ERC Business Studies 2018 Past Question

 

FCT/ERC/2018/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2018.

TIME: 2½ HOURS.

 

SECTION A: OBJECTIVE 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.    The act of keeping accounts in a regular and systematic manner is called ____.  A. Accounting.    B. Capital.    C. Orderliness.  D. Bookkeeping

2.    Profit and loss account is the account that determines the ___ of an organization.  A. Asset and liabilities.    B. Gross profit or gross loss.    C. Net profit or net loss     D. Income and expenditure

3.    The type of account which requires the use of cheque book is called ____.  A. Fixed deposit account.    B. Current account.    C. Personal account.   D. Saving accounts

4.    The several services which facilitate or make trade easy is called ____.  A. Trade.    B. Occupation.    C. Aids to trade.    D. Home trade

5.    Which of the following machines can be used to produce the exact copy of a document?  A. Computer.    B. Duplicator.    C. Photocopier.    D. Type writer

6.    ____ makes it possible for the manufacturers to carry raw materials to their factories.  A. Banking.    B. Insurance.    C. Commerce.    D. Transportation

7.    The telephone used to make calls within an organization is ____.   A. Intercom.    B. Telex.    C. Trunk call.    D. International call

8.    Find the gross profit from the following:                      Total sales = #153,450.  Total cost of goods sold 139,500.  A. #13,950.    B. #14,950.    C. #15,850.    D. #10,450

9.    The market for borrowing money for a short term period is called ____.   A. Commodity market.    B. Capital market.    C. Money market.    D. Foreign exchange market

10. The particular amount of money used in setting up a business is called.   A. Capital.    B. Cash at bank.    C. Opening stock.    D. Cash at hand

11. ___ is issued as an evidence of payment when cash transaction is made.  A. Bank draft.    B. Cash book.    C. Receipt.    D. Store

12. The place where buyers and sellers meet to buy and sell goods and services is called ____.  A. Bank.    B. Market.    C. Shop.    D. Store

13. The selling of goods to the highest bidder is known as ___.  A. Auction sell.    B. Cash sell.    C. Sales by description.    D. Sales

14. The following are expected Qualities of a receptionist except.  A. Dedication to duty.    B. Pleasant appearance.    C. Politeness.    D. Rudeness

15. The type of life assurance policy which is taken up for specific period of time or at death is called __assurance.  A. Car.    B. Comprehensive.    C. Endowment.    D. Whole life

16. Those who buy in large quantities from the producers are called ____.  A. Consumers.    B. Hawkers.    C. Retailers.    D. Wholesalers

17. A document which shows the full details of worker’s pay is called.   A. Pay slip.    B. Pay roll     C. Periodic records.    D. Workers records

18. Careers are available in the stock exchange market for those who study accountancy, economics, banking and finance and _____.  A. Medicine.    B. Law.    C. Yoruba language.    D. Business administration

19. ____ prepares the payment vouchers in the office.  A. An accountant.    B. An administrative.   C. Receptionist.    D. Secretary

20. Making the payment of goods on cash immediately after purchase is called.  A. Credit sales.    B. Cash sales.    C. Trade.    D. Selling goods

21. Office equipment is referred to as ____ to the workers in the office.  A. Distraction.    B. Disturbance.    C. Aid.    D. Machine

22. The following are advertising media except.  A. Leaflets.    B. Poster.    C. Billboard.    D. Telegrams

23. Which of the following offices equipment can store, retriever and process information?   A. Calculator. B. Computer.  C. Duplicator.  D. Photocopy

24. A petty cash system is based on an imprest of #1,200 a month. If the petty cashier is left with a balance of #470, how much will he be reimbursed?   A. 200.  B. 1000.  C. 730.  D. 470

25. _____ is made when the amount realized as sales is greater than the cost of goods sold. A. Gross profit. B. Gross loss. C. Net profit. D. Net loss

26. Banks allows their current account holder to withdraw more than what they have in their account through a system known as ____. A. Borrowing.  B. Drawing. C. Overdraft.  D. Loan

27. Trial balance is a list of balances extracted from the  accounts ____. A. Expenses. B. Ledger.  C. Trading.  D. Profit

28. The document sent by the seller to the buyer to correct an undercharged is called ____ A. Credit note.  B. Invoice.  C. Receipt. D. Debit note

29. Buying and selling of goods between Nigeria and United States of America is known as ____. A. Export.  B. Wholesale.  C. Foreign.  D. Home

30. Receptionist office is usually located at the.  A. Manager’s office.  B. Entrance of the building.  C. Security post.   D. Director’s office

31. The place in an organization where a visitor receives information about the person he wants to visit is called _____ room.  A. Visitor’s   B. Information.  C. Strong. D. Reception

32. The transaction affecting both debit and credit side of the cash book is called ____ entry.  A. Contra.  B. Control. C. Debit. D. Credit

33. The principal office is a good example of a _____ office. A. Department.  B. Large.  C. Sale. D. Small

34. Which of the following is an acknowledgement of payment?  A. Cash. B. Cheque. C. Receipt. D. Draft

35. The end point in the channel of distribution of goods is ____  A. Retailers.  B. Wholesaler.  C. Consumer.  D. Manufacturer

