POST UTME AL-HIKMAH UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government agency prepares its financial statements for the year ended December 31, 2022. The statement of financial position shows a total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the total equity?
A. ₦3,000,000
B. ₦2,000,000
C. ₦1,000,000
D. ₦500,000
Question 2
A company has the following transactions: Purchased raw materials on credit for ₦50,000. Sold goods on credit for ₦100,000. Purchased office supplies for ₦20,000 in cash. What is the total amount of cash paid or received during the period?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 3
A company prepares its final accounts for the year ended December 31, 2022. The trading account shows a profit of ₦500,000, and the profit and loss account shows a profit of ₦200,000. What is the total profit for the year?
A. ₦700,000
B. ₦500,000
C. ₦200,000
D. ₦300,000
Question 4
A company's bank statement shows a balance of ₦120,000, while the company's cash book shows a balance of ₦150,000. The bank statement also shows a debit of ₦10,000 for a NSF check. What is the correct reconciliation entry?
A. ₦30,000 debit to Bank and ₦30,000 credit to Cash
B. ₦10,000 debit to Bank and ₦10,000 credit to Cash
C. ₦20,000 debit to Bank and ₦20,000 credit to Cash
D. ₦40,000 debit to Bank and ₦40,000 credit to Cash
Question 5
A company has the following transactions: Purchased raw materials on credit for ₦50,000. Sold goods on credit for ₦100,000. Purchased office supplies for ₦20,000 in cash. What is the total amount of cash paid or received during the period?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company has the following trial balance: Debitors ₦100,000, Creditors ₦50,000, Capital ₦200,000, Profit and Loss Account ₦50,000. What is the total amount of assets?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A government agency is required to prepare a statement of sources and applications of funds. What type of account is this?
A. Trading account
B. Profit and loss account
C. Balance sheet
D. Statement of sources and applications of funds
Question 8
What is the accounting equation?
A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets = Equity - Liabilities
D. Assets = Equity + Liabilities
Question 9
A company purchased a machine for ₦50,000 and immediately sold it for ₦60,000. What is the gain or loss on the sale of the machine?
A. ₦10,000 gain
B. ₦10,000 loss
C. ₦5,000 gain
D. ₦5,000 loss
Question 10
A company has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit for the year is ₦60,000. What is the ratio of A's and B's shares of the profit?
A. 1:1
B. 2:1
C. 3:2
D. 4:3
Question 11
A company's assets are as follows: ₦ 1,000,000 - Cash ₦ 2,000,000 - Accounts Receivable ₦ 3,000,000 - Inventory ₦ 4,000,000 - Property, Plant, and Equipment ₦ 5,000,000 - Intangible Assets What is the total amount of the company's assets?
A. ₦ 15,000,000
B. ₦ 20,000,000
C. ₦ 25,000,000
D. ₦ 30,000,000
Question 12
What is the difference between a sole trader and a partnership?
A. A sole trader is a business owned by one person, while a partnership is owned by two or more people.
B. A sole trader is a business owned by two or more people, while a partnership is owned by one person.
C. A sole trader is a business owned by one person, while a partnership is owned by the government.
D. A sole trader is a business owned by the government, while a partnership is owned by two or more people.
Question 13
A partnership is formed between two individuals, John and Mary. They agree to share profits and losses in the ratio 3:2. If the partnership makes a profit of ₦120,000, how much will John receive?
A. ₦90,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 14
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and the number of units is 500. The cost of inventory B is ₦150,000, and the number of units is 300. The cost of inventory C is ₦180,000, and the number of units is 200. The total cost of goods available for sale is ₦420,000. What is the cost of goods sold using the weighted average method?
A. ₦140,000
B. ₦150,000
C. ₦160,000
D. ₦170,000
Question 15
What is the purpose of a balance sheet?
A. To show the financial position of a business at a particular date.
B. To show the financial performance of a business over a period of time.
C. To show the cash flow of a business over a period of time.
D. To show the profit of a business over a period of time.

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