POST UTME BOWEN UNIVERSITY 2018 Accounting | Objective

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Question 1 View Details
Determine the correct order of operations for the following expression: ( rac{1}{2} imes (3 + 4) - 2 )
A. ( \frac{1}{2} \times 7 - 2
Correct B. ( \frac{1}{2} \times (3 + 4) - 2
C. ( \frac{1}{2} \times 3 + 4 - 2
D. ( \frac{1}{2} \times (3 + 4) + 2

Correct Answer: B

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Question 2 View Details
A company's trial balance shows the following accounts: Accounts Payable ( ₦ 50,000 ), Accounts Receivable ( ₦ 30,000 ), Sales Revenue ( ₦ 200,000 ), Cost of Goods Sold ( ₦ 120,000 ). Determine the correct amount of net income.
Correct A. ( ₦ 80,000
B. ( ₦ 60,000
C. ( ₦ 40,000
D. ( ₦ 20,000

Correct Answer: A

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Question 3 View Details
A manufacturing company produces two products: A and B. Product A requires 2 hours of labor and 3 units of raw material, while Product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, determine the maximum number of units of Product A that can be produced.
A. ( 30
B. ( 40
Correct C. ( 50
D. ( 60

Correct Answer: C

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Question 4 View Details
A company's balance sheet shows the following accounts: Cash ( ₦ 100,000 ), Accounts Payable ( ₦ 50,000 ), Common Stock ( ₦ 200,000 ), Retained Earnings ( ₦ 150,000 ). Determine the correct amount of total liabilities.
A. ( ₦ 250,000
Correct B. ( ₦ 200,000
C. ( ₦ 150,000
D. ( ₦ 100,000

Correct Answer: B

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Question 5 View Details
A company's income statement shows the following accounts: Sales Revenue ( ₦ 500,000 ), Cost of Goods Sold ( ₦ 250,000 ), Operating Expenses ( ₦ 100,000 ). Determine the correct amount of net income.
A. ( ₦ 150,000
B. ( ₦ 200,000
Correct C. ( ₦ 250,000
D. ( ₦ 300,000

Correct Answer: C

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Question 6 View Details
A partnership account has two partners, A and B, with capital contributions of ₦50,000 and ₦30,000 respectively. The partnership has a profit of ₦20,000. Calculate the profit-sharing ratio between A and B.
Correct A. ₦60,000:₦40,000
B. ₦55,000:₦45,000
C. ₦50,000:₦50,000
D. ₦40,000:₦60,000

Correct Answer: A

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Question 7 View Details
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its residual value is ₦20,000. Calculate the annual depreciation charge.
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 8 View Details
A government agency has the following transactions: Revenue: ₦100,000, Expenditure: ₦80,000, and Capital Expenditure: ₦20,000. Prepare a statement of financial performance.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 9 View Details
A company has the following balance sheet: Assets: ₦200,000, Liabilities: ₦100,000, and Capital: ₦50,000. Prepare a statement of financial position.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 10 View Details
A company uses the perpetual inventory system. The cost of goods sold is ₦150,000 and the net realizable value of the inventory is ₦80,000. Calculate the cost of goods sold.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 11 View Details
A partnership is formed between two individuals, A and B, with a capital of ₦1,000,000. After one year, the profit is ₦500,000. The profit-sharing ratio is 3:2. Calculate the amount of profit that A will receive.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 12 View Details
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. The company uses a perpetual inventory system. Calculate the cost of goods sold using the weighted average method.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 13 View Details
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. The company uses a perpetual inventory system. Calculate the cost of goods sold using the FIFO method.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 14 View Details
A company uses the LIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. The company uses a perpetual inventory system. Calculate the cost of goods sold using the LIFO method.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 15 View Details
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. The company uses a periodic inventory system. Calculate the cost of goods sold using the weighted average method.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 16 View Details
In a partnership with a 3:5:7 profit-sharing ratio, the total profit for the year is ₦1,500,000. If the profit for the year is divided in the ratio of 3:5:7, what is the amount of profit that will be shared by the partner with the 7:7 ratio?
Correct A. ₦210,000
B. ₦350,000
C. ₦420,000
D. ₦490,000

