Second Term Examination Business Studies for JSS 1 – JSS 3 Term 2 Exam Questions







Scroll down for JSS 2 – JSS 3 exam questions.




Instruction: Fill the gaps with the most suitable word from the options A – D.

1. The main reason why an individual goes into business is to _________.

(a) reduce the price of goods

(b) help the poor

(c) make profit

(d) develop the society


2. Aids to trade include the following except _________.

(a) insurance

(b) trading

(c) banking

(d) advertising


3. The following are factors of production except _________.

(a) labour

(b) industry

(c) capital

(d) land


4. A profession which occupies one’s time and through which one earns his/her living is called _________.

(a) talent

(b) skill

(c) engineer

(d) occupation


5. The person who is the sole provider of business capital and suffer losses alone is called the _________.

(a) partner

(b) trader

(c) salesman

(d) sole proprietor


6. The two major divisions of trade are _________ and _________.

(a) commerce and industry

(b) home and foreign

(c) import and export

(d) wholesale and retail


7. The services rendered by commercial drivers, private doctors etc are classified as _________.

(a) direct service

(b) producer goods

(c) indirect service

(d) services


8. A business organization with unlimited number of shareholders is known as

(a) sole proprietorship

(b) partnership

(c) private company

(d) public company


9. Which of the following is not a reward for being truthful?

(a) bad reputation

(b) good reputation

(c) promotion

(d) useful suggestion


10. The minimum number one can find in a partnership business is _________.

(a) two

(b) four

(c) seven

(d) twenty


11. The book signed by people who visit an office is known as _________ book.

(a) visitors’

(b) welcome

(c) office

(d) time


12. The industries that turn raw materials into finished goods are called _________ industries.

(a) mining

(b) construction

(c) coal

(d) manufacturing


13. Goods imported for the purpose of exporting to another country is _________.

(a) entrepot

(b) entrsort

(c) entrepreneur

(d) enterprise


14. A book keeper must have the following qualities except _________.

(a) be careful and accurate with figures

(b) write legibly

(c) be able to operate calculating machines

(d) be able to defraud the business


15. The person that contributes capital and does not take part in the running of the business is called _________ partner.

(a) active

(b) general

(c) limited

(d) sleeping


16. Trade between two countries is known as _________ trade.

(a) boundary

(b) home

(c) foreign

(d) local


17. One of the jobs performed by the clerical personnel is _________.

(a) communication with visitors

(b) staffing

(c) planning

(d) organizing


18. _________ is the source of the cooperative society capital.

(a) Bank

(b) Cooperators

(c) Public tax

(d) Borrowing from government


19. Which of these pair may not go together?

(a) capital, interest

(b) organizer, profit

(c) land, rent

(d) entrepreneur, wages


20. Which of the following is referred to as ‘partnership agreement’?

(a) Article of Association

(b) partnership deed

(c) prospectus

(d) memorandum




Answer four (4) questions in all.


a. Who is a Sole proprietor?

b. State two attributes of sole proprietorship.

c. State two advantages of a limited liability company.

d. State the minimum number and the maximum numbers of a partnership business.

e. List two information in the Deed of partnership.



a. State two factors that affect occupation.

b. What are the types of occupation?

c. Give one example of a direct service and one example of indirect service.

d. State two consequences of not being truthful.

e. State the rewards of being truthful.



a. What are ethics?

b. State two ethics of sourcing for chemicals.

c. Define an enterprise.

d. Differentiate between private and public enterprises.

e. Give one example of private enterprise and an example of a public enterprise.



a. Who is a consumer?

b. State two importance of consumer education.

c. State three effects of lack of consumer education.

d. State two characteristics of chemicals suitable for home use.

e. Define a chemical.



a. What is book keeping?

b. State any two importance of book keeping.

c. List five qualities of a bookkeeper.

d. What are the books of original entry?



Scroll down for JSS 3 exam questions.




Instruction: Fill the gaps with the most suitable word from the options A – D.

