Business Education Exam Questions for JSS3 First Term

You’re welcome to our school exams series where we provide you with termly examination questions in different subjects. In today’s post, we will focus on Business Education exam questions. We will cover Business Education exam questions for JSS3 First term with answers. This means that we’ll be providing you with answers to the questions at the end. Also, you will get a few success tips on how to pass Business Education examinations with flying colors. Remember to use the comments sections if you have questions, and don’t forget to join our Free Online Tutorial Classes on Facebook. (Like and Follow Page)

Introduction to Business Education as a School Subject

Before we venture into Past Business Education Exam Questions for JSS3 First term, here’s a brief introduction to the subject:

Business Education is a school subject that teaches students the knowledge and skills needed for the world of business. It helps learners understand how businesses are started, managed, and how they contribute to the economy.

The subject introduces students to:

• Basic business concepts such as trade, commerce, and industry.
• Bookkeeping and accounting – keeping records of money in and out of a business.
• Office practice – the activities that go on in an office like filing, correspondence, and communication.
• Commerce – buying, selling, distribution of goods and services.
• Entrepreneurship – how to identify opportunities, start small businesses, and manage them wisely.
• Keyboarding and ICT skills – using the computer and other machines for business work.

By studying Business Education, students become prepared for further studies in business-related fields and also gain practical skills they can use in everyday life, self-employment, or future careers.

The subject is offered by students in Primary school and Secondary School as Business Education.

Business Education Exam Questions for JSS3 First Term

Business Education Exam Questions for JSS3 First Term are divided into two sections:

• Section A
• Section B

The first section, namely, Section A is the objective test, and students are expected to attempt all questions in the section. Section B is the theory part, and students are expected to follow specific instruction and answer the required number of questions.

Note that what you have below are JSS3 Business Education First Term Exam Past Questions made available to assist students in their revision for 1st term examinations and also teachers in structuring standard examinations.

SECTION A: Objectives

Instruction: Answer all questions in this section by choosing from the options lettered A—D. Each question carries equal marks.

1. _____________ contains the names of the employees of the company and their salaries before and after deduction are made
A. pay slip
B. payroll
C. pay sheet
D. pay register

2. Stock is usually valued at _____________ whichever is less.
A. old market price
B. current market price
C. mid-market price
D. collect market price

3. _____________ is a type of stock-taking
A. normal stock-taking
B. sure stock–taking
C. pure stock-taking
D. perpetual inventory

4. The mechanical procedure for preparing bills, invoices and receipts is _____________
A. ledger
B. photo studio
C. cash register adaptation
D. journal proper

5. Who keeps petty cash book?
A. the accountant
B. the administrative officer
C. the petty cashier
D. the receptionist

6. An order upon a particular bank to pay a specified sum of money to the person named or to the bearer is called ___________
A. invoice        B. receipt
C. cheque        D. C.O.D

7. Stock-taking is important for the following reasons
i. to avoid over–ordering of stock
ii. to avoid damaging of stock
iii. to check honesty of the clerk in charge
iv. To avoid static stock
v. to please the managing director
vi. to avoid under-ordering of stock
A. i, ii, and iv
B. ii, iii, iv, vi
C. i, ii, iii, iv, v
D. ii, iii, v, vi

8. A petty cashier is given N6000 for imprest. He spent N2, 300. How much will he receive to restore the float?
A. N 1,600        B. N2, 350
C. N3,700         D. N400

9. _____________ is a means of advertising.
A. radio         B. room
C. market      D. pipeline

10. _____________ is a document used by accounts department of a firm to record or register the amount taken from the company by a worker/ person for a particular purpose
A. pay slip
B. payroll
C. payment voucher
D. petty voucher

11. Which of the following is not necessary when preparing receipt?
A. write carefully to avoid cancellation
B. make a carbon copy
C. always ask the director to sign all receipts
D. always write receipt with pen

12. Which of the following is not found in the official receipt?
A. date
B. 2k postage stamp
C. name of the buyer
D. amount in words and figures

