POST UTME BOWEN UNIVERSITY 2022 Accounting | Objective

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Question 1
A company purchases a machine for 10,000. The machine has an expected useful life of 5 years and a residual value of 2,000. Calculate the annual depreciation using the straight-line method.
A. 2,000
B. 2,500
C. 3,000
D. 3,500
Question 2
A partnership has the following capital accounts: Partner A 20,000, Partner B 30,000, and Partner C 10,000. If the partnership distributes 5,000 to each partner, what is the new balance of Partner A's capital account?
A. 25,000
B. 20,000
C. 15,000
D. 10,000
Question 3
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The company's cash book also shows a debit balance of ₦20,000 in the 'Office Equipment' account. The bank statement shows a credit balance of ₦15,000 in the same account. What is the correct balance in the 'Office Equipment' account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 4
A company uses the double entry system to record transactions. If the company purchases goods for ₦200,000 and pays cash of ₦150,000, what is the amount of the purchase on account?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 5
A company prepares a balance sheet as of December 31, 2022. The balance sheet shows the following balances:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Accounts Receivable 1,000 and Credit Cash 1,000
D. Debit Cash 1,000 and Credit Accounts Payable 1,000
Question 6
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit sharing ratio is 3:2. The profit for the year is ₦120,000. Calculate the profit to be distributed to A
A. ₦90,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 7
A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the value of the machine after 2 years?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 8
A company's cash book shows a debit balance of ₦120,000. The bank statement shows a credit balance of ₦150,000. The difference between the two balances is due to a
A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦30,000
Question 9
A company has the following trial balance: Debit Credit 10,000 12,000. What is the correct balance of the company's equity?
A. 22,000
B. 18,000
C. 20,000
D. 24,000
Question 10
A company has the following incomplete records: Cash 10,000, Accounts Payable 5,000, and Sales 20,000. What is the net effect on the company's cash balance?
A. 15,000 increase
B. 5,000 decrease
C. 10,000 increase
D. 20,000 decrease
Question 11
In a self-balancing ledger, the control account is the account that is used to record the total of all the subsidiary accounts. Which of the following is a characteristic of a control account?
A. It is a nominal account.
B. It is a real account.
C. It is a temporary account.
D. It is a permanent account.
Question 12
A company has the following control accounts: Cash, Accounts Payable, and Accounts Receivable. If the company has a cash balance of ₦500,000, accounts payable of ₦200,000, and accounts receivable of ₦300,000, what is the total value of the control accounts?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,500,000
Question 13
A company's bank reconciliation statement shows the following balances: Bank Statement Balance ₦150,000, Cash Book Balance ₦120,000. The difference between the two balances is due to a
A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦30,000
Question 14
A government agency has the following transactions: Cash received from taxpayers ₦100,000, Cash paid to suppliers ₦80,000, Cash received from interest on investments ₦20,000. Prepare the government agency's cash flow statement
A. ₦40,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 15
A company's balance sheet shows the following balances: Cash ₦50,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

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