LORAL INTERNATIONAL SCHOOL, FESTAC

THE COMPLIED WAEC PAST QUESTIONS FROM

2015-2019

SUBJECT: COMMERCE CLASS: SS3

TOPIC: PROFIT AND TURNOVER

1. BXY enterprise has the following balance at the end of

the march 2010. Use the following information to answer
the question.
Opening stock N6, 000
Purchases N23, 000
Salaries wages N12, 000
Closing stock N8, 000
Sales N30, 000
Calculate the gross profit of BXY enterprise
2. What is the rate of turnover of BXY Enterprise (2015)

3. The turnover could be increase by (a) increasing prices of

product differentiation (b) advertising and cutting prices
 (c) Refusing credit and customers services (d) Increasing
the mark up and margin(2015)
Adam’s opening stock is N5, 000, he purchased goods worth
N3,000, his closing stock was N7,000 and sales N55,000.
4. What is the average stock (a) N12,000 (b) N7,000 (c)
N6,000 (d) N5,000 (2017)
5. What is the cost of goods sold (a) N55,000 (b) N42,000 (c)
N32,000 (d) N28,000 (2017)

6. What is the rate of turnover (a) 11 times (b) 6 times (c)

4.7 times (d) 4 times (2017)
7. If the opening stock of Ali Ltd is N40,000, cost of goods
sold is N48,000, and closing stock is N24,000, Its rate of
turnover will be ---- (a) 1.2 times (b) 1.5 times (c) 2.0 time
(d) 7.5 times (2017)
8. The rate of turnover of a business is calculated as (a)
Average stock (b) cost of goods sold
Turnover Average stock
(c) Gross profit x 100 (d) sales
Cost price 1 Average stock

TOPIC - CAPITAL
9. The capital used in day to day running of the business is
------- (a) Nominal capital (b) working capital (c) paid up
capital (d) Authorized capital (2015)
 10. Which of the following is classified under current
assets (a) machinery (b) motor vehicle (c) stock (d) fittings
(2015)

Use the following information to answer the questions

Premises N32, 000
Motor van N15, 000
Debtors N15, 000
Stocks N20, 000
Creditors N10, 000
11. The value of current Assets is (a) N36, 000 (b) N3,000 (c)N
25,000 (d) N10,000 (2016)
12. What is the working capital (a) N47, 000 (b) N36, 000 (c)
N26, 000 (d) N10, 000 (2016)
[Link] value of fixed assets (a) N72, 000 (b) N 47, 000 (c) N35,
000 (d) N25, 000 (2016)
14. Which of the following is a source of short term capital? (a)
Trade credit (b) Shares (c) Leasing (d) Debentures (2017)
15. The amount of capital used in day to day running of the
company is ------ (a) working capital (b) capital employed (c)
share capital (d) Fixed capital (2017)
16. The potion of share capital which the company has asked
shareholders to pay is ----- (a) called-up capital (b) Authorized
capital (c) paid-up capital (d) Unpaid-up capital (2016)
17. Which of the following is a source of short term finance (a)
Hire Purchase (b) Overdraft (c) Lease (d) Debenture (2016)

