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

Question 16:

• JAMB 1999

The term ‘5 Net 7’ on an invoice means that?

A. 5% discount will be allowed on the price charged if payment is made within seven days
B. 5% discount will be allowed on the price charged if payment is made after seven days
C. 5% surcharge will be made unless payment is made within seven days
D. 5% dicount will be allowed on the charged if the goods are bought within seven days

Question 17:

• JAMB 1999

Kabir receives two quotations. Ade quotes N 100 less 20% trade discount and 20% cash discount while Benson N100 less 30%trade discount and 10% cash discount. If Kabir wants to take advantage and cash discount, then

A. The material should be supplied by Ade
B. The material should be supplied by both of them
C. The material should be supplied by Benson
D. Benson should be ask to reduce his trade discount

Question 18:

• JAMB 1999

The document that indicate instant payment of cash for goods whenever the are delivered is

A. Credit note
B. Proforma invoice
C. Debit note
D. Statement of account

Question 19:

• JAMB 1999

Which of the following document permit an importer to inspect his goods before the arrival of the bill of lading?

A. Bill of sight
B. Import invoice
C. Consular invoice
D. Bill of exchange

Question 20:

• JAMB 2000

The major factors that facilitate merchandising are

A. Commuincation , advertising and banking
B. Trading, warehousing and production
C. Management, insurance, and advertising
D. Banking, insurance and transportation