(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 workshop.

(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. …………………………………………………………………………………………………………………………………………..
2 …………………………………………………………………………………………………………………………………………..
(b) Sandwichman

1 …………………………………………………………………………………………………………………………………………..
2 …………………………………………………………………………………………………………………………………………..

(c) Vehicles

1 …………………………………………………………………………………………………………………………………………….
2 ……………………………………………………………………………………………………………………………………………..
(d) Illuminated signs

1 ………………………………………………………………………………………………………………………………………………..
2 ………………………………………………………………………………………………………………………………………………..

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 …………………………………………………………………………………………………………………………………………………….
2 …………………………………………………………………………………………………………………………………………………….
3 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’

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 Media………………………………………………………………………………………………………………………………………………
Reason……………………………………………………………………………………………………………………………………………
(b) Computer

Media…………………………………………………………………………………………………………………………………………….
Reason……………………………………………………………………………………………………………………………………………
(c) Latest Nike sportswear

Media………………………………………………………………………………………………………………………………………………
Reason…………………………………………………………………………………………………………………………………………….
(d) A holiday resort in the Maldives

Media………………………………………………………………………………………………………………………………………………
Reason…………………………………………………………………………………………………………………………………………….
(e) Launching play station (X BOX)

Media………………………………………………………………………………………………………………………………………………
Reason…………………………………………………………………………………………………………………………………………….

4 Explain two purpose of advertising (4)

……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………
5 What is meant by sales promotion? (2)
……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………
6 What is meant by a method of appeal? (2)
……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………
7 What is the difference between market research and advertising? (2)
……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………
8 Why are catalogues very important for the mail-order business? (3)

……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………

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 ……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………

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

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

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

1…………………………………………………………………………………………………………………………………………………
2………………………………………………………………………………………………………………………………………………..

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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

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 How much was Alex’s capital?

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

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. (6)

Item Asset Liability

A Fittings 
B Cash
C Inventory of goods
D Trade payables
E Motor vehicles
F Trade receivables
G Loan to employee

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

a) Paid trade payable by cheque [ ]

b) Received an invoice for goods bought on credit [ ]
c) Issued a credit note to a customer [ ]
d) Paid wages by cheque [ ]
e) Transfer cash into bank [ ]
f) Received an invoice for equipment bought on credit for use in the business
[ ]
g) Issued an invoice to a customer for goods sold on credit [ ]
h) Received a credit note form a supplier [ ]
i) Sold old furniture to Sam on credit [ ]

IV Identify the source documents for the following transaction (8)

a) Purchase on credit $ 150 [ ]

b) Cash sales $ 320 [ ]
c) Sales on credit $ 180 [ ]
d) Bank charges for the month $ 180 [ ]
e) Cash deposited into the bank $ 200 [ ]
f) Returned goods to a supplier $ 104 [ ]
g) Customer returned goods to us $ 80 [ ]
h) New office furniture bought on credit [ ]

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

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

VI following information is provided:

March 2020

2 Purchased goods on credit from M. Mop $ 200, trade discount 10%

3 Purchased furniture on credit $ 4000 form F&F Furniture
4 Purchased goods for cash from Alex $ 250

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5 Purchased goods from P.Pop $ 300, trade discount 10%
6 Purchased goods from M.mop $ 300, after 10% trade discount
7 Goods returned to M.Mop list price 100 purchased on 6th March
8 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)

Purchase Journal

Date Details Invoice no $

Purchase Return Journal

Date Details Credit note $

Purchase Ledger:
M.Mop A/C

Date Details $ Date Details $

P.Pop A/C

Date Details $ Date Details $

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General Ledger:

Purchase A/C

Date Details $ Date Details $

Purchase Return A/C

Date Details $ Date Details $