MID TERM TEST FIRST TERM COMMERCE SS 3

           FIRST TERM MID TERM TEST                                    SUBJECT: COMMERCE    CLASS: SS 3     Time: 2 HOURS PART A: THEORY QUESTION 1 IS COMPULSORY AND ANY OTHER 2

1. (a) Define capital according to

1. The economist
2. The accountant
3. The layman

(b)The following information relate to Jamiu and co ltd for the year ended 31st march 2006                                       # Sales                                 1200 Opening stock                             3000 Purchases                                 7000 Closing stock                             2000 Wages                                 500 Transport                                 400 Electricity                                 300     From the above figures, calculate (showing all workings) the

1. Cost of goods sold
2. Gross profit
3. Net profit percentage
4. Gross profit percentage
5. Rate of turn over

1. List and explain five types of capital
2. (a) Define stock exchange

(b) Explain four importance of stock exchange

1. (a) Explain  five aims and objectives of ECOWAS

(b) what are the problems of ECOWAS

1. Enumerate five reasons for consumer protection

  SECTION B: OBJECTIVE ANSWER ALL 1.___________ sees capital as the owner”s equity (a) layman (b) employer (c) economist (d) accountant 2.The properties of a firm which are meant to be used in the production of other goods are _________ (a) stock (b) asset (c) capital (d) liabilities 3.The capital used for the day to day running of the business is called _________ (a) working capital (b) capital employed (c) business capital (d) paid up capital

4. Working capital is calculated as (a) Assets——–liabilities (b) Assets———-stock (c) Assets———–current liabilities (d) Assets———–  longterm liabilities
5. Working capital can be used as a basis for _________ (a) profit (b) gain (c) gross profit (d) planning
6. __________ is the benefit which accrue to a businessman (a) cross (b) profit (c) reward (d) investment
7. The main purpose of a business organization is to make _________ (a) loss (b) sales (c) profit (d) observation
8. The excess of turnover over the cost of goods sold is (a) expenses (b) net profit (c) sales (d) gross profit
9. The gross profit can be determined through preparation of ___________ (a) trading account (b) profit and loss account (c) balance sheet (d) closing stock
10. Gross profit is calculated as (a) opening stock less cost of goods sold (b) opening stock plus purchases less closing stock (c) opening stock less purchases  + carriage inwards (d) opening stock plus sales ,less purchases
11. The excess of gross profit over the expenses is called (a) sales (b) turn over (c) net profit (d) purchases
12. The net profit is ascertained through the preparation of ________ (a) balance sheet (b) trading account (c) assets account (d) profit and loss account
13. Trading account is prepared to show (a) net sales (b) net profit (c) gross profit (d) net assets
14. The following are the content of a trading account except (a) purchases (b) carriage outward (c) sales(d) opening stock
15. Return inward is also known as (a) sales return (b) purchases return (c) carriage outward (d) sales expenses
16. The total value of goods both credit and cash bought for resale is ___________ (a) cash sales (b) purchases (c) stock (d) sales
17. Average stock is calculated as (a) opening stock + closing stock÷ by two (b) opening stock + closing stock + 2 (c) opening stock- gross profit ÷ two (d) closing stock – gross profit ÷ two
18. The following are the uses of trading profit and loss except ________ (a) to show the expenses for the year (b) to show profit (c) to show turn over for the year (d) for comparism
19. The following are the factors affecting profit except________ (a) relationship between demand and supply (b) the selling price (c) the number of competing firms (d) the population of the country
20. The total net sales during a particular period is called _________ (a) turnover (b) purchases (c) goods (d) services
21. Expensive goods have _______ turnover (a) slow (b) fast (c) quick (d) good
22. The number of times the value of average stock of a business is sold during a period is called _______ (a) cost of purchase (b) rate of turn over (c) turnover (d) sales
23. The relationship that exit between the profit and cost of goods sold is __________ (a) managers commission (b) Net profit percentage (c) margin (d) mark up 
24. The stock exchange is an essential part of the ________ market (a) money market (b) loan market (c) capital market (d) bank market
25. The stock exchange is a forum for _______ investment (a) shares (b) financial investment (c) stock (d) income
26. The stock exchange is in lagos with branches in ______ and ________ (a) Abuja and Portharcourt (b) Abuja and Calabar (c) Abuja and Kano (d) Abuja and Rivers
27. Stock exchange was established in (a) 1958 (b) 1960 (c) 1965 (d) 1963
28. ECOWAS was established in the year _______ (a) 1975 (b) 1980 (c) 1960 (d) 1992
29. _______ opted out of ECOWAS (a) Liberia (b) Mauritania (c) Guinea (d) Mali
30. The major objective of ECOWAS is ________ (a) to pay tax as at when due (b) to free prisoners (c) to provide for the needy (d) to expand trade