POST UTME BOWEN UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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.
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.
Question 2
A partnership has two partners, A and B. Partner A has a 60% interest in the profits and losses, while Partner B has a 40% interest. If the net profit for the year is ₦150,000, calculate the amount of profit to be distributed to Partner A.
A. ₦90,000
B. ₦90,000
C. ₦90,000
D. ₦90,000
Question 3
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.
A. ₦1,215,000
B. ₦1,350,000
C. ₦1,500,000
D. ₦1,800,000
Question 4
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.
A. ₦1,600,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,400,000
Question 5
A company issued 5,000, 10% shares of ₦10 each at a premium of ₦5. Calculate the amount received from share holders.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 6
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?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 7
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
B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000
Question 8
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 assets?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 9
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
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 10
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The proceeds from the sale of these shares were used to purchase a piece of land. Prepare the journal entry to record the issuance of the shares.
A. Debit Cash 30,000, Credit Common Stock 30,000
B. Debit Land 30,000, Credit Common Stock 30,000
C. Debit Cash 30,000, Credit Land 30,000
D. Debit Common Stock 30,000, Credit Land 30,000
Question 11
A company has the following trial balance: Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, Dividends 2,000, Equipment 15,000, Interest Expense 1,000, Net Income 8,000, Retained Earnings 12,000, Salaries Expense 3,000, Sales Revenue 25,000, Utilities Expense 2,000. Prepare the adjusted trial balance.
A. Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, Dividends 2,000, Equipment 15,000, Interest Expense 1,000, Net Income 8,000, Retained Earnings 12,000, Salaries Expense 3,000, Sales Revenue 25,000, Utilities Expense 2,000
B. Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, Dividends 2,000, Equipment 15,000, Interest Expense 1,000, Net Income 8,000, Retained Earnings 12,000, Salaries Expense 3,000, Sales Revenue 25,000, Utilities Expense 2,000
C. Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, Dividends 2,000, Equipment 15,000, Interest Expense 1,000, Net Income 8,000, Retained Earnings 12,000, Salaries Expense 3,000, Sales Revenue 25,000, Utilities Expense 2,000
D. Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, Dividends 2,000, Equipment 15,000, Interest Expense 1,000, Net Income 8,000, Retained Earnings 12,000, Salaries Expense 3,000, Sales Revenue 25,000, Utilities Expense 2,000
Question 12
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 operating profit?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 13
A company's trial balance showed an error of ₦50,000 in the accounts payable account. The correct balance should be ₦150,000. Prepare the necessary journal entry to correct the error.
A. Debit Accounts Payable ₦50,000, Credit Cash ₦50,000
B. Debit Accounts Payable ₦50,000, Credit Bank Loan ₦50,000
C. Debit Accounts Payable ₦50,000, Credit Retained Earnings ₦50,000
D. Debit Accounts Payable ₦50,000, Credit Dividends ₦50,000
Question 14
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
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 15
A company's trial balance showed an error of ₦20,000 in the accounts receivable account. The correct balance should be ₦80,000. Prepare the necessary journal entry to correct the error.
A. Debit Accounts Receivable ₦20,000, Credit Cash ₦20,000
B. Debit Accounts Receivable ₦20,000, Credit Bank Loan ₦20,000
C. Debit Accounts Receivable ₦20,000, Credit Retained Earnings ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Dividends ₦20,000

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