Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
1 : 4
5 : 1
3 : 1
2 : 1
Correct answer is A
Using the Balance Sheet, the current ratio is calculated by dividing current assets by current liabilities:
Current assets = stock + debtors + banks + cash
current liabilities = drawings + creditors + accruals
current assets = 2000 + 1000 + 100 + 600 =3700
current liabilities = 2000 + 200 + 300 = 2500
3700 ÷ 2500 = 1.4
N200,000
N190,000
N170,000
N175,000
Correct answer is C
The cost of goods sold is calculated through the formula below
opening stock + purchases – closing stock.
If we go by the formula above it is
N50,000 + N 200,000 - N80,000 = N170,000.
N320
N350
N500
N800
Correct answer is D
Closing stock for the year of an accounting period is also regarded as unused stock.
The principle of subrogation stated that
An insured person should be indemnified to the time of the amount insured
An insurance company constant in lace of the insured in dealing with third party.
Only a person who is likely to suffer loss hold take out an insurance cover
There must be accuse connection between the actual loss suffered and risk insure
Correct answer is B
The option is in line with the principle of subrogation
Vertical integration
Horizontal integration
Forward Integration
Background integration
Correct answer is A
This integration involves the coming of two or more firms at different production stage in the same industry. The production of wool is one stage in the production of cloths while spinning and transformation of the wool into clothes is another stage in the production of clothes