ERC Business Studies 2023 Past Question

 

FCT/ERC/2023/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2023.

TIME: 2½ HOURS.

SECTION A: OBJECTIVES

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION. 

1.       Which of the following is NOT a benefit of business studies?    A. to educate about business     B. it teaches how to keep files and documents    C. it helps people unconditionally    D. it teaches how office functions

2.       Which of the following is correct about commerce?    A. buying, selling and distribution of goods and services    B. concerns with home trade only    C. handles foreign trade only    D. master to trade

3.       Which of this section does not belong to personnel department?    A. interview program    B. promotion and discipline    C. wages and salaries    D. re-assignment of staff

4.       Products is not complete until goods produced gets to ____  A. wholesaler   B. retailer    C. consumer  D. agent

5.       One of the consequence of lateness and irregularity is _____ A. a high level of productivity    B. a fine    C. promotion    D. an increase of stress

6.       An individual who owns his capital and runs his own business alone is called a/an _____  A. business man     B. chief executive     C. entrepreneur   D. sole proprietor

7.       Which of the following business organization derives its capital from tax payers?  A. co-operative    B. public enterprises    C. partnership     D. sole proprietorship 

8.       Partnership deed is otherwise known as partnership ____   A. agreement    B. amalgamation   C. dissolution   D. memorandum

9.       What people do to earn a living is referred to as _____  A. occupation    B. production    C. distribution     D. enterprise

10.   Resources which are combined together to produce goods and services are called ___     A. chemicals     B. factors of production      C. free gifts of nature     D. labour

11.   Which of this is not a type of journal?  A. purchase journal     B. return inward journal     C. sales journal    D. balance brought forward journal

12.   The chemicals for household use and can be purchase in local stores is called____    A. toxic    B. dangerous     C. suitable    D. hazardous

13.   The following are office correspondence records EXCEPT____  A. postage book    B. inward book    C. outward book    D. school register

14.   In double entry bookkeeping the two aspect of a business are _____   A. buying and giving     B. buying and selling     C. debit and giving     D. giving and receiving

15.   The four main parts of the computers include _____  A. keyboard, monitor, central processing unit and mouse     B. keyboard, cursor, monitor, and speaker     C. speaker, joystick, scanner and mouse     D. monitor, central processing unit, scanner and speaker

16.   The telephone __is used by the receptionist to record telephone messages    A. directory    B. message pad    C. brick    D. tape

17.   The two major division of mail are ____   A. small and large     B. open and correspondence       C. letters and correspondence     D. incoming and outgoing  

18.   The appropriate dress code for a receptionist is ___ dress    A. official     B. casual    C. party    D. native

19.   What documents are used in buying of goods and services?    A. office     B. school      C. sales    D. purchase

20.   The path through which goods passes from the manufacturer  to the consumer is called ____    A. production     B. channels of distribution      C. flow chart     D. flow chain

21.   The following are career opportunities in the capital market EXCEPT_____    A. stock brokers    B. jobbers     C. architecture     D. equity analyst

22.   ____ note is prepared by the seller for goods returned and amount overcharged     A. debit     B. credit     C. order     D. purchasing

23.   The apex bank in Nigeria is ____    A. Zenith bank     B. Federal apex bank     C. national Apex bank      D. central bank of Nigeria

24.   One of these is not a type of account held in commercials banks    A. saving     B. current    C. regular    D. fixed deposit

25.   The insurance company will provide cover for loss of the following EXCEPT    A. gambling    B. goods      C. building      D. life

26.   A mail that is written and sent to someone within an organization is called ___ mail    A. express    B. external     C. foreign    D. internal

27.   What is the full meaning of the abbreviation COD?   A. carriage on delivery     B. cash on delivery  C. credit on delivery    D. cost on delivery

28.   The petty cash book is usually put  in the care of a clerk called a ____  A. petty cashier    B. receptionist    C. sale clerk     D. office clerk

29.   A transaction affecting both the cash and credit column of the cash book is called ____ entry    A. contra      B. control     C. credit     D. contract

