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