TOPIC-STOCK EXCHANGE MARKET

18. The market for short term security is called ----- (a)
commodity market (b) Discount market (c) Money
market (d) stock market.(2015)
19. When shares are sold at ex-Div, it means the ----- (a)
shares are sold at par price (b) buyer is entitle to the next
dividend (c) shares are sold above par (d) seller has right
to the next dividend (2015)
20. Equity interest in a company is represented by ------ (a)
Preference shares (b) Dividend (c) Debenture (d) ordinary
shares (2016)
21. Buying and selling stocks in the stock exchange in
anticipation of changes in the share price is ------ (a) Hedging (b)
projection (c) forecasting (d) speculation(2015)
22. A speculator in the stock exchange market who a security in
anticipation of a fall in their prices is ------- (a) broker (b) Bull (c)
Bear (d) Stag (2015)
23. A document through which invitation is extended to the
public to subscribe to shares is ------ (a) Articles of association
(b) Memorandum of association (c) Prospectus (d) Quotation
(2016)
24. Which of the following statement is true of a debenture (a)
Its holders receive interest (b) It forms part of company’s
authorized capital (c) Its owners are co-owners of the company
(d) Its owners control the company (2016)
25. A put option in the stock exchange is an option (a) To sell
(b) Not to sell (c) To buy (d) Not to buy (2016)
[Link] portion of share capital which the company has asked
shareholders to pay is ------ (a) called-up capital (b) Authorized
capital (c) paid-up capital (d) unpaid-up capital (2016)
27. A company is quoted on the stock exchange when its shares
are ----- (a) put under private payment (b) not for sale to the
public (c) Listed for sale on the exchange (d) owned by the
government (2017)
28. A system of issuing new shares to selected investors instead
of the general public is ------- (a) Public offer (b) issue by tender
(c) offer for sale (d) private placement.(2018)
29. A speculator in the stock exchange market who sells
securities in anticipation of a fall in their prices (a) broker
(b) bull (C) bear (d) stag (2017)
30. Which of the following is the modern means of
communication? (a) Grape vine (b) email (c) whistle
(d) town crier (2018
[Link] fees charged on postal order by the post office
are ...(a) interest(b) brokerage(c) poundage
(d) premium (2018)
32. Which of the following is a verbal means of
communication?(a) telex (b) express mail (c) business
reply service (d) telephone (2018)
Use the following information to answer question the
questions
The following trading figures of Rosemary trading
company for the year ended 31st December, 2005.
Stock 1st January, 2005 7,000
Purchases 8.500
Sales 80,000
Stock 31st December, 2005 10,000
Rent 12,000
Selling expenses 8,000
Wages 7,500
33. Calculate the gross profit or loss of the company. (a)
N5, 500 (b) N15, 500 (c) N 27,500 (d) N55, 500 (e) N74,
500
34. What is the total expenses of the company (a)
N15,500 (b) N19,000 (c) N19,500 (d)N 22,000 (e) N27,500
35. Calculate the net profit or loss of the company (a)
N27,500 (b) N 47,000 (c) N 52,500 (d) N74,500 (e)
N76,000 (2019)
36. The working capital can be calculated as (a) assets
minus current liabilities (b) assets plus current liabilities (c)
current assets divided by current liabilities (d) current
assets plus current liabilities (e) current assents plus
current liabilities (2018)
37. Which of the following is not a credit instrument used
in business transactions. (a) luncheon voucher (b) bill of
exchange (c) Promissory note (d) fuel voucher (20!6)
38. Which of the following is not a type of organizational
structure (a) committee organization (b) staff organization
(c) line and staff organization (d) functional organization
(2016)
39. The sum of money the assurer is prepared to pay the
assured in total discharge of a contract at maturity is
called …… (a) Express delivery (b) Recorded delivery (c)
parcel post (d) delivery (2017)
40. The word ‘dumping’ means selling goods abroad (a) At
a lower price than in the home market (b) At a higher price
than in the home market (c) At the same price as in the
home market (d) On credit in the3 foreign market. (2018).
41. An insurance broker is involved in? (a) Manufacturing
occupation (b) distributive occupation(c) commercial
occupation (d) extractive occupation (e) constructive
occupation
[Link] practice of employing specialists in relevant
occupation is a feature of? (a) Subsistence economy
(b) mobility of labour (c) mixed economy (d) exchange
economy (e) division of labour

