All 119 questions from the Basic Education Certificate Examination (Junior WAEC) (BECE) Business Studies 2022 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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The main objective of a business is to
A business exists mainly to make a profit.
Buying goods in large quantities and selling in units to the final consumers explains ______ trade.
Retail trade means selling in small units to final consumers.
Which of the following services is concerned with conversion of raw materials into finished goods?
Manufacturing turns raw materials into finished goods: secondary production.
When an organisation is transparent in dealing with customers, this explains its quality of
Transparency means openness.
Impulse buying means purchasing an item
Impulse buying is unplanned and not budgeted for.
The following are positive effects of production except
Pollution is a negative effect.
The buyer of a chemical must ensure the following are clearly stated on the label except
A label does not state the channel of distribution.
The person that bears the risk and uncertainties in a business is the
The entrepreneur takes the risk of the business.
The number of people required to form a partnership business ranges between two to
A partnership has between two and twenty partners.
Which of the following business enterprises does not have maximum number of shareholders?
A public limited company has no maximum number of shareholders.
The aid to trade that assists businessmen in conveying their goods to various destinations is
Transportation carries goods to their destinations.
Buying goods in large quantities from the producer is a function of
The wholesaler buys in bulk from producers.
The target a business owner sets to achieve within a specified period represents its
A goal is a target the owner sets to achieve within a given time.
Which of the following instruments is used to finance the purchase of buildings?
A mortgage bond finances property purchases.
The meeting point for buyers and sellers of old securities is ______ market.
The secondary market trades existing (old) securities.
The compensation paid to the insured by an insurance company in the event of suffering a loss is
Indemnity restores the insured to the position before the loss.
Which of the following is an insurable risk? Loss from
Motor accident losses are insurable; gambling, war and mal-administration are not.
Advertising is aimed at ______ of goods.
Advertising persuades people to buy, so sales go up.
Displaying organisations' products in an open space for sale at reduced prices is
A trade fair displays and sells products at reduced prices.
The fastest means of transporting passengers and goods is by
Air transport is the fastest.
Which of the following means of transportation uses track?
Trains run on rail tracks.
The external environment of an organisation consists of
In a SWOT analysis, opportunities and threats are external.
Workers who are involved in buying, selling and distribution of goods and services are engaged in ______ occupation.
Commercial occupation covers trade and its aids.
When a customer notifies a manufacturer of dissatisfactions experienced in using their product, it is a
Telling the maker of one's dissatisfaction is a complaint.
The following are rights of a consumer except right to
Part payment is not a consumer right.
A formal statement of a business goal and how to achieve them is
A business plan states the goals and how to reach them.
In the channel of distribution of goods, middlemen refer to
Wholesalers and retailers stand between producers and consumers.
The bank that accepts and keeps deposits for its customers is ______ bank.
Commercial banks take deposits from the public.
A business organisation does not have control over its
A business cannot control its external environment.
Which of the following business opportunities can be found at the local level?
A primary school is a small local opportunity; the others need large capital.
The regular inspection of accounts of business is
Auditing is the inspection of accounts.
The moral and professional code that guide bookkeepers are classified under
Moral and professional codes are ethics.
Bookkeeping records are used for ______ assessment.
Bookkeeping records are used to assess tax.
The ethics that says bookkeepers should follow laid down procedures in discharging their duties is
Due process means following laid down procedures.
The full meaning of the acronym TAP is Transparency, Accountability and
TAP stands for Transparency, Accountability and Probity.
The following are sources of finance to a businessman except
Value added tax is a tax, not a source of finance for the businessman.
The main use of personal budget is to help one live within his
A personal budget helps one live within his income.
The rebate granted for prompt payment of account is ______ discount.
A cash discount is given for prompt payment.
The following are examples of petty expenses except
A motor vehicle is too costly to be a petty expense.
The specified amount given to a petty cashier at intervals is
The imprest given to a petty cashier is the cash float.
Petty cash expenditure are posted to ______ of the relevant account in the ledger.
Expenses are debited in the ledger.
Imprest system is a way of keeping
The imprest system is used for the petty cash book.