13. If payment is to be made on daily basis _____________ is important to find out how many times each worker comes to work
A. pay voucher
B. pay slip
C. wages sheet
D. attendance register

14. PAYE means _____________
A. pay as you employ
B. pay as you enter
C. pay as you earn
D. pay as you enjoy

15. An arrangement by the federal government with the intention to provide health care to all citizens is called _____________
A. National Health Care
B. National Health Insurance Scheme
C. National Consolidated Health Insurance Care Services
D. Basic National Health Insurance Care Service

16. In pitman shorthand, vowels are represented by ___________ and ___________
A. full stop and comma
B. dots and short strokes
C. dots and dashes
D. colon and exclamation mark

17. Vowels are placed in ___________ places before and after a consonant stroke
A. two        B. three
C. five        D. seven

18. In pitman shorthand _____________ and ___________ are the materials for writing shorthand.
A. blue pen and HB pencil
B. red pen
C. 2B pencil and blank pen
D. eraser and chalk

19. The word “tape” is written as _____________
A.          B.         C.         D.

20. _____________ is one of the store records
A. requisition form
B. account–book
C. record book
D. stock management book

21. Which of the following is not a procedure for making payment?
A. cheque
B. standing order
C. postal order
D. fixed deposit

22. When goods are delivered, the store keeper receives them and enter the details into ___________
A. requisition form
B. acquisition form
C. requisition order
D. acquisition order

23. Cheque must be used when operating one of these accounts
A. fixed deposit account
B. current account
C. saving account
D. mortgage account

24. Another name for payroll is ___________
A. pay advice
B. PAYE
C. net pay
D. pay slip

25. The fixed amount kept at a particular period either weekly or monthly for running petty expenses is called ___________
A. cash at hand
B. imprest
C. flash me cash
D. petty cash

26. Cost of goods sold is ___________
A. purchases + opening stock – closing stock
B. purchases – opening stock + closing stock
C. purchases – opening stock – closing stock
D. purchases + opening stock + closing stock

27. ___________ is an additional wages paid to an employee for the time he is able to save in production or for job well done
A. commission     B. bonus
C. net pay            D. gross pay

28. The basic pay of a worker before any deduction is made is called ___________
A. net pay      B. gross pay
C. bonus        D. commission

29. Which of these statements does not help in the efficient stock management?
(i) All users should go into store room and take only the ones they need at a time.
(ii) Stocks should be issued on presentation of requisition form signed by the appropriate officer.
(iii) Store should be kept locked always and the key kept by the officer in charge.
(iv) Every officer should possess a spare key of the store for easy access.
(v) Adequate record of all the stock issued should be kept.
A. i and iv
B. iii and v
B. ii and v
D. iv and v

30. ___________ is a new development in banking industry by which GSM could be used by operators to settle a small amount of money
A. Ledger system of payment
B. journal cash payment
C. flash me cash
D. general method of payment

31. At the end of the period, the petty cashier is re–imbursed _________ to restore the imprest.
A. fixed amount of money
B. amount spent
C. amount usually received
D. account figure

32. _________ is a business document sent by the prospective buyer to the seller asking him if a particular brand of goods are in stock.
A. order
B. letter of enquiry
C. delivery note
D. debit note

33. _________ is one of the means of payment a trader may use to settle his bill.
A. cheque
B. statement of account
C. cash register
D. photocopying machine

34. Which of these currencies is a legal tender in Nigeria?
A. dollar         B. pound
C. naira          D. cedi

35. _________ means the movement of goods and passengers from one place to another.
A. banking       B. transportation
C. insurance    D. delivery note

36. _________ is an importance of office procedure.
A. safety
B. it prevents walking in the business premises
C. it helps to prevent and minimize fraud
D. it helps workers to discuss in the office.

