ERC Business Studies 2022 Past Question

 

FCT/ERC/2022/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2022.

TIME: 2½ HOURS.

 

SECTION A: OBJECTIVE 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.       If Nigeria imports car from Germany and later exported it to Ghana, this trade activity is known as _____ trade   A. import  B. export  C. entreport  D. home

2.       In a school setting, the principal, vice principal, secretary makes up ______ department   A. administrative department   B. account  C. planning  D. personnel

3.       Which of these is a career opportunity in business studies?  A. law  B. medicine  C. engineering D. Trading

4.       Sanctions can be in the following ways EXCEPT   A. suspension from work  B. summary dismissal  C. deduction from salaries   D. regular payment of salaries

5.       _____ is NOT a function of clerical staff in an organization  A. receiving of mail  B. attending to customer enquiries  C. cleaning of office environment  D. typesetting of correspondence

6.       All are examples of extractive occupation EXCEPT   A. fishing  B. oil drilling  C. farming  D. carpentry

7.       A private limited liability company uses _____ after its name  A. Ltd   B. CCC   C. PSC   D. Plc.

8.       Public enterprises in Nigeria include the following EXCEPT   A. The Nigeria Railway Corporation (NRC)   B. African Independent Television (AIT)  C. Nigeria National Petroleum Corporation (NNPC)   D. Federal Radio Corporation of Nigeria (FRCN)

9.       The right way of sourcing for chemicals is from ____  A. licensed vendors  B. retailers  C. wholesaler   D. open market

10.   Which of the following factors of production is subject to the law of diminishing returns?   A. labour  B. capital   C. entrepreneur  D. land

11.   All bright parts of the typewriter should be cleaned after use with a clean   A. water  B. mob  C. duster   D. paper

12.   When the invoice is sent to the buyer, it is called   A. purchase invoice  B. sales invoice  C. buyer invoice  D. inventory

13.   The following are components of ledger EXCEPT  A. amount   B. date  C. particulars  D. net profit

14.   ____ keys are parts of the computer keyboard   A. alphabets   B. function   C. numeric  D. narrow

15.   The two major qualities of a book keeper are ____ and ____ qualities  A. important and principle   B. personal and impersonal   C. accurate and inaccurate   D. personal and job

16.   The following are auxiliaries to trade EXCEPT  A. advertising  B. banking  C. controlling  D. insurance

17.   Communication is important in business because it ___  A. create awareness in the minds of consumer  B. ensure that finished products are distributed  C. facilitated contact between buyers and sellers  D. makes movement of goods possible

18.   XYZ company started business with goods worth ₦15,500, bought goods worth ₦5,500 and ended the business with goods worth ₦10,000. Calculate the cost of the goods sold?   A. ₦11,000  B. ₦21,000   C. ₦5,500   D. ₦15,500

19.   The art of storing goods produced in a place until they are needed is called    A. communication  B. warehousing   C. storing   D. wealth  

20.   Which of these channels of distribution is suitable for an aircraft?  A. manufacturers – wholesaler – retailer – consumer   B. manufacturer – agent – wholesaler – consumer   C. agent – retailer – consumer  D. manufacturer – consumer

21.   Which of these is a document handled by a receptionist?  A. cover note  B. telephone message pad  C. debit note  D. attendance register

22.   The best means of passing information within is through ____  A. memorandum  B. report  C. television   D. telegram

23.   The highest financial institution in a country that carries out the monetary policies of the country is ____  A. commercial bank  B. central bank   C. merchant bank  D. mortgage bank

24.   Letters, parcels, magazines, incoming and outgoing mails of an organization are referred to as  A. office procedures  B. office correspondence  C. office inventors  D. office document

25.   An agreement between a bank and customers to withdraw above his/her account balance is ____  A. loan  B. overdraft  C. travelers’ cheque  D. promissory note

26.   Which of the following is not a type of insurance policy?  A. motor vehicle insurance   B. national vehicle insurance   C. National Health Insurance Scheme   D. First Party Insurance  

27.   ____ is a debit entry item in the double column cash book   A. cash sales   B. cash payment  C. cheque paid  D. wages paid

28.   In ledger entries, all cash receipts are to be   A. credited  B. debited  C. discounted  D. cancelled

29.   Marine insurance is compulsory for _____  A. ships and boats  B. buildings  C. motor vehicle  D. agricultural products

30.   A petty cash system is based on an imprest of ₦2,800 a month. If the petty cashier is left with a balance of ₦1,300. How much will he be reimbursed?  A. ₦1200  ₦1500  ₦1300   ₦600

31.   A business gives ____ to its customer them to buy more  A. cash   B. discount  C. interest  D. premium

32.   Who is in charge of a petty cash book?  A. bank manager   B. secretary  C. petty cashier   D. director

33.   The letter ‘C’ in a three-column cash book represent ______ entries   A. control  B. contra  C. cheque  D. cash

34.   An individual taking out an insurance policy pays an agreed amount of money monthly or quarterly called  A. premium   B. indemnity  C. pension fund   D. insurance allowance

