Han Chiang High School, Penang

Second Semester Mid-Term Test, 2016

BUSINESS STUDIES
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Class: C11/ C12/CV1

Duration: 80 minutes
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INSTRUCTIONS TO CANDIDATES
1. This subject comprises three parts:
Part A: Multiple-choice questions (20%)
Part B: Compulsory questions-Case Study (20%)
Part C: Compulsory questions-Subjective questions (60%)

2. For Part A, answer all the 20 multiple-choice questions. Select the correct
or the best answer and then blacken the square corresponding to the same
letter of the alphabet as the answer you have selected. Mark the answer with a
2B pencil on answer sheet ‘O’.

3. Before attempting the questions, fill in your school number on the answer
sheet “O” and blacken the corresponding letters/numbers with 2B pencil.

4. For Part B and Part C, you are required to attempt all questions.

5. Use only blue or black ink to write your answers.

6. The prescribed electronic calculators may be used.

7. Do not copy the questions, but the answer to each question should be clearly
numbered.

8. Begin each answer on a fresh page.

9. Arrange the answer scripts in numerical order.

10. This paper consists of seven printed pages.

Do Not Turn Over This Page Until You Are Told To Do So

Student’s Name: _________________ Student’s Number: ____________

Page 1 of 7
Part A: Multiple-choice questions(20%)

1. Which of the following sales procedures is correct?

A. Quotation
Purchase Order
Delivery Order
Invoice
B. Delivery Order
Quotation
Purchase Order
Invoice
C. Purchase Order
Quotation
Delivery Order
Invoice
D. Purchase Order
Delivery Order
Quotation
Invoice

Based on the quotation below, answer questions 2,3,4

Tee Boon Hock Sdn Bhd issues quotation to Eric Tan Sdn Bhd on 16th March 2015.
The content is as shown below:

Terms Of Payment And Delivery

For Acceptance Within 14 Days

Cash Discount:8% (7 days); 2%(30 Days)

Terms Of Delivery: Within 7 Days, Carriage Paid

2. Based on the information given, which party need to pay transportation cost?
A. Tee Boon Hock Sdn Bhd
B. Eric Tan Sdn Bhd
C. Both Parties
D. Transportation Company

3. If a buyer intends to purchase the goods, which is the validity date to place an order, except;
A. 23th March 2015
B. 29th March 2015
C. 30th March 2015
D. 16thApril 2015

4. Which of the following is the reason Tee Boon Hock Sdn Bhd issues a quotation?
A. Reply the letter of inquiry and provide them with the information of
purchase
B. Issue a written notice to the seller of products ordered
C. Inform the buyer early and arrange dispatch of goods
D. Request the buyer to provide credentials of goods

5. Which of the following documents is not usually printed with "E. & O.E." terms?
A. Credit Note
B. Invoice
C. Receipt
D. Statement of Account

Page 2 of 7
6.
Miss Lee bought 100 gift boxes from Koo Trading Company.
Each gift box is RM 30, she is entitle to 10% trade discount.
Eligible for Cash Discount 5% (7 days), 3% (30 days).
Miss Lee made the payment after 7 days.

According to the above situation, how much does Miss Lee need to pay?
A. RM 2,619
B. RM 2,484
C. RM 2,565
D. RM 2,910

7. Bank Cheque and Bank Draft have the following similarities:

I. Bank is the drawer.
II. The purchaser hands over personally to the payee.
III. Only used in the same region or country.
IV. Required to pay a fee or commission.
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, IV

8. What does two parallel lines on the left side corner of a cheque represent?
A. Any holder can redeem the cheque.
B. Redeemable at any nearby post office.
C. Any payee can cash the cheque from the bank.
D. It is encashment, only payable to payee’s account.

9. Chin Aik Enterprise needs to pay salaries to hundreds of employees monthly. Which of the
following is the most convenient way of payment?
A. Cash
B. Cheque
C. Credit Transfer
D. Telegraphic Transfer

10. Which of the following is not the advantage of paying by cheque?

A. Convenient to facilitate verification.
B. As a legal document.
C. As a legal tender.
D. Save the need to carry large amount of money.

Page 3 of 7
Answer questions 11, 12, 13 based on Figure 1.