37. An order form must be approval and signed by _________
A. sales manager
B. purchasing manager
C. account department
D. all heads of departments

38. One of the responsibilities of wages and salaries unit is _________
A. preparation of receipt
B. preparation of journal
C. preparation of payroll
D. preparation of sales day book

39. The full meaning of C.O.D is _________
A. cash with order
B. cash on deposit
C. cash on delivery
D. none of the above

40. _________ is a type of voucher
A. salary voucher
B. cash voucher
C. credit voucher
D. debtors voucher

41. ___________ involves the use of electronic equipment like automated teller machine, GSM recharge card in making payment
A. teller
B. deposit slip
C. withdrawal form
D. E- payment

42. _________ is an office machine which contains alphabetic keys, numerals and signs that are used to produce typed documents
A. calculator
B. photocopying machine
C. duplicating machine
D. typewriter

43. The importance of store is _________
A. spare parts and maintenance are easily available
B. spare parts and maintenance are not easily available
C. it controls the movement of workers in an organization
D. spare parts and raw materials decay before use

44. The pharmacists and medical doctors prepare monthly bills and statement of accounts by_________
A. adding machine adaptation
B. type writer
C. scissors
D. photocopying techniques

45. The book where particulars of letters that are sent out of an organization are recorded is called_________
A. dispatch book
B. outward correspondence book
C. postage book
D. inward slip

46. The office equipment used to keep files in the office is called_________
A. stapling machine
B. tape recorder
C. record book
D. filing cabinet

47. _________ is an office equipment
A. tape         B. ball
C. staples     D. field tool

48. The principal book of account is _________
A. cash book
B. subsidiary book
C. ledger
D. profit and loss account

49. ___________ is a type of advertising.
A. show advertising
B. quick advertising
C. competitive advertising
D. marshal advertising

50. The fastest means of transportation is _________
A. water/sea transport
B. land transport
C. pipeline transport
D. air transport

51. ⊄ written by the side of an item posted to the ledger signifies _________
A. Cotie entry
B. control entry
C. contra entry
D. correction entry

52. When the buyer is undercharged, _________ is issued to him by the seller
A. credit note
B. journal note
C. delivery note
D. debit note

53. Total sales is posted to__________side of the ledger.
A. credit       B. bottom
C. debit        D. base

54. Stock taking simply means __________
A. journal       B. ledger
C. folio           D. inventory

55. The importance of office equipment is that _________
A. they are less accurate
B. they are more accurate
C. they waste time
D. they are carelessly used by the office staff

56. __________ is the type of office equipment used by the accounts clerks
A. typewriter
B. journal
C. standard calculators
D. duplicating machine

57. The first stroke in a word bearing first place vowel is written _________ the line.
A. on             B. above
C. across       D. middle of

58. When a Vowel comes before a consonant stroke, indicate the vowel sign on the __________ side of the stoke
A. left            B. right
C. correct      D. above

59. The second group of consonant are __________ strokes
A. straight down
B. upward
C. curved
D. horizontal

60. The Y sound at the end of a word is represented by _________
A. light dash    B. light dot
C. light dash    D. heavy dash

61. The vowel “e” is a _________ Vowel
A. short           B. long
C. middle        D. low

62. The store records card shows the following
A. name of the company director
B. quantity of goods issued
C. number of stores door
D. names of thieves who remove goods from the store

63. The four double vowels used in pitman shorthand are __________
A. consonant
B. diphthongs
C. first place vowels
D. third place vowels

64. A cheque contains the following EXCEPT _________
A. name of payee
B. signature of drawer
C. address of payee
D. amount to be paid in both words and figures

65. Cheque must be used when operating one of these accounts
A. fixed deposit account
B. current account
C. saving account
D. mortgage

66. When payment is made by cash _________ is given to the payer as are evidence of payment
A. bank statement
B. cash book
C. counterfoil
D. receipt

67. One of the functions of advertising is _________
A. it results to mass production
B. it brings about decline in production
C. It does not educate people on the uses, prices etc.
D. advertising brings sellers closer to buyers

68. When goods are delivered, the store keeper receives them and enters the details into _________
A. requisition form
B. acquisition form
C. requisition order
D. acquisition order

