NUMERICAL AND FINANCIAL LITERACY AUGUST 2022 PAST PAPER

TUESDAY: 2 August 2022. Morning paper. Time Allowed: 2 hours.

This paper is made 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. Data collected for the first time by the researcher is referred to as?
A. Secondary data
B. Grouped data
C. Primary data
D. Qualitative data

2. Which of the following is a source of secondary data?
A. Interview
B. Business journal
C. Observation
D. Questionnaire

3. In a meeting, there are 800 people. The ratio of men to women was 3:5. Later, as the meeting progressed 20 more men joined while 20 women left the meeting. What was the new ratio of men to women in the meeting?
A. 3:2
B. 2:3
C. 8:13
D. 7:12

4. The grouping of data values into classes with their corresponding frequencies is referred to as
A. Polygon
B. Frequency distribution
C. Histogram
D. Ogive

5. The table below shows frequency distribution of defective units in a manufacturing process:

Identify the type of classes.
A. Exclusive
B. Inclusive
C. Absolute
D. Ungrouped

6. The data source is given as ______________ in a table
A.. Foot note
B. Header
C. Column header
D. Row header

7. A set of number used to indicate the intervals on a graph are referred to as?
A. Scale
B. Key
C. Axis
D. Title

8. Fifteen tractors were hired to construct a section of a road in 12 days. The contractor decided to increase the number of tractor in order to finish the job in 10 days. How many more tractors did he need to hire to meet his target?
A. 18
B. 12
C. 6
D. 3

9. The average of the upper and lower limits of a given class is referred to as
A. Class mid-point
B. Class interval
C. Range
D. Class boundary

10. Increase 540 by 120%
A. 1818
B. 648
C. 760
D. 1188

11. Work out

A. 0.02
B. 0.54
C. 0.70
D. 1.0

12. The ratio of two numbers is 2:3. If the sum of their squares is 325, what is the value of the smaller number?
A. 5
B. 10
C. 20
D. 25

13. Work out

A. 5
B. 10
C. 14
D. 70

14. Ann and Grace are in partnership business where they share profits in the ratio of 4:8. Calculate the percentage share of Grace.
A. 50%
B. 200%
C. 33.33%
D. 66.67%

15. Goodwill is a type of _____________ asset
A. Current
B. Tangible
C. Intangible
D. Non current

16. The share of profit paid to shareholders is referred to as __________________
A. Return on investment
B. Retained profit
C. Interest
D. Dividend

17. A journal is also referred to as _____________
A. A day book
B. Original book
C. Ledger
D. Entry book

18. State the primary purpose of a petty cash book
A. Record cash receipts
B. Record cash payments
C. Record income and expenditure
D. Record cash receipts and cash payments

19. A trial balance is used to check the accuracy of?
A. Cash flow statements
B. Income statement
C. Bank statement
D. Ledger account balances

20. ____________ is the first phase of accounting cycle
A. Identifying a transaction
B. Posting entries to the ledger
C. Deciding to start a business
D. Preparing a journal

21. Prepaid rent is a ___________ to the landlord
A. Asset
B. Current liability
C. Capital
D. Expense

22. ABC Ltd. paid creditors Sh.400,000 cash. With this transaction we debit ___________ account, and credit ______________ account
A. Creditors, cash
B. Payments, cash
C. Cash, receivables
D. Cash, purchases

23. Which of the following transactions affect the capital of a company?
A. Bank overdraft
B. Personal drawings
C. Loan repayment
D. Credit repayment

24. Retained earnings are classified as ____________ in the statement of financial position.
A. Long term asset
B. Capital
C. Long term liability
D. Current asset

25. The class interval is determined by?
A. The difference between the upper class limit and lower class limit
B. The difference between the upper class boundary and the lower class boundary
C. The difference between the highest observation
D. The class frequency and the lowest observation in a data distribution

26. Which one of the following numbers does not represent a prime number?
A. 2
B. 4
C. 5
D. 11

27. Combine as a single fraction:

28. Which name do we give to a fraction whose numerator is larger than its denominator?
A. Improper fraction
B. Single fraction
C. Mixed fraction
D. Proper fraction