30.   If Tom insured Bola’s car for #40000 which of the following principles will deprive Tom from making a claim?    A. contribution     B. proximate cause      C. insurable interest     D. utmost good faith

31.   Which of the following is recorded in the folio column of the ledger or journal?    A. all credit and sales transaction    B. amount of money involved    C. date of entry     D. page number of a journal or ledger account

32.   How many types of cash book do we have?    A. one     B. two    C. three    D. four

33.   The conventional system for recording petty cash transaction is referred to as ___    A. imprest system    B. petty cash reimbursement    C. petty cash retirement    D. petty business

34.   The ____ insurance reduce the financial burden to a family member at the death of its bread winner    A. burglary    B. life    C. marine    D. theft

35.   Withdrawal from bank for personal use is an example of ___ entry    A. contra    B. single  C. credit  D. debit

36.   The most universal media of advertising is the ____    A. newspaper     B. radio    C. handbill    D. television

37.   Which of the following is not a major type of transportation?   A. air    B. water    C. flight    D. pipeline

38.   The following are traditional method of communication EXCEPT ___     A. talking drum    B. town crier    C. flute    D. telephone

39.   Franking machine is more useful when ____   A. letters are many    B. postage book is missing    C. stamp is expensive    D. letters are few

40.   Which of the following is NOT true of ALL cheques?  A. amount in figures must correspond with the amount in words     B. bears the date on which the cheque is drawn    C. drawer’s signature correctly written on it     D. two parallel lines drawn across the face.

41.   Which of these is BEST used to advertise chalk?    A. law book    B. medical journey    C. teachers journal     D. weekend entertainment journal

42.   The quickest means of sending verbal message is by ___    A. e-mail  B. letters    C. telephone    D. telegram

43.   Which of these is NOT part of postal services? A. business reply     B. express letters     C. cash on delivery     D. trunk call

44.   The amount charged for carrying goods is known as ____   A. bond     B. brokerage     C. freight    D. commission

45.   The best storage system for very important documents is ______ cabinet     A. drawer    B. fire proof     C. safe     D. wooden

46.   Furniture and fittings are example of ____ assets    A. fixed    B. current     C. circulating    D. floating

47.   Mr. John bought 10 cartoons of milk @ ₦2500 and sold them ₦300 per carton. What profit did he make after paying #20 on transportation    A. ₦5500      B. ₦3000    C. ₦480    D. ₦320

48.   In a trial balance a clerk discovered that discount appears in the debit and credit column. What does the one on the credit side mean?     A. cash discount   B. discount allowed     C. discount received     D. trade discount

49.   Which of these is correct of a trading account?      A. bears the telephone number of the business      B. calculated after the profit and loss account       C. records fixed assets of the business      D. prepared for a period of time

50.   The following are rights of the consumer EXCEPT      A. to get value for goods bought      B. to choose among alternatives      C. not to be informed       D. to seek redress in court of law

Use the following information below to answer questions 51 and 52

      ₦

Capital 1/1/2023                         5000

Short term loan                           1750

Trade creditors                            1250

Cash at bank                               1450

Cash at bank                               1600

Cash in hand                                 125

 

51.   Calculate the current asset?     A. ₦3175     B. ₦3950    C. ₦6750     D. ₦4350

52.   The value of the current liabilities amounted to  A. ₦3000      B. ₦3175    C. ₦5000    D. ₦6750

53.   Which of these is not a book keeping ethics?    A. transparency     B. accountability     C. probity    D. proliferation

54.   ____ is not an item in the balance sheet      A. capital      B. asset     C. costs of goods sold       D. liabilities

55.   The difference between sales and cost of goods sold is the _____     A. gross profit     B. net profit  C. turnover     D. market value

56.   _____ is a hand written and disjointed material which need to be typed in a readable and meaningful way      A. magazine      B. manuscript      C. bill    D. handbook

57.   NP is a printer sign that is used to ______    A. insert hyphen     B. transpose      C. start a new paragraph     D. close up