69. The role of wages and salaries unit is _________
A. computation and payment of workers’ wages and salaries
B. dismissal of all workers
C. keeping record of workers attendance
D. welcoming all the staff of an organization

70. One of the duties of store man/store clerk is _________
A. he does not receive goods from supplier
B. he prepares the suppliers attendance list
C. he counts and inspects the goods supplied
D. he always open the store for all the employees to take any quantity of stationery they need

71. _________ is used to clean the delicate part of the machine to prevent rusting and stiffening.
A. Water       B. spirit
C. rag           D. brush

72. The office equipment used to punch holes on the papers to enable filing of documents take place for future use is _________
A. calculator
B. typewriter
C. perforator
D. photocopying machine

73. The importance of office equipment is that _________
A. they are less accurate
B. they are more accurate
C. they waste time
D. they are carelessly used by the office staff

74. An instruction by one post office to the other to pay a specified sum of money to a named person is __________
A. cash with order
B. C. O. D
C. money order
D. E-payment

75. ___________ is the electronic procedure for making payment by which the pin number of the recharge card is text in order to transfer money to the payee’s phone number
A. C. O. D
B. mail order business
C. cash
D. GSM

SECTION B: Essay

INSTRUCTION – Answer all questions in this section.

1. State the meaning of the following with at least an example in each case:
A. Office procedure
B. Imprest account
C. Wages and salaries unit
D. Store records
(e) Stock taking
(f) Office equipment

2. From the information given below, use petty cash book to balance and restore the imprest for the month of April, 2021. The company that owns the petty cash book is Bright & Jones Limited.

Please charge carriage to transportation.

3a. Mention and explain the three types of stock-taking
b. State the main difference between bill and invoice.

4a. Mention and explain two procedures for making payment
b. Explain the following very briefly
(i) Basic pay
(ii) Gross pay
(iii) Net pay

5a. Mention and explain two office equipment you know
b. List out the procedures for procurement of stock.

Answers to Business Education Exam Questions for JSS3 First Term

Answers to Section A (Objective Test)

The following table gives the correct answers to the objective section of Business Education exam questions for JSS3 First term. If you are using a mobile device, hold the table and scroll to the right or left for a complete view.

So here you have the answers to the objective section of Business Education Exam Questions for JSS3 First term. Use the comments section to let me know if you have any questions you would want me to clarify or discuss further.

Read Also: Business Studies Exam Questions for JSS3 Second Term

Answers to Section B (Theory)

1. State the meaning of the following with at least an example in each case:

A. Office Procedure: Office procedure refers to the step-by-step way of carrying out activities in an office to ensure orderliness and efficiency. Example: Filing letters in order of dates received.

B. Imprest Account: Imprest account is a system of keeping petty cash where a fixed sum of money is given to the petty cashier for minor expenses. Example: N5,000 kept with a petty cashier to buy tea, paper, or pay bus fare.

C. Wages and Salaries Unit: This is the department responsible for calculating and paying workers’ wages and salaries. Example: Preparing the payroll of all staff at the end of the month.

D. Store Records: Store records are documents that show details of items received, issued, or remaining in the store. Example: A stock card used to record stationery issued to different departments.

E. Stock Taking: Stock taking means the physical counting of goods in the store at a particular time. Example: Counting the number of books remaining in the school store at the end of the term.

F. Office Equipment: Office equipment refers to machines and tools used in an office for daily work. Example: A typewriter or a photocopying machine.

2. Petty Cash Book for April 2021 (Bright & Jones Ltd)

Total Expenses = ₦3,025.00

Balance Remaining = ₦7,000 – ₦3,025 = ₦3,975.00

Imprest to be Restored = ₦3,025.00

3a. Mention and explain the three types of stock-taking

1. Periodic Stock-taking: This is done at specific intervals, such as monthly or yearly.

2. Perpetual Stock-taking: This involves continuous checking and updating of stock records daily.

3. Occasional Stock-taking: This is carried out only when the need arises, for example, when theft is suspected.

3b. State the main difference between bill and invoice.

