Purchase and Sale of Goods - Jamb Commerce Past Questions and Answers

Question 51:

• JAMB 2014

A carton of noodles valued at #2,000 was invoiced at #200 only.The accounting procedure to correct this error is to issue

A. An invoice for #200
B. A debit note for #2,00
C. A credit note for #1,800
D. A debit note for #1,800

Question 52:

• JAMB 2014

A document sent by a broker to his client to confirm a purchase or sale made on his behalf is

A. Delivery note
B. Consignment note
C. Transfer form
D. Contract note

Question 53:

• JAMB 2014

The difference between a factor and a broker is that the former

A. Is licensed to sell goods on auction
B. Has a lien on the goods he possesses
C. Is not in possession of the goods
D. Cannot sell in his own name

Question 54:

• JAMB 2015

Which of the following best describes an invoice?

A. Contractual agreement for the sale of goods
B. Document specifying quantity, description, prices and total value of purchase .
C. Receipt containing necessary information about the goods.
D. Letter specifying the contractual sales of goods between two parties

Question 55:

• JAMB 2015

The term 4 net 7 on an invoice means that

A. 4% surcharge will be made unless payment is made within seven days
B. 4% discount will be allowed on the price charged only if the good are bought within seven days
C. 4% discount will be allowed on the price charge if payment is made after seven days
D. 4% discount will be allowed on the price charged if payment is made price charged if payment is made price charged if payment is made within seven days.