58.   A method of paragraphing where all lines start at the margin is known as _____ paragraph     A. hanging      B. block     C. indented       D. open

59.   The ____ is a system of computers that are connected all over the world to transfer information to one another      A. telephone       B. G. S. M      C. internet     D. intercom

60.   In keyboarding ____ is used to press the space bar when typing      A. thumb      B. left finger       C. ankle      D. right finger  

 

SECTION B: ESSAY

INSTRUCTION: Answer all the questions

1.       The following balances were extracted from the books of Chineme Owen on 31^st December 2022

Stock 1/1/2022                          4000

Stock 31/1/2022                        2660

Sales                                          52700

Electricity bills                           1000

Salaries                                       3200

Rent                                             2000

Transport expenses                      1500

Return outward                            4600

Purchases                                   31300

You are required to prepare a trading, profit and loss account for the business for the year ended 31^st December, 2022.

2.       Mention three department in an organization 

b. Explain two departments mention in the 2a above

c. Differentiate between home trade and foreign trade 

3.       a. What is cash float?

b. Identify any two steps involved in the operation of the imprest system

c. Outline any four method of making payment 

4.       a. Define the term “cash book”

b. List the types of cash book

c. Briefly explain the following as related to office correspondence (i) incoming mail  (ii) outgoing mail   (iii) postage book

 

ALTERNATIVE TO PRACTICAL

1.       Mention five (5) control key and their functions   

2.       State five (5) ways of caring for office equipment

3.        Draw communication flow chart

4.       Draw business or complimentary card with its detailed information

 

NECO BECE 2024 BUSINESS STUDIES

 NECO BECE

Business studies 2024

Paper 1

Commerce

1.       The primary purpose of establishing a business is to   A. create employment  B. generate revenue for the government   C. make profit  D. provide goods and services  E. sell goods at discounted price

2.       A product that needs demonstration can be advertised through ______ A. catalogue  B. handbill  C. newspaper  D. radio   E. television

3.       The discount operated by customers of commercial banks which requires the use of cheque is ______ account   A. current   B. deposit  C. domiciliary  D. salary  E. savings

4.       The following are rights of a consumer except the right to _____  A. be informed  B. choose   C. fix prices   D. healthy environment   E. safety

5.       The aid to trade that provides finances for individuals and organization to carry out their business activities is _____  A. advertising   B. banking  C. insurance   D. tourism  E. warehousing

6.       When a customer informs a manufacturer of dissatisfaction with his products, this is known as _____  A. challenging  B. communication  c. complaint  D. interaction E. reporting

7.       The reward of capital as a factor of production is ____  A. commission  B. interest   C. profit  D. rent  E. salary

8.       Sole proprietorship is a business that is owned by ­­­_____  A. individual   B. employees  C. shareholders  D. government  E. the public

9.       The internal environment of a business offers  A. opportunities and threats   B. strength and weakness   C. threat and strength  D.  threat  and weakness   E. weakness and opportunities

10.   Obtaining natural resources from the land or sea is categorized under _____ occupation.  A. commercial   B. constructive   C. extractive  D. manufacturing  E. service

11.   Which of the following is an advantage of road transport?   A. has standard rate of charge   B. is suitable for carrying fragile goods  C. is the fastest means of transportation  D. is usually affected by traffic congestion   E. offer door-to-door services

12.   A businessman who buys goods from Japan and sells them in Nigeria is involved in _____ trade   A. entreport   B. foreign   C. home   D. multilateral   E. retail 

13.   The process of creating goods and services to satisfy human wants is referred to as ____  A. commerce  B. marketing  C. occupation  d. production  E. trading

14.   The financial institution that reduce risks associated with business are called _____  A. commercial banks   B. discount houses   C. insurance companies  D. microfinance banks  E. pension administrators  

15.   Which of the following is not part of the procedures of writing a business plan?  A. analyzing the strength and weakness of competitors   B. carrying out market analysis  C. designing the organizational structure  D. determining discount to be granted  E. writing a business proposal

