POST UTME AAUA 2018 Accounting | Objective

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Question 1
A company's profit and loss account as at 31st December, 2022 is as follows: ₦ 10,000,000 ₦ 20,000,000 ₦ 30,000,000 ₦ 40,000,000 ₦ 50,000,000 ₦ 10,000,000 ₦ 20,000,000 ₦ 30,000,000 ₦ 40,000,000 ₦ 50,000,000 Identify the error in the profit and loss account.
A. The revenue is undervalued by ₦10,000,000
B. The expenses are overvalued by ₦10,000,000
C. The revenue is overvalued by ₦10,000,000
D. The expenses are undervalued by ₦10,000,000
Question 2
A company has the following balance sheet as at December 31, 2022: Assets: ₦1,000,000, Liabilities: ₦500,000, Equity: ₦500,000 What is the company's current ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 3
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 10 years and the residual value is ₦20,000, what is the annual depreciation charge if the asset's cost is ₦300,000?
A. ₦28,000
B. ₦30,000
C. ₦32,000
D. ₦35,000
Question 4
A company's balance sheet as at 31st December, 2022 is as follows: Assets: ₦ 50,000 Cash ₦ 60,000 Office Equipment ₦ 70,000 Accounts Payable Liabilities: ₦ 30,000 Accounts Receivable ₦ 40,000 Salaries Expense What is the total amount of equity of the company?
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 5
A company's ledger shows the following balances: Accounts Receivable ₦150,000, Sales Revenue ₦600,000, and Cost of Goods Sold ₦250,000. What is the company's net income?
A. ₦350,000
B. ₦250,000
C. ₦150,000
D. ₦100,000
Question 6
A company's trial balance shows a debit balance of ₦120,000 in the account 'Accrued Expenses' and a credit balance of ₦80,000 in the account 'Accrued Income'. What is the net effect on the company's equity?
A. ₦40,000 increase in equity
B. ₦40,000 decrease in equity
C. ₦40,000 increase in liabilities
D. ₦40,000 decrease in liabilities
Question 7
A company issues 500 debentures of ₦100 each at a premium of ₦20 per debenture. If the company receives a cash payment of ₦50,000, what is the amount of the debenture capital?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 8
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 9
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 10
A company uses the double-entry system of accounting. The following transactions occurred during the year: Debit: Raw materials: ₦100,000, Wages: ₦50,000, Rent: ₦20,000 Credit: Purchases: ₦150,000, Salaries: ₦60,000, Utilities: ₦25,000 What is the net effect on the company's cash balance?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A company uses the double-entry system of accounting. The following transactions occurred during the year: Debit: Raw materials: ₦100,000, Wages: ₦50,000, Rent: ₦20,000 Credit: Purchases: ₦150,000, Salaries: ₦60,000, Utilities: ₦25,000 What is the net effect on the company's cash balance?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 12
A company's trading account shows a profit of ₦200,000. The balance sheet shows a decrease in inventory of ₦30,000 and an increase in accounts payable of ₦25,000. What is the net profit for the period?
A. ₦155,000
B. ₦160,000
C. ₦165,000
D. ₦170,000
Question 13
A company's balance sheet as at 31st December, 2022 is as follows: ₦ 10,000,000 ₦ 20,000,000 ₦ 30,000,000 ₦ 40,000,000 ₦ 50,000,000 ₦ 10,000,000 ₦ 20,000,000 ₦ 30,000,000 ₦ 40,000,000 ₦ 50,000,000 Identify the error in the balance sheet.
A. The assets are overvalued by ₦10,000,000
B. The liabilities are undervalued by ₦10,000,000
C. The assets are undervalued by ₦10,000,000
D. The liabilities are overvalued by ₦10,000,000
Question 14
A company uses the perpetual inventory system. If the beginning inventory is ₦80,000, purchases during the period are ₦120,000, and sales are ₦200,000, what is the ending inventory?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 15
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦12,000, what is the amount of the share capital?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000

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