POST UTME ACHIEVERS UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit balances. The accountant suspects that the error occurred in the journal entry for the purchase of office equipment. The journal entry was recorded as follows: Debit: Office Equipment ₦10,000, Credit: Cash ₦10,000. However, the accountant realizes that the office equipment was actually purchased for ₦15,000. What is the correct journal entry to correct the error?
A. Debit: Office Equipment ₦5,000, Credit: Cash ₦5,000
B. Debit: Office Equipment ₦15,000, Credit: Cash ₦15,000
C. Debit: Office Equipment ₦5,000, Credit: Cash ₦15,000
D. Debit: Office Equipment ₦15,000, Credit: Cash ₦5,000
Question 2
A company has a manufacturing process that involves the following costs: direct materials ₦100,000, direct labor ₦150,000, and overheads ₦200,000. If the company produces 10,000 units, what is the cost per unit?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 3
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦100,000 and its current liabilities are ₦50,000. What is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 4
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's net income is ₦120,000, how much will partner A receive in cash?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 5
A company's manufacturing process involves the following steps:
A. Step A: ₦10,000, Step B: ₦20,000, Step C: ₦30,000
B. Step A: ₦20,000, Step B: ₦10,000, Step C: ₦30,000
C. Step A: ₦30,000, Step B: ₦20,000, Step C: ₦10,000
D. Step A: ₦30,000, Step B: ₦10,000, Step C: ₦20,000
Question 6
A company uses the weighted average method to value its inventory. The company's inventory consists of the following items:
A. Item A: ₦10,000, Item B: ₦20,000, Item C: ₦30,000
B. Item A: ₦20,000, Item B: ₦10,000, Item C: ₦30,000
C. Item A: ₦30,000, Item B: ₦20,000, Item C: ₦10,000
D. Item A: ₦30,000, Item B: ₦10,000, Item C: ₦20,000
Question 7
A company's assets are valued at ₦500,000. The company's liabilities are ₦200,000. What is the company's net worth?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A public sector organization has the following transactions: Date | Particulars | Debit | Credit -----|-------------|-------|-------- 01/01| Cash | ₦20,000 | 01/02| Bank | ₦10,000 | 01/03| Cash | ₦15,000 | 01/04| Bank | ₦5,000 | Determine the balance in the cash book.
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 9
A company issues 10,000 shares of ₦10 par value at ₦15 per share. What is the amount received from the sale of these shares?
A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000
Question 10
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's records and the bank's statement. The company's cash book shows a balance of ₦20,000, while the bank's statement shows a balance of ₦25,000. What is the reason for the difference?
A. Bank error
B. Company error
C. Both bank and company error
D. Neither bank nor company error
Question 11
A manufacturing company uses a job costing system. The following data are extracted from the company's records for a particular job: Direct Materials: ₦50,000 Direct Labour: ₦30,000 Overheads: ₦20,000 Selling and Distribution Expenses: ₦10,000 Total Cost: ₦110,000 Determine the selling price of the product.
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 12
A company's trial balance shows an error of ₦0.50 in the debit side of the purchases account. The correct amount is ₦1,500. What is the correct amount of the purchases account?
A. ₦1,500.50
B. ₦1,500.00
C. ₦1,499.50
D. ₦1,499.00
Question 13
A company's balance sheet shows an asset of ₦0,000. The trial balance shows an asset of ₦0,500. What is the correct amount of the asset?
A. ₦0,500
B. ₦0,000
C. ₦0,500.50
D. ₦0,000.50
Question 14
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 15
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount of cash received from the issue of shares and debentures?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

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