# NUMERICAL AND FINANCIAL LITERACY APRIL 2022 PAST PAPER

TUESDAY: 5 April 2022. Morning paper.                                                                                        Time Allowed: 3 hours.

Answer ALL questions. Each question is allocated two (2) mark.

1. Which of the following is an improper fraction?
(a) 2/3
(b) 3⁄4
(c) 4/5
(d) 5/4                                                                                 (2 marks)

2. Component bar charts are used when data is divided into:
(a) Parts.
(b) Groups.
(c) Circles.
(d) None of these.                                                             (2 marks)

3. 25% of 60 students in a class like to play football. How many students do not like to play football?
(a) 45
(b) 15
(c) 25
(d) 50                                                                                   (2 marks)

4. A graphical method of representing the sample points of a multiple-step experiment is
(a) A frequency polygon.
(b) A histogram.
(c) An ogive.
(d) A tree diagram.                                                            (2 marks)

5. Which of the following is the main point of difference between primary data and secondary data?
(a) The collection of secondary data is costlier and more time consuming when compared to primary data
(b) The secondary data is always original whereas the primary data is not
(c) The primary data is much more reliable than secondary data because it is collected directly from respondents
(d) None of the above.                                                      (2 marks)

6. The revenues and expenses of a company are displayed in which statement?
(a) Statement of financial position
(b) Cash Flow Statement
(c) Statement of profit or loss
(d) None of the above.                                                       (2 marks)

7. The main purpose of financial accounting is
(a) To provide financial information to shareholders.
(b) To maintain Statement of financial position.
(c) To minimise taxes.
(d) To keep track of liabilities.                                         (2 marks)

8. Which of the following fractions is not equivalent to 1/3 ?
(a) 5/15
(b) 6/18
(c) 4/12
(d) 7/20                                                                                (2 marks)

9. A graphical device used for enumerating sample points in a multiple-step experiment is a
(a) Bar chart.
(b) Pie chart.
(c) Histogram.
(d) None of these.                                                             (2 marks)

10. Wahu bought an iron box for Sh. 3,300 including a tax of 10%. What was the price of the iron box before tax was added to it?
(a) Sh. 2,000
(b) Sh. 3,000
(c) Sh. 2,500
(d) Sh. 2,800                                                                     (2 marks)

11. What is the supporting evidence in a business transaction called?
(a) Journal
(b) Ledger
(c) Voucher
(d) Contra Voucher.                                                        (2 marks)

12. A person who owes an amount to a business organisation for buying goods and services on credit is a
(a) Creditor
(b) Debtor
(c) Owner
(d) None of the above.                                                   (2 marks)

13. Which of the following statements is true about source of data?
(a) The source of data that is collected and compiled by others is known as secondary data.
(b) The source of data that is collected and compiled by others is known as tertiary data.
(c) The source of data that is collected and compiled by others is known as primary data.
(d) None of the above.                                                   (2 marks)

14. What are outstanding expenses?
(a) Expenses which are not paid off in the current statement of financial position.
(b) The necessary purchases that keep a business going from day-to-day.
(c) Type of expense that is due but has not been paid.
(d) None of the above.                                                 (2 marks)

15. What is bank overdraft?
(a) A document used by a company’s accounts payable department containing the supporting documents for an invoice.
(b) A negotiable instrument where payment is guaranteed by the issuing bank.
(c) A negotiable instrument similar to a bill of exchange.
(d) A line of credit that covers your transactions if your bank account balance drops below zero.                   (2 marks)

16. The frequency polygon is a closed diagram of
(a) Two-sides.
(b) Three sides.
(c) Many sides.
(d) None of these.                                                    (2 marks)

17. Anne bought 2 1/2 kg of potatoes whereas Mark bought 1 1/2 kg of potatoes. Calculate the total amount of potatoes purchased by both Anne and Mark.
(a) 1 kg
(b) 2 kg
(c) 3 kg
(d) 4 kg                                                                     (2 marks)

18. Which of the following statements is true about data in research?
(a) The data used for research is quantitative.
(b) The data used for research can be qualitative but never quantitative.
(c) The data used for research can be both quantitative and qualitative.
(d) The data used for research can be quantitative but never qualitative.                               (2 marks)

19. A histogram is
(a) A frequency graph
(b) A time-series plot
(c) A graph-plotting mean against standard deviation
(d) A correlative frequency chart.                     (2 marks)

20. What are the long-term assets which do not have any physical existence?
(a) Intangible assets
(b) Tangible assets
(c) Current liabilities
(d) Current assets.                                               (2 marks)

21. The percentage of ratio 2:3 is:
(a) 44.44%
(b) 55.55%
(c) 66.66%
(d) None of the above.                                       (2 marks)

22. Which of the following statements is true about collection of data?
(a) The data that is collected from the place of origin is known as primary data.
(b) The data that is collected from the place of origin is known as secondary data.
(c) The data that is collected from the place of origin is known as tertiary data.
(d) None of the above.                                       (2 marks)

23. Which of the following is not a feature of the separate entity concept?
(a) Business and owner are treated as separate entities.
(b) Personal affairs of the owner should not be considered.
(c) Business should not be dissolved in the near future.
(d) This concept is followed in all types of businesses.                                 (2 marks)

24. The expanded accounting equation is used by which statement?
(a) Cash flow statement.
(b) Statement of financial position.
(c) Statement of profit or loss.
(d) None of the above.                                         (2 marks)

