POST UTME AL-HIKMAH UNIVERSITY 2024 Accounting | Objective

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Question 1 View Details
A company uses the straight-line method to depreciate its assets. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦12,000

Correct Answer: A

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Question 2 View Details
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦100,000. What is the correct order of the accounts in the trial balance?
Correct A. Accounts Payable, Sales Revenue, Cost of Goods Sold, Net Income
B. Sales Revenue, Cost of Goods Sold, Accounts Payable, Net Income
C. Cost of Goods Sold, Accounts Payable, Sales Revenue, Net Income
D. Net Income, Accounts Payable, Sales Revenue, Cost of Goods Sold

Correct Answer: A

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Question 3 View Details
A company uses the cash basis of accounting. On January 1, it received ₦100,000 in cash from a customer. On January 15, it paid ₦20,000 in cash to a supplier. On February 1, it received ₦50,000 in cash from a customer. What is the cash balance on February 1?
Correct A. ₦130,000
B. ₦120,000
C. ₦110,000
D. ₦100,000

Correct Answer: A

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Question 4 View Details
A company's bank reconciliation statement shows the following discrepancies: a missing deposit of ₦20,000, an NSF check of ₦15,000, and an outstanding check of ₦10,000. What is the corrected cash balance?
A. ₦50,000
B. ₦55,000
C. ₦60,000
Correct D. ₦65,000

Correct Answer: D

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Question 5 View Details
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦100,000. What is the correct order of the accounts in the trial balance?
Correct A. Accounts Payable, Sales Revenue, Cost of Goods Sold, Net Income
B. Sales Revenue, Cost of Goods Sold, Accounts Payable, Net Income
C. Cost of Goods Sold, Accounts Payable, Sales Revenue, Net Income
D. Net Income, Accounts Payable, Sales Revenue, Cost of Goods Sold

Correct Answer: A

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Question 6 View Details
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦130,000. The difference is due to an outstanding cheque of ₦10,000. What is the correct balance of the company's cash book?
A. ₦120,000
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 7 View Details
A company uses the single entry system of accounting. The following transactions are recorded in the journal: 'Sale of goods for ₦50,000', 'Purchase of goods for ₦30,000', and 'Payment of wages ₦20,000'. What is the total value of the company's assets?
A. ₦80,000
B. ₦100,000
Correct C. ₦120,000
D. ₦140,000

Correct Answer: C

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Question 8 View Details
A company's trial balance shows the following balances: 'Debtors ₦50,000', 'Creditors ₦30,000', and 'Capital ₦100,000'. What is the total value of the company's equity?
A. ₦80,000
B. ₦120,000
Correct C. ₦180,000
D. ₦220,000

Correct Answer: C

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Question 9 View Details
A company's assets are valued at ₦100,000. The company depreciates its assets by 10% per annum. What is the value of the company's assets after 2 years?
A. ₦90,000
Correct B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: B

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Question 10 View Details
A company's bank reconciliation statement shows the following: 'Bank balance ₦50,000', 'Cheques outstanding ₦20,000', and 'Deposits in transit ₦10,000'. What is the correct balance of the company's bank account?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 11 View Details
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and paid salaries of ₦20,000. Prepare the journal entries for these transactions.
Correct A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Cash ₦50,000, Credit Sales ₦50,000
C. Debit Salaries ₦20,000, Credit Cash ₦20,000
D. Debit Office Supplies ₦10,000, Credit Sales ₦10,000

Correct Answer: A

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Question 12 View Details
A company's trial balance as of December 31, 2023, is as follows: Accounts Payable ₦50,000, Common Stock ₦100,000, Retained Earnings ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000. Prepare the adjusting entries for the following: (a) depreciation of office equipment, (b) unearned revenue.
A. Debit Office Equipment ₦10,000, Credit Depreciation Expense ₦10,000
B. Debit Unearned Revenue ₦50,000, Credit Sales Revenue ₦50,000
Correct C. Debit Depreciation Expense ₦10,000, Credit Accumulated Depreciation ₦10,000
D. Debit Accounts Payable ₦50,000, Credit Common Stock ₦50,000

Correct Answer: C

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Question 13 View Details
The following transactions occurred during the month of January: (a) purchased office equipment for ₦50,000, (b) sold goods for ₦100,000, (c) paid salaries of ₦20,000. Prepare the journal entries for these transactions.
Correct A. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Cash ₦100,000, Credit Sales ₦100,000
C. Debit Salaries ₦20,000, Credit Cash ₦20,000
D. Debit Office Equipment ₦50,000, Credit Sales ₦50,000

