(COMMERCE)

I. Multiple choice questions choose the correct answer and write it in the brackets given (1X10=10)

(1) Mrs Marten wishes to advertise her new boutique shop to show that it offers a better range than
other boutique shops in the area. What type of advertising should she use? ( )

A collective. B competitive. C informative. D persuasive.

(2) Why is advertising criticized? ( )

A it helps the people to make a better choice between goods.
B it reduces the cost of television programs and magazines.
C it tells people about new products and services.
D it tempts people to buy more goods than they can afford.

(3) What is an example of informative advertising? ( )

A a leaflet displaying a new range of computers.

B a magazine advertisement picturing a famous footballer wearing football clothing.
C a newspaper advertisement listing what is showing at a local theater.
D a television advertisement showing people using a product.

(4) Advertising is said to benefit consumers because ( )

A consumer can buy goods on credit. B it appeals to people’s emotions.
C it gives information on new products. D the consumer pays more for the product

(5) Which of the following statements about advertising is true? ( )

A advertising always raises the prices of goods.

B advertising has nothing to do with sales promotion.
C advertising may sometimes be harmful or misleading.
D advertising persuades but does not inform.

(6) Which method of advertising should a person setting up a small building business use? ( )
A local newspaper B large posters in a town centre
C national radio D television

(7) The medium an advertiser uses will depend on ( )

A how quickly the advertiser wants to advertise.
B the cost of the advertisement.
C the size of the product to be advertised.
D the time it takes to design the advertisement.

(8) A clever technique used to create the greatest impact on a consumer is ( )

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 A a method of appeal. B an advertising medium
. C collective advertising. D market research

(9) Which method of appeal is used in a television advertisement showing famous people using
branded goods? ( )

A colour. B fear of being alone. C friendship. D hero worship.

(10) Which of the following products could be advertised by using social acceptance as the method
of appeal? ( )

A baked beans B breakfast cereals C deodorants D tractors

II. Answer the following questions:

1. State two advantages of each of the following media: (8)
(a) Posters
1. Cheaper in cost then the radio
2. Easily visible by specifying the target location s and increasing brand visibility.

(b) Sandwichman
1. Cheap form of advertisement
2. They provide information about local events shops or services
(c) Vehicles
1. Can provide a contact reminder as the vehicle moves around
2. Cheap form of advertisement
(d) Illuminated signs
1 bright , attention, grabbing, display
2 low maintenance and high durability

2. Television is the most effective media. Give two reasons why the retail shop in your residential area
does not advertise on television. (2)
1. It is too expensive
2. The target audience are local people, they use local news papers.
1 For each of the following products or services below, choose the most appropriate media for and
give one reason for your choice. (10)
(a) A new flavour of children’s cereal called ‘ strawberry crunch’
Media: Television
Reason: As it can broadcast the target audience during special program on television where
children demand specific cereals
Computer
Media : computer Journals
Reason: as the target audience are limited and specific.
(b) Latest Nike sportswear
Media: sports Magazine / news paper sports classifieds

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 Reason: As it is viewed by specific target audience or they can use news paper add and place an
add in classified for sports only.
A holiday resort in the Maldives
Media: They can use national /international news papers
Reason: As they can attract more customers/ audience/ social media.
Launching play station (X BOX)
Media: Social media/ electronic magazine
Reason: As the sports magazine/ social media can attract many young generations and attract
them to go for the X Box

2 Explain two purpose of advertising (4)

It reminds the consumer about existing product
It keep people loyal to certain brands and retain them
It increases sales of the business
It promotes the brand name
3 What is meant by sales promotion? (2)
Sales promotion is a marketing strategy where the product is promoted using short-term
attractive initiatives/strategies to stimulate its demand and increase its sales
4 What is meant by a method of appeal? (2)
Appealing to your audience's emotions can be achieved through strong imagery, impactful
text or powerful music. An emotional advertising appeal depends more on feelings and
perceptions than logic or reason to provoke action.
5 What is the difference between market research and advertising? (2)

Advertising is making your product and service known to an audience or marketplace. ... In
a way, marketing is both research and practice, while advertising is straight
practice. Marketing involves consumer behavior and marketing research,
while advertising involves creative endeavors like design and multimedia production.

6 Why are catalogues very important for the mail-order business? (3)

Catalogues provides detailed information about your product and services which consists
picture and product specifications which the business offers to its customers. Customers will
go through the catalogues and place the order which has product no.

7 What benefits do consumer gain from advertisements? (2)

a. Customers will get detailed information about the product
b. If any new product launched that information is provided through advertisement.

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8 There are 3 different types of advertisements. State the type of advertisement in the space
below. (3)

PERSUASIVE ADVERTISMENTS

INFORMATIVE ADVERTISING

Generic/collective advertisement

9 Give two reasons why consumers complain about an advertisement (2)

(any two points)

 A false claim about the characteristics of the goods or service, e.g. – a product is a different
colour, size or weight to what is advertised.

 The price or way the price is calculated is misrepresented, e.g. – products are advertised at
sale prices, but turn out not to be.

 The way the goods or service are supplied is misrepresented, e.g. – free delivery is advertised,
but the delivery actually involves some sort of fee or charge.

 Any aspect about the advertiser is misrepresented, e.g. – the business is presented as being a
member of a trade association, when they are actually not.

 The advertisement creates a false impression about a product or service, even if the
information given is correct.

 Any important information is hidden or left out.

