ERC Business Studies 2021 Past Question

FCT/ERC/2021/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2021.

TIME: 2½ HOURS.

 

SECTION A: OBJECTIVES 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.       A financial statement showing the assets and liabilities of a business at a given date is referred to as _____  A. capital account   B. balance sheet  C. trial balance  D. profit and loss account

2.       A bank is an example of a ____ office  A. close  B. small  C. large  D. departmental 

3.       Invoice, debit note, credit note are _____  A. sales documents   B. purchase documents  C. office correspondence   D. office document

4.       The following include notable entrepreneurs in Nigeria EXCEPT  A. Aliko Dangote   B. Raymond Dokpesi   C. Mike Adenuga   D. Bill Gate 

5.       A way of ensuring that documents are kept clean and are easily available for reference is known as ____  A. correspondence   B. arranging   C. filling   D. cabinet

6.       A _____ is kept by organization and government offices to record letter that are delivered by hand from one office to another so that the receiver sign’s for it .  A. dispatch book  B. postage book   C. telegram book  D. message directory

7.       Workers in government hospitals, teachers, police officers etc provides _____ services   A. indirect   B. direct   C. personal  D. free

8.       Which of the following is not an attribute of honesty in business?  A. commitment  B. dedication  C. devotion  D. fraudulence

9.       Which of these are the two basic types of typewriters?  A. electric and manual  B. mechanical and computer  C. Olympia and imperial   D. imperial and elite

10.   Which finger is used to press the enter key on a computer keyboard?  A. left thumb  B. left little finger  C. right little finger    D. right thumb

11.   A person who posses the right attitude to work has the following characteristics EXCEPT  A. consistency  B. hard work  C. truancy  D. punctuality

12.   Which of the following document will Mr. Vincent fill when he wants to see the manager of a organization   A. diary   B. manager’s book  C. visitors request book  D. reception book

13.   In a mail room, which of the following machine is LEAST important   A. adding machine   B. franking machine   C. perforator   D. typewriter

14.   ‘Being’ written on a receipt indicates _____  A. amount paid   B. date payment was made   C. name of the person making payment    D. purpose of payment

15.   Which of the following is used for the production of further wealth?  A. capital  B. entrepreneur  C. land  D. labour

16.   The following are service provided by commercial bank EXCEPT   A. printing and minting of a country’s currency   B. standing order payment   C. acceptance of deposit from public  D. provision of loan and overdraft

17.   After the death of life assurance policy holder, the ____ will be indemnified.  A. father of the insured   B. wife of the insured  C. next of kin   D. son of the insured

18.   The coming together of 2 – 20 persons to run a business with the aim of making profit is _____  A. partnership   B. sole proprietorship  C. joint venture   D. public cooperation

19.   A cheque issues on the 10^th of January, 2020 but presented on 11^th August, 2020 is regarded as ____ cheque  A. cross  B. open   C. disown  D. stale

20.   Which of the following helps traders to sell more of their goods?  A. advertising  B. warehousing   C. banking   D. insurance

21.   The telephone call made by Mr. Usifo to his customer from Abuja to Lagos is _____  call   A. alarm  B. double  C. local  D. trunck

22.   Trading account is prepared show the ______  A. gross profit or loss   B. cash at bank  C. gross purchases  D. net profit

23.   Sending of debit note to a buyer becomes necessary when the goods are?  A. bought of cash   B. bought on credit   C. in perfect condition   D. under charged

24.   Which of these is not part of the reward of factors of production  A. commission  B. interest  C. rent  D. wages

25.   A post office does not deal with one of the following?  A. cheque bank   B. postal order  C. postal stamp  D. letter of delivery

26.   Which of the following is a function of the retailer?  A. advising the manufacturer on goods to produce  B. breaking bulk  C. bringing goods nearer to consumers in small quantities  D. proving warehousing facilities

27.   The final link in the distribution chain is   A. wholesaler   B. retailer   C. consumer  D. manufacturer

28.   ____ is the re-exporting of goods already brought into Nigeria from another country   A. export  B. entreport   C. wholesale   D. import

29.   Bringing of goods into Nigeria from other countries  is known as _____  A. entreport   B. import   C. export  D. retail

30.   The place where buyers and sellers are in contact is called   A. mountain  B. market  C. hall  D. school

31.   The document used in paying money into a bank’s current account is _____    A. payment note  B. invoice  C. pay slip   D. teller

32.   Which of the following is not a fixed asset?  A. land and building  B. cash at bank  C. motor vehicle  D. plant and machinery  

33.   The two types of assets are ____  A. debtors and creditors   B. fixed and current  C. heavy and light   D. balance sheet and final balance

