WAEC Commerce Past Questions & Answers - Page 113

561.

Insurance is necessary because of the need to

A.

pool resources together

B.

meet uncertainties in future

C.

make profit

D.

lend money to individuals

Correct answer is B

No explanation has been provided for this answer.

562.

Government can borrow money from the public through

A.

the issuing of treasury bills

B.

increasing taxation

C.

increasing the lending rate

D.

establishing more banks

Correct answer is A

No explanation has been provided for this answer.

563.

Trade discount is given to the buyer for

A.

prompt payment

B.

credit purchase

C.

cash purchase

D.

retailer's mark-up

Correct answer is D

No explanation has been provided for this answer.

564.

Status enquiry is necessary when

A.

goods are ordered from a mail order firm

B.

money is withdrawn from a fixed deposit account

C.

granting credit to a new customer

D.

goods areproduced according to specification

Correct answer is C

No explanation has been provided for this answer.

565.

What is the purpose of a debit note? To

A.

reduce the credit in the buyer's account

B.

reduce the debit charged to an invoice

C.

compensate for damaged goods returned

D.

allow for rebate

Correct answer is A

No explanation has been provided for this answer.