July 2022
Required; prepare Wakesho traders trial balance as at 31st July 2022. (4MKS)Details shs Furniture and fittings 130000 Debtors 70000 Commission accrued 10000 Creditors 50000 Drawings 20000 Discount received 1000 Bank overdraft 5000 Bank loan 10000 Capital 55000 - State four sources of government revenue. (4mks)
- Highlight four factors that could lead to a faster economic development in a country. (4mks)
- State four factors that insurance companies consider before determining premium to be paid. (4mks)
- Indicate the effect of the following transactions on the capital of a business. Use increase, decrease or no effects(4mks)
Transactions Effects Owner took cash from the business for personal use Payment of business expenses in cash Owner deposited additional cash from personal savings The business made loss from trading - The cost of consumers goods and services for a representation basket of an average family is given below.
Determine the increase in consumer price index using 2020 as the base year.(4mks)Year 2020 2021 Price(shs) 2000 3000 - State four features of perfectly competitive market structure (4mks)
- The following information was extracted from tamu tradersas at 31 dec 2021
Fixed assets 40000
Stock 12000
Current liabilities 6000
Profits for the year 10000
Calculate;- Rate of return on capital employed (2mks)
- Current assets (2mks)
MARKING SCHEME
-
- Releasing smoke and poisonous gases into the air
- Noise pollution
- Channeling liquid waste into rivers
- Producing strong lights which may be dangerous to human sight
- Dumping solid waste carelessly
-
- Unlimited/endless/insatiable
- Vary in intensity and urgency
- They are competitive
- Recurrent/repetitive
- Some are universal
- Some are habitual
- Requires resources
- They are complimentary
-
- Through creation of employment
- Promotion of entrepreneurial culture
- Making use of local resources
- Promotion of technology
- Formation of capital
- Savings on import
- Improvement of infrastructure
-
- Keeps the office tidy
- Safety of documents
- Easy retrieval of documents’
- Protect information against unauthorized hands
- Saves on space
- For future reference
-
- Use of un familiar language
- Use of unfamiliar nonverbal signs
- Wrong timing
- Prejudice
- Poor listening skills
- Noise
- Emotional responses
- Any other correct answer
-
- Accepts governments deposits
- Issuing currency on behalf of government.
- Arranges and pays public debts
- Advice on monetary issues
- Acts as guarantor to government
- Lender to the government
-
- Overpricing of goods
- \mistake in calculating discounts
- Arithmetic mistakes
- Charges for items not delivered
- \
DATE DETAILS F DA CASH BANK DATE DETAILS F DR CASH BANK JULY 1 BAL B/D 20000 JULY 1 BAL B/D 5000 20 PATO SL 7500 30000 10TH JUMA PL 100 2000 30 BANK C 8000 30 CASH C 8000 BAL C/D 26000 17000 7500 28000 30000 100 28000 30000
Capital Assets Liabilities 80000 150000 70000 280000 300000 20000 600000 1000000 400000 520000 600000 40000 -
- Harmful products
- Overpricing by sellers
- Products sold may be poor products
- Hoarding of goods by sellers
- False adverts by sellers
- Commodities may have false labeling
-
- Must have at least one director
- Shares are not freely transferable
- Can start trading on receipt of certificate of incorporation
- No authorized minimum share capital
- Maximum of fifty share holders
- Shares are not advertised
Transactions Effects Owner took cash from the business for personal use Cash receipt journal/cash book Payment of business expenses in cash General journal Owner deposited additional cash from personal savings Purchases journal The business made loss from trading Return outwards/purchases return journals -
- Form utility
- Place utility
- Possession utility
- Time utility
-
- Increases price of goods
- High chances of delays
- May damage goods due to handling by many people
- Perishable goods may go bad
- Feedback to producer may be slow
-
- Information on offers
- Informs on uses of products
- Enables producer to compare different products
- High quality goods due to competition
- Competition may result into lower prices
-
- Indicators of standards of living
- Comparison of standards of living between different countries
- Assessing performance of economy over time
- Government use it in planning
- Helps investors to make to make investment decision
- Compare economic performance over different
-
- Less expenditure on social security
- Winder market for youth related products
- Growth in sectors such as music, fashions
- High mobile labour
- Increased innovation and inventions
- Youths are more adaptable to changes in technology
- Continuous supply of labour
- WAKESHO TRDERS
TRIAL BALANCE
AS AT 31/07/22
Details DR(shs) CR(shs) Furniture and fittings 130000 Debtors 70000 Commission accrued 10000 Creditors 50000 Drawings 20000 Discount received 1000 Bank overdraft 5000 Bank loan 10000 Capital 55000 TOTALS 220000 220000 -
- Taxes
- Government borrowing
- Rents and rates
- Seles of government properties
- Fees eg license fees
- Court fines
- Grants and donations
- Income from government businesses
-
- Abundant natural/economic resources
- Industrialization
- Use of modern technology
- Improved infrastructure
- Investments on research
-
- Value of insurance policy/life
- Occupation of the insured
- Time the policy covers
- Age of the assured person/ property
- Health of the assured
- Sum assured
-
Transactions Effects Owner took cash from the business for personal use Decrease Payment of business expenses in cash No offects Owner deposited additional cash from personal savings Increase The business made loss from trading Decrease - 3000/2000 × 100=150%
150-100 =50% -
- Large number of buyers and sellers
- Perfect knowledge about the market
- No government interference
- No transport cost
- Free entry and exit of firms from the market
- Homogeneity of products
- Perfect mobility of factors of production
- Calculate;
- C.E = F.A + C.A –C.L
= 40000+12000 -6000
= 46000
ROCE = NP/CE x 100
10000/46000 X100=21.7% - CA/CL
12000/6000
2:1
- C.E = F.A + C.A –C.L
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