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ERC Business Studies 2019 Past Question

 

FCT/ERC/2019/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2019.

TIME: 2½ HOURS.

SECTION B: OBJECTIVE 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.    An applicant seeking employment should direct his application to the _____ office. A. Accounts     B.  Personnel        C. production.     D. sales

2.    Clerical duties are BEST performed in _______.   A. Company      B. Market      C. ministry      D. office

3.    Which of the following represents the firm's indebtedness?   A. Assets     B. Capital     C. Liabilities     D. Creditors

4.    Partnership deed is otherwise known as _____   A. Agreement      B. Amalgamation     C. dissolution     D. memorandum.

5.    Which of the following is used for the production of further wealth?   A. Debenture      B. Capital     C. Labour     D. Loan

6.    Mr Odey is the owner of a memorial hospital which form of business unit does the hospital belong?  A. Cooperatives.     B. Limited liability company.     C. Partnership     D. Sole-proprietorship.

7.    A current account holder with a named bank may use ____ to settle his debt.  A. Debit note.     B. Invoice     C. cheque     D. receipts

8.    In rural areas, the most effective media for announcing a village meeting is _____.  A. Newspaper     B. Town crier     C. Radio     D. poster

9.    In land transportation, rails are used by ______.  A. Bicycles     B. Cars     C. Motorcycles     D. Trains

10. Which of the following is not useful to a receptionist  A. Diary.     B. Card index of visitors    C. Cash book     D. Telephone directory

11. In an organization, first impression is created in the mind of the visitors by the ____.  A. Manager     B. Receptionist     C. Security     D. Secretary

12. Receipts are issued by the ____.  A. Creditor     B. Customer     C. debtor      D. purchase

13. The easiest method of payment by commercial banks is through _____. A. Bank draft     B. Cash     C. cheque.     D. postal order

14. Seas, oceans and rivers are components of ______. A. Capital.     B. Entrepreneur      C. labour     D. land

15. In a construction industry, cement is considered as a/an _____. A. Finished product     B. Raw material     C. manufactured goods     D. partly finished goods

16. Which of the following are divisions of home trade?  A. Private and commercial     B. Retail and commercial     C. Wholesale and retail     D. Retail and aids to trade

17. All goods bought for resale are called______. A. Assets     B. Liabilities     C. purchases     D. sales

18. The person whom the amount written on cheque is paid is called______.  A. Bearer      B. Drawee     C drawer     D. payee

19. Pipelines are used to transport? A. Goods, water and gases.     B. Oil, gases and water     C. Water, gases and goods     D Water, oil and goods

20. Which column of the cash book is for description of transaction? A. Amount.    B. Particulars.     C. Date     D. Falio

21. Trading account is prepared to show the _____. A. Cash at bank     B. Gross purchase     C. Gross profit or loss     D. Gross sales

22. All the following are examples of current assets EXCEPT  A. Creditor      B. Cash      C. Debtor     D. stock

23. Which of these is not a method of payment? A. Bank       B. Cash.     C. cheque      D. credit transfer

24. Details of mails are recorded in a account   A. Cash     B. Current    C. imprest     D. postage

25. The channel of distribution does not include _____.  A. Consumer B. Manager     C manufacturer     D. wholesaler

26. When buying and selling involves other countries it is referred to as ___ trade. A. Wholesale      B. Foreign     C. home     D. retail

27. Farming is an example of ____  occupation.  A. Commercial      B. Constructive     C. extractive     D. service

28. Sending of credit note to buyers becomes necessary when the goods are _____.  A. Bought for sale     B. Bought on credit     C. In perfect condition     D. Overcharged

29. Signing on the back of a cheque after the instruction "pay" is known as ____. A. Double crossing     B. Endorsement.    C. Invoicing     D. Single crossing

30. The ____ insurance reduces the financial burden to a family at the death of its breadwinner. A. burglary    B. Fire.    C. Life.    D. Marine

31. A document sent by the seller to the buyer showing the description of goods quantity, price and items of sale is known as   A. credit note        B. Invoice.    C. debit note     D. order

32. Withdrawal from bank for office use is an example of ____ Entry. A. Contra.    B. Credit.    C. Debit.    D. Single

33. The following are types of store record EXCEPT _____. A. Stock record card     B. Requisition from     C. Gate pass     D. Quantity invoice

Use the following information to answer question 34-37

The balances below were extracted from the book of Samuel Endurance Superstore no 31st July 2017.

