MINISTRY OF EDUCATION

FIJI YEAR 10 CERTIFICATE EXAMINATION 2015

COMMERCIAL STUDIES
Time allowed: Two Hours
(An extra ten minutes is allowed for reading this paper.)
INSTRUCTIONS
1.

Write all your answers in the Answer Book provided.

2.

Write your Index Number also in the top row of boxes on the Marking Sheet
provided and then draw a cross on the corresponding numbers in the boxes
below your Index Number.

3.

Write all your answers for Multiple Choice questions only on the Marking
Sheet with a pencil.

4.

A calculator may be used, provided it is silent, battery-operated

and non-programmable.

5.

There are three sections in this paper. Sections A and B are

compulsory. Note the choices in Section C.

SUMMARY OF QUESTIONS
Section
A

B
C

Guidelines
Personal Finance
Questions 1 and 2 are compulsory, for
question 3 answer only one.
Business Information
All questions are compulsory
Economics
Questions 1 and 2 are compulsory, for
question 3 answer only one

Total
Mark

Suggested
Time

30

36 minutes

40

48 minutes

30

36 minutes

COPYRIGHT: MINISTRY OF EDUCATION, FIJI, 2015.

2.
INSTRUCTIONS:

HOW TO ANSWER MULTIPLE-CHOICE QUESTIONS

The following shows how to answer Section A Question 1 of the Marking Sheet.
INSTRUCTIONS:
1.

On the Marking Sheet, draw a cross in the box next to the letter of the best
answer with a pencil.
For example, if you select B as your answer, you should draw a cross in the
box next to the letter B.
33

2.

33

If your cross is too big for the box, or if you draw a circle, your answer may be
marked wrong.
cross is too big

32 A
5.

If you change your mind again and like your first answer better, shade out
your second answer and tick () your first answer.
For example:

4.

If you change your mind, shade out your answer as shown, and place a
cross in the box for your new answer.
33

3.

circles are not to be used

34 A

No mark will be given if you cross more than one letter as the answer for a
question.

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

3.
SECTION A

PERSONAL FINANCE

[30 marks]

There are three questions in this section. Answer all the questions.
QUESTION 1

MULTIPLE-CHOICE QUESTIONS

(10 marks)

Draw a cross in the box next to the letter of the best answer to Questions 1 10 on
your Marking Sheet.
1.

Which of the following is not a good practice when prioritizing needs?

A.
B.
C.
D.

2.

What is a good financial management principle that students should

use as best practices?
A.
B.
C.
D.

3.

friends.
relatives.
neighbours.
insurance companies.

Credit worthiness refers to

A.
B.
C.
D.

5.

Understand risk
Ignore taxes
Plan for expected events only
Educate yourself only when need arises

A source of external borrowing is

A.
B.
C.
D.

4.

Making wise decision

Be an impulsive buyer
Avoid being materialistic
Improvising on available needs

buying on credit.
the impact of increasing debts.
ones ability to pay back debt on time.
the number of credit buyings made by a debtor.

The best way of managing or protecting against risks is to

A.
B.
C.
D.

purchase an insurance policy.

invest in a small business.
open a savings account.
buy shares.

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

4.
6.

Which principle of insurance requires that the insurers must honor

all the promises made in the policy?
A.
B.
C.
D.

7.

4 cents
8 cents
10 cents
16 cents

Tapoo City.
Damoda City.
Flour mills of Fiji.
Ports Authority of Fiji.

Which of the following institutions provide the highest return

on investment?
A.
B.
C.
D.

10.

indemnity.
uberrimae fidei.
proximate clause.
insurable interest.

One of the Public Listed Companies in Fiji is

A.
B.
C.
D.

9.

of
of
of
of

If the rate of FNPF contribution is 18 cents on every dollar of wages,

how much is supposed to be paid by the employers?
A.
B.
C.
D.

8.

Principle
Principle
Principle
Principle

Private companies
Commercial banks
Public companies
Fiji Development Bank

A financial related event would be to

A.
B.
C.
D.

live away from home.

open a bank account.
join a sports team.
take a holiday.

QUESTION 2

PROBLEM SOLVING QUESTIONS

1.

Short Answers

a.

Describe briefly any two factors that can influence short and
long term investment decision.

(15 marks)

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

(2 marks)

5.
b.

Discuss one way of protecting yourself against risk.