36. The book of account for recording receipts and payment is called ___ A. Ledger book.  B. Invoice book.  C. Cash book.  D. Quotation

37. The advertising medium mostly found along major roads in cities is called ___. A. Leaflet. B. Billboard.  C. Magazine.  D. Television

Use the following transactions extracted from the book of Musa to answer questions 38 and 39

Carriage inwards                   1200

Return outwards                      400

Sales                                      10,500

Purchases                               5,800

38. What is the total cost of goods sold? A. ₦6,600.00. B. ₦5,800.00.  C. ₦3,900.00.  D. ₦7,000.00

39. What is Musa’s gross profit?  A. ₦4,900.00.  B. ₦3,900.00.   C. ₦7,000.00.  D. ₦5,700.00

40. Which of these is a disadvantage of railway transportation?  A. It can cover long distance.  B. It has low accident occurrence.  C. It is expensive to establish.  D. It work with time schedule

41. In trading account, carriage inwards is added to ___ A. Closing stock. B. Cost of goods sold.  C. Sales. D. Purchases

42. A cheque becomes stale after ____ month. A. 2.  B. 6.  C. 12.  D. 3

43. The act of giving information to the public about a product or service is called ____. A. Advertising. B. Branding.  C. Marketing.  D. Selling

44. These items can be regarded as a petty expenses EXCEPT ____. A. Brush. B. Machine. C. Detergent. D. Stationary

45. Money that can only be withdrawn at an agreed time is kept in ____ account. A. Savings. B. Fixed deposit.  C. Current.  D. Company

46. Recruitment process is one of the duties of ____ department.  A. Account.  B. Purchase.  C. Personnel.   D. Sales

47. Which of the following is not a fixed asset?  A. Building. B. Furniture.  C. Land.   D. Debtor

48. The market where the value of one country's currency is negotiated against another country’s is called ____ market.  A. Money. B. Commodity.  C. Capital.  D. Foreign exchange

49. _____ aid trade by facilitating payment for goods and services. A. Bank.  B. Insurance.  C. Sales.  D. Communication

50. ____ occurs when a buyer sends money to a seller in exchange for goods received.   A. Selling.   B. Buying.   C. Payment.  D. Production

51. Find the net profit from the following

Total expenses         ₦139,500.00

Gross profit              ₦153,450.00

A.   ₦5,500.00.  B. ₦13,950.00.   C. ₦7,950.00.   D. ₦10,950.00

52. The buying, selling and distribution of goods is called. A. Trade.  B. Marketing.  C. Commerce.  D. Advertising

53. Mr. James bought goods Worth ₦10,000 and sold them with 20% profit. What is his selling price?  A. ₦15,000.00.  B. ₦14,500.00.  C. ₦11,450.00.  D. ₦12,000.00

54. When a buyer is allowed by the seller to taste the product before paying for it, it is called _____.  A. Buying by auction. B. Buying by inspection.  C. Buying by sample. D. Tasting

55. ____ help in the proper handling of chemical.  A. Chemical symbols.   B. Chemical substance.  C. Oil.  D. Chemical

56. ____ is the basic document found in the wages and salaries office.  A. Invoice.    B. Requisition form.  C. Pay slip.   D. Debit note

57. The following are types of insurance policies EXCEPT ____.   A. Burglary.   B. Marine.  C. Indemnity.  D. Fire

58. How many columns does one column cash book have on each side?   A. 5.   B. 6.  C. 7.  D. 4

59. ____ is the amount of goods a firm has at the beginning of a trading period.  A. Closing stock.  B. Gross profit.  C. Opening stock.  D. Net profit

60. All are parts of computer keyboard EXCEPT _____. A. Control key.   B. Carriage release key.  C. Caps lock.  D. Functions keys

 

SECTION B: ESSAY

INSTRUCTION: ANSWER QUESTION NUMBER ONE AND ANY OTHER THREE (3)

 

1.    From the details below prepare the balance sheet of Bulus as at 31^st December 2017

   ₦

Capital                                   123,000

Creditors                                   2,000

Land and building                   10,000

Machinery                                6,000

Motor vehicle                          4,000

Stock                                         4,500

Debtors                                     2,500

Cash at hand                             1,000

Cash at bank                             2,000

Net profit                                  6,000

Drawings                                  1,000

2.    a. Define aids to trade.   

b. List two services that aids trade.  

c. Explain one

3.    a. Who is a receptionist?  

b. State two qualities of a receptionist.  

c. List two documents handled by a receptionist.

4.    a. Define communication?  

b. List two means of communication. 

c. Explain one

5.    a. What is transaction?  

b. List two basic mean of transportation   

c. Explain one of the following documents. (i) Invoice    (ii) receipt    (iii) Dispatch book

 

ALTERNATIVE TO PRACTICAL

INSTRUCTION: ANSWER ALL THE QUESTIONS

6.    Draw two items you can use for the cleaning of your computer

7.    Draw a table showing the standard ruling of balance sheet

8.    Draw a specimen of a bank deposit slip

9.    Prepare an invoice for payment