REVISION BUSINESS STUDIES JSS3 MOCK EXAMINATION FOR SECOND TERM

Class: JSS 3 Business Studies

Topic: Understanding Banking and Business Transactions

1. Explaining Types of Banking Transactions:

• Overdraft: When banks allow customers to spend more money than they have in their accounts. 🏦💳💸 Example: If you have $100 in your account but spend $120, the bank covers the extra $20 temporarily.
• Advertising: Promoting products or services to attract customers. 📢🛍️ Example: TV commercials, online ads, billboards.
• Insurance: Protecting against financial loss by paying a premium. 🛡️💰 Example: Car insurance, health insurance.

2. Differentiating Cheques in Business:

• Crossed Cheque: Marked with two parallel lines, can only be deposited into a bank account, not cashed. 📝💳 Example: Paying rent with a crossed cheque.
• Open Cheque: Can be cashed over the counter at a bank. 📝💵 Example: Paying for groceries with an open cheque.

3. Comparing ATM and POS Transactions:

• ATM (Automated Teller Machine): Withdrawing or depositing money using a card and PIN. 🏧💳💵 Example: Withdrawing cash from an ATM to pay for school supplies.
• POS (Point of Sale): Paying for goods or services using a card at a store or business. 💳💻🛍️ Example: Buying snacks at a supermarket and paying with a debit card.

4. Understanding Trial Balance in Business:

• Purpose of Trial Balance: To check if debits equal credits in accounting records. ⚖️💼 Example: Adding up all debits and credits in a ledger to ensure they balance.
• Sorting Transactions in Cash Book: Recording different transactions on either the debit or credit side. 📚💰 Example: Writing down cash sales on the credit side of the cash book.

5. Explaining Financial Terms:

• Extravagance: Spending money excessively or wastefully. 💸❌ Example: Buying expensive gadgets when you don’t really need them.
• Budget: Planning how to spend money wisely. 📝💰 Example: Allocating $20 for snacks and $30 for transportation in a weekly budget.
• Scale of Preference: Ranking needs and wants based on importance. 📊🏆 Example: Choosing to buy textbooks before buying video games because education is a priority.

6. Demonstrating Ledger Entries and Trial Balance:

• Entering Transactions in Ledgers: Recording business activities like sales and expenses in account books. 📒✍️ Example: Writing down purchases of goods or services in the purchases ledger.
• Extracting Trial Balance: Summarizing all ledger balances to ensure they match. ⚖️💼 Example: Adding up all debit balances and credit balances to prepare a trial balance.

7. Understanding Office Procedures and Payment Methods:

• Office Procedure: Rules and guidelines for carrying out tasks in an office. 📋✅ Example: Filing documents in alphabetical order for easy retrieval.
• Methods of Payment: Different ways to pay for goods or services. 💳💵 Example: Using cash, checks, or electronic transfers to settle bills.

8. Understanding Business Ethics:

• Honesty: Being truthful and sincere in all business dealings. 🤝🔍 Example: Providing accurate information to customers about product quality.
• Confidentiality: Keeping sensitive information private and secure. 🤐🔒 Example: Not sharing customer data with unauthorized individuals.

9. Explaining Partnership Businesses:

• Active Partner: Someone actively involved in running the business. 👥💼 Example: Making decisions and managing daily operations.
• Sleeping Partner: Contributes capital but doesn’t participate in day-to-day management. 💤💰 Example: Investing money in the business but leaving management to others.

10. Understanding Banking Services:

• Loans: Borrowing money from the bank with an agreement to pay it back. 💰💳 Example: Taking out a loan to buy a new computer for the business.
• Banker’s Draft: A secure payment method where the bank guarantees the payment. 🏦📜 Example: Using a banker’s draft to pay for a large purchase like a car.

11. Explaining Insurance Policies:

• Fire Insurance: Protects against damage or loss due to fire. 🏠🔥 Example: Receiving compensation for property damage caused by a fire.
• Marine Insurance: Covers goods transported by sea against loss or damage. 🚢📦 Example: Insuring a shipment of electronics being transported overseas.

12. Demonstrating Communication Methods:

• Modern Communication: Using technology like email and smartphones to communicate. 📱💻 Example: Sending an email to a colleague to discuss a project.
• Traditional Communication: Using methods like letters and face-to-face meetings. 📝🤝 Example: Writing a formal letter to request information from a supplier.

