POST UTME BOWEN UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a credit balance of ₦50,000. However, the bank statement shows a debit balance of ₦30,000. What is the reason for this discrepancy?
A. The company has not deposited the cash into the bank.
B. The company has not recorded a bank charge.
C. The company has not recorded a cash receipt.
D. The company has not recorded a cash payment.
Question 2
A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦150,000. What is the reason for this discrepancy?
A. The company has not recorded a sale.
B. The company has not recorded a purchase.
C. The company has not recorded a bank charge.
D. The company has not recorded a cash receipt.
Question 3
A company's financial statements show a net income of ₦200,000. However, the company's tax return shows a tax liability of ₦50,000. What is the reason for the difference?
A. The company has claimed a tax deduction of ₦50,000.
B. The company has paid a tax penalty of ₦50,000.
C. The company has received a tax refund of ₦50,000.
D. The company has not remitted the tax liability.
Question 4
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's capital account balance is ₦50,000. If A withdraws ₦10,000 from the partnership, what is the new balance of A's capital account?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 5
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Collected cash from customers of ₦80,000. What is the net change in cash?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 6
A company's financial statements show a net income of ₦300,000. However, the company's tax return shows a tax liability of ₦100,000. What is the reason for the difference?
A. The company has claimed a tax deduction of ₦100,000.
B. The company has paid a tax penalty of ₦100,000.
C. The company has received a tax refund of ₦100,000.
D. The company has not remitted the tax liability.
Question 7
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦50,000, what is the annual depreciation charge if the asset cost ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 8
A company has the following transactions: Purchased land for ₦500,000, and Sold goods for ₦200,000. What is the net change in assets?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 9
A company's balance sheet shows a current ratio of 1:1. However, the company's cash flow statement shows a positive cash flow from operations. What is the reason for the difference?
A. The company has invested in a new project.
B. The company has paid a dividend to its shareholders.
C. The company has received a loan from a bank.
D. The company has managed its working capital effectively.
Question 10
A company's trial balance shows a discrepancy of ₦1,500 between the debit and credit balances. The company's accounting records show that a payment of ₦2,000 was made to a supplier, but the supplier's invoice was not recorded in the accounts. The company's cash account shows a balance of ₦8,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦2,000, Credit Accounts Payable ₦2,000
B. Debit Accounts Payable ₦2,000, Credit Cash ₦2,000
C. Debit Cash ₦1,500, Credit Accounts Payable ₦1,500
D. Debit Accounts Payable ₦1,500, Credit Cash ₦1,500
Question 11
A company's balance sheet shows a current ratio of 2:1. However, the company's liquidity ratio is 1:1. What is the reason for this discrepancy?
A. The company has a high level of inventory.
B. The company has a high level of accounts payable.
C. The company has a high level of cash.
D. The company has a high level of accounts receivable.
Question 12
A company's cash book shows a balance of ₦100,000. However, the company's bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has deposited ₦20,000 into the bank.
B. The company has withdrawn ₦20,000 from the bank.
C. The bank has charged the company a fee of ₦20,000.
D. The company has received a credit of ₦20,000 from the bank.
Question 13
A company uses the accrual basis of accounting. If the company has accounts payable of ₦100,000 and accounts receivable of ₦80,000, what is the net change in working capital?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
A partnership has two partners, A and B. Partner A has a 60% interest in the profits and Partner B has a 40% interest. If the profits for the year are ₦120,000, how much will Partner A receive?
A. ₦72,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 15
A company's incomplete records show a cash balance of ₦100,000. However, the company's financial statements show a cash balance of ₦50,000. What is the reason for this discrepancy?
A. The company has not recorded a cash receipt.
B. The company has not recorded a cash payment.
C. The company has not recorded a bank charge.
D. The company has not recorded a cash deposit.

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