The burden of the main cashier is reduced with the introduction of
The imprest system lets the petty cashier handle small payments.
The following are features of cashbook except
A cashbook's debit side is balanced against its credit side, so it cannot be unequal.
Adamu settled his account of ₦10,000 by cheque and received a discount of 5%. What is the amount Adamu actually paid?
Discount = 5% of 10,000 = 500. Paid = 10,000 - 500 = 9,500.
In cashbook, transaction reference numbers are recorded in ______ column.
The folio column holds the reference numbers.
When cash is withdrawn from the bank account for office use, this can also be referred to as ______ transaction.
When both sides are in the cash book (cash and bank), it is a contra entry.
A trial balance is used to
A trial balance tests the arithmetical accuracy of the ledger.
Which of the following items is not found in a trial balance?
Closing stock appears in the final accounts, not in the trial balance.
Use the following information to answer questions 50 to 52. An extract from the books of Aminu for the month of January, 2015: Capital ₦100,000; Purchases ₦70,000; Sales ₦95,700; Loan to Abuh ₦5,000; Sundry expenses ₦3,500; Wages ₦2,500; Rent ₦8,000; Cash balance ? What is the value of Aminu's cash balance in January, 2015?
Credits = 100,000 + 95,700 = 195,700. Other debits = 70,000 + 5,000 + 3,500 + 2,500 + 8,000 = 89,000. Cash balance = 195,700 - 89,000 = 106,700, which matches no option; A is nearest.
Total debit side of Aminu's trial balance amounts to
The debit side equals the credit side: 100,000 + 95,700 = 195,700.
The two items to be posted on the credit side of Aminu's trial balance are
Capital is a credit item; the other options mix debit items.
Use the following information to answer questions 53 and 54. Trading account for the year ended 31st Dec, 2017: Opening stock ₦23,000; Purchases ₦61,000; Cost of goods available ?; Less closing stock ₦10,000; Cost of goods sold ₦74,000; Gross profit ?; Sales ₦100,000. The cost of goods available is
Cost of goods available = opening stock + purchases = 23,000 + 61,000 = 84,000.
What is the gross profit?
Gross profit = sales - cost of goods sold = 100,000 - 74,000 = 26,000.
The main purpose of preparing a trading account is to ascertain
The trading account shows gross profit or gross loss.
A trader bought goods for ₦12,000. At what price would he sell if he is to make a profit of 5%?
Profit = 5% of 12,000 = 600. Selling price = 12,000 + 600 = 12,600.
Which of the following is not a fixed asset?
Stock is a current asset.
Which of the following is not a balance sheet item?
Rent and rates is an expense in the profit and loss account.
Current assets minus current liabilities equals to
Working capital = current assets - current liabilities.
Which of the following does not appear on the debit side of profit and loss account?
Rent received is income, so it goes on the credit side.
Qualities of a clerical staff can be categorized into
Clerical staff qualities are grouped into physical, mental and moral qualities.
In planning an office, which of the following is not taken into consideration?
Weather is outside the planner's control.
Recording of assets and liabilities of an organisation is the responsibility of ______ department.
The accounts department keeps the records of assets and liabilities.
Which of the following functions is not the duty of a newly recruited clerical staff?
Final decisions are made by management.
An office that can accommodate more than ten staff is ______ office.
An office for more than ten staff is a large office.
Which of the following is not a function of an office?
An office does not hide information from management.
The use of coins and bank notes to pay for goods and services is
Paying with coins and notes is a cash transaction.
An evidence of payment for goods sold is contained in the
A receipt is the evidence that payment was made.
Mails that come in and go out of an organisation are called office
Mails in and out of an office are called correspondence.
Outgoing register is also called ______ book.
An outgoing register is a dispatch book.
An example of large office is ______ office.
A general office holds many staff.
Which of the following is not a component of Business Studies?
Business Studies has commerce, bookkeeping, office practice and keyboarding.
Procurement of raw materials is the responsibility of ______ department.
Purchasing buys raw materials.
Coming to work timely as required by the organisation is
Punctuality means arriving on time.