13. Explaining Construction Industries:

• Building Construction: Creating structures like houses, offices, and schools. 🏗️🏠 Example: Constructing a new apartment building in the city.
• Plumbing: Installing and repairing systems for water supply and drainage. 🚰🔧 Example: Fixing a leaking pipe in a residential building.

Consumer Rights and Responsibilities, Wants vs Needs, Impulse Buying Business Studies JSS 2 Second Term Lesson Notes Week 5

14. Understanding Ethical Behavior in Business:

• Stealing: Taking something that doesn’t belong to you without permission. 🚫🛍️ Example: Taking office supplies home without permission.
• Cheating: Deceiving others for personal gain. 🎯📚 Example: Copying someone else’s work and claiming it as your own.

15. Explaining Business Ownership:

• Sole Proprietorship: A business owned and operated by one person. 👤💼 Example: A small shop run by a single owner.
• Partnership: A business owned by two or more people who share profits and losses. 👥💰 Example: A law firm with multiple partners working together.

16. Understanding Factors of Production:

• Land: Natural resources used in production, like land and minerals. 🌍⛏️ Example: Farming on fertile land to grow crops.
• Labour: Human effort and skills used in producing goods or services. 👨‍🔧👩‍💼 Example: Workers assembling cars in a manufacturing plant.

17. Explaining Methods of Transportation:

• Land Transportation: Moving goods or people by road or railway. 🚚🚆 Example: Delivering goods to customers using trucks.
• Air Transportation: Moving goods or people by airplane. 🛫📦 Example: Transporting perishable goods like fruits and vegetables quickly to distant markets.

18. Demonstrating Building Trades:

• Surveying: Measuring and mapping land for construction projects. 🗺️🏗️ Example: Surveying land before building a new road.
• Mechanical Engineering: Designing and building mechanical systems and machines. 🛠️🔩 Example: Creating robotic systems for manufacturing plants.

19. Understanding Trade Divisions:

• Commerce and Industry: Commerce involves buying and selling goods, while industry involves manufacturing and production. 🛒🏭 Example: A retail store selling clothing (commerce) vs. a textile factory producing fabric (industry).
• Import and Export: Importing is bringing goods into a country, while exporting is sending goods out of a country. 🚢🌍 Example: Importing electronics from China vs. exporting agricultural products to Europe.

20. Explaining Banking Instruments:

• Cash: Physical money in the form of coins and banknotes. 💵💰 Example: Paying for groceries with paper bills and coins.
• Bank Transfer: Moving money electronically from one bank account to another. 💳💻 Example: Transferring funds from a savings account to a checking account online.

21. Understanding Types of Checks:

• Crossed Check: Marked with two parallel lines, cannot be cashed over the counter, only deposited into a bank account. 📝💳 Example: Paying rent with a crossed check to ensure secure payment.
• Open Check: Can be cashed over the counter at a bank without any restrictions. 📝💵 Example: Withdrawing cash from a bank using an open check.

22. Explaining Co-operative Societies:

• Co-operative Society: A business owned and operated by its members for their mutual benefit. 👥🤝 Example: Farmers joining together to form a co-operative to collectively sell their produce.

23. Understanding Insurance Advantages:

• Protecting Capital Assets: Insurance helps safeguard valuable assets like property and equipment against risks like fire or theft. 🛡️🏢 Example: Insuring a factory building to cover potential damage from natural disasters.
• Encouraging Saving: Insurance policies often require regular premium payments, encouraging individuals to save money regularly. 💰🔒 Example: Contributing to a life insurance policy to ensure financial security for the future.

24. Explaining Industrial Workers:

• Industrial Worker: Individuals employed in industries involved in the production of goods or services. 👷‍♂️🏭 Example: Factory workers assembling electronics on an assembly line.

25. Understanding Financial Remuneration:

• Wages: Hourly payments made to employees for their labor. 💵⏰ Example: Paying workers $10 per hour for their time spent working.

26. Demonstrating Banking Services:

• Guaranty Trust Bank: A commercial bank providing various financial services such as loans, savings accounts, and investments. 🏦💳💰 Example: Opening a savings account with Guaranty Trust Bank to save money.

27. Explaining Ledger Components:

• Amount: The value of a transaction recorded in a ledger account. 💰📊 Example: Recording a sale of $100 in the sales ledger.

28. Understanding Business Responsibility:

• NDLEA (National Drug Law Enforcement Agency): Government agency responsible for combating drug trafficking and abuse. 🚫💊 Example: Conducting raids to seize illegal drugs and arrest drug traffickers.