16.   Production is said to be complete when goods produced reach the ____  A. consumer  B. distributor   C. retailer   D. warehouse  E. wholesaler  

17.   The rules and standards which practitioners must follow in the discharge of their professional duties are called ___ A. culture  B. ethics  C. morals  D. norms  E. values

18.   Bricklaying id categorized under _____ occupation   A. commercial   B. constructive  C. extractive  D. manufacturing  E. service 

19.   Which of the following qualities is required of a business in dealing with customers? A. honesty  B. indolence  C. nonchalant  D. obedience  E. strictness

20.   The process of sending and receiving information in business is _____ a. advertising  B. communication   C. distribution   d. marketing  E. production 

21.   A trader who buys goods in small quantity and sells in units to customers is a/an  A. agent  B. producer  C. retailer  D. supplier  E. wholesaler 

22.   The principle of insurance which states that the insured should be compensated at the event of a loss is ___  A. contribution  B. indemnity  C. insurable interest  D. proximate cause  E. subrogation

23.   When a manufacturer and a dissatisfied customer discuss on how to resolve a matter peacefully, this is a way of seeking redress by ­­­­­_______ A. arbitration   B. confrontation  C. dialogue  D. intervention  E. meditation

24.   Which of the following aids delivery of goods in business?   A. advertising   B. insurance  C. marketing  D. production  E. transportation  

25.   Chemicals must be properly  ______ to give adequate information to users   A. diluted   B. kept   C. labeled  D. sourced  E. stored

26.   Influencing a potential buyer to purchase a product explains  ____ advertisement.   A. competitive   B. direct   C. informative  D. mass  E. persuasive

27.   Purchasing a product without planning for it explains ______  A. impulsive buying  B. pre-sale service  C. rational purchase  D. seasonal prevalence   E. window shopping

28.   Which of the following business organizations raises capital through sale of shares?   A. cooperative society  B. partnership business  C. private limited company  D. public limited company  E. sole proprietorship

29.   The right channel of distribution of goods is _____  A. consumer  wholesaler  retailer  manufacturer    B. consumer  retailer  agent  manufacturer   C. manufacturer  wholesaler  retailer  consumer   D. producer  retailer  wholesaler  consumer   E. wholesaler  producer  retailer  consumer

30.   Which of the following is not a modern means of communication?   A. e-mail  B. internet  C. talking drum  D. television  E. text message

BOOK KEEPING

31.   Goods unsold at the end of a trading year is  A. closing stock  B. cost of goods available  C. cost of goods sold    D. net purchases   E. opening stock

32.   The act of buying and using goods and services is known as ______  A. business  B. consumption   C. marketing   D. purchases  E. trading 

33.   The following are found on the debit side of a trial balance except______   A. buiding  B. furniture  C. motor vehicle  D. return outwards  E. salaries

34.   A petty cashier is given a cash float of ₦20,000 for the month, out of which he spent 17,500. How much is to be refunded?  A 4,000   B. 3,500  C. 3,000  D. 2,500  E. 2,000

35.   Living within one’s income is ____  A. budgeting  B. choice  C. demand  D. modesty  E. need

36.   The column that records reference number of transactions in a ledger is _____   A. amount  B. date   C. discount  D. folio  E. particular

Use the following information to answer questions 37 and 38.

Capital                  ₦5,000

Debtors                ?

Creditors             ₦1,500

Stock                     ₦2,500

Cash at bank      ₦3,000

37.   Which is the amount of debtors?   A. 3000  B. 2500   C. 2000  D. 1500  E. 1000

38.   What is the balance on the credit side of the trial balance?  A. 6,500   B. 5,000  C. 4,500  D. 3,000  E. 1,000

39.   A trial balance is presented on a _____ entry basis,  A. contra  B. double  C. journal  D. ledger  E. single

40.   The left hand side on a balance sheet shows   A. current and fixed assets   B. fictitious and liquid assets  C. income and expenses  D. liabilities and capital  E. profit or losses