1. Who keeps the petty cash book?

(a) petty cashier

(b) petty recorder

(c) Accountant

(d) Typist


2. Banking, insurance, advertising, communication etc are known as _________.

(a) production activities

(b) aids to trade

(c) sales activities

(d) commercial activities


3. The insurance policy on goods transported on water is known as _________.

(a) third party

(b) burglary

(c) compensation

(d) marine


4. The person who coordinates other factors of production is called _________.

(a) manager

(b) supervisor

(c) entrepreneur

(d) accountant


5. A telephone operator in an office must be _________.

(a) aggressive

(b) polite

(c) kind

(d) neat


6. The trader who buys in large quantities and sells in smaller quantities to the retailer is called _________.

(a) retailer

(b) manufacturer

(c) wholesaler

(d) producer


7. The place where goods are stored until they are needed is called _________.

(a) insurance

(b) bank

(c) warehouse

(d) container


8. A bank to all other banks in Nigeria is the _________.

(a) first bank of Nigeria Plc

(b) central bank of Nigeria

(c) New Nigerian bank

(d) federal saving bank


9. A petty cash officer got a cheque of N1000 and spent N715.He should make up his account with _________.

(a) N285

(b) N315

(c) N400

(d) N715


10. A cheque with two parallel lines drawn across its face is called _________.

(a) open cheque

(b) cancelled cheque

(c) crossed cheque

(d) certified cheque


11. Stock turn over means _________.

(a) the value of closing stock

(b) the value of opening stock

(c) the value of sales

(d) the number of times goods are bought


12. When payment for goods is delayed until a future period, it is known as _________.

(a) cash sales

(b) credit sales

(c) conditional sales

(d) capital sales


13. Which of the following is found in a business card?

(a) Car number

(b) Name of the holder

(c) Name of children of the holder

(d) House address of the holder


14. The following banks are commercial banks except _________.

(a) Gtbank

(b) Wema bank

(c) Zenith bank

(d) Central bank


15. The end point in the channel of distribution of goods is _________.

(a) consumer

(b) manufacturer

(c) middlemen

(d) retailer


16. A provision which a wise man makes against future occurrence of losses is _________.

(a) insurance

(b) protection

(c) savings

(d) banking


17. _________ is the middleman between the manufacturer and the retailer.

(a) Consumer

(b) Wholesaler

(c) Manufacturer

(d) Customer


18. Goods bought for resale are entered as _________.

(a) ledger

(b) account

(c) purchases

(d) sales


19. A document written by the seller to the buyer to correct an over charge is called _________.

(a) credit note

(b) debit note

(c) invoice

(d) order


20. The contract of insurance covers all the following except _________.

(a) bad debt

(b) fire

(c) gambling

(d) human life



Answer any four (4) questions only.

1a. Production starts with consumers and ends with the consumers. Explain.

1b. In a tabular form, state two examples of small-scale retailers and large-scale retailers.

1c. Give one chemical vendor in Nigeria with the address.


2a. State five ethical issues in banking.

2b. List and explain the three main account operated by commercial banks.


3. Explain the following principles of insurance:

(i) indemnity

(ii) subrogation

(iii) contribution

(iv) utmost good faith

(v) proximate clause


3b. State 5 benefits of insurance.


4a. State 2 differences between needs and wants.

4b. State 3 effects of impulse buying.

4c. State 3 features of book-keeper.

4d. State 2 effects of lack of transparency, accountability and probity (TAP) .


5a. What are the three main groups of a cashbook?

5b. Prepare a single column cashbook of Mr. Michael for the month of May, 2008.

May 1, commence business with cash N950.

May 4, cash sales N620.

May 10, bought goods for cash N600.

May 15, bought office furniture for cash N210.

May 20, paid insurance premium in cash N150.

May 21, bought goods for cash N200.

May 22, received loan from Okunola N500.

May 25, cash sales N750.

May 26, Ladi paid cash N400.

May 27, cash purchases N450.

May 28, paid travelling expenses in cash N250.

May 29, bought stationeries for cash N100.

May 29, bought office equipment for cash N500.

May 30, repaid part of Okunola’s loan N300.

May 30, cash sales to date N800.






Instruction: Fill the gaps with the most suitable word from the options A – D.

1. Net Purchases is _________.

(a) purchase minus Returns Outwards

(b) Purchase plus Returns Outwards

(c) Purchase plus Returns Inwards

(d) Purchase minus Returns Inwards


2. Advertisement helps to _________.

(a) reduce sales

(b) increase sales

(c) increase stock

(d) decrease productivity


3. A customer has N500:00 in his bank account, but has been allowed to withdraw N900:00; what is the value of the overdraft granted the customer?

