WAEC Commerce 2010 past questions
Ten questions from the 2010 WAEC Commerce paper, with answers and explanations. We hold 50 questions from this paper, and the Skolra app has all of them.
WAEC Commerce 2010 questions and answers
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1.Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for #30,000. What is the cost of goods sold
- A₦30,000
- B₦35,000
- C₦20,000
- D₦25,000Correct
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Answer: D
Cost of goods sold (COGS) is everything it took to get the item into a sellable state: the purchase price plus any cost incurred to prepare it for sale.
Ojo bought the bicycle for ₦20,000 and spent ₦5,000 repairing it before he could sell it. So:
Cost of goods sold = ₦20,000 + ₦5,000 = ₦25,000
- A
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2.The document of title to goods being shipped abroad is known as
- ABill of ladingCorrect
- BManifest
- CCertificate of origin
- DCharter party
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Answer: A
Bill of lading is correct.
In foreign trade, when goods are shipped abroad, the shipping company (carrier) issues the exporter a bill of lading. It performs three functions at once: it is a receipt for the goods shipped, it is evidence of the contract of carriage between the exporter and the shipping line, and — most importantly for this question — it is the document of title to the goods. This means whoever legally holds the bill of lading (or the person it has been endorsed to) is entitled to collect the goods at the port of destination, and the goods can even be bought and sold while still at sea simply by endorsing and transferring this document.
- A
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3.Which of the following is a more suitable medium for advertising a new tractor?
- ARadio jingle
- BOutdoor billboard poster
- CNational newspaper advertisement
- DAgricultural trade journalCorrect
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Answer: D
A tractor is not an everyday consumer item; it is an expensive, technical, industrial good bought by a narrow group of buyers — farmers, agricultural cooperatives and contractors. The agricultural trade journal is the more suitable medium because it is read specifically by people already in that line of business, and its format allows room for the technical detail (engine power, fuel economy, servicing, price) that a buyer needs before committing to such a large purchase.
- A
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4.Which of the following insurance principles states that a person must be in a position to suffer financially in the event of a loss?
- AUtmost good faith
- BInsurable interestCorrect
- CSubrogation
- DIndemnity
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Answer: B
Insurable interest is correct. This principle states that the person taking out a policy must have a financial relationship with the subject matter being insured, such that he or she would genuinely suffer a monetary loss if the event insured against actually happened (for example, owning the house you insure against fire, or depending on the life of the person whose life you insure).
- A
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5.Mobile shopping involves selling
- Agoods by hawking from house to house on foot
- Bgoods in bulk to retailers from a central warehouse
- Cgoods on credit to known customers at their residence
- Dgoods from a van or lorry that moves from one area to another to reach customersCorrect
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Answer: D
Mobile shopping (a mobile shop) is a form of small-scale, non-fixed retail trade. The trader loads goods onto a vehicle — a van, lorry or similar — and drives it from one neighbourhood or location to another, selling directly to consumers at their doorstep instead of waiting for them to come to a fixed shop.
- A
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6.Which of these qualities guarantees the keeping of money for a long period?
- ADivisibility
- BDurabilityCorrect
- CScarcity
- DPortability
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Answer: B
Durability is the quality of money that guarantees it can be kept (stored) for a long period without losing its physical usefulness or value. Money must be made of material that does not wear out, rot, rust or decay quickly, so that it can be held and used again and again over time, and can also serve as a store of value for savings.
- A
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7.A cheque issued in January 1997 which the holder failed to present for payment until September 1997 is called a
- AAnte-dated cheque
- BPost-dated cheque
- CStale chequeCorrect
- DDishonoured cheque
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Answer: C
In banking practice, a cheque is only valid for six months from the date written on it. If the holder does not present it to the bank for payment within that period, the cheque becomes a stale cheque and the bank will no longer honour it as presented — it would have to be re-dated or re-issued by the drawer.
- A
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8.Which of the following is not true of the stock exchange?
- ATransactions on it are conducted through licensed stockbrokers
- BPrices of securities traded on it are fixed by the forces of demand and supply
- CIt provides a ready market for the buying and selling of existing securities
- DIt deals in new issues of shares and debenturesCorrect
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Answer: D
The stock exchange is a market for existing (secondhand) securities, not new ones. That is the key distinction tested here.
- A
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9.Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for #30,000. What is the percentage of expenses over cost?
- A25%Correct
- B50%
- C16.7%
- D20%
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Answer: A
Cost price of the bicycle = ₦20,000. Expenses (repair cost) = ₦5,000.
"Percentage of expenses over cost" asks for the repair expenses as a percentage of the original cost price:
Percentage = (Expenses ÷ Cost price) × 100 = (5,000 ÷ 20,000) × 100 = 25%
So the straightforward calculation, expenses over the stated cost price, gives 25%.
- A
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10.Which of the following is a safest way of sending important documents through the post
- ACertificate of posting
- BRegistered postCorrect
- COrdinary letter post
- DParcel post
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Answer: B
Registered post is the safest way of sending important documents (title deeds, certificates, cheques, contracts) through the post office.
- A
The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check
Spotted a wrong answer? Tell us from the app or on the contact page and we check it.
Practise all 50 questions we hold from the 2010 paper, on a timed CBT screen
Every question has the answer and an explanation, in the Skolra app.