Figure 1
11. “203149” refers to _____________.
A. Cheque Number
B. Bank Code Number
C. Current Account Number
D. Internal Code For Current Account

12. Current Account Number refers to _______________.

A. 203149
B. 18-14099
C. 0000065519
D. 24

13. Which of the following statements are correct regarding the cheque?
I. It is a Dishonoured Cheque
II. Drawer is N.Z New Image Sdn Bhd
III. Drawee is RHB Bank
IV. Che Wan Sullaini Bt Che Wan Abdullah can cash directly from the bank
A. I, II
B. II, III
C. II, IV
D. I, IV
14. Which of the following is not the advantage for the consumer to use bank card to make
payment?
A. Does not affect transactions during bank holiday.
B. Interest on outstanding balance.
C. Able to transfer payments quickly.
D. Avoid the inconvenience of carrying cash.
Page 4 of 7
15. Which of the following are the advantages of using the Charge Card?
I. Card holders enjoy unlimited amount of credit
II. Not necessary to settle the payment within the period
III. Arrears will not be charged interest
IV. Avoid the trouble of carrying cash
A. I, II
B. III, IV
C. I, IV
D. II, III

16. Which of the following descriptions regarding the benefits of warehouse for businessman is
incorrect?
A. Display of goods for sale.
B. Ensure a continuous supply of raw materials.
C. To ensure safety of product.
D. Control over the quantity of imported and exported goods.

17. Which of the following is owned by government but under the supervision of Royal Custom?
A. Manufacturer’s Warehouse
B. Bonded Warehouse
C. Wholesaler’s Warehouse
D. Retailer’s Warehouse

18. Which of the following warehouses is owned by government for businessmen to store duty-free
goods?
A. Customs Warehouse
B. Public Warehouse
C. Wholesaler’s Warehouse
D. Retailer’s Warehouse

19. Which of the following statements about public warehouse is incorrect?

A. Owned By Government
B. Owned By Private
C. Free storage of goods
D. Set up within the vicinity of port

20. Which of the following statements is the similarity between public warehouse and bonded
warehouse?
A. Owned by the government or private
B. Can freely take out the goods
C. Store paid up dutiable goods
D. Able to make pre-sale preparation work

Page 5 of 7
Part B : Compulsory questions-Case Study (20%)

Home Deco Furniture Supplies

117A，Mount Kiara Business Park, 55000 Kuala Lumpur.

Tel：03-357128121 Fax: 03-357128122

Elegant Home Styles 30 July 2016

3, Jalan Bukit Kenari,
43000 Kalang, Selangor.

Date Details Amount （RM）

） （RM）
Payment（ ） （RM）
Balance（ ）

01/04/2016 Opening Balance 959.00

22/04/2016 Invoice S1000004 3，524.60 3000.00

26/04/2016 Invoice S1000006 434.70 0.00
28/04/2016 Invoice S1000012 1997.30 0.00
2956.60

3 months 2 months 1 months Current Total Amount Due

0.00 0.00 959.00 2956.60 3915.60

Bank Details : Public Bank, A/c. No:123-456-7890

Cheques Payable To : Home Deco Furniture Supplies

E.&0.E

Table 1
Answer the following questions based on the document(Table 1) above.
a. Based on Table 1, the document is issued by which party？Write down 3 purposes of this
document .(6%）

b. Elegant Home Styles found that some products are damaged. Hence they request for a
refund of RM 300.00.At the same time, Home Deco Furniture Supplies found packing
charges were undercharged by RM 35.00.
i. Which documents should be issued by Home Deco Furniture Supplies to rectify the
error? Please explain it. (6%)
ii. What is the total amount to be paid after deductions on that month? (1%)

c. What is the meaning of E. & 0.E, at the corner of this invoice ?（2%）

d. Based on the document(Table 1) above,

i. What types of payment modes do Elegant Home Styles need to use for the
purchases? (4%)
ii. Are there other ways of payment modes for Elegant Home Styles? List them (1%)

Page 6 of 7
Part C: Subjective Questions-Compulsory Questions (60%)

1. Define Trade discount and Cash Discount.

Explain the importance of Trade discount and Cash Discount to the buyer and seller.(20%)

2. Explain the similarities and differences between credit purchase and hire purchase.(20%)

3. (a)Explain the importance of bonded warehouse to the government? (10%)

(b)Explain the importance of bonded warehouse to the traders? (10%)

Prepared By: Mr Chin Wei Yee Checked By: Mdm Cheow Phaik Gim

Page 7 of 7