(1mark)

c.

Explain two differences between savings and investments.

(2 marks)

d.

Identify a challenge faced by most students when managing

personal savings.

(1mark)

2.

Managing Credit
Study the advertisement given below and answer the questions that follow:

HERO DEAL

Weekly:
Deposit:
Cash Price:
Term of Payment:

$ 155
$ 3 000
$23 500
3 years

a.

Name the type of credit buying shown in the advertisement.

(1 mark)

b.

What would be the total amount paid for a period of 3 years if

the car was bought on credit?

(1 mark)

c.

How much extra would be paid if it was bought on credit?

(1 mark)

d.

Give one advantage and one disadvantage of this type of buying. (2 marks)

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

6.
3.

Investment in financial institutions

Assume you were a 16 year old student in Year 10 and have registered with the
FNPF as a voluntary member. You have a savings of $40 per month for the first three
years as a voluntary member. In the fourth year you became a compulsory member
of FNPF with a salary of $23 000 per annum.
a.

Calculate your savings for the first year as a voluntary member.

(1 mark)

b.

How much would you contribute towards FNPF as a compulsory

member per year?

(1 mark)

Outline your retirement plan considering pension as one of the

options.

(2 marks)

c.

QUESTION 3

PARAGRAPH WRITING

(5 marks)

Choose one question from the three questions given below and write
a paragraph on it. Each question is worth 5 marks. The length of the
paragraph should be between 75 to 100 words.
1.

Managing personal finance is a challenge in itself.

With reference to the above statement,

2.

Explain two challenges faced in managing a students personal finance.

Describe one way on how to overcome a challenge indicated above.
Identify two ways to maximize income and to increase it in the future.
Practicing the Golden Rule is not a sacrifice, it is an investment.

3.

Describe the term investment.

Discuss two potential financial products that are available
in the market.
Explain two factors that influence investment decisions.
Insurance helps the customers in safeguarding their families from
financial worries that arise due to unfortunate circumstances.

Explain two possible risks that you or your family faces.

Describe two principles of insurance as a way of reducing the above risks.
Discuss any popular type of insurance available in Fiji.

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

7.
SECTION B

BUSINESS INFORMATION

[40 marks]

QUESTION 1

MULTIPLE CHOICE QUESTIONS

(10 marks]

Draw a cross in the box next to the letter of the best answer to Questions 1 10 on
your Marking Sheet.
1.

Which one of the following is the characteristic of the Accounting data?

A.
B.
C.
D.

2.

The accounting concept that allows fair comparison of financial information

between two accounting periods
A.
B.
C.
D.

3.

club.
company.
partnership.
sole proprietor.

Which of the following represents the correct Accounting Equation?

A.
B.
C.
D.

5.

accounting period concept.

conservatism concept.
disclosure concept.
consistency concept.

The type of business entity that has two to twenty five owners is
A.
B.
C.
D.

4.

Consistency
Neutrality
Conservatism
Materialistic

A
A
A
A

+E=L+PR
R=L+P+E
+E=L+P+R
E=L+P+R

What is the current Value Added Tax (VAT) rate in Fiji?

A.
B.
C.
D.

10%
12%
12.5%
15%

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

8.
6.

The Balance Sheet is prepared to determine the

A.
B.
C.
D.

7.

15
16
17
18

cents.
cents.
cents.
cents.

Under which method of stock valuation the recording of stock is

continuously taking place?
A.
B.
C.
D.

10.

current ratio.
debt ratio.
equity ratio.
efficiency ratio.

A companys gross profit ratio is 15.7%. This indicates that every

one dollar of sales, the gross profit is
A.
B.
C.
D.

9.

performance of the business.

position of the business.
problem of the business.
record of the business.

The ratio that measures the businesss ability to pay short term
debts is
A.
B.
C.
D.

8.

financial
financial
financial
financial

Physical stock takes

Inventory valuation method
Periodic inventory valuation
Perpetual inventory system

Fixed Asset register is a

A.
B.
C.
D.

list of all the assets of the business.

record of fixed assets in the balance sheet.
book that summaries disposed assets.
record used to keep track of all the fixed assets

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

9.
QUESTION 2

PROBLEM SOLVING QUESTIONS

(30 marks)

1.

Short Answers

a.

Identify the authority that regulates the accounting profession

in Fiji.