43. Which of the following convert raw materials into

finished goods? (a) Extractive industry (b) Manufacturing
(c) Commercial occupation (d) Constructive industry
(d) Tertiary industry
44. Which of the following support the view that there was
commerce in Nigeria many years ago? (a) The economy
was consistent (b) Specialization was minimal (c) Cowries
were used as money (d) Horses were used as means of
transportation (d) Communities were interdependent
45. In the contract of sale of goods "let the buyer beware"
is signified by? (a) del credere (b) uberrima fidei (c) caveat
emptor (d) reipsa loquitor (e) caveat vendetta
46. Branding is a good example of? (a) Informative
advertising (b) marketing mix (c) persuasive advertising
(d) consumerism (e) competitive advertising
47. Prior to the issue of a certificate on a motor insurance
contract, the insured is issued with? (a) A license of
insurance (b) insurance policy certificate (c) a cover note
(d) a simple receipt (e) an invoice
48. The worth of a life insurance policy is maturity date is
known as? (a) Principal value (b) surrender value
(c) accumulated value (d) prepaid value (e) accrued value
49. Under the law of insurance, exemption causes?
(a) enable the insurance to claim on the insurance
company (b) protect the insurance company under the
contract (c) guard against occurrence of the insured
events (d) protect a third party under the contract
(e) protect the insured against the insurance company
50. Which of the following is not true of limited
partnership? (a) Every member is a limited partner (b) All
members are general partners (c) All members are limited
liability (d) There is at least one ordinary partner
(e) Limited and ordinary members must be equal in
number
51. Which of the following is not required for the
dissolution of a partnership? (a)Expatriation of partnership
deed (b) Termination of the venture(c) One partner
notifying the other of his intention to dissolve it (d) mutual
consent of the partners (e) Order from the registrar of
companies
52. Organization formed mainly by traders and
manufacturers to cater for the interest of their members is
called? (a) Trade union (b) co-operative societies (c) trade
association (d) chambers of commerce (e) manufacturers
association
53. The powers of attorney that transfer to a third party the
shareholders right to vote is called?(a) warrant
(b) shareholder's benefit (c) proxy (d) bond (e) rights issue
54. Which of the following is a function of
NIPOST(a) Issuing money order (b) Issuing dividend
warrants (c) Issuing Travelers cheques (d) Minting coins
(e) Printing trade journals
55. Which of the following describes a distinctive symbol
title or design that readily identifies the company or its
product? (a) Trust (b) Trade mark (c) Trade name
(d) Branch name (e) Copyright
56. One disadvantage of advertising is that it? (a) could be
misleading through its false claims (b) decrease sales
(c) makes new products known (d) teaches the consumer
the use of the advertise product (e) creates employ
57. The activities of a company designed to stimulate
consumers by giving them samples, premium, or
conducting contests are referred to as? (a) Consumer
protection (b) marketing mix (c) sales promotion
(d) marketing concept (e) advertising
58. A clean bill of leading is so-called because (a) the
colour is pure, white (b) it is not stained (c) it is a
document of authority (d) it has no record of damage
goods (e) it could be transferred to anybody
59. The receipt issued by a warehouse keeper for
goods taken into the store is called (a) drawback
warrant (b) warranty
(a) Government bonds and stocks (b) Gold mine stocks
(c) Company shares and stocks (d) Life assurance policy
(e) Bank stocks and securities
62. The factor of production which is described as wealth
set aside for the production of further wealth is called?
(a) Entrepreneur (b) land (c) capital (d) goodwill (e) labour
63. Buying and selling of goods and services within the
geographical areas of a country is called? (a) Enter pot
trade (b) external trade (c) domestic trade (d) regional
trade (e) import trade
64. The three main types of speculators found in the Stock
Exchange market are? (a) Stags, brokers, and bulls
(b) bulls, bears, and stag (c) bears, jobbers and jobbers
(d) bulls, brokers and bears (e) stags, agents and jobbers
65. Which of the following is a disadvantage of Hire
Purchase to the consumer? (a)Its increases turnover
(b) Temptation to buy more than one can pay for (c) It
demands more capitals from the seller (e) Increased sales
lower the seller's units cost
66. Which of the following functions is performed by the
stock exchange markets? (a) Provision for bulk purchase
(b) Issuing of treasury bills (c) Provision of the purchase
and sale of existing securities (d) Discounting bills of
exchange (e) Providing for short-term investment
67. Which of the following is not a true characteristic of a
Chamber of Commerce? (a) It is not for profit making (b) It
is open only to political party members (c)It is
democratically administered (d) It is a voluntary
organization (e) It is independent of government control
68. The management of evaluating the company's
performance to determine whether it is achieving its
objective is? (a) Controlling (b) directing (c) organizing
(d) planning (e) consulting
69. Which of the following is primarily responsible for
protecting against poor quality goods? (a) Nigerian
National Supply Company (b) Manufacturers Association
of Nigeria (c) Industrial Arbitration Panel (d) Standards
Organization of Nigeria (e) Nigeria Chambers of
Commerce
70. Through which of the following does the central Bank
carrying out the monetary policy of the country?
