THE UNITED  REPUBLIC  OF  TANZANIA NATIONAL EXAMINATIONS  COUNCIL

061         COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours Friday, 15^th November 2013 p.m.

Instructions

1. This paper consists of sections A, B and C.

2. Answer all questions in sections A and B and two(2) questions from section C.

3. Calculators and Cellular phones are not allowed in the examination room.

4. Write your  Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks) 

Answer all questions in this section.

1. For each of  the  items  ( i) - ( x),  choose  the  correct  answer  from among  the  given  alternatives  and write  its  letter  beside  the  item number.

(i) An over draft exists when

1.  a  current  account  shows  deposits  without  withdrawals 
2.  a current account shows  more  deposits  than  withdrawals 
3.  a  loan  has  been granted by a bank  to  a  customer
4.  the balance in current  account  falls  below  the  specified  amount
5.  a current account shows larger  amount of withdrawals than deposits.

(ii) Which one of  the following statement is NOT true about a bill of exchange?

1.  It  must  be  accepted  by  the  drawee. 
2.  It  must  bear appropriate stamp duty.
3.  It  must  be  signed by the drawer.
4.  It  must  be  payable  on  demand.
5.  It can be paid at a stated future date.

(iii) The  principal  document  in   an insurance  contract  is

1.  Policy. 
2.  Cover note.
3.  Proposal form.
4.  Certificate.
5.  Premium.

(iv) If employer wishes to pay a number of employees with one cheque he may use

1.  standing  order
2.  credit  transfer
3.  traveller’s cheque
4.  credit card
5.  money order.

(v) A credit note is issued  to  correct 

1.  any error in an invoice 
2.  an overcharge in an invoice
3.  an  undercharge  in  an  invoice
4.  an  overcharge in a statement
5.  an  undercharge in a statement.

(vi) The function with is  NOT usually performed by a retailer is

1.  Transport  goods. 
2.  Storage of goods.
3.  Advice to customer.
4.  Changing the form of goods.
5.  Selling goods to the wholesaler.

(vii) The most suitable type of account for a businessman is

1.  A  savings  account. 
2.  A current account.
3.  A deposit account.
4.  A contract saves account.
5.  A company  account.

(viii) The list of documents prepared in the course of commercial transaction in the right order of  being  raised  is

1.  Order,  inquiry, quotation, invoice, statement, receipt.
2.  Quotation,  inquiry,  invoice,  order,  cheque,  statement.
3.  Inquiry,  quotation,  order,  invoice,  statement,  cheque
   
4.  Quotation,  inquiry,  order,  invoice, cheque,  statement.
5.  Inquiry,  order, quotation, invoice, statement, cheque.

(ix) The group which represents a broad classification of human occupations is

1.  Commerce, production and aids to trade.
2.  Trade and aids to trade.
3.  Banking, insurance and transportation. 
4.  Extractive, manufacturing and constructive industries.
5.  Industrial  and  tertiary.

(x) If Tanzania exports more goods to Uganda than she imports from the same country, her balance  of 

1.  trade is favourable
2.  trade  is  unfavourable
3.  payment is favourable 
4.  payment is  unfavourable
5.  trade and  payment are favourable
Choose Answer : A B C D E

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