POST UTME ABU 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's profit for the year is ₦500,000. What is the share of profit of partner A?
A. ₦300,000
B. ₦200,000
C. ₦400,000
D. ₦600,000
Question 2
A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends Paid'. However, the company's accounting records show that it has not paid any dividends. What is the correct treatment of this account?
A. Debit the account 'Dividends Paid' by ₦20,000
B. Credit the account 'Dividends Paid' by ₦20,000
C. Debit the account 'Dividends Paid' by ₦20,000 and credit the account 'Retained Earnings' by ₦20,000
D. Credit the account 'Dividends Paid' by ₦20,000 and debit the account 'Retained Earnings' by ₦20,000
Question 3
A company's manufacturing account showed a cost of goods manufactured of ₦300,000 and a cost of goods sold of ₦250,000. What is the gross profit?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 4
A company uses the straight-line method to depreciate its assets. If the asset's cost 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 5
A company has two departments, A and B, with the following sales and expenses for the year ended 31st December 2020:
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000
Question 6
A company issued 10,000 debentures of ₦100 each at a premium of ₦5 per debenture. The issue expenses were ₦30,000. If the company received ₦1,200,000 from the issue, calculate the amount transferred to the debenture account.
A. ₦120,000
B. ₦125,000
C. ₦130,000
D. ₦135,000
Question 7
A company's trial balance shows a debit balance of ₦30,000 in the account 'Salaries and Wages Expense'. However, the company's accounting records show that it has not paid any salaries and wages. What is the correct treatment of this account?
A. Debit the account 'Salaries and Wages Expense' by ₦30,000
B. Credit the account 'Salaries and Wages Expense' by ₦30,000
C. Debit the account 'Salaries and Wages Expense' by ₦30,000 and credit the account 'Accrued Salaries and Wages' by ₦30,000
D. Credit the account 'Salaries and Wages Expense' by ₦30,000 and debit the account 'Accrued Salaries and Wages' by ₦30,000
Question 8
A government agency has a cash book that shows a balance of ₦200,000. However, the agency's bank statement shows a balance of ₦250,000. What is the reason for the difference?
A. The agency has a loan from the bank.
B. The agency has a credit balance in its bank account.
C. The agency has a debit balance in its bank account.
D. The agency has a cash credit balance in its bank account.
Question 9
A company's balance sheet shows a non-current asset of ₦100,000. However, the company's accounting records show that the asset is expected to be sold within the next 12 months. What is the correct treatment of this account?
A. Debit the account 'Non-Current Asset' by ₦100,000
B. Credit the account 'Non-Current Asset' by ₦100,000
C. Debit the account 'Non-Current Asset' by ₦100,000 and credit the account 'Current Asset' by ₦100,000
D. Credit the account 'Non-Current Asset' by ₦100,000 and debit the account 'Current Asset' by ₦100,000
Question 10
A company's trial balance showed a debit balance of ₦50,000 in the accounts payable account. However, the company's ledger showed a credit balance of ₦20,000 in the accounts payable account. What is the correct balance in the accounts payable account?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A company uses the weighted average method to value its inventory. If the cost of the items is ₦100,000, the selling price is ₦120,000, and the number of units sold is 500, what is the cost of goods sold?
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦70,000
Question 12
The following is a partial statement of affairs of XYZ Ltd. as at 31st December 2020:
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000
Question 13
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its useful life is 5 years. Calculate the annual depreciation charge.
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 14
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received the rent from its tenant. What is the correct treatment of this account?
A. Debit the account 'Rent Received' by ₦15,000
B. Credit the account 'Rent Received' by ₦15,000
C. Debit the account 'Rent Received' by ₦15,000 and credit the account 'Rent Paid' by ₦15,000
D. Credit the account 'Rent Received' by ₦15,000 and debit the account 'Rent Paid' by ₦15,000
Question 15
A company has the following transactions: Purchased office supplies for ₦10,000, paid rent for ₦20,000, and purchased equipment for ₦50,000. What is the total amount of cash outflows?
A. ₦80,000
B. ₦70,000
C. ₦90,000
D. ₦60,000

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