Day: February 10, 2021

(a)       State and briefly explain four factors which influence the taxable capacity in a country.  (  6 marks)  Number of inhabitants: The larger the number the greater is the taxable capacity of the community to contribute towards the expenses Read More …

Give brief definition of value added tax (VAT).(2 marks) VAT is a multi-stage indirect tax imposed at every point of sale on value added to goods and services. The tax paid on expenditure is called the input tax and tax Read More …

QUESTION ONE State the tax position of Mrs. Kiogora. (  2 marks)    She has the option to file her own self-assessment return with respect to her employment         and business income at arms length. Her employment and Read More …

QUESTION ONE Distinguish between a direct and indirect tax. ( 4 marks) (ii) Is Value Added Tax (VAT) a direct or indirect tax?  Explain( 2 marks) A direct tax is one whose impact as well as incidence falls on one Read More …

+ INTRODUCTION TO RISK AND RETURN   QUESTION 1 Using a well-labelled diagram, differentiate between ‘systematic risk’ and ‘unsystematic risk’. (b) Difference between systematic risk and unsystematic riskSystematic (or market) risk cannot be diversified away: it is the risk which Read More …

Describe the following methods of credit enhancement. Excess spread. Surety bond.     QUESTION 31 Credit enhancement is the process of reducing credit risk by requiring collateral insurance or other agreements to provide the lender with the assurance that he Read More …

  WORKING CAPITAL MANAGEMENT        QUESTION 1 Discuss the conflicts that might arise among the objectives of working capital management. b) Conflicts that might arise among the objectives of working capital management The objectives of working capital management are Read More …

  FINANCIAL STATEMENT ANALYSIS   QUESTION 1 b) The following data was extracted from the books of Sky Ltd. for the year ended 31 December   Total sales Total assets turnover      Total debt to total assets Current ratio Inventory Read More …

   DIVIDEND POLICY   QUESTION 1 c) Describe two types of dividends which a corporate entity could pay its shareholders.   QUESTION 1 c) Types of dividends which a corporate entity could play its shareholders: Payment of cash dividends. This Read More …

    QUESTION ONE   Consider a supermarket chain and the use they may make of information systems in the running of their business. Some of the objectives they are faced with are: – Easy product identification; Fast customer processing Read More …