MID TERM TEST FIRST TERM COMMERCE SS 3

FIRST TERM MID-TERM TEST

SUBJECT: Commerce
CLASS: SS 3
TIME: 2 HOURS

INSTRUCTION:

Answer Question 1 and any other TWO questions in Section A. Answer ALL questions in Section B.

SECTION A: THEORY

QUESTION 1 (COMPULSORY)

a) Define capital according to the following:

• The Economist: Capital is one of the factors of production, made up of man-made resources such as machinery, equipment, and money, used in the production of other goods and services.

• The Accountant: Capital refers to the total value of assets invested in a business by the owner, including cash and other properties, to generate profit.

• The Layman: Capital is generally seen as money available for starting or running a business.

b) The following information relates to Jamiu and Co. Ltd for the year ended 31st March 2006:

From the above, calculate (show workings):
i. Cost of Goods Sold (COGS)
ii. Gross Profit
iii. Net Profit Percentage
iv. Gross Profit Percentage
v. Rate of Turnover

c) List and explain five types of capital.

QUESTION 2

a) Define Stock Exchange.

b) Explain four importance of the Stock Exchange to the economy.

QUESTION 3

a) Explain five aims and objectives of ECOWAS.

b) State the problems facing ECOWAS.

QUESTION 4

List five reasons for consumer protection.

SECTION B: OBJECTIVES (ANSWER ALL)

Choose the correct option for each question:

1. _________ sees capital as the owner’s equity.
   a) Layman b) Employer c) Economist d) Accountant

2. The properties of a firm meant for producing other goods are called __________.
   a) Stock b) Assets c) Capital d) Liabilities

3. The capital used for day-to-day business activities is __________.
   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 – Long-term Liabilities

5. Working capital can serve as a basis for __________.
   a) Profit b) Gain c) Gross profit d) Planning

6. __________ is the benefit accruing to a businessman.
   a) Cross b) Profit c) Reward d) Investment

7. The primary 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. Gross profit is determined through preparation of __________.
   a) Trading account b) Profit & Loss account c) Balance sheet d) Closing stock

10. Gross profit is calculated as:
    a) Opening stock – Cost of goods sold
    b) Opening stock + Purchases – Closing stock
    c) Opening stock – Purchases + Carriage inwards
    d) Opening stock + Sales – Purchases

11. The excess of gross profit over expenses is called __________.
    a) Sales b) Turnover c) Net profit d) Purchases

12. Net profit is ascertained by preparing __________.
    a) Balance sheet b) Trading account c) Assets account d) Profit & Loss account

13. The Trading Account is prepared to show __________.
    a) Net sales b) Net profit c) Gross profit d) Net assets

14. The following are contents 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 (cash and credit) bought for resale is called __________.
    a) Cash sales b) Purchases c) Stock d) Sales

17. Average stock is calculated as:
    a) (Opening stock + Closing stock) ÷ 2
    b) (Opening stock + Closing stock) + 2
    c) (Opening stock – Gross profit) ÷ 2
    d) (Closing stock – Gross profit) ÷ 2

18. The following are uses of the Trading, Profit and Loss Account except __________.
    a) To show expenses for the year
    b) To show profit
    c) To show turnover for the year
    d) For comparison

19. Factors affecting profit exclude __________.
    a) Relationship between demand and supply
    b) The selling price
    c) Number of competing firms
    d) Population of the country

20. The total net sales during a period is called __________.
    a) Turnover b) Purchases c) Goods d) Services

21. Expensive goods usually have __________ turnover.
    a) Slow b) Fast c) Quick d) Good

22. The number of times the value of average stock sold in a period is the __________.
    a) Cost of purchase b) Rate of turnover c) Turnover d) Sales

23. The relationship between profit and cost of goods sold is __________.
    a) Manager’s commission b) Net profit percentage c) Margin d) Mark up

24. The Stock Exchange is 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 Port Harcourt b) Abuja and Calabar c) Abuja and Kano d) Abuja and Rivers

27. The Stock Exchange was established in __________.
    a) 1958 b) 1960 c) 1965 d) 1963

28. ECOWAS was established in __________.
    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

Final Notes for Teachers:

• Mark using the provided marking scheme for consistency.

• Encourage students to show all workings clearly in calculations.

• Revise key terms like capital, profit, and trading account before the test.