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SS 2 Commerce
Contributed by: Obalanlege
  • 1. Credit sale means payment is made __________.
A) When the buyer wishes
B) Immediately after delivery
C) Before goods are taken
D) After an agreed period
  • 2. A system where payment for goods is spread over time is called __________.
A) Discounting
B) Deferred payment
C) Cash sales
D) Barter
  • 3. The person who buys goods on credit is known as the __________.
A) Retailer
B) Debtor
C) Agent
D) Creditor
  • 4. A major disadvantage of credit sale to the seller is __________.
A) Loss of goods
B) Risk of bad debts
C) Faster turnover
D) High profit
  • 5. In hire purchase, ownership is transferred to the buyer __________.
A) After signing the agreement
B) Before any payment
C) Immediately
D) After final payment
  • 6. The person who uses an asset for a fixed period while paying rent is called __________.
A) Lessee
B) Lessor
C) Hirer
D) Mortgagor
  • 7. A mortgage is a loan secured with __________.
A) Shares
B) Land or building
C) Insurance
D) Personal property
  • 8. The person who lends money in a mortgage agreement is the __________.
A) Hirer
B) Mortgagor
C) Lessee
D) Mortgagee
  • 9. A hire purchase agreement usually contains __________.
A) Contact address of buyer only
B) Selling price only
C) Cash price and instalment price
D) Salary of the buyer
  • 10. A lease type where the lessee repairs and maintains the asset is called a __________ lease.
A) Closed
B) Operating
C) Full-service
D) Finance
  • 11. The first document sent by a seller stating prices and terms is called a __________.
A) Quotation
B) Receipt
C) Invoice
D) Debit note
  • 12. A document used to correct an overcharge is a __________.
A) Invoice
B) Credit note
C) Debit note
D) Consignment note
  • 13. The document that shows details of goods bought and amount owed is the __________.
A) Statement
B) Receipt
C) Invoice
D) Order
  • 14. Proof of payment from the buyer to the seller is a __________.
A) Invoice
B) Receipt
C) Credit note
D) Quotation
  • 15. A document used to request goods from a supplier is the __________.
A) Delivery note
B) Statement
C) Order form
D) Invoice
  • 16. "FOB" means __________.
A) Foreign Order Book
B) Freight on Bond
C) Free on Board
D) Free of Business
  • 17. "CIF" means cost, insurance and __________.
A) Filing
B) Feeder
C) Freight
D) Finance
  • 18. A discount given for early payment is called __________.
A) Seasonal discount
B) Trade discount
C) Cash discount
D) Quantity discount
  • 19. Terms of trade refer to __________.
A) How money is exchanged
B) Conditions of buying and selling
C) Means of transporting goods
D) How profits are shared
  • 20. Payment made by writing the amount on a bank paper is called __________.
A) Postal order
B) Cheque
C) Credit card
D) Voucher
  • 21. Which is NOT a means of payment?
A) Bank draft
B) Money order
C) Cheque
D) Quotation
  • 22. A card used for cashless payment electronically is called __________.
A) Address card
B) Processing card
C) Postal card
D) Debit card
  • 23. The safest means of sending money to a distant place is __________.
A) Open cheque
B) Cheque
C) Postal order
D) Money order
  • 24. A person who buys goods and services for use is a __________.
A) Producer
B) Retailer
C) Consumer
D) Wholesaler
  • 25. The agency responsible for checking fake and expired drugs in Nigeria is __________.
A) NAFDAC
B) EFCC
C) NDLEA
D) SON
  • 26. Which of the following protects consumers from harmful products?
A) Manufacturers
B) Consumer associations
C) Internal auditors
D) Trade unions
  • 27. A right of a consumer is the right to __________.
A) High prices
B) Safety
C) Overcharging
D) Deception
  • 28. The owners of a limited liability company are called __________.
A) Shareholders
B) Directors
C) Suppliers
D) Debtors
  • 29. The document that gives a company legal existence is the __________.
A) Receipts
B) Trade note
C) Invoice
D) Memorandum of Association
  • 30. A company whose shares are not sold to the public is a __________.
A) Private limited company
B) Public limited company
C) Partnership
D) Government firm
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