ERC Business Studies 2020 Past Question

 

FCT/ERC/2020/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2020.

TIME: 2½ HOURS.

SECTION A: ESSAY  

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.    The person who completes the process of production is called ____. A. Consumer.  B. Customer. C. Producer. D. Wholesaler

2.    The following are government agencies responsible for the protection of consumers Except _____. A. Investment promotion council.  B. Price control board. C. Rent tribunal.   D. Standard Organization of Nigeria

3.    A written document that described in details how a new business is going to achieve its goals is called business _____. A. Idea.  B. Opportunity.  C. Plan. D. Survey

4.    An expression of dissatisfaction which is oral or written can be termed ______.  A. Complaint.  B. Bad expression.  C. Quarreling.  D. Information

5.    The following are aids to trade except. A. Banking.  B. Mobile phone.   C. Telegram.  D. Satellite

6.    The easiest and the quickest means of interacting with people within and outside the country is through ____

7.    The art of using the typewriter to produce characters on paper is called ____ A. Analyzing.  B. Keyboarding.  C. Processing.  D. Programming

8.    Purchases in accounting refer to goods bought for ____. A. Decoration of staff office.  B. Repairs.  C. Resale.  D. Permanent use

9.    Turnover is another name for ____. A. Expenses.  B. Profit.  C. Purchases.  D. Sales

10. The following are functions performed in the office except ____ information. A. Processing.  B. Preventing.  C. Recording.  D. Receiving

11. A good clerical staff should not be. A. Clean. B. Saucy. C. Confident.  D. Polite

12. An office equipment used for creating holes neatly on papers for filing is called ____ A. Perforator.  B. Stapler.  C. Photocopy.  D. Guillotine

13. Safe keeping of customers’ valuables is common with ___ bank. A. Agricultural.  B. Central.  C. Commercial.  D. Merchant

Use the following information to answer question 14 – 15

Capital                       5,000

Cash in hand             1,400

Stock                          300

Creditor                      1,600

Furniture                   2,000

Bank                           1,500

Debtor                        500

Machinery                 3,200

14. Calculate the total fixed asset A. ₦5,600.  B. ₦5,200.  C. ₦5,000. D. ₦2,000

15. Calculate the current asset. A. ₦2,900.  B. ₦4,500.  C. ₦4,000.  D. ₦3,400

16. The principal office is an example of _____ office. A. Large. B. Small. C. Mail room.  D. Staff

17. The insured in an insurance business is the ___  A. Insurance company.  B. Holder of the insurance policy.   C. Risk giver.  D. Agent of the insured

18. Big keyboard is a type of ____ device that enables a user to enter into the computer.  A. Hardware.  B. Input.  C. Output. D. Software

19. Import trade means ____. A. Buying goods from other countries.  B. Buying goods from one's own country. C. Selling goods to other countries.   D. Selling goods within ones own country

20. First Bank of Nigeria Plc is an example of ___. A. Commercial bank.  B. Central bank.  C. Mortgage bank.  D. Co-operative societies

21. The reward for entrepreneur is ____. A. Rent.  B. Profit.  C. Wage.  D. Interest

22. The fastest means of sending verbal messages is by.  A. E-mail.  B. Telephone.  C. Telegram. D. Facsimile.

23. Which of these is not true of a sole proprietorship business?  A. There is continuity.  B. Easy to form.   C. Takes all decision.  D. Enjoy all profit

24. A regular buyer of a product is called _____. A. Customer.  B. Producer.  C. Buyer.   D. Consumer

25. The insurance principles which requires all information provided to be correct is____. A. Utmost good faith.  B. Subrogation.  C. Policy. D. Indemnity

26. The asset of organization that are of a more permanent nature used in business production are called ____. A. Fixed asset.  B. Current asset. C. Liabilities.  D. Depreciation

27. A place where goods are kept until they will be distributed is called ___. A. Warehouse.  B. Bank. C. Market. D. Shop

28. _____ is one of the career opportunities in business studies.  A. Agriculture.  B. Engineering.  C. Entrepreneurship.  D. Pharmacy

29. Who is a clerical staff? A. A manager.  B. Someone who perform office duties.  C. An office cleaner.  D. A tailor

30. Which of these is referred to as a legal tender? A. Cheque.  B. Bank draft.  C. ATM card.  D. Bank notes

31. A good example of adding machine is ___.  A. Computer.  B. Typewriter. C. Calculator. D. Shredder

32. The acronym WWW stands for ____. A. Word Wide Web.  B. Wide Web World.  C. World Wide Web. D. Web World Web

33. A business is able to cover the risks of its business transaction through ____ A. Insurance.  B. Communication. C. Banking. D. Advertising

34. The following are components of communication except ____  A. Sender. Interpreter. C. Receiver.  D. Message

35. Congestions and hold-ups that bring about delay in transportation is in ___ transport.   A. Air. B. Rail.  C. Water.  D. Road

