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Bcf 326: Public Finance Question Paper

Bcf 326: Public Finance

Course:Bachelor Of Commerce

Institution: Kaimosi Friends University College question papers

Exam Year:2017

KAIMOSI FRIENDS UNIVERSITY COLLEGE
(A Constituent College of Masinde Muliro University of Science and Technology)

UNIVERSITY MAIN EXAMINATION
2017/2018 ACADEMIC YEAR
THIRD YEAR FIRST SEMESTER EXAMINATION

FOR THE DEGREE OF BACHELOR OF COMMERCE

COURSE CODE: BCF 326
COURSE TITLE: PUBLIC FINANCE

DATE: DECEMBER,2017
TIME:9.00AM- 11.00 AM

INSTRUCTIONS TO CANDIDATES:

1.Answer question ONE and ANY other TWO questions

2.Include all supporting calculation in your answers where appropriate

QUESTION ONE

a).Write short notes on the following as used in public finance

i.controller of budgets. 2 marks
ii.chart of account. 2 marks
iii.recurrent expenditure. 2 marks
iv.chief officer. 2 marks

b). Define with examples 2 types of externalities. 2 marks

c). Citing Kenyan examples,discuss the importance of privatization of parastatals or government corporations. 6 marks

d). Explain five ways through which national budgets promote economic development. 10 marks

e). What are Kenya's efforts to manage debt burden crisis. 4 marks

QUESTION TWO

a). Discuss the benefits that accrue to an economy from public finance. 10 marks

b). Distinguish between the following terminologies and give examples

i.public good and private good. 3 marks
ii.exclusion and rivalry. 3 marks

c). Explain the distinction between tax avoidance and tax evasion and describe the actions you should take if you become aware that one of your clients has engaged in tax evasion. 4 marks

QUESTION THREE

a). Explain any FIVE cannons of public finance. 10 marks

b).There has been a phenomenon increase in public expenditure.Explain the effects of increased government expenditure on the economy. 10 marks

QUESTION FOUR.

a). Distinguish between benefit theory and ability to pay theory in taxation.Give advantages of each theory. 5 marks

b). Discuss the challenges facing tax system in Kenya. 15 marks

QUESTION FIVE

a)There are four budgetary policies of the government.state them and explain how each of them can be achieved using Various fiscal policies. 12 marks.

b).State and explain the principles of government expenditure. 4 marks

c). Define the term market failure and explain three sources of market failure. 4 marks

Bcf 326: Public Finance Question Paper

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