(a) N400

(b) N500

(c) N900

(d) N1 400


4. Which of the following is not an example of item on the debit side of the trial balance?

(a) purchases

(b) wages

(c) discount allowed

(d) discount received


5. Bank overdraft is recorded in the _________.

(a) debit side of the trial balance

(b) debit side of the trading account

(c) credit side of the trial balance

(d) credit side of the trading account


6. Capital in the balance sheet is recorded _________.

(a) in the trading account

(b) on the liability side

(c) under the fixed assets

(d) under the current assets


7. Calculate the cost of goods sold from the following information:


Opening stock              1 200

Closing stock.                 400

Purchases                     3 500

Sales                              5 000


(a) N4 300

(b) N4 700

(c) N5 100

(d) N6 900


8. Net sales is _________.

(a) purchases less returns outwards

(b) sales minus returns outwards

(c) sales less returns inwards

(d) sales plus returns inwards


9. Ade made a budget of N5200 and spent N4800. What is the balance left with Ade?

(a) N200

(b) N400

(c) N600

(d) N800


10. All are expenses except _________.

(a) carriage inwards

(b) carriage outward

(c) advertising expenses

(d) discount received


11. Trial balance is prepared to get the arithmetical accuracy of the _________.

(a) journal entries

(b) trading entries

(c) balance sheet entries

(d) ledger entries


12. A document written by the seller to the buyer to correct an overcharge is called _________ .

(a) credit note

(b) debit note

(c) invoice

(d) order


13. The trading, profit and loss account are concerned with the following except _________.

(a) total sales

(b) gross profit

(c) net profit

(d) debtors


14. Which side of the cash book is payment side?

(a) central side

(b) right hand side

(c) left hand side

(d) both left and right hand side


15. Goods bought for resale are entered as _________.

(a) ledger

(b) account

(c) purchases

(d) sales


16. A balance sheet is a statement,

(a) showing the statement of account

(b) of assets and liabilities at a particular time

(c) of business liabilities

(d) of business assets


17. A list of items in order of importance or relevance is _________.

(a) choice

(b) opportunity

(c) scale of justice

(d) scale of preference


18. Goods imported for the purpose of exporting to another country is _________.

(a) entrepot

(b) entresort

(c) entrepreneur

(d) entererpot


19. Plant and machinery are examples of _________ asset.

(a) floating

(b) current

(c) fixed

(d) circulating


20. Final account does not include one of the following:

(a) trial balance

(b) trading account

(c) profit and loss account

(d) cash account.




 Answer four (4) questions only.

1a. From the data below, calculate the total fixed asset


Capital                   5 000

Cash in hand        1 400

Stock                       300

Creditors               1 600

Furniture                2 000

Bank                       1 200

Debtors                     500

machinery             3 200


1b. Use the following information below to answer the questions that follow:


Opening stock      20 000

Purchases             30 000

Closing stock          2 000

Sales                       70 000

Rent                           3 000

Electricity                  2 000


(i) The cost of goods sold is _________.

(ii) Net profit is _________.

(iii) Total expenses is _________.


2. Write short notes on the following;

(i) Trading Account

(ii) Profit and loss account

(iii) Balance sheet

(iv) Trial balance


3a. State the uses of personal budget.

3b. Explain the effects of living a modest life.

3c. Differentiate between budget deficit and budget surplus; give example .

3d. Define consumption.

3e. List out four sources of finance for an individual.


4a. State two benefits of seeking redress.

4b. What are the ways of seeking redress?


4c. Explain briefly the following terms:

(i) Extravagant

(ii) Prudent in spending

(iii) Scale of preference


5. You are required to prepare balance sheet as at 31st Dec, 2010 using both traditional and vertical formats from the following balances:


Capital                                      9 800

Net profit for the year            2 580

Drawings                                 1 400

Creditors                                  2 340

Debtors                                    2 670

10% loan                                  2 700

Plant and machinery              4 000

Stock                                        2 545

Premises                                  5 000

Cash at bank                           1 540

Cash in hand                              305



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