POST UTME BOWEN UNIVERSITY 2017 Accounting | Objective

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Question 1 View Details
In a public sector accounting system, what is the primary purpose of the 'General Ledger'?
Correct A. To record all financial transactions of the government
B. To prepare the annual budget of the government
C. To present the financial position of the government
D. To report the financial performance of the government

Correct Answer: A

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Question 2 View Details
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit is ₦120,000, how much will A receive?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 3 View Details
A manufacturing company produces two products, X and Y, which require 2 hours and 3 hours of labor respectively. If the total labor available is 120 hours, how many units of X can be produced?
A. 40 units
Correct B. 50 units
C. 60 units
D. 70 units

Correct Answer: B

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Question 4 View Details
A company has the following trial balance: Debit ₦10,000 ₦20,000 ₦30,000 Credit ₦15,000 ₦25,000 ₦35,000 What is the correct balance of the company?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 5 View Details
A partnership has two partners, A and B, who share profits in the ratio 3:2. If the total profit is ₦120,000, how much will A receive?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 6 View Details
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Calculate the total amount received from the sale of shares.
A. ₦30,000,000
Correct B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000

Correct Answer: B

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Question 7 View Details
A company purchased a machine for ₦1,500,000. The machine depreciates at 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦1,215,000
B. ₦1,350,000
C. ₦1,500,000
D. ₦1,800,000

Correct Answer: A

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Question 8 View Details
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
Correct A. ₦4,500,000
B. ₦4,750,000
C. ₦5,000,000
D. ₦5,250,000

Correct Answer: A

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Question 9 View Details
A company purchased a machine for ₦2,000,000. The machine depreciates at 15% per annum. Calculate the value of the machine after 2 years.
Correct A. ₦1,600,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,400,000

Correct Answer: A

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Question 10 View Details
A company issued 10,000 shares of ₦1 par value at a premium of ₦2 per share. The shares were sold for ₦3 each. Calculate the total amount received from the sale of shares.
A. ₦30,000,000
Correct B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000

Correct Answer: B

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Question 11 View Details
In a partnership account, the capital of the partners is divided in the ratio of 3:5:7. If the total capital is ₦1,500,000, what is the amount of capital of the partner who has a 7:1 ratio?
A. ₦420,000
B. ₦630,000
Correct C. ₦840,000
D. ₦1,050,000

Correct Answer: C

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Question 12 View Details
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company received a total of ₦1,500,000, what is the amount of share capital?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 13 View Details
A cash book shows a balance of ₦50,000. After a bank reconciliation, the balance is ₦60,000. What is the amount of the bank overdraft?
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 14 View Details
A company issued 5,000 debentures of ₦100 each at a premium of ₦20 per debenture. If the company received a total of ₦1,200,000, what is the amount of debenture capital?
A. ₦500,000
B. ₦600,000
C. ₦700,000
Correct D. ₦800,000

Correct Answer: D

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Question 15 View Details
A company has a cash book balance of ₦80,000. After a bank reconciliation, the balance is ₦90,000. What is the amount of the bank credit?
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 16 View Details
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦30,000 is due to the following transactions: a deposit of ₦10,000, a withdrawal of ₦20,000, and an error in the cash book of ₦10,000. What is the correct balance in the cash book?
A. ₦130,000
Correct B. ₦140,000
C. ₦150,000
D. ₦160,000

Correct Answer: B

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Question 17 View Details
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦500,000, and the cost of goods sold is ₦400,000. The company has two types of inventory: Type A with a cost of ₦100,000 and a quantity of 1,000 units, and Type B with a cost of ₦200,000 and a quantity of 500 units. What is the cost of goods sold per unit?
A. ₦400
B. ₦420
Correct C. ₦440
D. ₦460

Correct Answer: C

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Question 18 View Details
A company has the following transactions: a purchase of ₦100,000, a sale of ₦150,000, and a return of goods of ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000
Correct B. ₦50,000
C. ₦70,000
D. ₦90,000

Correct Answer: B

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Question 19 View Details
A company has the following assets: a building with a cost of ₦500,000 and a book value of ₦300,000, a machine with a cost of ₦200,000 and a book value of ₦100,000, and a vehicle with a cost of ₦100,000 and a book value of ₦50,000. What is the total depreciation for the year?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 20 View Details
A company has the following transactions: a purchase of ₦100,000, a sale of ₦150,000, and a return of goods of ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000
Correct B. ₦50,000
C. ₦70,000
D. ₦90,000

Correct Answer: B

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Question 21 View Details
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the reason for the difference?
A. The company has deposited cash into the bank.
Correct B. The company has written a check that has not yet been presented to the bank.
C. The company has received a credit from a customer.
D. The company has made a payment to a supplier.

Correct Answer: B

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Question 22 View Details
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Profit ₦200,000. What is the company's gross profit?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 23 View Details
A company's balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the company's total liabilities?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 24 View Details
A company's cash book shows the following transactions: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000, and Debit Sales Revenue ₦15,000. What is the company's net cash inflow?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 25 View Details
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Profit ₦200,000. What is the company's gross profit margin?
A. 30%
B. 40%
Correct C. 50%
D. 60%

Correct Answer: C

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