(1 mark)

b.

What is another name of the accounting concept, conservatism?

(1 mark)

c.

How many members are required in order to form a public

company?

(1 mark)

Disucss the significance of unlimited liability in a Partnership

business.

(1 mark)

d.

2.

Source Documents

Study the document given below and answer the questions which follow.
TAX INVOICE
Fakapo Fashion Ltd
Enthurium Street, Avilla
To : Paula Cagi
Vesi Road, Naivi
Qty
4
2

Suppliers TIN: 200124556

Customers TIN: 20089721
Date: 31/ 07/
Description

Brass taps
Length of down pipe

Unit Price
$
6
16

Add 15% VAT

VAT INCLUSIVE PRICE
a.

Amount
$
30
48
78
?
$

Why is it important to have the customers correct name and

address on the invoice?

(1 mark)

b.

Formulate a transaction using the above document.

(1 mark)

c.

How much is the total vat inclusive price?

(1 mark)

d.

What information is missing from the date details?

(1 mark)

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

10.
3.

Books of First Entry

The following information was provided by Divan Singh, a retailer in

Nukulevu, Savusavu for the month of September, 2014.
a. Sept. 3

Divan Singh started business with cash $8 000

b. Sept. 6

Sold goods to Lina Kelly $200

c.

Sept. 10

Bought goods from Meke Supermarket $250.

d. Sept. 15

Returned goods to Meke Supermarket $60.

e.

Received from debtors $140.

Sept. 20

Required:
Use the information given above to write the name of the Journal for each
transaction that took place in Divan Singhs Retail Shop from September 3rd
to September 20th.
(5 marks)

4.

Ledger Postings

Mr. Frazer presented the following information for the month of August, 2014.
Opening Ledger Balances as at 1st August, 2014 were:
General Journal
Debit ($)

Particulars
Cash at Bank

Credit ($)

23 500

Debtors: Tevita

600

Ali

700

Stock

16 000

Building

54 000

Furniture

10 000

Creditors: Mereoni
Anita

1 300
450

Capital

103 050

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

11.
Purchases Journal
Date

Particulars

Debit ($)

Credit ($)

Aug 3 Mereoni

300

4 Anita

250

31 Purchases Account DR

550

Purchases Returns Journal

Date

Particulars

Debit ($)

Aug 3 Mereoni

Credit ($)

25

4 Anita

15

31 Purchases Returns Account CR

Date

Particulars

40

Cash Payments Journal

Discount ($)

Detail ($)

Bank ($)

Aug 7 Wages
10 Mereoni

150
15

260

15 Purchases

220

18 Drawings

285

20 Furniture

1500

31 Discount Received Cr
Bank Account Cr

15
2415

Additional Information:
August 21 August 25 -

Bought furniture on credit from Manis Furniture Shop $300.

Total Cash Receipts Journal $680.

Use the information given above to prepare the following ledger accounts:
a.

Cash at Bank Account

(2 marks)

b.

Mereonis Account

(3 marks)

c.

Purchases Account

(1 marks)

d.

Furniture Account

(1 marks)

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

12.
5.

Measuring Periodic Income

Profit and Loss Account

Talei operates a grocery shop in Oru. She provided the following information for her
st

business for the year ended 31 July, 2014.

1.

Ledger Accounts of Taleis Grocery Shop as at 31st July, 2014.

Ledger Accounts

Amount ($)

Salaries and wages

9 800

Telephone and Internet

899

Car fuel

300

Cartage outwards

699

Rent received

600

Electricity and water

1 256

Discount received

54

Discount allowed

87

Gross Profit

31 787

Use the information given above to prepare the Profit and Loss Account of
Taleis Grocery Shop for the year ended 31st July, 2014.
(5 marks)
6.

Analysis and Interpretation

Ratio

2013

2014

Gross Profit Ratio

0.6 : 1

0.4 : 1

Current Ratio

0.4 : 1

0.7 : 1

Use the information above to answer the following questions:

a.

b.

Write the purpose of each ratio:

(i)

Gross profit ratio

(1 mark)

(ii)

Current ratio

(1 mark)

Interpret the Gross profit in 2013 and Current ratio in 2014.

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

(2 marks)

13.
SECTION C

ECONOMICS

[30 marks]

QUESTION 1

MULTIPLE CHOICE QUESTIONS

(10 marks)

Draw a cross in the box next to the letter of the best answer to Questions 1 10
on your Marking Sheet.
1.