Sales                                 17,000

Purchases                         12.300

Opening Stock                   1650

Closing Stock                    1,500

Expenses                            3000

34. What is the cost of goods available for sale?  A. 17,000.    B. 13,900    C. 12,300.    D. 3,150

35. The cost of goods sold amount to ____.  A. 29,300.    B. 17,000.    C. 150.    D. 12,450

36. How much was the gross profit?  A. 4,700.    B. 4,550.    C. 3,000.    D. 3,150

37. The net Profit of the business for the period was ____. A. 4,550.      B. 3,000.    C. 1,550.    D. 1,650

38. The excess of gross profit over expenses is _____. A. Cost of sales.    B. Gross loss.      C. Net Profit.    D. Net purchases

39. The payment made to daily paid workers is called ____.  A. Wage.     B. Salary.    C. Interest.    D. Reward

40. A book showing a summary of cash receipt for the day is called ____. A. Cash book.    B. Cash register.    C. Sales book.     D. Invoice

41. Which of the following is a factor of production? A. Bank     B. Communication     C. Insurance.   D. Labour

42. What type of transport is most suitable for carrying bulky goods within the country?  A. Aeroplane      B. Cargo     C. Larry     D. Ship

43. The price at which the producer is ready to supply goods to the buyers is called ____.  A.  Agreed price      B. Cash on delivery     C. Cost price     D. quotation

44. The process through which new products are brought to the notice of the public is known as ____. A. Insurance     B. Advertisement      C. commerce.    D. Transportation

45. An advantage of office machine is that they are ___. A. Cheap to maintain     B. Electrically operated     C. Time saving devices      D. Less costly to purchase

46. The drawer of the cheque is the ___.  A. Bank.    B. Creditor.    C. Drawer.     D. Writer

47. A current account holder who writes a cheque to withdraw some money from the bank is called ____. A. Borrower     B. Drawee     C. drawer       D. lender

48. Which of these items appears on the left hand side of the balance sheet?  A. Capital.     B. Cash at bank      C. Machinery.     D stock

49. A mail that is written and sent to someone within an organization is called ____ mail.  A. express.    B. External.    C. Internal.    D. Local

50. The ____ is used to hold two or more meets of papers together.  A. Calculator         B. Franking machine     C. perforator     D. stapler

51. Which of these will you recommend to an office for storage of document?  A. Chest.    B. Cupboard     C. Filling cabinet    D. locker

52. The exchange of goods for goods is referred to as ___.  A. Barter.    B Business     C. commerce     D. trade

53. The people making use of telephone services are known as    A. Subscribers.    B. Purchasers.     C suppliers     D. users

54. The business organization that are wholly owned by the government are called ____. A. Public limited company     B. Public enterprises/corporation     C. Public institution     D. Public partnership

55. Which of the following is used to maintain a type writer?  A. Gas.     B. Hydrogen      C. Kerosene    D. Methylated spirit

56. Which of the following are home keys?  A. ASDF JKL.     B.FDSA JKLK.     C. JKFD DDSE.    D. DASF KLJ

57. Which of these enables the carriage to move freely from left to right?  A. Line space lever     B. Carriage return level      C. Paper release lever     D. Paper grip

58. Which of these best describes type writing? It is an act of using ___. A. electronic machine to write letters     B. Machine to produce characters in print     C. Photocopier to produce paper     D. Type writer to type

59. On the keyboard of a computer Ctrl + C functions  as ____. A. Copy.    B.    Cut     C. delete     D. Paste

60. A complementary card usually shows the following information except ____. A. account number     B. address.    C. Name    D. Profession

 

SECTION B: ESSAY

 

1.    The following balances were extracted from the books of Essien Cecilia on 31st December, 2018.

Stock 1/1/2018                      1500

Stock 31/1/2018                   830

Purchase                               16200

Return outward                    2500

Transport expenses                500

Salaries                                 1700

Electricity bill                        600

Insurance premium                200

Sales                                      25300

You are required to prepare a trading profit and loss account for the business of Essien Cecilia for the year ended 31st December 2018.

2.    (a) Define consumer protection.  b) Mention two right of the consumer protection.  c) State two reasons for consumers’ protection

3.    (a) What is a cheque?   b) State three advantages of cheque system.   c) list the parties to a cheque.

4.    (a) What is personal finance?  b) Mention two sources of finance for an individual.  c) Explain one source of finance.

 

ALTERNATIVE TO PRACTICAL

Instruction: Answer all the questions in this section.

1.    As a secretary, draw a standard visitor’s slip/form.

2.    Draw an invoice and label it for immediate payment.

3.    Write down the meaning of the following keyboard shortcuts: a. Control+S.     b. Shift+S.  c. Control+C.  d. Control+V.    e. Shift+End

4.    Draw your fingers and label them with the corresponding “Home key”.

 

 

 

 

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