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Financial Accounting& Commerce QUIZ STUDY
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1.
'Caveat emptor' as a commercial legal word means
.
A. let the seller beware
B. let the producer beware
C. let the buyer be awarded
D. let the buyer beware

2.
The main feature of a supermarket is the sales of
.
A. office equipment only
B. food stuff only
C. general house hold goods
D. building materials

3.
The ship that is used as a sea taxi is called
.
A. linen
B. tramps
C. tankers
D. coasters

4.
Which of the following is NOT a reward for labour
.
A. profit
B. salaries
C. Wages
D. allowances

5.
The person who calculates premium, sums assured and surrenders value in insurance contact is called
.
A. accountant
B. actuary
C. value
D. auditor

6.
Under the law of insurance, exemption clauses
.
A. protect the insured against the insurance company
B. protect the insurance company
C. protect the third party under the contract
D. enable the insured to claim on the insurance company

7.
In the contract of sale of goods, 'let the buyer beware' is signified by
.
A. del credere
B. caveat vendetta
C. caveat emptor
D. res ipsa loquitor

8.
The main purpose for establishing a public corporation is to
.
A. provide employment
B. provide essential
C. make profit
D. establish a monopoly

9.
Into which of the following two broad areas can trade be divided
.
A. Home and foreign trade
B. Whole and retail trade
C. Imports and exports
D. Visible and invisible trade

10.
Which of the following is not rue of sole proprietorship?
.
A. It has a separate legal entity
B. It has unlimited liability
C. It has slim chances of expansion
D. It can convert into company

11.
Commerce means
.
A. the creation of utility
B. exchange of goods and services
C. exchange and distribution of goods and services
D. exchange and distribution of goods

12.
The most common means of transport in the riverine area is
.
A. bus
B. canoe
C. train
D. helicopter

13.
Which of the following cheques could not be cashed across the counter?
.
A. Crossed cheque
B. Order cheque
C. Certified cheque
D. bearer Cheque

14.
In marketing, any good or service that satisfies the consumer is called a
.
A. place
B. product
C. promotion
D. price

15.
Which of the following is a non consumable item in the office?
.
A. Furniture
B. loose sheet
C. Office pins
D. file tags

16.
One of the obstacles to achieving the objectives of ECO WAS is
.
A. lack of common currency
B. colonial linkage
C. sovereignty of states
D. language difference

17.
One of the main objectives of establishing he Niger river basin commission was to
.
A. embark on a comprehensive survey of the available water resources
B. carry out research for the development of fresh water fisheries
C. develop infrastructures to facilitate economic activities
D. promote trade among member-states to improve standards of living

18.
The basic function of the Nigerian Port Authority is to
.
A. ensure that the right caliber of personnel is employed at the ports
B. coordinates and regulate the activities of shipping lines
C. facilitate and control the movement of goods and services into and out of the country
D. coordinate the activities of all the seaports in he country

19.
In Nigeria, the body that ensures that its members operate according to their professional ethics is the
.
A. SON
B. NPF
C. MAN
D. NAFDAC

20.
The current highest decision-making body on privatization and commercialization of public enterprises in Nigeria is the
.
A. National council on Privatization
B. Securities and Exchange commission
C. Nigeria Investment Promotion Commission
D. Bureau of Public Enterprises.

21.
The principle of indemnity is NOT applicable to
.
A. life assurance
B. accident insurance
C. fire insurance
D. marine insurance

22.
The advertising medium which combines sight and sound is the
.
A. radio
B. television
C. print media
D. poster

23.
The closure of the unregistered patent medicine stores is geared toward sound
.
A. economic environment
B. social environment
C. physical environment
D. legal environment

24.
Recommendations made by the central bank to the commercial banks in respect of their lending policy is known as
.
A. directives
B. Moral suasions
C. Advisory notes
D. Consolidation

25.
Way bill is a document giving details of goods sent by
.
A. Public vehicle, train and air
B. Train and ship
C. Ship alone
D. air alone

26.
An association of the principal business concerns in an area is referred to as
.
A. Article of association
B. Memorandum of association
C. chamber of commerce
D. Chamber of companies

