Purchase and Sales of Goods Generix Content - Purchase and Sales of Goods
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JAMB questions for "Commerce :: Purchase and Sales of Goods"
Q1
the most commonly used commercial documents are
A
order notes, debit notes, invoices and quotations
B
letters of equiry, consignment notes, receipts and invoices
C
credit notes, statement of accounts, dispatch order and bills
D
balance sheet, receipts, invoices and manifests
E
Q2
The term free on board means that the price includes
A
costs and insurance only
B
costs and freight only
C
freight and insurance only
D
costs, insurance and freight
E
Q3
If a buyer is given 12.5% discount on ₦50,000 worth of goods, how much will he pay?
A
₦56250
B
₦43750
C
₦43250
D
₦6250
E
Q4
The most important attributes in a sale of goods contract are
A
offer and consideration
B
price and goods
C
offer and acceptance
D
demand and supply
E
Q5
A trader who gives credit stands enjoys
A
higher profit
B
cash discount
C
increased sales
D
trade discount
E
Q6
A person who buys new issues with a view of re-selling at a higher price in the near future is referred to as a
A
bull
B
bear
C
dealer
D
stag
E
Q7
A major benefit a debtor can derive from using a credit facility is
A
goodwill
B
better service
C
control
D
convenience
E
Q8
An agent who takes titles to goods and has authority to buy and sell on behalf of another is
A
a jobber
B
a factor
C
a broker
D
an auctioneer
E
Q9
Which of the following requires payment into the payee's account?
A
Traveler's cheque
B
Crossed cheque
C
Certified cheque
D
Open cheque
E
Q10
The abbreviation C & F indicates that the
A
cost price includes the cost of carriage
B
cost of production includes delivery changes
C
selling price includes the cost of carriage
D
production cost excludes the cost of carriage
E
Q11
The traditional way of paying cooperative dividend is to distribute profit in proportion to members'
A
total savings
B
contributions
C
subscriptions
D
volume of purchases
E
Q12
A liquidator's fee is to be charged to the
A
trading account
B
reconstruction account
C
revaluation account
D
realization account
E
Q13
Hire purchase is beneficial to the seller because
A
it enhances his living standard
B
of the patronage he enjoys
C
people pay instalmentally
D
it increases his turnover
E
Q14
The documents used in the purchase and sale of goods which contain other terms of trade are
A
quotation and invoice
B
invoice and order
C
delivery note and advice note
D
debit note and credit note
E
Q15
A cheque drawn by a bank official on the bank's deposits in another bank on a customer's
A
promissory note
B
bank draft
C
banker's order
D
traveler cheque
E
Q16
A type of credit offered by both commercial and merchant banks in Nigeria is
A
trade credit
B
line of credit
C
discounting facility
D
overdraft
E
Q17
The bank that discount bills of exchange is the
A
central bank
B
mortgage bank
C
development bank
D
commercial bank
E
Q18
One advantage of a crossed cheque is that it can
A
only be paid into a saving account
B
be cashed over the bank's counter
C
only be paid into the owner's account
D
be cashed by anyone
E
Q19
The instruments of credit include
A
bills of exchange and promissory notes
B
billboards and postal stamps
C
bills of exchange and salary vouchers
D
payments vouchers and statement of account
E
Q20
The use of vending machines in retailing is hindered in a developing economy owing to
A
ineffective communication system
B
poor distribution network
C
lack of steady power supply
D
low level of education
E
Q21
An internal demand for goods to be purchased or drawn from stock is
A
an order
B
a quotation
C
a requisition
D
a tender
E
Q22
Discount offered by firms to middlemen for bulk purchases are
A
cash discounts
B
seasonal discounts
C
trade discount
D
sales bonanza
E
Q23
The term 4 net 7 on an invoice means that
A
4% discount will be allowed on the price charged if payment is made within seven days
B
4% discount will be allowed on the price charged if payment is made after seven days
C
4% surcharge will be made unless payment is made within seven days
D
4% discount will be allowed on the price charged only if the goods are bought within seven days
E
Q24
Goods are of merchantable quality if they
A
are of equal weight
B
conform to description
C
conform to buyers' purpose
D
are of the same quality
E
Q25
Which of these factors of production is relatively fixed in supply?
A
Natural resources
B
Human resources
C
Capital
D
Entrepreneur
E
Q26
How much was the trade discount?
A
₦20,000
B
₦22,500
C
₦27,500
D
₦42,500
E
Q27
What was the amount paid by Ojo?
A
₦61,625
B
₦363,375
C
₦382,500
D
₦425,000
E
Q28
Goods that are manufactured or acquired by the seller after the contract of sale are
A
specific goods
B
specialty goods
C
general goods
D
future goods
E
Q29
The document issued by the seller which gives details of the goods he sells is known as
A
catalogue
B
tender
C
price list
D
invoice
E
Q30
An advantages of hire purchase to the consumer is the
A
economies of scale in production
B
possession of goods before payment
C
increase in turnover and profits
D
low interest rate chargeable
E
Q31
A pro forma invoice is sent to inform a buyer about the
A
quantity of goods
B
prices of goods
C
designation of goods
D
quality of goods
E
Q32
The major procedures in the purchase and sale of goods are enquiry
A
quotation, order and invoice
B
placement, order an invoice
C
bargain, order and invoice
D
order, sale and invoice
E
Q33
The trade discount receivable by Mr. Bacus is
A
₦4500
B
₦7,500
C
₦10,500
D
₦12,000
E
Q34
An invoice can be described as a
A
contractual agreement for sale of goods
B
receipt containing necessary information about the goods
C
document specifying quantity description prices and total value of purchases
D
letter specifying the contractual sales of goods between two parties
E
Q35
The most important advantage of personal selling is that it
A
allows sellers to perceive buyers' needs
B
takes place easily on the highways
C
allows sellers to sell their goods quickly
D
takes place without the permission of government
E
Q36
A bus driver operating between Lagos and Jos pledged the owner's credit in Benin in order to have the engine repaired and the bill sent to the owner. This is a case of
A
agency by necessity
B
del credere agency
C
agency by ratification
D
agency by estoppel
E
Q37
Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of
A
vertical integration
B
horizontal integration
C
forward integration
D
backward integration
E
Q38
An abridged version of a company's income statement for 1993 contains the following information: ₦(million) Turnover 286.5 Cost of goods sold 147.5 Overhead and other expenses 805.5 Tax due for the year 26.9 What was the company's profit before taxes for 1993?