From the data below, answer questions 34 and 35

Capital                                ₦2,500

Cash in hand                      ₦700

Stock                                  ₦150

Creditor                              ₦300

Furniture                             ₦1,000

Bank                                   ₦600

Debtors                               ₦250

Machinery                          ₦1,600

34.   Calculate the total fixed assets  A. ₦2,800    B. ₦2,600   C. ₦2,500   D. ₦1,000

35.   The current assets is _____  A. ₦850   B. ₦2,500  C. ₦1,700    D. ₦1,850

36.   The payment made to daily paid work is _____ A. interest   B. commission  C. wages  D. salary

37.   The farmer who grows food and cash crops is engaged in  A. constructive occupation  B. direct service   C. extractive  D. indirect service

38.   ______ is used to produce an exact copy of a document  A. adding machine  B. calculator   C. typewriter  D. photocopies

39.   When cheque is crossed, it means that   A. it cannot be cashed over the counter   B. it will be paid over the counter  C. the money is a large sum    D. no money in the account of the drawer

40.   Which of the following is not office equipment?  A. calculating machine   B. duplicating machine    C. filling cabinet   D. loudspeaker

41.   A firm replenish its stocks at ____ level   A. maximum   B. minimum  C. stock  D. re-order

42.   The price at which the producer is ready to supply the goods to the buyers is called ____   A. agreed price  B. cash on order  C. cost price  D. quotation

43.   The rule of book keeping which states that every debit entry must have corresponding credit entry is known as the principle of ____ entry   A. corresponding    B. double   C. credit  D. single

44.   Bad debt refers to   A. irrecoverable debts  B. recoverable  C. discount allowed  D. discount received

45.   A person collecting items from the store is expected to complete a/an  A. stocked card   B. requisition form   C. stock control card  D. store receipt voucher

46.   Uberimae fidei in insurance means ____  A. business   B. course  C. example  D. utmost good faith

47.   The book for recording cash receipts and cash payment for small items is known as  A. cash book  B. cash transaction   C. petty cash book   D. sales day book

48.   Cash payment is used in settling bills involving ____  A. large accounts   B. small account   C. legal tender  D. large organization

49.   The movement of people and goods from one place to another is called  A. transportation  B. warehousing  C. communication  D. banking

50.   The two major methods of communication are ____ and _____  A. GSM, landline   B. oral, written  C. post office, telephone   D. telegram. Telephone

51.   The item required to care for the computer include EXCEPT.  A. compressed air   B. long hand brush  C. cotton swabs    D. cleaning solution

52.   The ability of a buyer to make spot payment for commodities bought explains his shopping tips of _____  A. playing  B. setting a budget    C. shopping alone   D. shopping

53.   Which of these is not a part of the typewriter?  A. carriage   B. roller   C. tube  D. paper release lever

54.   A document enclosed inside the pay envelope that explains how the employee’s net wage or salary was arrived at is referred to as _____  A. pay slip   B. voucher  C. payroll  D. deposit slip

55.   A communication system used by individuals and organisations to send messages electronically through internet is ____  A. computer system    B. connectivity  C. electronic mail  D. yahoo

56.   The keyboard operator must always have his or her feet _____ on the floor and fingers _____ on the home keys  A. flat, curved    B. moved, straight  C. curved, flat  D. crossed, straight

Use the information below to answer question 57

  ₦

Sales                                       18,000

Cost of goods sold                  15,500

Gross profit                              XXX

Expenses                                  1,000

Net profit                                 1,500

57.   What is the gross profit?   A. ₦2,500   B. ₦2,000   C. ₦8,000   D. ₦5,500

58.   Cerical duties are best performed in _____   A. company   B. market  C. ministry   D office

59.   Which of the following departments help to improve the welfare of workers in an organization?  A. accounts   B. sales   C. purchasing  D. personnel

60.   An input device that can be used to type raw data, programs and instructions into the computer is called  A. flash drive   B. mouse   C. keyboard  D. monitor

 

Answer all questions from this section

1a. define balance sheet

1b. the following balances relate to the business of Afe Yemi, a business man in Abuja as at 31^st December, 2020.

                                                             ₦

Capital 1/1/2020                               5,000

Short term loan                                 1,700

Net profit for the year                       500

Drawing                                            300

Trade creditors                                 1,250

Trade debtors                                   1,450

Land and building                             1,750

Motor vehicle                                    1,000

Stock                                                  775

Cash at bank                                       125

Plant and machinery                        1,500

From the above, you are required to prepare the balanced sheet of Afe Yemi as at 31^st December, 2020.

2. a. what is filling?

2b. mention one (1) reason for filling document

2c. state four filling methods and explain one

3a. define office equipment

3b. state two (2) reasons why office equipment is important 

3c. give the use of each of the following office equipment  (i). filling cabinet  (ii). Photocopier  (iii). Paper shredder  (iv). Electronic calculator

4a. what is insurance?

4b. mention two (2) reasons why insurance is important to business or individuals taking a policy

4c. list four (4) types of insurance