35.   The abbreviation “NHIS” stands for _____  A. Nigeria Health Insurance Scheme   B. Natinal Health Insurance Scheme  C. New Health Insurance Scheme   D. Nominal Health Insurance Scheme

36.   The following are procedures for making payment EXCEPT  A. cash  B. voucher  C. bank transfer  D. cheque

37.   Advantage of using an ATM include ____  A. ATM service s yet to reach most rural parts of Nigeria  B. the amount of money that can be drawn from an ATM is limited    C. ATM has reduced the risks associated with carrying large amounts of cash to transact business   D. those who are illiterate may not be able to use ATM

38.   A _____ is a detailed account of all items of goods kept in a store  A. requisition record  B. stock taking  C. physical counting  D. store record

39.   The following are disadvantages of office equipment EXCEPT ____   A. their spare parts may not be readily available  B. they require regular servicing  C. they make work easier and faster  D. they are expensive to maintain

40.   _____ is used to hold papers firmly together as one piece  A. scanner  B. stapling machine  C. perforator   D. paper shredder

41.   Products and service are advertised on vehicles through the use of ____ A. journals  B. newspaper   C. loudspeaker   D. stickers

42.   An advantages of air transportation is   A. it is most suitable for carrying perishable and fragile goods  B it is very expensive   C. it cannot carry heavy machinery   D. it increases the overhead cost of a company

43.   The most suitable medium for demonstrating the use of product is   A. hand bill  B. poster  C. television  D. newspaper

44.   ____ is a cheque drawn by the bank on itself  A. bank draft   B. bank transfer  C. imprest payment   D. travelers draft

45.   Means used for water transportation include all EXCEPT  A. canoes  B. boats and ferries  C. bicycle   D. ship  

46.   Net profit is calculated as  ___  A. purchases – open stock   B. gross profit – expenses   C. opening stock – purchase  D. sales – cost of goods sold

47.   Which of the following include source of personal finance?  A. credit facilities from the supplier   B. stealing  C. selling one’s family members for money   D. borrowing from government

48.   The term “Caveat emptor” means  A. the producer expression   B. let the consumer be cheated C. let the producer be aware   D. let the buyer beware

49.   Assets of a company can be described as the ____ of the company  A. wealth  B. profit  C. losses  D. debit balance

50.   The gross profit or loss is determine in the  A. balance sheet   B. cash book  C. sales day book  D. trading account

51.   The income received by an individual from all source either for consumption or saving is   A. personal finance  B. hustling   C. personal activities   D. budgeting

Use the information extracted from the book of joy Okon to answer question 52 and 53

                                                       ₦

Carriage inwards                         1200

Returns outwards                         400

Sales                                           10500

Purchases                                    5800

52.   What is the total cost of goods sold?    A. ₦6,600   B. ₦5,800   C. ₦3,900   D. ₦7,000

53.   What is joy OKon’s gross profit?  A. ₦4,900   B. ₦3,900   C. ₦7,000   D. ₦5,700

Use the information below to answer question 54 and 55

                                                                      ₦

Capital                                                     108000

Furniture                                                   5000

Stock                                                         8200

Cash at hand                                              2000

Co-operative loan                                      6000

 

54.   Calculate the current assets?  A. ₦11,000   B. ₦10,200  C. ₦10,800   D. ₦7,000

55.   What is the value of the fixed asset?  A. ₦1300   B. ₦16000  C. ₦10,200   D. ₦5,000

56.   The following are types of heading EXCEPT  ____ heading   A. main   B. shoulder   C. paragraph  D. central

57.   _____ is the paper size used for long letters and reports   A. A4   B. A5  C. A6  D. A7

58.   _____ is NOT a proper keyboarding technique  A. sit up straight  B. arms near sides and wrists straight   C. fingers near home keys   D. right little finger on a space bar

59.   The correction sign ꓥ means ______  A. spell it out   B. insert a column   C. new paragraph  D. no space 

60.   _____ row is NOT a row on the keyboard   A. home  B. top  C. bottom  D. entire

 

SECTION B: ESSAY

Answer all the questions from this section

Cash book of Dominion Michael as at 2019 read as follows

CASH BOOK

DR	CR
₦	₦
Dec.1 capital                           150,000	Dec.4 purchases                        83,600
Dec.19 sales                             23,450	Dec.8 transport expenses.         1,200
Dec.20 sales                             29,100	Dec. 10 wages                           5,000
	Dec.31 Balance C/D                 112,750
202,550	202,550
Jan 1 Balance B/D                   112,750

 

1.       Enter the transactions above in the ledger, extract a trial balance

2.       a. Define the term “Market”.

b. List two types of market and explain anyone.

c. Define two career opportunities in the stock exchange market

3.       a. What is source document?

b. List four types of source document?

c. Explain 2 types of source document mentioned in (b) above

4.       Briefly explain the following types of advertising.

i. Information advertising

ii. Competitive advertising

b. State 2 functions of advertising in business

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