POST UTME BELLS UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank's statement balance. What is the reason for this difference?
A. Bank error
B. Company error
C. Theft
D. Interest earned
Question 2
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦150,000 in cash from the issue of shares, what is the amount of share capital?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 3
A company uses the accrual basis of accounting. What is the effect of this method on the financial statements?
A. Increases revenue and decreases expenses
B. Decreases revenue and increases expenses
C. Increases expenses and decreases revenue
D. Has no effect on the financial statements
Question 4
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 income?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 5
A business has the following incomplete records: Debit: ₦20,000, Credit: ₦15,000. What is the net effect on the business's financial position?
A. Increase in assets
B. Decrease in liabilities
C. Increase in equity
D. Decrease in assets
Question 6
A company's balance sheet shows an increase in its current assets of ₦15,000 and a decrease in its non-current assets of ₦5,000. What is the net effect on the company's liquidity position?
A. Improved liquidity
B. No change in liquidity
C. Worsened liquidity
D. Unchanged liquidity
Question 7
A company's trial balance shows a discrepancy of ₦2,000 between the debit and credit sides. The company's accountant has identified the following errors: (i) an item of ₦1,000 was posted twice on the debit side, (ii) an item of ₦1,000 was posted twice on the credit side, and (iii) an item of ₦500 was posted on the wrong side. What is the correct amount of the discrepancy?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 8
A company's Balance Sheet as at 31st December 2023 shows a capital of ₦2,500,000. The company's drawings for the year were ₦200,000. Calculate the company's retained earnings for the year.
A. ₦2,300,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 9
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The balance on the Profit and Loss Account is ₦800,000. The company's Balance Sheet as at 31st December 2023 shows a capital of ₦2,500,000. Calculate the company's retained earnings for the year.
A. ₦2,300,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 10
A company's trial balance shows a discrepancy of ₦1,500 between the debit and credit sides. The company's accountant has identified the following errors: (i) an item of ₦2,000 was posted twice on the debit side, (ii) an item of ₦1,500 was posted twice on the credit side, and (iii) an item of ₦500 was posted on the wrong side. What is the correct amount of the discrepancy?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 11
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
A. Bank charges
B. Cheque returned unpaid
C. Deposit in transit
D. Outstanding cheque
Question 12
A company's profit and loss account shows a net profit of ₦50,000. The company's balance sheet shows an increase in its current assets of ₦20,000 and a decrease in its non-current assets of ₦10,000. What is the net effect on the company's cash flow?
A. Improved cash flow
B. No change in cash flow
C. Worsened cash flow
D. Unchanged cash flow
Question 13
A company uses the double-entry system of accounting. The company's trial balance shows the following accounts: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's liabilities?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 14
A company uses the double-entry system of accounting. The company's trial balance shows the following accounts: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's assets?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 15
A government agency's financial statements show a surplus of ₦10,000,000. However, the agency's budget shows a deficit of ₦5,000,000. What is the likely cause of this discrepancy?
A. The agency's financial statements were not properly reconciled with the budget.
B. The agency's accounting software malfunctioned.
C. The agency's budget was not properly updated.
D. The agency's financial statements were not properly audited.

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