Correct Answer: A

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Question 17 View Details
A company issued 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount on the debentures.
A. ₦50,000
Correct B. ₦75,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 18 View Details
A manufacturing company uses the process costing method. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦1,200,000 and the Assembly department has a total cost of ₦1,500,000. If the total production cost for the year is ₦3,000,000, what is the cost per unit for the Cutting department?
A. ₦1,000
Correct B. ₦1,200
C. ₦1,500
D. ₦2,000

Correct Answer: B

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Question 19 View Details
A company maintains a cash book and bank reconciliation statement. The cash book balance on December 31 is ₦500,000 and the bank statement balance on December 31 is ₦600,000. If the bank reconciliation statement shows a difference of ₦20,000, what is the reason for the difference?
Correct A. Cheque deposited but not credited
B. Cheque issued but not presented
C. Bank charge not recorded
D. Interest earned on bank balance

Correct Answer: A

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Question 20 View Details
A company prepares its final accounts for the year ended December 31. The trading profit for the year is ₦1,200,000 and the non-trading income for the year is ₦300,000. If the company's tax rate is 25%, what is the amount of tax payable for the year?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 21 View Details
A company uses the perpetual inventory system. On January 1, 2020, it had 500 units of a product in stock, costing ₦120 each. During the year, 300 units were sold, and 200 units were purchased at ₦130 each. Calculate the cost of goods sold for the year.
A. ₦36,000
Correct B. ₦38,000
C. ₦40,000
D. ₦42,000

Correct Answer: B

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Question 22 View Details
A company has the following ledger accounts: Purchases (₦50,000), Sales (₦60,000), and Cost of Goods Sold (₦30,000). Prepare a trial balance.
Correct A. Purchases: ₦50,000, Sales: ₦60,000, Cost of Goods Sold: ₦30,000
B. Purchases: ₦60,000, Sales: ₦50,000, Cost of Goods Sold: ₦30,000
C. Purchases: ₦50,000, Sales: ₦60,000, Cost of Goods Sold: ₦40,000
D. Purchases: ₦60,000, Sales: ₦50,000, Cost of Goods Sold: ₦40,000

Correct Answer: A

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Question 23 View Details
A company uses the double-entry system. On January 1, 2020, it had the following ledger accounts: Cash (₦100,000), Accounts Payable (₦50,000), and Common Stock (₦200,000). Prepare the journal entries for the following transactions: (1) Purchased office supplies for ₦20,000, (2) Sold merchandise for ₦30,000, and (3) Issued common stock for ₦50,000.
Correct A. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
B. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000
C. (1) Debit Cash: ₦20,000, Credit Office Supplies: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
D. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000

Correct Answer: A

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Question 24 View Details
A company has the following ledger accounts: Sales (₦100,000), Cost of Goods Sold (₦50,000), and Gross Profit (₦50,000). Prepare a statement of profit or loss.
Correct A. Sales: ₦100,000, Cost of Goods Sold: ₦50,000, Gross Profit: ₦50,000
B. Sales: ₦50,000, Cost of Goods Sold: ₦100,000, Gross Profit: ₦50,000
C. Sales: ₦100,000, Cost of Goods Sold: ₦50,000, Gross Profit: ₦50,000
D. Sales: ₦50,000, Cost of Goods Sold: ₦50,000, Gross Profit: ₦0

Correct Answer: A

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Question 25 View Details
A company uses the self-balancing ledger system. On January 1, 2020, it had the following ledger accounts: Cash (₦100,000), Accounts Payable (₦50,000), and Common Stock (₦200,000). Prepare the journal entries for the following transactions: (1) Purchased office supplies for ₦20,000, (2) Sold merchandise for ₦30,000, and (3) Issued common stock for ₦50,000.
Correct A. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
B. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000
C. (1) Debit Cash: ₦20,000, Credit Office Supplies: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
D. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000

Correct Answer: A

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