Planned economy is where

A.
B.
C.
D.

2.

The main aim of the producers in a free market economy is to

A.
B.
C.
D.

3.

Through
Through
Through
Through

innovation
crop rotation
education and training
research and development

Which of these is the main function of Post Fiji Ltd?

A.
B.
C.
D.

5.

determine consumer sovereignty.

have little consumer choice.
provide services.
make profit.

What will be the best way to manage and sustain capital resources?
A.
B.
C.
D.

4.

resources are owned by the government.

people are free to produce anything they want.
resources are owned by individuals and government.
people grow their own food and build their own shelters.

Provide efficient and effective water services

Provide electricity on the larger islands
Provision of world class airport facilities and efficient operation
Provision on message communication in letters, and parcel items

A type of local government in Fiji is the

A.
B.
C.
D.

City Council.
Tripartite Forum.
Ministry of Health.
Small Claims Tribunal.

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

14.
6.

One of the services provided by the central government is

A.
B.
C.
D.

7.

Capital account records the

A.
B.
C.
D.

8.

difference between export and import of goods.

rate in which exports is exchanged for imports.
difference between the export and import of services.
percentage of export and import of goods and services.

Economic growth will be brought about by an increase in

A.
B.
C.
D.

10.

visible import and export of goods and services.

movement of money into and out of the country.
nations earnings and spending abroad.
invisible import and export of goods and services.

Terms of trade is the

A.
B.
C.
D.

9.

rubbish disposal.
market service.
fire brigade.
education.

import prices.
unemployment rate.
balance of trade deficit.
favourable industrial relations.

One of the effects of climate change is

A.
B.
C.
D.

ruralurban migration.
industrial revolution.
lack of education.
sea-level rise.

QUESTION 2
1.

PROBLEM SOLVING QUESTIONS

(15 marks)

Short Answers
a.

Differentiate between the central and local government.

(2 marks)

b.

Explain one factor that affects economic growth.

(1 mark)

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

15.
2.

Economic Systems
Complete the table given below by explaining one advantage and one
disadvantage for each economic system:
Traditional Economy

Mixed Economy

Advantage
Disadvantage
(4 marks)
3.

International Trade
Use the information for Economy Y given below to answer the questions that
follow.
Economy Y
Export of goods

$m
750

Import of goods

450

Invisible Exports

300

Invisible Imports

800

Capital Inflow

600

Capital Outflow

400

Calculate the following:

a.

Balance of Trade

(1 mark)

b.

Balance of Current Account

(1 mark)

c.

Balance of Capital Account

(1 mark)

d.

Balance of Payments

(1 mark)

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MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

16.
4.

Demand and Supply

Use the information given below and your knowledge to answer the questions that
follow.

Price
(cents)

80
70
60
50
40
30
20
10
0

a.

b.

c.

d.

10

15

20

25

30

35

Quantity (Pencils)

Label the demand and supply curves on the graphs drawn in the
Answer Book.

(1mark)

State the equilibrium:

(i)

price

(ii)

quantity

At 60 cents, will the quantity supplied be greater or less than

the quantity demanded?

(1 mark)

(1 mark)

If price decreases to 30 cents, what is the

(i)

quantity demanded

(ii)

quantity supplied

MINISTRY OF EDUCATION, FY10CE 2015: COMMERCIAL STUDIES.

(1 mark)

17.
QUESTION 3

PARAGRAPH WRITING

(5 marks)

Choose one question from the three questions given below and write
a paragraph on it. Each question is worth 5 marks. The length of the
paragraph should between 75 to 100 words.
1.

With reference to poverty, discuss by using the following

guidelines:

2.

Identify two causes of poverty.

Discuss one effect of poverty in your society.
Explain two ways by which poverty can be reduced by the
community.
Discuss local governments in Fiji using the following
guidelines.

3.

What is the main source of revenue for the local government?

Explain two services provided by local governments.
Discuss two problems faced by a local government in Fiji.
Resources are known as factors of production.

What are the four factors of production?

Explain one way of managing any two of the factors of production
above.
Describe one major problem regarding the factors of production.

THE

END

_____________________________
COPYRIGHT: MINISTRY OF EDUCATION, FIJI, 2015.