A
₦26.9 million
B
₦53.5 million
C
₦139.2 million
D
₦286.5 million
E
Q39
A company which issues a promissory note in lieu of payment for goods purchased
A
can refuse to pay on due dtae since it is only a promise
B
is bound to redeem the note for cash on due date
C
is not bound to renew the note before payment
D
can return the goods purchased and refuse to pay
E
Q40
Kabir receives two quotations. Ade quotes ₦100 less 20% trade discount and 20% cash discount, while Benson quotes ₦100 less 30% trade discount and 10% cash discount. If Kabir wants to take advantage of trade and cash discount, then
A
the materials should be supplied by Ade
B
the materials should be supplied by both of them
C
the material should be supplied by Benson
D
Benson should be asked to reduce his trade discount
E
Q41
The document represents a
A
bill of exchange
B
cheque
C
money order
D
promissory note
E
Q42
Okon Etim Esin is the
A
debtor
B
creditor
C
exporter
D
improter
E
Q43
The term '5 Net 7' on an invoice means that
A
5% discount will be allowed on the price charged if payment is made within seven days
B
5% discount will be allowed on the price charged if payment is made after seven days
C
5% surcharge will be made unless payment is made within seven days
D
5% discount will be allowed on the price charged only if the goods are bought within seven days
E
Q44
Kamaldeen is a seller in a hire-purchase agreement with Emeka. By law, Kamaldeen cannot recover the hire purchased goods. This is an instance of a restriction on
A
Emeka's rights to terminate the agreement
B
Kamaldeen's right's to re-hire the goods
C
Emeka's right to breach the agreement
D
Kamaldeen's right to terminate the agreement
E
Q45
Which of the following documents permits an importer to inspect his goods before the arrival of the bill of lading?
A
Bill of sight
B
Import invoice
C
Consular invoice
D
Bill of exchange
E
Q46
The documents that indicates instant payment of cash for goods whenever they are delivered is
A
credit note
B
proforma invoice
C
debit note
D
statement of account
E
Q47
Tolu purchased goods from Yemisi and is to pay custom duties before collection. The goods are likely to be collected from
A
a manufacture's warehouse
B
a bonded warehouse
C
an importer's warehouse
D
a wholesaler's warehouse
E
Q48
Q, acting as the agent of P, lawfully and reasonably incurs the amount of N350 as expenses. If Q comes to P for payment, this is an instance of P's duty to
A
remunerate Q
B
repay Q
C
indemnify Q
D
settle Q
E
Q49
Adigun displays goods of different makes on shelves in his supermarket. This is an example of
A
invitation to treat
B
offer to sell
C
offer to purchase
D
invitation to sell
E
Q50
The oral presentation in a conversation with one or more prospective buyers for the purpose of making sales is
A
Branding of goods
B
Personal selling
C
Packaging
D
Publicity
E
Q51
A machine which enables sales without the physical presence of a sales attendants is a
A
computer machine
B
vending machine
C
telex machine
D
fax machine
E
Q52
The basic distinction between cash discount and trade discount is that while discount is
A
for a period of 30 days, cash discount is for 3 months
B
given by a wholesaler, cash discount is given by a bank
C
a reduction in catalogue price of an article, cash discount is a reduction in the invoice value
D
a reduction in value of sales, cash discount is a reduction in prices of goods
E
Q53
When old customers stick to the old place to buy goods and services, it is known as
A
personal factor
B
window shopping
C
patronage
D
E
Q54
Profit that is expressed as a percentage of the cost of goods sold is referred to as
A
margin
B
mark-up
C
gain percent
D
gross profit
E
Q55
What is the cost of good sold?
A
N115,00
B
N95,000
C
N50,000
D
N30,000
E
Q56
Which of the following gives the correct order in which the listed documents are used?
A
Debit note, order, delivery, note invoice and statement
B
Order,delivery note, invoice, debit note, and statement
C
Statement, order, invoice, delivery note and debit note
D
Invoice, order, statement, debit note and delivery note
E
Q57
An invoice of ₦600 id marked 5% 1 month, 21/2% 3 months and 1% 5 months. If a customer pays in the second month of purchase, how much will he remit to the seller?
A
₦570.00
B
₦585.00
C
₦594.00
D
₦600.00
E
Q58
Spot market goods are those which are available for
A
immediate delivery
B
short-term delivery
C
long-term delivery
D
end of year delivery
E
Q59
The use of coin-operated machines to sell goods is a
A
personalselling
B
retailing
C
wholesaling
D
mail-order
E
Q60
A pro forma invoice is not required when
A
quoting for the supply of goods
B
goods are sent on approval
C
dealing regularly with a customer
D
final prices are uncertain
E