25. A toy marked at Sh. 840 is sold for Sh. 714. What is the percentage discount on the toy?
(a) 10%
(b) 15%
(c) 20%
(d) 25%                                                                   (2 marks)

26. Which of the following is an example of compressed data?
(a) Histogram.
(b) Ungrouped data.
(c) Frequency distribution.
(d) Tabulation.                                                     (2 marks)

27. Which of the following is an accurate representation of the process of conducting research?
(a) The formulation of hypothesis precedes the collection of data.
(b) The formulation of hypothesis precedes the selection of research tools.
(c) The formulation of hypothesis precedes the statement of objectives.
(d) The formulation of hypothesis precedes the analysis of data.                                    (2 marks)

28. Going concern can be defined as:
(a) The concept that provides the basis for the formation of the accounting equation.
(b) This concept that provides for allocation of costs in different accounting periods.
(c) This concept that discusses the issue of the realisation of profit.
(d) This concept that assumes that the business will operate for a long period of time and will not be dissolved in the near future. (2 marks)

29. Matching concept does not include one of the following:
(a) The revenues of a particular period must match with the expenses of that period.
(b) This concept also requires allocation of cost on different accounting periods.
(c) Revenues should only be recorded if there is reasonable certainty about its realisation.
(d) The comparison of incomes and expenses of a period gives the net profit or loss for that particular period.    (2 marks)

30. The accounting conventions do not include:
(a) Depreciation convention.
(b) Conservatism convention.
(c) Consistency convention.
(d) Full disclosure convention.                         (2 marks)

31. Which of the following pairs of fractions is not equivalent?
(a) 1/2 , 2/3
(b) 4/5 , 12/15
(c) 6/7 , 12/14
(d) 4/9 , 36/81                                                     (2 marks)

32. What is the meaning of cluster sampling?
(a) It is a process where the sampling universe is divided into multiple groups.
(b) It is a process where the samples for a study is obtained through conscious selection.
(c) It is a process where the samples for a study are selected at regular intervals.
(d) It is a process through which the sample for a study is divided into multiple groups.                                     (2 marks)

33. A histogram contains a set of

34. In basic accounting terms, the day book is also known as
(a) Journal.
(b) Voucher.
(c) Ledger.
(d) Book Keeping.                                             (2 marks)

35. The account which increases equity is known as
(a) Debit account.
(b) Credit account.
(c) Revenue account.
(d) Treasury stock.                                           (2 marks)

36. Current liabilities are
(a) Assets of a company that are expected to be sold or used as a result of standard business operations over the next year.
(b) Potential financial obligations that may occur in the future.
(c) An organisation’s short-term financial obligations that are due within one year or within a normal operating cycle.
(d) Obligations listed on the statement of financial position not due for more than a year.                          (2 marks)

37. For geographically based data, the bars used are
(a) Vertical
(b) Zigzag
(c) Horizontal
(d) Diagonal.                                                    (2 marks)

38. Which of the following are known as the types of research data?
(a) Organised data and unorganised data.
(b) Qualitative data and quantitative data.
(c) Processed data and unprocessed data.
(d) None of the above.                                   (2 marks)

39. If 50% of students are good at science out of 20 students. Then the number of students good at science is:
(a) 10
(b) 15
(c) 5
(d) 11                                                                (2 marks)

40. A circle in which sectors represents various quantities is called
(a) Histogram.
(b) Frequency Polygon.
(c) Pie chart.
(d) Component bar chart.                          (2 marks)

41. ? – 1/4 = 1⁄4
(a) 1⁄4
(b) 1⁄2
(c) 3⁄4
(d) 5/4                                                          (2 marks)

42. Which of the following statements is not true about the collection of data?
(a) In the structured interview, the interviewer asks a set of pre-planned questions in a standard format.
(b) In the observation method, the researcher collects data with the help of their observational skills.
(c) In an indirect interview, the investigator directly asks the informants for the data.
(d) In a direct interview, the researcher meets the interviewees directly to collect the data. (2 marks)

43. What are liabilities?
(a) Resources of a company
(b) Expenses of a company
(c) Obligations of a company
(d) None of the above.                            (2 marks)

44. What is an Income?
(a) A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
(b) Obligation between one party and another not yet completed or paid for.
(c) Earning from investments and other sources unrelated to employment.
(d) The revenue a business earns from selling its goods and services. (2 marks)

45. Which of the following statements is true about a census?
(a) A census involves the process of choosing a few units out of the entire population for collecting data.
(b) A census involves the process of organising and publishing the data.
(c) A census involves a process of collecting data from each and every unit.
(d) None of the above.                        (2 marks)

46. In a pie chart, usually, the arrangement of the sectors is
(a) Clockwise
(b) Pairwise
(c) Anti-clockwise
(d) None of these.                             (2 marks)

47. The kind of debts which require to be repaid in a short term are known as
(a) Fixed liabilities
(b) Current liabilities
(c) Depreciating assets
(d) Intangible assets.                      (2 marks)

48. Which of the following statements is true about the collection of data?
(a) The challenge of confusion might arise in the case of an indirect oral investigation.
(b) The challenge of confusion might arise when the information is accessed through correspondents.
(c) The challenge of confusion might arise when the researcher obtains data through mailed questionnaires.
(d) The challenge of confusion might arise in the case of direct personal interviews. (2 marks)

49. What type of balance do asset accounts have?
(a) Contra.
(b) Credit.
(c) Debit.
(d) All of the above.                    (2 marks)

50. Revenue – Expenses =?
(a) Net Income.
(b) Net Loss.
(c) Depreciation.
(d) None of the above.              (2 marks)

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