POST UTME AL-HIKMAH UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements show the following: Total Assets ₦1,000,000, Total Liabilities ₦500,000. What is the total equity?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 2
A company uses the single-entry system of accounting. The company's records show the following transactions: Debit Cash ₦15,000, Credit Accounts Payable ₦8,000, Debit Accounts Receivable ₦12,000, Credit Sales ₦18,000. What is the net effect on the company's cash balance?
A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 3
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Total | 80,000 | Total | 90,000 | What is the amount of the company's retained earnings?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A government agency prepares its financial statements for the year ended 31st December 2022. The agency's financial statements are as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Bank | ₦20,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦150,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Profit | ₦0 | ₦0 | | Total | ₦70,000 | ₦220,000 | What is the amount of profit for the year ended 31st December 2022?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 5
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. What is the net profit?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 6
A company purchases a machine for ₦500,000 and depreciates it by 20% per annum. What is the value of the machine after 3 years?
A. ₦240,000
B. ₦300,000
C. ₦360,000
D. ₦420,000
Question 7
A company uses the double-entry system of accounting. The following transactions were recorded during the year:
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 8
A company uses the self-balancing ledger system. The following transactions were recorded during the year:
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 9
A company has the following control account balances:
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 10
A company's accounting records show the following transactions: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000, Debit Accounts Receivable ₦8,000, Credit Sales ₦12,000. What is the net effect on the company's cash balance?
A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 11
A company purchased a machine for ₦ 120,000. It was sold after 5 years for ₦ 90,000. Calculate the annual depreciation.
A. ₦ 6,000
B. ₦ 8,000
C. ₦ 10,000
D. ₦ 12,000
Question 12
A company's departmental accounts show the following: Sales Department ₦200,000, Production Department ₦300,000. What is the total cost of goods sold?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 13
A partnership has two partners, A and B. A invested ₦ 80,000 and B invested ₦ 60,000. The profit-sharing ratio is 3:2. Calculate the share of profit of A.
A. ₦ 36,000
B. ₦ 40,000
C. ₦ 42,000
D. ₦ 44,000
Question 14
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Total | 80,000 | Total | 90,000 | What is the amount of the company's bank loan?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 3 hours of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 100 units of product A and 50 units of product B, what is the total labor cost?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

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