29. What is the value of:
0.67 + 0.4 of (0.75 – 0.375) + 0.5 x 0.8
A. 0.15
B. 1.17
C. 1.22
D. 1.65

30. Identify the place value of digit 4 in the observation 296.412
A. Hundreds
B. Tenths
C. Oneth
D. Thousandths

31. A trader increased the price of an item whose marked price was Sh.480 by 25%. Due to low turnout of customers, he reduced the price again by 15%. What was the final price of the item?
A. Sh.550
B. Sh.560
C. Sh.510
D. Sh.355

32. Convert 0.72 into a fraction
33. An equipment cost Sh.9,280 including VAT of 16%. How much was the cost of the equipment before VAT?
A. Sh.1,280
B. Sh.1,484.80
C. Sh.8,000
D. Sh.10,764.80

34. A bed with a list price of Sh.30,500 is offered to a buyer for Sh.28,975. What is the discount rate?
A. 5.3%
B. 95%
C. 5%
D. 105.3%

35. In a college, there are 360 students. 2/5 of them are girls. How many male students are there?

A. 144
B. 216
C. 72
D. 288

36. The rate of depreciation of an asset is 25%. If the depreciation amount is Sh.46,875, what is the cost of the asset?
A. Sh.140,625
B. Sh.187,500
C. Sh.37,500
D. Sh.58,593.15

37. Determine the value of y if 4:y = 16:3
A. 1
B. 3⁄4
C. 12
D. 19

38. 6 is a factor of the following numbers except
A. 12
B. 66
C. 86
D. 42

39. The following numbers are factors of 42 except
A. 2
B. 7
C. 6
D. 8

40. Find the value of x in

A. 4/5
B. 6
C. 3
D. 5

41. Suppose profits of Sh.240,000 are to be shared between 3 partners, A, B and C in the ratio 3:5:8. How many more does C get than A?
A. Sh.195,000
B. Sh.75,000
C. Sh.120,000
D. Sh.45,000

42. 10 men building a wall take 40 days to complete it. How long would it take 8 men to complete the wall?
A. 32
B. 18
C. 22
D. 50

43. A sum of money is divided into three parts in the rain, 2:3:5, if the largest share isSh,800, calculate the total amount shared
A. Sh.320
B. Sh.1,120
C. Sh.1,600
D. Sh.480

44. Which one of the following source documents is used in preparation of a sales return:?
A. Incoming credit note
B. Invoice issued
C. Invoice received
D. Outgoing credit note

45. Which of the following statements is true?
A. Liabilities = Capital – Assets
B. Capital = Assets + liabilities
C. Liabilities = Assets – Capital
D. Assets = Central – Liabilities

46. The following are accounting concepts except
A. Going concern
B. True and fair view concept
C. Accrual debit
D. Prudence

47. A frequency polygon is plot of?
A. Class frequencies against class mid points
B. Class frequencies against class intervals
C. Relative frequencies against class width
D. Relative frequencies against class midpoints

48. Mark is three times younger than his mother who is 8 years younger than her husband. The sum of their age is 93 years.
If Mark’s mother is represented by y, with an equation to find the sum of their ages
A. 2 1⁄2 y + 8 = 93
B. 2 1⁄3 y – 8 = 93
C. 2 1⁄2 y + 3 = 93
D. 2 1⁄3 y + 8= 93

49. GLV Limited bought a motor vehicle on credit from HLV motors for Sh.3,000,000 post the above transaction to the relevant ledger account
A. Dr. motor vehicle account Sh.3,000,000
Cr. loan account Sh.3,000,000
B. Dr. motor vehicle account Sh.3,000,000
Cr. cash account Sh.3,000,000
C. Dr. motor vehicle account Sh.3,000,000
Cr. GLV Limited account Sh.3,000,000
D. Dr. HLN Limited Sh.3,000,000
Cr. motor vehicle account Sh.3,000,000

50. James Muteti bought goods worth Sh.500,000 for sale and paid by cheque. To record this transaction we debit ___________ account
A. Goods
B. Bank
C. Purchases
D. Cheque

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