(a) Discounting bills (b) Banks rate (c) Granting overdrafts
(d) Acting as lender of last resort (e) Acting as banker to
commercial banks
71. Which of the following is not a means of money?
(a) Divisibility (b) Portability (c) Accessibility
(d) Recognizability (e) Durability
72. Which of the following is not a means of effecting
payment through current account? (a) Cheques
(b) Standing orders (c) Giro system (d) Credit transfer
(e) Credit card
73. A bill holder wishing to dispose of his bills before
maturity would be paid?(a) the discount value of the bill
(b) the present value of the bill (c) the premium on the bills
only (d) the accumulated interest on the bills (e) total face
value of the bills with the premium
74. The main disadvantage of rail transport to traders is
that (a) it carries bulky goods only (b) its cost of carriage is
high (c) it is slow and flexible (d) it causes road congestion
(e) it travels on schedule
75. A telephone call within a town is called? (a) Home call
(b) trunk call (c) district call (d) zonal call (e) local call
76. Warehousing is one of the functions of the?
(a) Wholesaler (b) retailer (c) Chamber of commerce
(d) Ministry of Trade and Industry (e) Export Promotion
Department
77. Which of the following price quotation contains the
cost price, insurance charges and the cost of transporting
the goods? (a) F.O.R (b) C & F (c) F.A.S (d) F.O.B
(e) C.I.F
78. Any powers exercise by a company in pursuance of
objectives not authorized by the Memorandum of
Association is regarded as? (a)a trespass (b) a nuisance
(c) ultra vires (d) uberrimae fidei (e) caveat emptor
79. The rate at which a country's exports exchange for its
imports is called? (a) Balance of payments (b) balance of
trade (c) terms of delivery (d) terms of trade (d) counter
trade
80. A company had an authorized share capital of 30,000.
It offered applicants N20, 000 share capital out of which
the company collected N15, 000.
What was the issued capital? (a) N5, 000 (b) N10, 000
(c) N15,000 (d) N20,000 (e)N35,000
81. A company had an authorized share capital of 30,000.
It offered applicants N20, 000 share capital out of which
the company collected N15, 000.
What was the paid-up capital? (a) N35, 000 (b) N30, 000
(c) N20, 000 (d) N15, 000 (e) N5,000
82. Which of the following is not necessary when ordering
goods? (a) Trade journal (b) Letter of enquiry (c) Invoice
(d) Order form (e) Catalogue
83. With regard to payment, the amount payable when no
deductions are made is called? (a) Net price (b) spot cash
(c) not profit (d) prompt cash (e) draft
84. Working capital can be calculated as (a) assets minus
current liabilities (b) assets plus current liabilities (c)
current assets divided by current liabilities (d) current
assets minus current liabilities (e) current assets plus
current liabilities
85. The document that gives the holder the right to take
possession of goods that have been shipped is --- (a)
Airway bill (b) Bill of lading (c) certificate of insurance (d)
consignment note (e) Delivery note
86. Which of the following is an advantage of division of
labour (a) Encouraging Unemployment? (b) Immobility of
labour (c) Monopoly of task (d) reduction in craftsmanship
(e) Reduction of fatigue
87. Which of the following is a term associated with
insurance (a) backward integration (b) forward integration
(c) parent company (d) subrogation (e) subsidiary
88. Which of the following is not a medium for advertising
goods (a) catalogue (b) cinema (c) franchising (d)
hoarding (e) Television
89. Which of the following countries is a member of both
Lake Chad Basin and Niger Basin Commission (a)
Ethiopia (b) Libya (c) Nigeria (d) Somalia (e) South Africa?
90. The booklet that contains photographs of goods
manufactured by a firm is called (a) catalogue (b)
proforma invoice (c) Quotation (d) statement of account
(e) trade journal
91. The similarity between stocks and shares is that both
are (a) government securities (b) loans to the individuals
(c) long term instruments (d) private securities (e) traded
in the money market
92. The passing of information from the manager to the
lowest staff in an oranisation is an example of ---------
communication (a) Diagonal (b) downward (c) horizontal
(d) Lateral (e) upward
93. The partner who participates fully in the affairs of the
firm is called …… Partner (a) active (b) general (c) Limited
(d) quasi (e) sleeping
94. Which of the following is not a principle of
management (a) clarity of objective (b) Division of labour
(c) line organization (d) scalar chain (e) unity of
command?
94. The branch of commerce which comprises wholesaling
and retailing is called ….. Trade (a) bilateral (b) domestic
(c) export (d) import (e) international
95. When mr Emeka purchases goods in large quantities
from the manufacturer and sells in small quantities to the
retailers, he is said to be engaged in (a) advertising (b)
bulk breaking (c) financing (d) marketing (e) sales
promotion
96. Which of the following is referred to as one man
business (a) Limited liability company (b) Joint venture (c)
partnership (d) public corporation (e) sole proprietorship?
97. Which of the following is not a quality of money (a)
Acceptability (b) Durability (c) Indivisibility (d) portability (e)
scarcity?
98. Marketable items produced to satisfy human wants are
referred to as (a) commodities (b) groceries (c) industrial
goods (d) inventory (e) non consumables
99. Establishing objectives and determining the best way
to accomplish them is a management function of (a)
controlling (b) directing (c) organizing (d) planning (e)
staffing
100. What money can buy in terms of goods and services
is determined by the … (a) exchange rate (b) medium of
exchange (c) standard of deferred payment (d) unit of
account (e) value it has