POST UTME BOWEN UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements for the year ended December 31, 2021, are as follows: Revenue ₦5,000,000, Cost of Goods Sold ₦3,500,000, Gross Profit ₦1,500,000, Operating Expenses ₦800,000, Net Profit ₦700,000. Prepare the company's statement of cash flows for the year.
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,200,000
Question 2
A company uses the double-declining balance method of depreciation. The cost of a machine is ₦200,000 and its useful life is 5 years. What is the annual depreciation charge?
A. ₦40,000
B. ₦30,000
C. ₦25,000
D. ₦20,000
Question 3
A company's trial balance at the end of the year shows the following balances: ₦100,000 in the cash account, ₦50,000 in the accounts payable account, and ₦20,000 in the loan payable account. Prepare the company's balance sheet at the end of the year, assuming that the company uses the single entry system.
A. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan payable
B. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in bank loan
C. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan due
D. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in bank overdraft
Question 4
A company's trial balance shows the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Cost of Goods Sold | | ₦80,000 | | Operating Expenses | | ₦20,000 | | Net Income | | | What is the net income of the company?
A. ₦0
B. ₦10,000
C. ₦20,000
D. ₦30,000
Question 5
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchase of office equipment | 10,000 | | | 1st Jan | Purchase of office supplies | 2,000 | | | 2nd Jan | Sale of goods | | 15,000 | | 2nd Jan | Purchase of raw materials | | 8,000 | What is the net effect of these transactions on the company's cash balance?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 6
A company uses the straight-line method of depreciation. The cost of a machine is ₦150,000 and its useful life is 5 years. What is the annual depreciation charge?
A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000
Question 7
A public sector organization has an incomplete record of its transactions. The following information is available: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash received from customers | | 10,000 | | 1st Jan | Cash paid to suppliers | 8,000 | | | 2nd Jan | Cash received from customers | | 5,000 | | 2nd Jan | Cash paid to employees | 3,000 | | What is the total amount of cash received from customers?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 8
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 9
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchase of office equipment | 10,000 | | | 1st Jan | Purchase of office supplies | 2,000 | | | 2nd Jan | Sale of goods | | 15,000 | | 2nd Jan | Purchase of raw materials | | 8,000 | What is the net effect of these transactions on the company's cash balance?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 10
A company's balance sheet shows a current asset of ₦50,000 in the account 'Accounts Receivable' and a current liability of ₦30,000 in the account 'Accounts Payable'. What is the net working capital?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the company receives a cash payment of ₦50,000, what is the amount of the share premium account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 12
A company purchased a machine for ₦1,500,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, and the residual value is ₦200,000, what is the annual depreciation charge?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 13
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries Expense' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Salaries Expense and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries Expense
C. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Salaries Payable
D. ₦10,000 debit to Salaries Payable and ₦10,000 credit to Salaries Expense
Question 14
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. After one year, the profit is shared in the ratio 2:3. If A's drawings are ₦20,000 and B's drawings are ₦15,000, what is the amount of A's share of the profit?
A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000
Question 15
A company uses the single entry system to record its transactions. The company's trial balance at the end of the year shows the following balances: ₦100,000 in the cash account and ₦50,000 in the accounts payable account. The company also has a ₦20,000 loan from a bank that is due for repayment at the end of the year. Prepare the company's balance sheet at the end of the year, assuming that the company uses the double entry system.
A. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan payable
B. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in bank loan
C. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan due
D. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in bank overdraft

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