WAEC Commerce Past Questions & Answers - Page 27

131.

A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called

A.

cash discount

B.

trade discount

C.

commission

D.

bonus

Correct answer is A

A cash discount is a reduction in the amount of an invoice that the seller allows the buyer. This discount is given in exchange for the buyer paying the invoice earlier than its normal payment date and also encourages bulk purchases

132.

The bank on which a cheque is drawn is known as the

A.

drawer

B.

drawee

C.

cashier

D.

payee

Correct answer is B

Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.

133.

The assets of a business that is available for cash or near cash is called

A.

equity

B.

capital employed

C.

received capital

D.

liquid capital

Correct answer is D

Liquid capital is defined as cash or items which are readily converted to cash in a short time

134.

A collective bundle of shares is called?

A.

debenture

B.

stock

C.

bond

D.

share

Correct answer is B

Stock is the capital raised by a company or corporation through the issue and subscription of shares. Summation of shares is referred to as stock

135.

A written instruction by a current account holder to his bank to debit his account at regular intervals with a specified amount for a given period is known as

A.

standing order

B.

money order

C.

bank draft

D.

overdraft

Correct answer is A

standing order; an instruction to a bank by an account holder to make regular fixed payments to a particular person or organization.