Correct Answer: A

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Question 14 View Details
A company's trial balance as of December 31, 2023, is as follows: Accounts Payable ₦50,000, Common Stock ₦100,000, Retained Earnings ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000. Prepare the adjusting entries for the following: (a) depreciation of office equipment, (b) unearned revenue.
A. Debit Office Equipment ₦10,000, Credit Depreciation Expense ₦10,000
B. Debit Unearned Revenue ₦50,000, Credit Sales Revenue ₦50,000
Correct C. Debit Depreciation Expense ₦10,000, Credit Accumulated Depreciation ₦10,000
D. Debit Accounts Payable ₦50,000, Credit Common Stock ₦50,000

Correct Answer: C

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Question 15 View Details
The following transactions occurred during the month of January: (a) purchased office equipment for ₦50,000, (b) sold goods for ₦100,000, (c) paid salaries of ₦20,000. Prepare the journal entries for these transactions.
Correct A. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Cash ₦100,000, Credit Sales ₦100,000
C. Debit Salaries ₦20,000, Credit Cash ₦20,000
D. Debit Office Equipment ₦50,000, Credit Sales ₦50,000

Correct Answer: A

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Question 16 View Details
A company's trial balance as of December 31, 2023, is as follows: Accounts Payable ₦50,000, Common Stock ₦100,000, Retained Earnings ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000. Prepare the adjusting entries for the following: (a) depreciation of office equipment, (b) unearned revenue.
A. Debit Office Equipment ₦10,000, Credit Depreciation Expense ₦10,000
B. Debit Unearned Revenue ₦50,000, Credit Sales Revenue ₦50,000
Correct C. Debit Depreciation Expense ₦10,000, Credit Accumulated Depreciation ₦10,000
D. Debit Accounts Payable ₦50,000, Credit Common Stock ₦50,000

Correct Answer: C

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Question 17 View Details
The following transactions occurred during the month of January: (a) purchased office equipment for ₦50,000, (b) sold goods for ₦100,000, (c) paid salaries of ₦20,000. Prepare the journal entries for these transactions.
A. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Cash ₦100,000, Credit Sales ₦100,000
C. Debit Salaries ₦20,000, Credit Cash ₦20,000
D. Debit Office Equipment ₦50,000, Credit Sales ₦50,000

Correct Answer: VIEW ANSWER

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Question 18 View Details
A company's cash book shows a debit balance of ₦120,000. The bank statement shows a credit balance of ₦150,000. The difference between the two balances is due to a dishonored cheque of ₦20,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
Correct B. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000
C. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
D. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000

Correct Answer: B

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Question 19 View Details
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦80,000. The company's bank statement shows a credit balance of ₦100,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
Correct B. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000
C. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
D. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000

Correct Answer: B

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Question 20 View Details
A company's trading account shows a profit of ₦150,000. The company's profit and loss account shows a profit of ₦200,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Trading A/c ₦50,000, Credit Profit and Loss A/c ₦50,000
Correct B. Debit Profit and Loss A/c ₦50,000, Credit Trading A/c ₦50,000
C. Debit Trading A/c ₦50,000, Credit Profit and Loss A/c ₦50,000
D. Debit Profit and Loss A/c ₦50,000, Credit Trading A/c ₦50,000

Correct Answer: B

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Question 21 View Details
A company's balance sheet shows a total asset value of ₦500,000. The company's profit and loss account shows a profit of ₦200,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Asset A/c ₦300,000, Credit Profit and Loss A/c ₦300,000
Correct B. Debit Profit and Loss A/c ₦300,000, Credit Asset A/c ₦300,000
C. Debit Asset A/c ₦300,000, Credit Profit and Loss A/c ₦300,000
D. Debit Profit and Loss A/c ₦300,000, Credit Asset A/c ₦300,000

Correct Answer: B

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Question 22 View Details
A company's cash book shows a debit balance of ₦120,000. The company's bank statement shows a credit balance of ₦150,000. The difference between the two balances is due to a dishonored cheque of ₦20,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
Correct B. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000
C. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
D. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000

Correct Answer: B

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Question 23 View Details
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 24 View Details
A partnership has two partners, A and B. Partner A invests ₦100,000 and Partner B invests ₦80,000. If the profit is divided in the ratio 3:2, what is Partner A's share of the profit?
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 25 View Details
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Cash | | ₦20,000 | | 4 Jan | Bank | ₦5,000 | | | 5 Jan | Cash | | ₦25,000 | What is the bank balance on 5 Jan?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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