POST UTME AAUA 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Cash | | 500 | | 3 Jan | Cash | | 1,500 | Prepare the bank reconciliation statement.
A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,000
B. Bank Balance ₦ 1,000, Cash Balance ₦ 1,500
C. Bank Balance ₦ 500, Cash Balance ₦ 1,500
D. Bank Balance ₦ 1,500, Cash Balance ₦ 500
Question 2
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 20,000. Calculate the amount of share capital.
A. ₦ 120,000
B. ₦ 140,000
C. ₦ 160,000
D. ₦ 180,000
Question 3
A company uses the FIFO method to value its inventory. The following data is available: 100 units of Item A at ₦20 each, 200 units of Item B at ₦30 each, and 300 units of Item C at ₦40 each. If 500 units are sold, what is the total cost of goods sold?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 4
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 5,000. Calculate the amount received from the issue of shares.
A. ₦ 20,000
B. ₦ 25,000
C. ₦ 30,000
D. ₦ 35,000
Question 5
A company has the following journal entry: Debit Sales Revenue ₦ 10,000, Credit Cost of Goods Sold ₦ 5,000. Prepare the journal entry to correct the error.
A. Debit Sales Revenue ₦ 5,000, Credit Cost of Goods Sold ₦ 10,000
B. Debit Sales Revenue ₦ 10,000, Credit Cost of Goods Sold ₦ 5,000
C. Debit Sales Revenue ₦ 15,000, Credit Cost of Goods Sold ₦ 10,000
D. Debit Sales Revenue ₦ 5,000, Credit Cost of Goods Sold ₦ 5,000
Question 6
A company uses the double-entry system of accounting. The company's ledger shows the following transactions: Debit: Cash ₦10,000, Credit: Accounts Payable ₦10,000. What is the effect of this transaction on the company's cash balance?
A. Increase by ₦10,000
B. Decrease by ₦10,000
C. No effect
D. Increase by ₦20,000
Question 7
A company has the following trial balance: Accounts Payable ₦ 10,000, Accounts Receivable ₦ 5,000, Sales Revenue ₦ 50,000, Cost of Goods Sold ₦ 30,000. Prepare a balance sheet.
A. ₦ 10,000
B. ₦ 15,000
C. ₦ 20,000
D. ₦ 25,000
Question 8
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 200,000, Cost of Goods Sold ₦ 150,000, and Common Stock ₦ 100,000. Prepare the company's income statement.
A. { "Revenue": 200,000, "Cost of Goods Sold": 150,000, "Gross Profit": 50,000 }
B. { "Revenue": 200,000, "Cost of Goods Sold": 150,000, "Gross Profit": 50,000 }
C. { "Revenue": 200,000, "Cost of Goods Sold": 150,000, "Gross Profit": 50,000 }
D. { "Revenue": 200,000, "Cost of Goods Sold": 150,000, "Gross Profit": 50,000 }
Question 9
A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, how many units of product A and product B should the company produce to maximize profit?
A. 10 units of product A and 15 units of product B
B. 15 units of product A and 10 units of product B
C. 20 units of product A and 20 units of product B
D. 25 units of product A and 25 units of product B
Question 10
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000, has a residual value of ₦20,000, and is expected to last for 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 11
A company's balance sheet as at 31st December 2020 shows the following: | Asset | ₦ | Liability | ₦ | | --- | --- | --- | --- | | Cash | 1,000 | Bank Loan | 800 | | Bank | 1,200 | Share Capital | 1,200 | What is the company's net worth?
A. ₦1,200
B. ₦1,300
C. ₦1,400
D. ₦1,500
Question 12
A government agency has a budget of ₦500 million for a project. The project involves the construction of a road, a bridge, and a building. The road costs ₦150 million, the bridge costs ₦100 million, and the building costs ₦250 million. What is the percentage of the budget spent on the building?
A. 25%
B. 30%
C. 40%
D. 50%
Question 13
A company uses the weighted average method to value its inventory. The following data is available: 100 units of Item A at ₦20 each, 200 units of Item B at ₦30 each, and 300 units of Item C at ₦40 each. What is the average cost per unit?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 14
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 10,000 and ₦ 15,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be distributed to A and B.
A. ₦ 3,000
B. ₦ 4,000
C. ₦ 5,000
D. ₦ 6,000
Question 15
A company has the following liabilities: Accounts Payable: ₦20,000 Loans Payable: ₦100,000 Salaries Payable: ₦30,000 What is the total amount of liabilities?
A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

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