Physical examination of all categories of items in an organisation is
Stock taking is counting stock physically.
The following are documents handled by a receptionist except
A sales book belongs to the accounts section.
Business card is otherwise known as
A business card is also called a complimentary card.
Office Practice as a subject prepares an individual to
Office Practice trains one for office jobs such as secretary.
Devotion to duty means being committed and ______ to responsibilities given to an individual.
Devotion means being committed and dedicated.
Which of the following is not a quality of a receptionist?
A receptionist must be courteous, not nonchalant.
Devices, machines, cabinets and other resources used in performing various office activities are office
These are office equipment.
To prevent documents from being damaged by water, ______ machine is used.
A laminating machine covers documents in plastic.
Office ______ means rules and regulations that workers must follow in performance of their duties.
Procedure refers to the rules and steps workers must follow.
The first place of contact where visitors are welcomed into an organisation is
Visitors are first received at the reception.
A place set aside in an organisation for clerical and administrative duties is
An office is where clerical and administrative work is done.
Which of the following is not an importance of office procedure?
Good procedure reduces errors and fraud, not increases them.
Mr. Joe is punctual and regular at work. His reward is
Hard-working staff are rewarded with promotion.
The following are importance of office equipment in an organisation except
Equipment improves skill and speed; it does not reduce dexterity.
A document that contains detailed information of goods and their value is
An invoice lists the goods sold and their value.
Ctrl + ______ is used to justify a text margin.
Ctrl + J justifies text.
The sign "caps" on manuscript means change to
"Caps" tells the typist to use capital letters.
The mark "!" is used to
The exclamation mark expresses emotion.
Which of the following is not a number on the numeric keys?
Numeric keys run from 0 to 9, so 10 is not a single key.
The four fingers of the left hand are placed on a, ______, d and f on home keys.
The left-hand home keys are a, s, d, f.
One of the similarities between typewriter and computer is
Both have a space bar.
A complete sentence ends with
A complete sentence ends with a full stop.
An amazing story can be punctuated using
An exclamation mark shows surprise.
On the keyboard, Ctrl + X is used to
Ctrl + X cuts the selected item.
Computer can be taken care of in the following ways except by
Oiling a computer with iodine would damage it.
The ______ key(s) differentiate computer from typewriter keyboard.
Special keys (function, control, etc.) are found on computer keyboards.
Numeric keys on a computer keyboard are from 0 to
The numeric keys run from 0 to 9.
The part of a computer system that contains all the alphabets, numbers and symbol keys is
The keyboard holds the alphabet, number and symbol keys.
Which sign or mark is used to interchange words?
"trs" (transpose) tells the typist to swap the order of words.
The ______ finger is the most suitable to strike space bar key.
The thumb strikes the space bar.
The space bar is located at the ______ row of a computer keyboard.
The space bar is on the bottom row.
The principal keyboarding rule is placing fingertips on the
Fingers rest on the home keys (a s d f, j k l ;).
For effective speed and accuracy, the typist's eyes should be on
A touch typist keeps eyes on the manuscript.
The art of producing printed characters in a mailable form defines
Keyboarding is the art of producing printed characters.
When "Alt+E" is struck on the computer keyboard, it produces
Alt + E opens the Edit menu.
The following items can be used for the care of computer except
A mouse is a computer part, not a care item.
Which of the following actions will not jeopardise the life span of a computer?
Good ventilation keeps the computer cool and protects it.
Which of the computer commands is used to underline a text? Ctrl+
Ctrl + U underlines.
When typing, manuscripts should be placed on ______ side of the keyboard.
The manuscript is placed to the left of the keyboard.
When F3 is struck on a computer keyboard, it produces
F3 opens the search or find function.
Which of the following keys is both on computer and typewriter?
The shift key exists on both machines.
The manuscript sign "L.C" means
L.C means lower case (small letters).
Cursor on the screen is controlled by
The mouse moves the cursor.
To delete a text that is wrongly typed, the ______ key is used.
Backspace deletes the character before the cursor.
F1 to F12 on the keyboard are ______ keys.
F1 to F12 are function keys.
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