Examination Questions Commerce SS 2 Second Term Lesson Notes
COMMERCE THEORY
Answer Any Three (3) Questions
Question 1
(a) Define the following:
i. Nominal Capital
ii. Working Capital
iii. Issued Capital
(b) Define capital from the perspective of:
i. An Accountant
ii. An Economist
iii. A Layman
Question 2
(a) Fred Asanal had the following state of affairs as at 31st December, 1999:
- Vehicles – N82,000
- Furniture – N15,000
- Stocks – N38,000
- Debtors – N25,000
- Creditors – N30,000
- Cash in Hand – N10,000
- Bank Overdraft – N5,000
- Capital – N135,000
Calculate the following:
i. Current Assets
ii. Current Liabilities
iii. Working Capital
(b) Mention four (4) types of credits and explain briefly.
Question 3
(a) The following information is taken from the balance sheet of XYZ Ltd:
- Opening Stock – N1,000
- Purchases – N10,000
- Sales – N15,000
- Wages – N1,000
- Closing Stock – N5,000
You are required to calculate:
i. Cost of Goods Sold
ii. Rate of Turnover
iii. Net Profit
iv. Average Stock
(b) Write a short note on:
i. Credit
ii. Turnover
iii. Profit
Question 4
(a) Write a short note on the following:
i. Marine Insurance
ii. Fire Insurance
iii. Life Insurance
(b) The following is the summary of the assets and liabilities of Okon Trading Company as at 31st March, 1987:
- Initial Capital – N5,000
- Net Profit – N1,000
- Creditors – N500
- Furniture – N2,000
- Equipment – N2,900
- Debtors – N100
- Stock – N1,000
- Bank – N500
Calculate the following:
i. Current Assets
ii. Current Liabilities
iii. Fixed Assets
COMMERCE OBJECTIVE QUESTIONS
-
Which of the following is NOT an aim of advertising?
A. Creating a desire to purchase the goods
B. Arousing the interest of the public
C. Attracting the attention of the public
D. Inspiring public confidence in the goods
E. Reducing the cost of the goods produced -
What is the term for the excess of selling price over the cost price?
A. Gross profit
B. Net profit
C. Loss
D. Capital
E. Expenditure -
Which of the following warehouses is generally found near a port?
A. Bonded warehouse
B. Distributor’s warehouse
C. Manufacturer’s warehouse
D. Producer’s warehouse
E. Wholesaler’s warehouse -
Banks issue cheque books to customers holding ……… accounts.
A. Current
B. Deposit
C. Fixed deposit
D. Foreign
E. Savings -
The difference between the higher price and the lower price quoted for shares and stocks at the stock exchange is known as
A. Brokerage
B. Commission
C. Contango
D. Interest
E. Jobbers turn -
An agreement that is enforceable in law is called
A. A contract
B. A declaration
C. A decree
D. An offer
E. A statute -
Which of the following is NOT a function of a retailer?
A. Buying in large quantities
B. Providing after-sales service
C. Displaying goods for sale
D. Selling directly to consumers
E. Manufacturing products -
One of the following does NOT fit into the group:
A. Agriculture
B. Carpentry
C. Fishing
D. Mining
E. Quarrying -
Which is NOT a legislation aimed at protecting the consumer?
A. Consumer Association Act
B. Food and Drugs Act
C. Hire Purchase Act
D. Sales of Goods Act
E. Trade Description Act -
Which of the following CANNOT be sold through a vending machine?
A. Ice-cream
B. Shoes
C. Snacks
D. Tea
E. Tickets -
A voluntary association of business executives, traders, and entrepreneurs is called a:
A. Chamber of Commerce
B. Consumers Association
C. Manufacturers Association
D. Trade Association
E. Trade Union -
The movement of goods from producers to consumers is called
A. Production
B. Consumption
C. Distribution
D. Warehousing
E. Retailing -
Which of these is NOT a means of transportation?
A. Road
B. Rail
C. Sea
D. Mining
E. Air -
The person who brings sellers and buyers together in stock exchange transactions is called
A. Banker
B. Broker
C. Retailer
D. Supplier
E. Auditor -
Which of the following is a direct service?
A. Teaching
B. Banking
C. Fishing
D. Mining
E. Manufacturing -
Which factor of production is responsible for organizing and combining the other factors?
A. Land
B. Capital
C. Labour
D. Entrepreneurship
E. Machinery -
Which type of business organization is controlled by a single individual?
A. Partnership
B. Cooperative society
C. Joint-stock company
D. Sole proprietorship
E. Corporation -
What is the reward for capital?
A. Salary
B. Interest
C. Profit
D. Rent
E. Wages -
The money used in setting up a business is called
A. Revenue
B. Capital
C. Profit
D. Dividend
E. Tax -
What is the main function of a wholesaler?
A. Selling goods in bulk to retailers
B. Selling directly to consumers
C. Manufacturing goods
D. Providing after-sales service
E. Producing raw materials -
Which of the following is NOT a function of money?
A. Medium of exchange
B. Unit of account
C. Store of value
D. Measure of creditworthiness
E. Standard of deferred payment -
A partnership business is owned by
A. One person
B. Two or more persons
C. A government
D. The public
E. A corporation -
What is the primary goal of a business?
A. Maximizing profit
B. Employing workers
C. Expanding operations
D. Reducing costs
E. Gaining market share -
Insurance that covers loss of ships and cargo at sea is called
A. Fire insurance
B. Marine insurance
C. Life insurance
D. Accident insurance
E. Health insurance -
The largest type of business organization is
A. Sole proprietorship
B. Partnership
C. Cooperative
D. Joint-stock company
E. Government agency