POST UTME ABU 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a public sector accounting system, what is the primary purpose of the 'Ledger Account'?
A. To record all financial transactions of the organization
B. To prepare the final accounts of the organization
C. To provide a permanent record of all financial transactions
D. To prepare the budget of the organization
Question 2
A company has the following trial balance: Accounts Receivable 10,000, Sales Revenue 100,000, and Cost of Goods Sold 50,000. What is the gross profit for the period?
A. 50,000
B. 75,000
C. 50,000
D. 25,000
Question 3
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦2,000,000; Liabilities: ₦1,000,000; Capital: ₦1,000,000. Calculate the company's liquidity ratio.
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 4
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership has a net income of 100,000. What is partner B's share of the net income?
A. 40,000
B. 60,000
C. 40,000
D. 20,000
Question 5
A company uses the single entry system of accounting. The following transactions were recorded in the journal: 1. Purchased office equipment for ₦ 120,000. 2. Sold goods for ₦ 150,000. 3. Purchased raw materials for ₦ 80,000. 4. Paid salaries of ₦ 30,000. 5. Collected cash from customers for ₦ 200,000. 6. Paid rent for ₦ 20,000. 7. Purchased factory equipment for ₦ 180,000. 8. Sold factory equipment for ₦ 120,000. 9. Purchased office supplies for ₦ 10,000. 10. Collected cash from customers for ₦ 50,000. The journal entries were posted to the ledger. The ledger accounts are as follows: Office Equipment: ₦ 120,000. Raw Materials: ₦ 80,000. Salaries: ₦ 30,000. Cash: ₦ 350,000. Rent: ₦ 20,000. Factory Equipment: ₦ 180,000. Office Supplies: ₦ 10,000. What is the total amount of cash received from customers?
A. ₦ 300,000
B. ₦ 350,000
C. ₦ 400,000
D. ₦ 450,000
Question 6
A company uses the double-entry system of accounting. The journal entry for the purchase of equipment is as follows: Debit Equipment 10,000 and Credit Cash 10,000. What is the effect of this transaction on the accounting equation?
A. Increases Assets and Decreases Liabilities
B. Increases Assets and Increases Liabilities
C. Decreases Assets and Decreases Liabilities
D. Decreases Assets and Increases Liabilities
Question 7
A company issued 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 8
A company's trial balance shows the following accounts: Sales 100,000, Cost of Goods Sold 60,000, Gross Profit 40,000. What is the gross profit percentage?
A. 25%
B. 30%
C. 40%
D. 50%
Question 9
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,000,000; Returns outwards: ₦50,000; Returns inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦400,000
B. ₦450,000
C. ₦500,000
D. ₦550,000
Question 10
A company has the following trial balance: Debit: Cash: ₦500,000 Accounts Receivable: ₦1,000,000 Inventory: ₦2,000,000 Total Debit: ₦3,500,000 Credit: Accounts Payable: ₦1,500,000 Long-term Debt: ₦1,000,000 Total Credit: ₦2,500,000 What is the company's net income?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 11
Determine the amount of depreciation for the year ended 31st December 2020, on a machine purchased on 1st January 2018 for ₦150,000, with a residual value of ₦20,000, using the straight-line method, assuming a useful life of 5 years.
A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦40,000
Question 12
A company has two departments, A and B, with the following production costs and sales revenue for the year: Department A: Cost of Goods Sold: ₦1,500,000 Selling and Administrative Expenses: ₦800,000 Total Revenue: ₦2,500,000 Department B: Cost of Goods Sold: ₦1,200,000 Selling and Administrative Expenses: ₦600,000 Total Revenue: ₦2,000,000 What is the total profit for the year?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 13
A company produces two products, X and Y, using two machines, M1 and M2. The production process for X requires 2 hours on M1 and 3 hours on M2, while the production process for Y requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours, how many units of X and Y should it produce to maximize profit, given that the profit per unit of X is ₦150 and the profit per unit of Y is ₦200?
A. 5 units of X and 5 units of Y
B. 10 units of X and 2 units of Y
C. 15 units of X and 1 unit of Y
D. 20 units of X and 0 units of Y
Question 14
A partnership has two partners, A and B. Partner A has a 60% share of the profits, while partner B has a 40% share. If the partnership's profit for the year ended 31st December 2020, is ₦500,000, how much will partner A receive as their share of the profit?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 15
A company has the following transactions: 1. Purchased raw materials for ₦ 100,000. 2. Sold goods for ₦ 150,000. 3. Purchased factory equipment for ₦ 180,000. 4. Paid salaries of ₦ 30,000. 5. Collected cash from customers for ₦ 200,000. 6. Paid rent for ₦ 20,000. 7. Purchased office supplies for ₦ 10,000. 8. Sold factory equipment for ₦ 120,000. 9. Purchased office equipment for ₦ 120,000. 10. Collected cash from customers for ₦ 50,000. The journal entries were posted to the ledger. The ledger accounts are as follows: Raw Materials: ₦ 100,000. Factory Equipment: ₦ 180,000. Salaries: ₦ 30,000. Cash: ₦ 450,000. Rent: ₦ 20,000. Office Supplies: ₦ 10,000. Office Equipment: ₦ 120,000. What is the total amount of cash received from customers?
A. ₦ 250,000
B. ₦ 300,000
C. ₦ 350,000
D. ₦ 400,000

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