POST UTME ACHIEVERS UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 9% debentures of ₦100 each. Calculate the amount of interest payable annually.
A. ₦45,000
B. ₦45,500
C. ₦45,000
D. ₦45,500
Question 2
A company has the following transactions in its bank reconciliation statement: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank balance | ₦100,000 | | | 15 Jan | Cheque deposited | | ₦80,000 | | 20 Jan | Bank interest | ₦5,000 | | | 25 Jan | Cheque issued | ₦30,000 | | | 31 Jan | Bank balance | | ₦120,000 | What is the total bank balance at the end of January?
A. ₦150,000
B. ₦170,000
C. ₦190,000
D. ₦210,000
Question 3
A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 for direct materials and ₦80,000 for direct labor. The Assembly department incurs costs of ₦150,000 for direct materials and ₦100,000 for direct labor. The company has a total of 10,000 units of product in work-in-progress (WIP) at the end of the period. The total cost of the WIP is ₦1,200,000. What is the total cost of the Cutting department?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 4
A company's cash book shows a credit balance of ₦20,000 in the account 'Bank'. However, the bank statement shows a debit balance of ₦15,000. What is the correct journal entry to record the correction of this error?
A. ₦35,000 debit to Bank and ₦35,000 credit to Cash
B. ₦35,000 debit to Cash and ₦35,000 credit to Bank
C. ₦20,000 debit to Bank and ₦20,000 credit to Cash
D. ₦15,000 debit to Bank and ₦15,000 credit to Cash
Question 5
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦20,000 for an outstanding cheque. The cash book shows a debit of ₦30,000 for a bank charge. What is the correct amount of the bank reconciliation statement?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 6
A company's bank reconciliation statement shows a difference of ₦18,000 between the cash book balance and the bank statement balance. The cash book balance is ₦60,000 and the bank statement balance is ₦78,000. What is the correct explanation for this difference?
A. ₦18,000 is due to a bank error
B. ₦18,000 is due to a cash book error
C. ₦18,000 is due to a combination of bank and cash book errors
D. ₦18,000 is due to a deposit in transit
Question 7
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After 6 months, A withdraws ₦50,000 and B invests an additional ₦20,000. Calculate the ratio of A's and B's capitals at the end of the year.
A. 2:3
B. 3:2
C. 4:3
D. 5:4
Question 8
A company has the following transactions: Issued 10,000 shares at ₦5 per share Received ₦20,000 cash from customers Paid ₦30,000 cash to suppliers What is the total amount of cash received from customers?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 9
A company uses the single-entry system. The company's accountant discovers that the sales revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of net income for the year?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 10
A company has the following transactions: Purchased goods for ₦50,000, sold goods for ₦75,000, and purchased equipment for ₦20,000. Prepare a statement of cash flows.
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 11
The following is a balance sheet for a company: Assets: Cash ₦50,000 Accounts Receivable ₦20,000 Inventory ₦30,000 Total Assets ₦100,000 Liabilities: Accounts Payable ₦20,000 Salaries Payable ₦10,000 Total Liabilities ₦30,000 What is the amount of equity?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 12
A company uses the perpetual inventory system. The company's inventory account is debited for the cost of goods sold and credited for the cost of goods purchased. The company's accountant discovers that the cost of goods sold account was incorrectly recorded as ₦300,000 instead of ₦250,000. What is the correct amount of net income for the year?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
A company's accounting policy requires that all assets be valued at cost less depreciation. If a company purchases a machine for ₦500,000 and depreciates it by 10% per annum, what is the book value of the machine after 3 years?
A. ₦420,000
B. ₦450,000
C. ₦480,000
D. ₦510,000
Question 14
A company prepares its trial balance on December 31, 2022. The trial balance shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. The company's accountant discovers that the Sales Revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of net income for the year?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 15
The following is a trial balance for a company: Debit Cr. Credit Cash 100,000 100,000 Bank 50,000 50,000 Accounts Payable 20,000 20,000 Sales Revenue 150,000 150,000 Cost of Goods Sold 80,000 80,000 Drawings 10,000 10,000 What is the balance in the company's capital account?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

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