POST UTME ABU 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system to record transactions. The following journal entry is made: Debit: Office Expenses, ₦10,000; Credit: Cash, ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Decreases both assets and liabilities
C. Increases assets and decreases liabilities
D. Decreases assets and increases liabilities
Question 2
A company's bank reconciliation statement as at 31st December, 2022, showed the following balances: Bank ₦200,000, Cash ₦50,000. Prepare a bank reconciliation statement as at 31st December, 2022.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 3
A company's trial balance as at 31st December, 2022, showed the following balances: Cash ₦50,000, Bank ₦200,000, Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. Prepare a statement of financial position as at 31st December, 2022.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 4
A public sector organization's cash book as at 31st December, 2022, showed the following balances: Cash in Hand ₦50,000, Bank Balance ₦30,000, Cash Received from Customers ₦20,000, Cash Paid to Suppliers ₦15,000, Cash Paid to Employees ₦10,000, and Cash Paid for Rent ₦5,000. Prepare the cash flow statement for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 5
A company has the following transactions in its ledger: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Bank | | 8,000 | What is the balance in the bank account?
A. ₦3,000
B. ₦5,000
C. ₦8,000
D. ₦10,000
Question 6
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Sales | | 15,000 | | Purchases | 8,000 | | | Cash | | 12,000 | Identify the error in the trial balance and correct it.
A. ₦7,000
B. ₦12,000
C. ₦17,000
D. ₦22,000
Question 7
A company uses the single entry system to record its transactions. The following transactions were recorded in the cash book for the month of January:
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 8
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦50,000 and its useful life is 5 years, what is the annual depreciation?
A. ₦10,000
B. ₦5,000
C. ₦12,500
D. ₦20,000
Question 9
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Dividends ₦10,000, Retained Earnings ₦30,000. Prepare a balance sheet.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 10
A company's income statement for the year ended December 31, 2022, showed the following: Sales ₦600,000, Cost of Goods Sold ₦400,000, Gross Profit ₦200,000, Operating Expenses ₦60,000, Net Income ₦140,000. Prepare a statement of cash flows.
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 11
A company's income statement for the year ended December 31, 2022, showed the following: Sales ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦50,000, Net Income ₦150,000. Prepare a statement of cash flows.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company maintains its accounting records on a cash basis. The company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Sales | | 15,000 | | 3rd Jan | Purchases | 8,000 | | | 4th Jan | Cash | | 12,000 | Calculate the total profit for the month of January.
A. ₦7,000
B. ₦12,000
C. ₦17,000
D. ₦22,000
Question 13
A trader's trial balance as at 31st December, 2022, showed the following balances: Purchases ₦150,000, Sales ₦200,000, Returns Outwards ₦5,000, Returns Inwards ₦3,000, Discounts Allowed ₦2,000, Discounts Received ₦1,000, Wages ₦10,000, Salaries ₦8,000, Rent ₦5,000, and Depreciation ₦3,000. Prepare the trading and profit and loss account for the year.
A. Trading Account: ₦45,000; Profit and Loss Account: ₦32,000
B. Trading Account: ₦40,000; Profit and Loss Account: ₦30,000
C. Trading Account: ₦50,000; Profit and Loss Account: ₦35,000
D. Trading Account: ₦55,000; Profit and Loss Account: ₦40,000
Question 14
A company's trial balance showed the following balances: Accounts Payable ₦20,000, Accounts Receivable ₦30,000, Common Stock ₦150,000, Dividends ₦15,000, Retained Earnings ₦25,000. Prepare a balance sheet.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 15
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Cash | | 5,000 | | 3rd Jan | Cash | | 8,000 | What is the balance in the cash account?
A. ₦3,000
B. ₦5,000
C. ₦8,000
D. ₦10,000

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