A bill is a request for payment by the seller, while an invoice is a detailed statement showing goods supplied and the total amount due.

4a. Mention and explain two procedures for making payment

1. By Cheque: The buyer writes an order to his bank to pay the seller.

2. By Cash: The buyer pays the seller directly with money and receives a receipt.

4b. Explain the following very briefly

(i) Basic Pay: This is the fixed salary a worker receives before any addition or deduction.

(ii) Gross Pay: This is the total earnings of a worker including allowances and bonuses.

(iii) Net Pay: This is the actual money a worker takes home after deductions such as tax.

5a. Mention and explain two office equipment you know

1. Typewriter: A machine used for typing letters and documents.

2. Photocopier: A machine used for making copies of documents quickly.

5b. List out the procedures for procurement of stock.

1. Identifying the need for stock.

2. Preparing requisition form.

3. Getting approval from management.

4. Placing an order with the supplier.

5. Receiving goods into the store.

6. Recording details in the store records.

How to Pass Business Education Exam Questions for JSS3 First Term

Passing your Business Education exam questions for JSS3 First term requires a combination of preparation, understanding, and strategy. Here are actionable tips to help you excel:

1) Know the Core First-Term Topics

• Office procedure (receiving/sending mail, filing, dispatch book, registers).
• Store records & stock-taking (bin/stock cards, requisition, issues, inventory).
• Payroll & wages/salaries (basic, gross, net pay; PAYE; payroll documents).
• Petty cash & imprest (vouchers, analysis columns, reimbursement).
• Business documents (invoice, receipt, delivery note, credit/debit note).
• Advertising & commerce basics (functions, media, effects).
• Banking & payment methods (cash, cheque, standing order, e-payment).
• Shorthand/Pitman basics (vowels, consonant strokes, placement).

2) Study Smart (Not Just Long)

• After each topic, write 3 key points + 1 example in your own words.
• Create a mini-glossary: imprest, voucher, invoice vs bill, stock card, basic/gross/net pay.
• Draw a simple flow of documents (e.g., Requisition → Purchase Order → Delivery Note → Invoice → Receipt).
• Practise one petty cash book and one stock card each week.

3) Examination Technique

Objective (MCQs)

• Underline trigger words: not, except, most suitable, first.
• Use elimination quickly; beware of look-alikes (e.g., invoice vs receipt, current vs savings account).
• Check units/terms (₦ vs kobo; basic vs gross vs net).

Theory/Short Notes

• Use point-form answers with brief definitions + examples.
• When asked for steps (e.g., stock procurement, petty cash), number them clearly.
• For computations (payroll/imprest), show formula, substitution, and final figure.

4) Quick Reference (Formulas & Definitions)

• Imprest system: Start float − expenses = balance; reimburse by the amount spent.
• Basic pay: fixed salary/wage before additions/deductions.
• Gross pay: basic + allowances + bonuses.
• Net pay: gross − (tax, pension, other deductions).
• Stock-taking: periodic physical count to verify records and control losses.
• Invoice vs Receipt: Invoice = request for payment; Receipt = proof that payment was made.

5) Common Tricky Areas (and how to remember)

6) One-Week Revision Plan

• Day 1: Office procedure & documents (definitions + examples).
• Day 2: Petty cash (imprest, vouchers) – practise one full month example.
• Day 3: Payroll terms & simple pay calculations.
• Day 4: Store records & stock-taking (do one stock card exercise).
• Day 5: Banking & payments; advertising (functions and media).
• Day 6: Shorthand basics; write & read 15 words.
• Day 7: Two past papers under timed conditions.

7) Exam-Hall Checklist

Stay calm, show your working for calculations, and give clear point-form answers with examples. You’ve got this!

It’s a wrap!

If you need more clarification on JSS3 First Term Questions on Business Education, you can use the comments box below. We’ll be there to answer you asap.

Best wishes.