36. SWOT analysis is a laid out plan designed to identify the ____ involved in setting up a business venture.   A. Success, weakness, organizations and technique.   B. Strength, weakness, opportunities and threats.  C. Strength, weakness, orientation and technique.   D. Stress, weakness, opportunities and technique

37. A detailed account of all items of goods kept in a store is called ____. A. Store record.  B. Requisition record.  C. Gate pass.   D. Requisition form

38. Mrs. Ezurike sets aside a sum of #100,000 for business purposes, this amount is referred to as_____.  A. Drawing.  B. Capital.  C. Loan.  D. Profit

39. “DR” in a ledger stands for ___.  A. Debit.  B. Debtor.  C. Discount.  D. Disallowed

40. Obtaining crude oil for refining is an example of _____ occupation.   A. Constructive.  B. Extractive.   C. Manufacturing.  D. Service

41. Goods costing. #12,000 are sold for #20,000 and #4,500 is spent on selling expenses, what is the net profit?  A. #3,500.  B. 12,000.   C. 16,000. D. #8,000

42. All activities of human efforts directed towards the satisfaction of human wants is known as ______. A. Commerce.  B. Satisfaction.  C. Production.  D. Creation

43. The reason for engagement in a business is to make _____. A. Friends. B. Loss. C. Profit. D. Energy

44. The top movable part of a typewriter is called _____. A. Cylinder.  B. Knobs.  C. Carriage.  D. Shift keys

45. The two classes of account are personal and ____. A. Real account.  B. Hormonal account.  C. Impersonal account.  D. Interest account

46. To prevent damage to the cylinder of the typewriter, a paper called ____ is used.  A. Flimsy paper.  B.  cartoon paper.  C. Backing sheet.  D. Carbon paper

47. The amount of money paid by government to someone who is considered too old to work is known as _____. A. Pension.  B. Salary.  C. Pay-off.  D. Wage

48. Cost of goods sold is _____.  A. Closing stock + purchases – opening stock.   B. Expenses+ purchases – opening stock.  C. Opening stock + purchases – closing stock.  D. Total sale – cost of good stock

49. What is the full meaning of the abbreviation TAP?  A. Transparency, accountability and probity.   B. Transparency, accountability and productivity. C. Transparency, accountability and proximity.  D. Transparency, accuracy and probity

50. An officer who goes to the office on time is said to be ____ A. Faithful. B. Obedient.  C. Punctual.  D. Regular

51. Which of the following is a reward for being devoted to duty?   A. Demotion.  B. Query.  C. Promotion.  D. Suspension

52. The sum total of keys on the computer is known as ____. A. Keyboard.  B. Monitor.  C. Mouse.  D. System

53. The department that is responsible for changing raw materials into finished goods is called ____ department   A. Finance.  B. Marketing.  C. Production. D. Transport

54. Which of the following is not part of the computer?  A. CPU.  B. Knob.   C. Monitor.  D. Mouse

55. Which of the following is not a component of business studies?  A. Bookkeeping.  B. Commerce.  C. Keyboarding.  D. Salesmanship

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

57. The filling of letters according to their places of origin or destination is termed filing ____. A. Chronological.   B. Numerical.  C. Geographical.   D. Alphabetical

58. _____ is the coming together of people for the purpose of trade, purchase or sale of goods and services. A. School. B. Market. C. Church.  D. Industry

59. The abbreviation “MTG” means _____. A. Meeting.  B. Mean time.  C. Meant.  D. Meaty

60. When a consumer is allowed by the seller to take or test the product before paying for it, it is called _____. A. Credit buying. B. Buying by description.  C. Buying by sample.   D. Buying by inspection

Section B: Essay

Instruction: Answer all questions from this section

1.    Enter the following transactions in the cash booth of Brogbenda Nguliyan for the month of January 2019

 Jan 1:            Started the retail business with $200,000 cash

Jan 6:             Bought goods worth 40,000 by cash

Jan 7:             Received $10,000 cash in respect of sales

Jan 11:           Paid the following expenses in Cash: stamps #200, diesel #1,700

Jan 13:           Paid cash #5,000 to Alison

Jan 16:           Bought a motorcycle by cash #75,000

Jan 18:           Received a cash loan of #50,000 from Joy Idakwo

Jan 24:           Bought goods worth #7,000 by cash

Jan 30:           Paid salaries of sales personnel #20.000

2.     a. Define production

b. List four factors of production

c. Explain any two factors of production listed in (b) above

3.    a. Differentiate between stock and stock taking

b. Mention three types of store record

c. State two importance of stock taking

4.    a. Define the following terminologies. (i). Trial balance. (ii). Asset. (iii). Liabilities. (iv). Net profit  (v). Closing stock.

b.    Mention four components of business studies

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