TOPIC: BUSINESS CAPITAL AND PROFITS
DIRECTION: Choose the correct answer from the lettered options.
1.Which of the following is not an intangible asset?
A.goodwill
B.patent
C. furniture
D.mark
The correct answer is option [C].
2.If the opening stock of the business set up by Simeon Enterprises is ₦20,000 and the closing stock is ₦30,000. What is the average stock?
A. ₦25,000
B. ₦50,000
C. ₦10,000
D. ₦20,000
The correct answer is option [A]
3.Which of the following is likely to have the lowest rate of turnover?
A. Tomato
B.School bag
C.Air conditioner
D. Salt
The correct answer is option [C].
4.Use the following equation to answer the question. Gross Profit = (Closing stock + P) less (Opening stock + G) what is P in the above equation?
A.Purchases returns
B.Net Profit
C. Sales
D.Carriage outwards
The correct answer is option [C]
5.Assets that can easily be converted to cash are known as ______
A.liquid capital
B.capital employed
C.reserved capital
D.working capital
The correct answer is option [A].
6.If Mama Trading Company’s assets is valued at ₦1,000 and its liabilities at ₦560. What is its capital?
A. ₦400
B. ₦560
C. ₦1560
D. ₦440
E. ₦500
The correct answer is option [D]
TOPIC: THE STOCK EXCHANGE
DIRECTION: Choose the correct answer from the lettered options.
1. Which of the following is used for a single payment of many people at the same time through a bank instead of writing separate cheques?
A. Debit transfer
B. Credit transfer
C. Certified cheque
D. Crossed cheque
The correct answer is option [B]
2. Another name for debenture is _______
A. bonds
B. conversation stock
C. loan stock
D. shareholding
E. treasury stock
The correct answer is option[C]
3. A company will not insure loss arising from _______
A. accident
B. burglary
C. fire
D. speculation
E. theft
The correct answer is option [D]
4. What is the name of the service where a bank makes regular payment on behalf of its customers?
A. Direct debit
B. Credit transfer
C. Standing order
D. Bank draft
The correct answer is option[C]
5. Which of the following is NOT a negotiable instrument?
A. Bill of exchange
B. Cheque
C. Dividend warrant
D. Postal order
E. Promissory note
The correct answer is option [D]
6. When the buyer of an existing share is to receive the pending dividend, the price is ______
A. cum div
B. ex-div
C. at par
D. at discount
The correct answer is option [A]
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