Hba2303:Financial Accounting Question Paper
Hba2303:Financial Accounting
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2012
Meru University of Science and Technology
University Examinations 2012/2013
FOURTH YEAR, FIRST SEMESTER EXAMINATIONS FOR THE DEGREE OF
BACHELOR OF COMMERCE
HBC 2225: FINANCIAL INFORMATION SYSTEMS
QUESTION ONE (30 MARKS)
a) Discuss the benefits and the limitations of learning VBA as a modeling tool showing how it is related to excel. (10 Marks) b) Describe any ten arithmetic or logical excel functions used in Financial modeling. (10 Marks) c) What is a financial model? Discuss the importance of financial modeling in business. (10 Marks)
QUESTION TWO (20 MARKS)
a) Discuss debugging in an excel model. Including a description of examples of errors that excel can detect for you. (10 Marks) b) Describe the common ways of documenting an excel model. (10 Marks)
QUESTION THREE (20 MARKS)
You have an opportunity to invest $ 100,000 for 10 years at a nominal interest rate (also called the annual percentage rate, or APR) of 8%. You wish to create a model to calculate the effective annual interest rate you will earn and the amount your investment will grow to (that is, its future values) for various numbers of compounding periods per year and set up a one-input data table to show the effective interest rates and the future values of the investment for daily, weekly, biweekly, monthly, quarterly, semiannual and annual compounding.
Required:
2
a) Identify and describe the variables involved. (12 Marks) b) Sketch the final user interface showing the input variables and required output variables. (5 Marks) c) How would you test such a model? Give at least three ways. (3 Marks)
QUESTION FOUR (20 MARKS)
Develop a cash flow projection model. (20 Marks)
QUESTION FIVE (20 MARKS)
Discuss the following in relation to the development of a loan amortization model.
a) Define and structure the problem. (5 Marks) b) The financial and mathematical aspects of the model highlighting the variables involved and their relationships. (12 Marks) c) Documentation of the Model. (3 Marks)
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