27.
Commission salesmen include the following except
.
A. Factors
B. brokers
C. Del credere agents
D. Partners

28.
Which of these is a form of sales promotion?
.
A. Advertising on radio
B. Offering free samples
C. Distributing printed materials
D. advertising on internet

29.
Which of the following has the shortest effect on the consumer?
.
A. Fashion
B. lnnovation
C. Fad
D. Attribute

30.
The business in the stock exchange is characterized essentially by
.
A. dealing
B. Brokage
C. Speculations
D. transactions

31.
The insurance policy which provides full cover against all risk at sea is known as
.
A. policy with particular average
B. policy free of particular average
C. Marine freight insurance
D. marine voyage policyinsurance

32.
A major liability of a commercial bank arises from
.
A. customer's deposit
B. loans and advances
C. Overdrafts
D. staff allowances

33.
In the channel of distribution, which of the following sets is entirely is entirely made up of middle men?
.
A. wholesale, retailer and agents
B. Manufacturers, consumers and retailer
C. wholesales, agents, and consumers
D. Retailer, manufacturer, and wholesale

34.
Most foreign trade transaction are paid through the use of
.
A. central bank cheques
B. bank draft drawn by commercial banks on their foreign branches
C. Irrevocable and confirmed letter of credit
D. Letter of credit authenticated by the embassies of the respective countries.

35.
The merger of two companies producing same type of produce is an example of
.
A. vertical integration
B. Horizontal integration
C. Integral merger
D. An acquisition

36.
Given Opening stock 40,000 Purchases 115,000 Closing stock 60,000 Sales 250,000 What is the cost of goods sold?
.
A. N1 55,000
B. N95,000
C. N50,000
D. N30,000

37.
The business organization in which shareholders have equal votes is
.
A. Sole proprietorship
B. Partnership
C. Cooperative
D. Limited liability company

38.
One type of investment that has a variable income is
.
A. Debentures
B. Preferred shares
C. Government bonds
D. Ordinary shares

39.
A public limited company can raise long term loan through
.
A. The capital market
B. The money market
C. Bank draft
D. Discount houses

40.
Factorizing is a trade debt term used when the agents buys all the trade debts of the
.
A. Importer
B. Exporter
C. Nations
D. customers

41.
Stevedores as a term in foreign trade means men who
.
A. inspect goods in the ships
B. lmport goods by ships
C. Collect duties
D. Load and unload ships

42.
A close indent is an instruction to an agent to
.
A. Order goods from a particular manufacturer
B. Order goods from any manufacturer
C. sell goods in any form
D. Sell goods to a certain firm

43.
Profit expressed as a percentage of the cost of good is referred to as
.
A. margin
B. markup
C. gain percentage
D. gross profit

44.
The main advantage of a sole trader is its freedom to
.
A. employ anyone he likes
B. seek advice from any source
C. take quick decision
D. Plough all the profit into the business

45.
In the case of voluntary liquidation of a business, the receiver is appointed by
.
A. Creditors
B. Debtor
C. Director
D. Shareholder

46.
When a company was more of loans than equity to finance its business, the company is said to be
.
A. Bankrupt
B. Solvent
C. Highly geared
D. ln a strong position

47.
Right issue means the
.
A. Issue of shares to the directors of company on favourable firms
B. issue of shares of a company only to the founders of the company
C. Right of shareholders to vote on any issue
D. Issue of shares to shareholders on favourable terms

48.
A term which indicates that a share is temporarily suspended is
.
A. ex- dividend
B. un-dividend
C. bond
D. Stock

49.
Excise duties are paid on goods that are
.
A. Imported into the country
B. manufactured within the country
C. exported to other countries
D. Kept in bonded warehouse.

50.
The practice by which an insurance company accepts a very large risk and later shares it with other insurance company is called
.
A. subrogation
B. contribution
C. re-insurance
D. indemnity

51.
Goods imported to a country for the purpose of re- exporting attracts a rebate known as
.
A. customer drawback
B. export royalty
C. incentive
D. export rebate

52.
The nominal value of a share as specified in the memorandum of Association and the share certificate is the
.
A. Discounted value
B. Stock value
C. Face value
D. Par value

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