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 (ACCOUNTING)
I Multiple choice questions choose the correct answer and write it in the brackets given (1X10=10)

1 What is the purpose of credit note? ( )

A record asset bought on credit B record damaged goods returned to a supplier
C record goods bought on credit D record goods sold on credit

2 What is the purpose of purchase journal? ( )

A record all goods bought for resale B record goods bought on credit for resale
C record goods returned by a customer D record goods sold on credit

3 Aman, a retailer, purchased goods, $ 400, from a wholesaler and paid in cash. How did this affect
Aman’s total assets and total liabilities?

Effect on total Asset $ Effect on total Liabilities $

A increase 400 Increase 400
B increase 400 no effect
C no effect Increase 400
D no effect no effect

4 Mark transferred his private motor vehicle to his business; how did he record this?

Account debited Account credited

A capital motor vehicle
B drawings motor vehicle
C motor vehicle capital
D motor vehicle drawings

5 Alex provided the following information:

$

Office equipment 11920

Cash in hand 4210
Trade payable 9760
Trade receivable 8430
Inventory 10610
Loan to employee 1000
How much was Alex’s capital?

A $ 24410 B $ 26410 C $ 27070 D $ 29070

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 6 The owner has taken goods for his personal use. What entry is required in the general journal?

A Dr drawings Cr bank
B Dr drawings Cr inventory
C Dr drawings Cr purchase
D Dr drawings Cr sales

7 A business buys a motor vehicle on credit from P Green. What double entry should be
recorded?
A Dr motor vehicle Cr P Green
B Dr motor vehicle Cr purchase
C Dr P Green Cr capital
D Dr purchase Cr motor vehicle
8 Goods bought on credit were returned to B Bob. What double entry should be made to record
This?
A Dr B Bob Cr purchase
B Dr B Bob Cr purchase returns
C Dr purchase Cr B Bob
D Dr Purchase returns Cr B Bob

9 Veric buys goods on credit costing $800 less trade discount 25%. What amount he needs to pay
to the supplier?

A $ 585 B $ 600 C $ 615 D $ 780

10 goods were sold on credit $ 240, less 33% trade discount. the customer returned some faulty
goods costing $ 84. What should the final total on the credit note be?

A $ 52 B $ 56 C $ 84 D $ 156

II Indicate whether each of the following is an asset or liability of Anna who owns a general store.
The first one has been completed as an example. (4)

Item Asset Liability

A Fittings 
B Cash 
C Inventory of goods 
D Trade payables 
F Trade receivables 

III Identify books of prime entry for the following transactions. (9)

a) Paid trade payable by cheque Cash Book

b) Received an invoice for goods bought on credit purchased journal

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 c) Issued a credit note to a customer Sales return journal
d) Paid wages by cheque Cash Book
e) Transfer cash into bank Cash book
f) Received an invoice for equipment bought on credit for use in the business
General journal
g) Issued an invoice to a customer for goods sold on credit Sales Journal
h) Received a credit note form a supplier Purchase return journal
i) Sold old furniture to Sam on credit General journal
j) IV Identify the source documents for the following transaction (5)
a) Purchase on credit $ 150 Purchase invoice
b) Cash sales $ 320 Receipt
c) Sales on credit $ 180 sales invoice
d) Bank charges for the month $ 180 Bank statement
e) Cash deposited into the bank $ 200 Bank pay-in-slip
V For the following transactions insert the name of the account to be debited and the name of
the account to be credited. (7)

Transactions Account to be debited Account to be credited

A Paid rent by cheque rent bank

B Bought goods for cash purchase cash
C Paid cash for stationary stationary cash
D Bought equipment on credit from WR Stores equipment WR Stores
E Sold goods on credit to James James sales
F James returned goods sales returns James
G The owner took goods for his personal use. drawings purchases

VI following information is provided: (15)

March 2020
11 Purchased goods on credit from M. Mop $ 200, trade discount 10%
12 Purchased furniture on credit $ 4000 form F&F Furniture
13 Purchased goods for cash from Alex $ 250
14 Purchased goods from P.Pop $ 300, trade discount 10%
15 Purchased goods from M.Mop $ 300, after 10% trade discount
16 Goods returned to M.Mop list price 100 purchased on 6th March
17 Cash purchased $150.
Prepare:
a) Purchase Journal
b) Purchase return journal
c) Purchase ledger (suppliers account)
d) General ledger (purchase account and purchase return account)

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 Purchase Journal

Date Details Invoice no $

March M.Mop 200
2 Less 10% trade discount (20) 180
3 P Pop 300
6 Less 10% trade discount (30) 270

M.Mop 300

31 Transfer to purchase A/C 750

Purchase Return Journal

Date Details Credit note $

March M.Mop 100
7 Less 10% trade discount (10) 90

31 Transfer to purchase return A/C 90

Purchase Ledger:
M.Mop A/C

Date Details $ Date Details $

7 Purchase return 90 March
31 Balance c/d 390 2 Purchase 180
6 purchase 300

480 480
1.4 Balance b/d 390
P.Pop A/C

Date Details $ Date Details $

31 Balance c/d 270 March Purchase 270
3

1.4 balance b/d 270

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General Ledger:

Purchase A/C

Date Details $ Date Details $

Marc March Balance c/d 1150
h Cash 250 31
4 Cash 150
8 Transfer from PJ 750
31
1150 1150
1.4 Balance b/d 1150

Purchase Return A/C

Date Details $ Date Details $

31 Balance c/d 90 March Transfer from PRJ 90
31

90 90
1.4 Balance b/d 90