POST UTME BELLS UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a bank reconciliation statement as follows: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Bank | 10,000 | | | 1/2 | Cash | | 20,000 | | 1/3 | Bank | 8,000 | | | 1/4 | Cash | | 5,000 | What is the balance of the bank account?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 2
The following is an extract from the financial statements of XYZ Limited for the year ended December 31, 2020:
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 3
A company's balance sheet shows a current ratio of 2:1. However, the company's cash flow statement shows a negative cash flow from operating activities. What is the correct explanation for this discrepancy?
A. The company has made a mistake in preparing the balance sheet.
B. The company has made a mistake in preparing the cash flow statement.
C. The company has invested in new assets but has not yet been debited.
D. The company has paid dividends but has not yet been debited.
Question 4
A company's balance sheet shows the following accounts: Cash ₦150,000, Accounts Receivable ₦250,000, Inventory ₦350,000, and Equipment ₦450,000. What is the total value of the company's liabilities?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 5
A company maintains a cash book and a general ledger. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000 cash. Sold goods for ₦50,000 on credit. What is the total amount of cash recorded in the cash book at the end of January?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's assets are valued at ₦100,000. The company's management wants to depreciate the assets using the straight-line method. What is the annual depreciation charge?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 7
The following is an extract from the financial statements of ABC Limited for the year ended December 31, 2020:
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 8
The following is an extract from the financial statements of DEF Limited for the year ended December 31, 2020:
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
A partnership has two partners, A and B. The capital of the partnership is ₦500,000, divided into 5,000 shares of ₦100 each. Partner A has 2,000 shares and partner B has 3,000 shares. If the profit is divided in the ratio 2:3, what is the share of profit of partner A?
A. ₦40,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 10
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. Calculate the company's net cash position.
A. ₦300,000
B. ₦400,000
C. ₦700,000
D. ₦800,000
Question 11
A government agency is required to prepare a statement of cash flows. What is the primary purpose of the statement of cash flows?
A. To show the company's profitability.
B. To show the company's liquidity.
C. To show the company's cash inflows and outflows.
D. To show the company's financial position.
Question 12
A company's accounting policy requires that depreciation be calculated using the straight-line method. However, the company's management wants to switch to the declining balance method. What is the accounting treatment for the change in depreciation method?
A. The change in depreciation method is accounted for as a change in accounting estimate.
B. The change in depreciation method is accounted for as a change in accounting policy.
C. The change in depreciation method is accounted for as a correction of an error.
D. The change in depreciation method is not accounted for.
Question 13
A company has two departments: Manufacturing and Sales. The Manufacturing department has a direct labor cost of ₦1,500,000 and an overhead cost of ₦750,000. The Sales department has a direct labor cost of ₦1,000,000 and an overhead cost of ₦500,000. Calculate the total cost of goods sold.
A. ₦3,250,000
B. ₦3,500,000
C. ₦3,750,000
D. ₦4,000,000
Question 14
A company has a capital of ₦1,000,000 and a profit of ₦500,000. Calculate the company's retained earnings.
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0
Question 15
A manufacturing company produces two products, X and Y. The production process involves two departments: Cutting and Assembly. The following data is available: Cutting Department: Product X: 5 units/hour, ₦10/hour Product Y: 3 units/hour, ₦8/hour Assembly Department: Product X: 4 units/hour, ₦12/hour Product Y: 2 units/hour, ₦9/hour What is the total cost of producing 100 units of product X?
A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500

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