29. Defining Store Records:

• Store Records: Documents or data used to track inventory, including information on goods received, stored, and issued. 📦📝 Example: Keeping a ledger of all items in stock, their quantities, and their respective locations in the warehouse.

30. Differentiating between ATM and POS Transactions:

• ATM (Automated Teller Machine): Allows customers to perform banking transactions such as cash withdrawals and balance inquiries electronically. 🏧💳 Example: Withdrawing cash from an ATM to pay for groceries.
• POS (Point of Sale): Terminal used to process card payments at retail locations, allowing customers to make purchases using debit or credit cards. 💳💻 Example: Paying for goods at a supermarket checkout counter using a debit card.

ACCOUNTING TREATMENT OF DEPRECIATION

31. Understanding Trial Balance:

• Trial Balance: A statement of all ledger account balances used to ensure that debits equal credits in the accounting system. 📊⚖️ Example: Summarizing the balances of all accounts in the ledger to prepare financial statements.

32. Explaining Budgets:

• Budget: A financial plan outlining expected income and expenses over a specific period to help manage finances effectively. 💰📅 Example: Allocating funds for rent, utilities, and groceries in a monthly household budget.

33. Understanding Choice:

• Choice: The act of selecting from alternatives based on preferences and available resources. 🤔👍 Example: Choosing between different brands of smartphones based on features and price.

34. Demonstrating Extravagance:

• Extravagance: Spending money excessively or wastefully on unnecessary items or luxuries. 💸🎩 Example: Buying designer clothes and expensive jewelry beyond one’s means.

35. Explaining Cash Sales:

• Cash Sales: Transactions where goods or services are sold and payment is received immediately in cash. 💵💼 Example: Selling handmade crafts at a local market and receiving cash payments from customers.

36. Enumerating Postages Expenses:

• Postage Expenses: Costs incurred for sending mail or packages through postal services. ✉️💸 Example: Paying for postage stamps and shipping fees when sending out business correspondence or packages.

37. Demonstrating Repayment of Loan:

• Repayment of Loan: Returning borrowed money to the lender in installments or lump sums, including both the principal amount and interest. 💳🔙 Example: Making monthly payments to the bank to pay off a mortgage loan.

38. Defining Office Procedure:

• Office Procedure: Standardized methods or steps followed in performing various tasks and activities within an office environment. 🏢🔄 Example: Filing documents in alphabetical order, answering phone calls professionally, and managing emails efficiently.

39. Discussing Different Methods of Payment:

• Cash: Physical currency in the form of coins and banknotes used to make purchases or payments. 💵🛍️ Example: Paying for groceries or meals at a restaurant with cash.
• Bank Draft: A payment instrument issued by a bank on behalf of a payer, guaranteeing payment to a specified recipient. 🏦📄 Example: Sending a bank draft to pay for tuition fees at a university.
• Bank Transfer: Electronic transfer of funds from one bank account to another, often used for large transactions or recurring payments. 💳💻 Example: Transferring money from a savings account to a checking account using online banking.
• Cheques: Written orders instructing a bank to pay a specific amount of money from the payer’s account to the payee. 🖋️💼 Example: Writing a cheque to pay the monthly rent to the landlord.

40. Explaining Different Types of Checks:

• Crossed Check: A check marked with two parallel lines across the face, indicating that it can only be deposited into a bank account and not cashed over the counter. 📝💳 Example: Receiving a crossed check as payment for freelance work.
• Open Check: A check that does not have any crossing lines, allowing it to be cashed over the counter at a bank. 📝💵 Example: Presenting an open check at the bank to withdraw cash.

41. Understanding Co-operative Societies:

• Co-operative Society: An organization owned and operated by its members for their mutual benefit, often focusing on collective economic activities such as production, distribution, or services. 👥🤝 Example: Farmers forming a co-operative to purchase agricultural inputs at bulk rates and sell their produce collectively.

42. Explaining Insurance Advantages:

• Protecting Capital Assets: Insurance provides financial compensation to cover losses or damages to valuable assets such as property, equipment, or inventory. 🛡️🏢 Example: A business insuring its factory machinery against breakdowns or accidents.
• Encouraging Saving: Insurance policies often require regular premium payments, promoting a habit of saving money regularly to maintain coverage. 💰🔒 Example: Contributing to a life insurance policy to ensure financial security for oneself and loved ones.

43. Understanding Industrial Workers:

• Industrial Worker: A person employed in industries involved in the production of goods or provision of services on a large scale. 👷‍♂️🏭 Example: Factory workers assembling automobiles on an assembly line.

