Answers for Exam on 8th March 2014

8/11/2019 Answers for Exam on 8th March 2014

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ANSWERS FOR EXAM ON 8TH

MARCH 2014

QUESTION 1

SIX activities that must be done before departure

Making travel arrangements Create an appointments schedule.

Optimise time allocation.

Confirm appointments.

Identify meeting places.

Make hotel reservations.

Establish taxes and service charges.

Obtain currency and travellers cheques.

(a) SIX activities that must be undertaken before Mr. Henrys departure are:

preparing a travelers file make sure all appropriate documents for hismeeting are collected, for instance, reports on the progress of the business

making sure that his US Visa and passport are valid. If not, visit the USembassy and immigration office

booking the airline ticket

arranging overseas financesprepare an invoice if hes to receive perdiem orgo to the bank to purchase monetary instruments

preparing travel itinerary

arranging transportation to and from airport and accommodation

(b) THREE local places to be contacted are:

a travel agency a bank the US Embassy

(c) TWO monetary instruments that may be taken on his trip include: travelers checks cash (carried in small amounts for small purchases)

QUESTION 2

(a) FOUR avenues available to publicize vacancies are: guidance counselors at educational institutions

employment agencies advertisements in newspapers the Internet (website of organizations) and other electronic media

(b) Ajob specificationis a detailed statement of the qualities, skills and characteristicsrequired for an individual to complete a particular job. It is used when creating or


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forming an advertisement for a vacancy and includes information on qualificationsand experience required, summary of responsibilities and skills necessary.

On the other hand, ajob descriptiongives details of the work an employee isexpected to do in the job. It is tailor made to suit each employee. The terms of

employment can be found in a job description, with information on job title, salaryto be paid, hours of employment, assigned department and reporting officer orsupervisor and summary of main responsibilities.

QUESTION 3

THREE EQUIPMENT USED IN THE ACCOUNTS OFFICE

PHOTOCOPIER

CALCULATOR

FAX MACHINE

QUESTION 4

(a) FIVE reasons for keeping accounts are: maintaining accurate records of all transactions to control finances providing information to others about the finances of the business recording the value of assets and liabilities to ascertain whether a profit or loss has been made

(b) FOUR functions of the accounts department are:

1.

Collection of accountsthis involves recording and monitoring outstandingpayments received from debtors.

2. Preparation of payrollemployees in an organization are paid for their time

and efforts and the accounts department is responsible for disbursing thesefunds.

3. Preparation of auditan audit is the method of checking the businessaccounts to make sure accounting policies and procedures are correctlyimplemented and there is no fraud or errors. The department must always bein a state of readiness as this activity may be carried out without prior warningor short notice.

4. Treatment of debit and credit notesthe accounts department is

responsible for adjusting customer accounts, using the debit or credit noteswhere applicable. Credit notes are issued to customers when they areovercharged. On the other hand, debit notes are issued when a customer hasbeen undercharged.


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QUESTION 5

(a) The amount spent is $208

(b) The clerk will need $208 to make up the imprest.

(c) The word petty means small. Petty cash is used to make small purchases wherepayment needs to be made in cash.

(d) THREE examples of items that might be bought using petty cash include: postage stamps

tips parking fees

(e) The imprest system incorporates a method of cross-checking column totals against anoverall figure in a way that helps to identify when mistakes in calculations have beenmade.

(f) When money has to be taken out of petty cash when a receipt is not available to put inplace of the cash removed, a petty cash voucher is completed, and signed by someonewith the authority to do so, and is used as a record of petty cash money taken.

QUESTION 6

(a) FIVE types of checks are:

open crossed dishonored

certified post-dated

(b) A standing orderis a banking service, where the holder of an account instructs thebank to pay, or transfer on his behalf, a fixed amount of money at a fixed time eachmonth, until notice is given to stop the payments. A transfer may be made from oneaccount to another or, from one account to a number of accounts. This service isused when making loan payments or paying lease on a land or building.

A direct debitis also a banking service. However, it differs from the standing orderas the holder of the account instructs the bank to make regular payments of varyingamounts. This service is used when making payments for electricity bills ortelephone services.

(c) The procedure to follow when preparing a bank reconciliation is: tick items that appear on both the bank statement and the cash bookthis

includes checks honored and deposits made for the period

add up the cash book for the period and identify and note any errors found


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examine the bank statement for the same period and identify those itemswhich appear on the bank statement, but which have not been entered in thecash book

identify un-presented checks and outstanding deposits make adjustments by adding or subtracting items not listed

QUESTION 7

(a) Error and omissions expectedthe buyer or seller is implying that they reserve theright to correct any errors made when completing a document.

Cash on deliverythe goods must be paid for at the time of delivery

Cash with orderpayment for item must be made at the time of ordering

(b) THREE duties of the purchasing clerk are:

processing requisitions preparing purchase orders maintaining stock records

(c) A quotationis sent by a seller/supplier and gives details of the product the businessis wishing to purchase. Information on the document, which sometimes comes inthe form of a letter or preprinted form, includecurrent price, discounts offered,delivery terms and period.

A tenderinvites potential suppliers to bid or quote for the work in question or tosupply goods or services. It usually has special requirements and specifications on

the latest submission date. All the envelopes are opened at the same time andcompared before a decision is made.

(d) SIX factors to consider when selecting a supplier are: urgency of need price and quality of the goods

delivery and insurance charges discounts offered schedule for delivery

known reliability of supplier

QUESTION 8

A) Functions of the sales clerk

o plan, organise and supervise selling of company goods and serviceso maintain sales recordso record expenditure; advertising and other promotional activitieso manage sales staff; sales representatives or counter staff


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o produce sales forecastso liaise with advertising and marketing departmentso work closely with the accounts departmento cooperate with production departmento liaise with purchasing departmento

record and present sales records.

B) Functions of the marketing department

o operating a range of marketing strategieso establish a promotional strategyo identify promotional mixo provide information to the advertising departmento direct personal selling activities (sale representatives, sales assistants).

C) What is the importance of inventory management?

ii) SOME advantages of stock control are it:

ensures that stock is not depleted indicates when items need to be reordered

keeps production units supplied reduces the likelihood of stock becoming obsolete

maximizes use of storage spaceidentifies when pilferage or spoilage occurs

D) FIFOFirst in Frist out

LIFO- Last in Frist out

QUESTION 9

The purpose of a bank reconciliation statement is .

QUESTION 10

Bank reconciliation statement

Answers for Exam on 8th March 2014

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