41.   The main purpose for preparing profit and loss account is to ascertain ______  A. gross profit or loss  B. gross sales   C. net profit or loss  D. net purchases  E. net sales

42.   Which of the following is found on the credit side of a trial balance?  A. building  B. furniture  C. motor vehicle  D. return outward   E. salaries

43.   The amount of money used to start a business is ______  A. capital  B. gain  C. grant  D. loan  E. profit

44.   Mr. James bought stationery for ₦1,000 by cash. The double entry is ______  A. Cr Mr. James and Dr. Cash    B. Cr. Stationery and  Dr. Cash   C. Dr Cash and Cr  James   D. Dr Purchases  and Cr Cash  E. Dr stationary  and Cr cash

45.   The person who takes care of minor expenses in an organization is the ______  A. counter cashier   B. office clerk  C. petty cashier  D. secretary   E. treasurer 

46.     Financial position of a business is determined at the end of the year by preparing ________  A. balance sheet   B. cashbook  C. profit and loss account   D. trading account   E. trial balance

Use the following information to answer questions 47 and 48

The following is a stationary of petty cash transaction of Ada Ltd for the month of November, 2020.

November 1: Received from Accounts ₦60,000 as cash floats

November 2 Bought postage stamp ₦3,000

November 4: Bought petrol for delivery van ₦6,000

November 7: Paid cleaners ₦5,000

November 11: Paid ₦2,000 for travelling epenses

November 16: Bought petrol ₦1,200

November 20: Paid for postage ₦1,500

November 24: Settlement of Segun account ₦1,300

November 29: Sundry expenses ₦200    

47.   How much of stationery was bought?  A. ₦4,700  B. 4,500   C. 3,500   D. 3,000  E. 2,500

48.   What is the amount used for transportation?  A. ₦10,500  B.9,400  C. 9,200  D. 8,000  E. 7,200

49.   When a chief cashies gives out money to a petty cashier, the chief cashier will   A. credit capital account   B. credit cash account   C. credit purchases account    D. debit capital account   E. debit cashbook

50.   The full meaning of “TAP” in bookkeeping means Transparency, ______, and Probity.  A. Accountability  B. Accountancy   C. Accountant   D. Accounting   E. Accuracy

51.   When goods are sold for ₦100,000 by cash, the double entry is _____   A. credit cash and credit sales   B. credit sales and debit cash  C. debit purchases and debit cash   D. debit sales and credit cash   E. debit sales and debit cash

52.   Balance sheet can be used to determine the following except ______   A. current account   B. financial position of the business   C. total current assets   D. total fixed assets   E. working capital

53.   Which of the following expenses is recorded in petty cashbook?   A. insurance  B. postage  C. rent   D. salaries  E. wages

54.   Which of the following transactions is recorded in the cashbook?  A. accrual   B. bad debt  C. cash sales   D. Credit sales  E. prepayments

55.   The day to day transactions of a business is recorded in _____ book   A. cash   B. ledger  C. pass  D. purchases day   E. sales day

Use the following information to answer questions 56 and 57.

Trading Account

₦ Opening stock                    9,000 Add purchases                  21,000                                             30,000 Less closing stock              6,000                                               X X X Gross profit                        X X X                                             60,000

₦ Sales                         60,000                                             60,000

 

 

56.   The amount of gross profit is _______  A. ₦45,000    B. 36,000   C. 27,000   D. 21,000  E. 15,00

57.   What is the cost of goods sold?  A. ₦ 60,000   B. 36,000  C. 30,00   D. 24,000   E. 21,000

58.   Which of the assets is temporary in nature?  A. cash at hand  B. furniture and fittings   C. land and building   D. machinery and equipment   E. motor vehicle

59.   Trading account is prepared to ascertain ______ A. gross profit or loss   B. gross sales  C. net profit   D. net profit or loss   E. net sales

60.   Which of the following is not a source of personal finance?  A. borrowing from friends and relations   B. grant from world bank   C. loan from cooperative societies   D. personal savings  E. wages and salaries from occupation