44. Explaining Wages:

• Wages: Hourly payments made to employees in exchange for their labor or services rendered. 💵⏰ Example: Paying workers $15 per hour for their work in a manufacturing plant.

45. Demonstrating Guaranty Trust Bank:

• Guaranty Trust Bank (GTBank): A commercial bank providing various financial services such as savings accounts, loans, investments, and online banking solutions. 🏦💳💰 Example: Opening a savings account with GTBank to save money for future expenses.

BUSINESS STUDIES JSS3 MOCK EXAMINATION FOR SECOND TERM

46. Understanding Ledger Components:

• Amount: The numerical value or monetary amount associated with a transaction recorded in a ledger account. 💰📊 Example: Recording a sales transaction of $500 in the sales ledger.

47. Discussing NDLEA Responsibilities:

• NDLEA (National Drug Law Enforcement Agency): A government agency responsible for combating drug trafficking, abuse, and related crimes in Nigeria. 🚫💊 Example: Conducting raids to seize illegal drugs and arrest drug traffickers.

48. Explaining Trading Account Preparation:

• Trading Account: A financial statement that calculates the gross profit or loss generated from buying and selling goods during a specific period. 📊💼 Example: Preparing a trading account to analyze the profitability of a retail store’s sales activities.

49. Understanding Attributes of Truthfulness:

• Attributes of Truthfulness: Qualities or characteristics associated with honesty and sincerity in behavior or communication. 🙌🔍 Example: Being consistent in one’s words and actions to build trust and credibility.

50. Discussing Features of Bank Cheques:

• Bank Cheque Features: Elements included on a bank cheque to ensure its validity and proper execution. 📝💼 Example: Verifying that the cheque contains the correct payee name, date, amount in words and figures, and the payer’s signature.

51. Explaining Management Function:

• Management Function: One of the key activities performed by managers to achieve organizational goals and objectives. 📈💼 Example: Planning the launch of a new product line to increase sales and market share.

52. Discussing Sanctions for Lateness:

• Sanctions for Lateness: Penalties or disciplinary actions imposed on individuals for arriving late to work or appointments. ⏰🚫 Example: Receiving a warning letter or facing salary deductions for habitual lateness.

53. Defining Sleeping Partner:

• Sleeping Partner: A silent or inactive partner who contributes capital to a business but does not participate in its management or operations. 👤💤 Example: Investing money in a restaurant venture without involvement in its day-to-day activities.

54. Explaining Ethical Issues in Banking:

• Ethical Issues in Banking: Moral dilemmas or concerns related to honesty, integrity, transparency, and confidentiality in banking practices. 💼🤝 Example: Ensuring customer confidentiality when handling sensitive financial information.

55. Understanding Insurer Role in Insurance:

• Insurer: The entity or organization that provides insurance coverage and assumes the financial risk of potential losses for policyholders. 🛡️💼 Example: An insurance company issuing policies to individuals or businesses to protect against specific risks.

56. Discussing Fastest Means of Transport:

• Fastest Means of Transport: The mode of transportation that allows for the quickest movement of people or goods from one place to another. 🚀📦 Example: Sending urgent documents via air courier services for rapid delivery.

57. Explaining Construction Industries:

• Construction Industries: Sectors involved in the development, building, and infrastructure projects, including activities like construction, engineering, and architecture. 🏗️🔧 Example: Companies engaged in constructing roads, bridges, and buildings for public and private clients.

58. Defining Ethical Behavior:

• Ethical Behavior: Conduct or actions aligned with moral principles, honesty, fairness, and integrity in business dealings. 🤝👍 Example: Providing accurate information to customers and avoiding deceptive practices in advertising.

59. Explaining the Maximum Number of Partners in Partnership Business:

• Maximum Number of Partners: The limit on the total number of individuals or entities allowed to form a partnership business based on legal regulations or agreements. 👥📝 Example: A partnership agreement specifying that the maximum number of partners allowed is five.

60. Understanding Extravagance:

• Extravagance: Spending money recklessly or excessively on luxurious or unnecessary items beyond one’s means or budget. 💸🎩 Example: Purchasing designer clothing and expensive gadgets despite having limited income.

61. Differentiating Between Store Records:

• Store Records: Documents or records maintained by businesses to track inventory levels, sales, purchases, and other relevant information related to store operations. 📦📊 Example: Keeping a ledger of all products in stock, including their quantities and prices.

