MINISTRY OF EDUCATION
NORTHERN PRIVATE SCHOOL
FORM ONE (1) END OF TERM TWO TEST 2025.
BUSINESS STUDIES
NAME:____________________________________________________________
INSTRUCTIONS:
THIS PAPER CONSIST OF [50 MARKS]
SECTION A
Choose and circle the correct answer [15 marks]
1. What is office practice?
A. A sport activity B. A set of business laws C. A subject that teaches clerical duties D. A
sales technique
2. An office is a place where:
A. Games are played B. Planning and organizing work is done C. Teachers teach D. Goods
are manufactured
3. Which of the following is a function of an office?
A. Farming B. Cooking C. Recording and processing of information D. Driving
4. Which department is responsible for financial matters?
A. Sales B. Advertising C. Accounts D. Production
5. An entrepreneur is someone who:
A. Works only in a factory B. Buys and sells goods without planning C. Takes risks to build
a business
D. Works under others only
6. One of the weaknesses in SWOT analysis is:
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A. Skilled workers B. New technology C. Bad location D. Expanding market
7. Which of the following is a current asset?
A. Land B. Machinery C. Debtors D. Building
8. A business plan includes all the following EXCEPT:
A. Legal responsibilities B. Logo C. School curriculum D. Executive summary
9. A ledger is:
A. A bank account B. A machine C. A collection of financial accounts D. A list of names
10. Which of these is NOT a business document?
A. Invoice B. Credit note C. Delivery note D. Curriculum Vitae
11. What is a debit note used for?
A. To reduce prices B. To show salary details C. To correct undercharges D. To deliver
goods
12. In the double entry system, the receiving account is:
A. Always credited B. Always ignored C. Always debited D. None of the above
13. Cash transactions involve:
A. Barter B. Future payments C. Immediate payment D. Cheques
14. A petty cashier deals with:
A. Big purchases B. Staff complaints C. Large loans D. Small cash payments
15. A two-column cash book records:
A. Cash only B. Bank only C. Cash and bank D. Cheque only
SECTION B
Answer all the questions from this section [20 marks]
1. What type of office has no privacy?_________________________
2. Who supervises departmental managers?_____________________
3. What is the name of the document that requests goods from a seller?________________
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4. What is the name of a person who sells goods on the spot?________________________
5. What account records small daily expenses?___________________________________
6. What document corrects an overcharge?_____________________________________
7. What business type is run by one person?____________________________________
8. What is the full meaning of VAT?____________________________________________
9. What is the main book of accounts?__________________________________________
10. Who keeps cash in an office?___________________________________
11. What is the opposite of cash discount?_________________________________
12. What type of asset is furniture?___________________________________
13. What is the act of selling goods without immediate payment?______________________
14. What is a person who owes the business called?_____________________________
15. What is used to erase pencil errors?_________________________________
16. Which document summarizes transactions monthly?______________________________
17. Which department recruits staff?______________________________________
18. What is a business owned by many called?_____________________________________
19. What type of account is “rent paid”?_____________________________________________
20. What department deals with machines and repairs?_________________________________
SECTION C [15 marks]
Below are the sales which were made by SKM Plastic Limited. Determine which ones are to be
recorded in the sales day book. Prepare the sales day book for the month of April 2010
April 3 sold 5 lounge suites on credit to Kasama Lodge at K800 each less 5% trade
discount
April 5 Sold 10 Double beds by cheque to JKK stores at K200 each
April 8 sold 11 dinning suites on credit to Fatmols Guest House at K900 each, less 2%
trade discount
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April 14 Sold 8 Lounge Suites on Credit to Mungwi tech at K600 each
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