POST UTME ACHIEVERS UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company prepares a cash book. Which of the following is a characteristic of a cash book?
A. It is a list of all cash transactions
B. It is a list of all bank transactions
C. It is a list of all assets
D. It is a list of all liabilities
Question 2
A company has the following transactions: Purchase of goods for ₦100,000, Sale of goods for ₦150,000, Purchase of office equipment for ₦20,000. What is the correct journal entry for the purchase of goods?
A. Debit Goods ₹100,000, Credit Cash ₹100,000
B. Debit Goods ₹100,000, Credit Bank ₹100,000
C. Debit Goods ₹100,000, Debit Cash ₹100,000
D. Debit Goods ₹100,000, Credit Bank ₹100,000
Question 3
A company prepares a bank reconciliation statement. Which of the following is a characteristic of a bank reconciliation statement?
A. It is a list of all bank transactions
B. It is a list of all cash transactions
C. It is a list of all assets
D. It is a list of all liabilities
Question 4
A company has the following transactions: Purchase of goods for ₦100,000, Sale of goods for ₦150,000, Purchase of office equipment for ₦20,000. What is the correct journal entry for the purchase of office equipment?
A. Debit Office Equipment ₹20,000, Credit Cash ₹20,000
B. Debit Office Equipment ₹20,000, Credit Bank ₹20,000
C. Debit Office Equipment ₹20,000, Debit Cash ₹20,000
D. Debit Office Equipment ₹20,000, Credit Bank ₹20,000
Question 5
A partnership has two partners: John and Jane. John has a 60% interest in the partnership and Jane has a 40% interest. If the partnership has a net income of ₦500,000, what is John's share of the net income?
A. ₦300,000
B. ₦400,000
C. ₦300,000
D. ₦400,000
Question 6
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will A receive?
A. ₦90,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 7
A company purchases a building for ₦1,000,000 and depreciates it by 5% per annum. Calculate the book value of the building after 2 years.
A. ₦950,000
B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000
Question 8
A company has the following transactions: Purchase of goods for ₦100,000 and payment of salaries of ₦50,000. What is the total amount of expenditure?
A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦0
Question 9
A company issues 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 10
A company uses the double-entry system to record transactions. Which of the following is a characteristic of the double-entry system?
A. It records only one side of a transaction
B. It records both sides of a transaction
C. It records only the assets of a transaction
D. It records only the liabilities of a transaction
Question 11
A company has the following journal entry: Debit Cash ₦100,000, Credit Accounts Payable ₦100,000. Prepare a journal entry.
A. Debit Cash ₦100,000, Credit Accounts Payable ₦100,000
B. Debit Accounts Payable ₦100,000, Credit Cash ₦100,000
C. Debit Cash ₦100,000, Credit Accounts Receivable ₦100,000
D. Debit Accounts Payable ₦100,000, Credit Cash ₦100,000
Question 12
A company's trial balance as of December 31, 2020, is as follows: Debit ₦ 1,500,000 Cash ₦ 2,000,000 Accounts Receivable ₦ 3,000,000 Inventory ₦ 4,000,000 Prepaid Rent ₦ 5,000,000 Credit ₦ 1,000,000 Accounts Payable ₦ 2,000,000 Salaries Payable ₦ 3,000,000 Unearned Revenue ₦ 4,000,000 Common Stock ₦ 5,000,000 What is the correct order of the accounts in the general ledger?
A. Cash, Accounts Receivable, Inventory, Prepaid Rent, Accounts Payable, Salaries Payable, Unearned Revenue, Common Stock
B. Cash, Accounts Payable, Salaries Payable, Unearned Revenue, Common Stock, Accounts Receivable, Inventory, Prepaid Rent
C. Cash, Accounts Receivable, Inventory, Prepaid Rent, Accounts Payable, Salaries Payable, Unearned Revenue, Common Stock
D. Cash, Accounts Payable, Salaries Payable, Unearned Revenue, Common Stock, Accounts Receivable, Inventory, Prepaid Rent
Question 13
A company purchased a machine for ₦ 50,000. The machine is expected to have a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
A. ₦ 9,500
B. ₦ 10,000
C. ₦ 9,000
D. ₦ 8,000
Question 14
A firm has a capital of ₦500,000 and a profit of ₦150,000. If the capital is to be divided in the ratio 2:3, what is the share of the partner who gets 3/5 of the profit?
A. ₦150,000
B. ₦225,000
C. ₦300,000
D. ₦375,000
Question 15
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

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