62. Explaining Trial Balance:

• Trial Balance: A financial statement that lists the balances of all ledger accounts to ensure that debits equal credits and assess the accuracy of bookkeeping entries. 📑⚖️ Example: Comparing the total debit and credit balances in the trial balance to identify any discrepancies before finalizing financial reports.

63. Understanding Budget:

• Budget: A financial plan outlining projected revenues and expenses over a specific period, often used to control spending and allocate resources efficiently. 💰📅 Example: Creating a monthly budget to allocate funds for rent, groceries, utilities, and savings goals.

64. Discussing Scale of Preference:

• Scale of Preference: Ranking or prioritizing of needs and wants based on their importance or urgency to make decisions about resource allocation. 📊🏆 Example: Choosing to spend money on essential items like food and shelter before luxury goods like entertainment or travel.

65. Explaining Choice:

• Choice: The act of selecting or making decisions among alternatives based on preferences, values, and available options. 🤔👉 Example: Deciding between different brands of smartphones based on features, price, and personal preferences.

66. Illustrating Ledger Entries and Trial Balance Extraction:

• Ledger Entries and Trial Balance Extraction: Recording business transactions in ledger accounts and preparing a trial balance to ensure the accuracy of accounting records. 📝📊 Example: Posting journal entries to ledger accounts for sales, purchases, expenses, and revenue, then extracting a trial balance to verify the equality of debits and credits.

67. Explaining Office Procedure:

• Office Procedure: Standardized methods or protocols followed in an office environment to streamline tasks, ensure efficiency, and maintain organizational standards. 🏢🔄 Example: Adhering to a protocol for handling incoming emails, including categorizing, responding, and archiving messages appropriately.

68. Discussing Methods of Payment:

• Methods of Payment: Various ways or instruments used to transfer funds or settle financial transactions between parties. 💳💵 Example: Making payments through cash, checks, bank transfers, or electronic wallets like PayPal, Wise, Payooner or Venmo

69. Differentiating Between Cash, Bank Draft, Bank Transfer, and Cheques:

• Cash: Physical currency in the form of coins and banknotes used for immediate payment or transactions. 💵 Example: Paying for groceries at a supermarket with cash.
• Bank Draft: A financial instrument issued by a bank on behalf of a payer, guaranteeing payment to a specific payee, often used for secure and large transactions. 🏦📄 Example: Purchasing a bank draft to make a down payment on a property purchase.
• Bank Transfer: Electronic transfer of funds from one bank account to another, enabling seamless and swift transactions between parties. 💳💻 Example: Transferring money from a personal savings account to a friend’s bank account for shared expenses.
• Cheques: Written orders directing a bank to pay a specified sum of money to a designated payee, commonly used for business payments and transactions. 📝💼 Example: Receiving a cheque from a client as payment for freelance services rendered.

70. Explaining Office Procedure:

• Office Procedure: Established rules, protocols, and guidelines governing the conduct of administrative tasks and operations within an office setting. 🗂️📝 Example: Following procedures for filing documents, scheduling meetings, and handling incoming calls to ensure efficient office management.

71. Defining Store Records:

• Store Records: Documentation or records maintained by businesses to track inventory, sales, purchases, and other relevant information pertaining to store operations. 📦📊 Example: Keeping records of product quantities, prices, and sales transactions in a retail store’s inventory management system.

72. Differentiating Between Crossed and Open Cheques:

• Crossed Cheque: A cheque marked with two parallel lines across its face, indicating that it can only be deposited into a bank account and not cashed over the counter. 🏦🔒 Example: Issuing a crossed cheque to a supplier for payment to ensure secure transfer of funds.
• Open Cheque: A cheque that does not have any crossing marks, allowing the payee to cash it directly at the bank counter. 💵 Example: Receiving an open cheque as payment for freelance services, which can be exchanged for cash at the bank.

73. Differentiating Between ATM and POS Transactions:

• ATM (Automated Teller Machine) Transactions: Financial transactions conducted using automated teller machines for functions such as cash withdrawals, deposits, and balance inquiries. 🏧💳 Example: Withdrawing cash from an ATM to pay for groceries at a store.
• POS (Point of Sale) Transactions: Electronic payment transactions made at the point of sale terminal in retail stores or businesses using debit or credit cards. 💳💼 Example: Paying for restaurant meals using a debit card at the POS terminal located at the cashier counter.

Revision Agricultural Science JSS 3 Mock Examination Second Term Lesson Notes

Answer the following questions