POST UTME BELLS UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following trial balance as of December 31, 2020:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 2
A company uses the perpetual inventory system to value its inventory. The following data is available for the year ended December 31, 2022: Beginning inventory: ₦800,000; Purchases: ₦1,200,000; Sales: ₦2,000,000. What is the cost of goods sold for the year?
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 3
A company uses the straight-line method of depreciation to value its assets. The company has a machine that cost ₦500,000 and has a useful life of 5 years. What is the annual depreciation charge?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦50,000
Question 4
A company's balance sheet as at 31st December 2022, showed a total assets of ₦10,000,000. The company's profit and loss account for the year ended 31st December 2022, showed a net loss of ₦1,500,000. Calculate the company's retained earnings as at 31st December 2022.
A. ₦8,500,000
B. ₦8,000,000
C. ₦7,500,000
D. ₦7,000,000
Question 5
A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦250,000. What is the reason for this discrepancy?
A. The company has a bank overdraft of ₦50,000.
B. The company has a cash credit of ₦50,000.
C. The company has a bank loan of ₦50,000.
D. The company has a cash deposit of ₦50,000.
Question 6
A company's balance sheet shows a total asset of ₦500,000 and a total liability of ₦300,000. What is the company's equity?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 7
A company has the following balance sheet as of December 31, 2020:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 8
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 9
A company's balance sheet as at 31st December 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 | 80,000 | What is the value of the company's retained earnings?
A. ₦ 10,000
B. ₦ 20,000
C. ₦ 30,000
D. ₦ 40,000
Question 10
A manufacturing company uses the process costing method to value its production costs. The following data is available for the year ended December 31, 2022: Direct materials: ₦500,000; Direct labor: ₦300,000; Overhead: ₦200,000. What is the total production cost for the year?
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 11
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance of the bank account?
A. ₦ 500
B. ₦ 800
C. ₦ 1,000
D. ₦ 1,200
Question 12
A company has the following transactions related to its departmental accounts:
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 13
A company uses the self-balancing ledger system to value its accounts. The following data is available for the year ended December 31, 2022: Cash: ₦1,500,000; Accounts payable: ₦800,000; Accounts receivable: ₦600,000. What is the total assets for the year?
A. ₦3,000,000
B. ₦3,100,000
C. ₦3,200,000
D. ₦3,300,000
Question 14
A company uses the weighted average method to value its inventory. The following data is available for the year ended December 31, 2022: Cost of goods available for sale: ₦1,500,000; Net realizable value of ending inventory: ₦1,200,000; Beginning inventory: ₦800,000. What is the cost of goods sold for the year?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 15
A company's balance sheet as at December 31, 2022, is as follows: Assets: Cash: ₦500,000 Accounts receivable: ₦200,000 Inventory: ₦300,000 Total assets: ₦1,000,000 Liabilities: Accounts payable: ₦150,000 Long-term debt: ₦250,000 Total liabilities: ₦400,000 What is the company's current ratio?
A. 2.5
B. 2.0
C. 1.5
D. 1.0

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