POST UTME BOWEN UNIVERSITY 2023 Accounting | Objective

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Question 1
A company's cash book shows a balance of ₦150,000. The bank statement shows a balance of ₦120,000. The difference is due to a dishonored cheque of ₦20,000. What is the correct journal entry to record the dishonored cheque?
Correct A. ₦20,000 Debit: Cash, ₦20,000 Credit: Dishonored Cheques
B. ₦20,000 Debit: Dishonored Cheques, ₦20,000 Credit: Cash
C. ₦20,000 Debit: Cash, ₦20,000 Credit: Bank
D. ₦20,000 Debit: Bank, ₦20,000 Credit: Cash

Correct Answer: A

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000. What is the correct formula to calculate the company's net income?
Correct A. Net Income = Sales Revenue - Cost of Goods Sold
B. Net Income = Sales Revenue - Cost of Goods Sold - Accounts Payable
C. Net Income = Sales Revenue - Cost of Goods Sold + Accounts Receivable
D. Net Income = Sales Revenue - Cost of Goods Sold - Accounts Receivable

Correct Answer: A

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Question 3
A company's balance sheet shows the following assets: Cash ₦50,000, Accounts Receivable ₦30,000, Inventory ₦100,000. What is the correct formula to calculate the company's total assets?
Correct A. Total Assets = Cash + Accounts Receivable + Inventory
B. Total Assets = Cash + Accounts Receivable - Inventory
C. Total Assets = Cash + Inventory - Accounts Receivable
D. Total Assets = Accounts Receivable + Inventory - Cash

Correct Answer: A

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Question 4
A company's financial statements show the following information: Net Income ₦50,000, Dividends ₦20,000, Retained Earnings ₦30,000. What is the correct journal entry to record the dividends?
Correct A. ₦20,000 Debit: Retained Earnings, ₦20,000 Credit: Dividends
B. ₦20,000 Debit: Dividends, ₦20,000 Credit: Retained Earnings
C. ₦20,000 Debit: Dividends, ₦20,000 Credit: Net Income
D. ₦20,000 Debit: Net Income, ₦20,000 Credit: Dividends

Correct Answer: A

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Question 5
A company's financial statements show the following information: Net Income ₦50,000, Depreciation Expense ₦20,000, Accumulated Depreciation ₦30,000. What is the correct journal entry to record the depreciation?
Correct A. ₦20,000 Debit: Depreciation Expense, ₦20,000 Credit: Accumulated Depreciation
B. ₦20,000 Debit: Accumulated Depreciation, ₦20,000 Credit: Depreciation Expense
C. ₦20,000 Debit: Depreciation Expense, ₦20,000 Credit: Net Income
D. ₦20,000 Debit: Net Income, ₦20,000 Credit: Depreciation Expense

Correct Answer: A

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Question 6
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: (1) Purchased office supplies for ₦10,000 cash. (2) Sold goods for ₦50,000 on credit. (3) Purchased a machine for ₦80,000 on credit. (4) Paid salaries of ₦30,000. What is the total debit balance in the ledger?
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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Question 7
The following is a trial balance for XYZ Company: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Accounts Payable | ₦0 | ₦10,000 | | Sales Revenue | ₦0 | ₦50,000 | | Cost of Goods Sold | ₦20,000 | ₦0 | | Net Income | ₦30,000 | ₦0 | What is the correct balance in the Cash account?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 8
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | ₦0 | | 5 Jan | Sales | ₦0 | ₦20,000 | | 10 Jan | Cash | ₦0 | ₦15,000 | What is the correct balance in the Cash account?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 9
A company's bank reconciliation statement shows the following: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank Balance | ₦10,000 | ₦0 | | 5 Jan | Bank Deposit | ₦0 | ₦20,000 | | 10 Jan | Bank Withdrawal | ₦0 | ₦15,000 | What is the correct balance in the Bank account?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 10
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Accounts Payable | ₦0 | ₦10,000 | | Sales Revenue | ₦0 | ₦50,000 | | Cost of Goods Sold | ₦20,000 | ₦0 | | Net Income | ₦30,000 | ₦0 | What is the correct balance in the Accounts Payable account?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 11
In a double-entry system, what is the purpose of the ledger?
A. To record all transactions
B. To prepare the trial balance
Correct C. To classify and summarize transactions
D. To prepare the balance sheet

Correct Answer: C

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Question 12
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries ₦20,000, Received cash from customers ₦30,000. What is the total amount of cash received?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 13
A government agency has the following transactions: Received revenue ₦50,000, Paid expenses ₦30,000, Transferred funds to another agency ₦20,000. What is the net increase in cash?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 14
A company has the following trial balance: Debit ₦50,000, Credit ₦60,000. What is the balance?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 15
A business has the following transactions: Purchased equipment for ₦100,000, Sold goods for ₦150,000. What is the net increase in assets?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 16
In a self-balancing ledger, what is the purpose of the 'Trial Balance'?
Correct A. To verify the accuracy of the ledger accounts
B. To identify any errors or discrepancies in the ledger
C. To prepare the financial statements
D. To reconcile the ledger with the bank statement

Correct Answer: A

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Question 17
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 3 hours of indirect labor, while Product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day, 5 days a week, and the direct labor cost is ₦50 per hour, what is the total weekly cost of direct labor for both products?
A. ₦12,500
Correct B. ₦15,000
C. ₦17,500
D. ₦20,000

Correct Answer: B

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Question 18
A company has a cash book that shows a balance of ₦100,000. The bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has deposited more cash than shown in the cash book
Correct B. The company has withdrawn more cash than shown in the cash book
C. The bank has charged a fee for the overdraft
D. The company has received an interest on the overdraft

Correct Answer: B

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Question 19
A company uses the double-entry system of accounting. What is the purpose of the 'Debit' and 'Credit' columns?
Correct A. To record the increase in assets and decrease in liabilities
B. To record the decrease in assets and increase in liabilities
C. To record the increase in liabilities and decrease in assets
D. To record the decrease in liabilities and increase in assets

Correct Answer: A

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Question 20
A company has a departmental account for the manufacturing department. The account shows a balance of ₦50,000. What is the purpose of this account?
A. To record the cost of goods sold
B. To record the depreciation of assets
Correct C. To record the profit or loss of the department
D. To record the increase in inventory

Correct Answer: C

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Question 21
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 the opening inventory is ₦300,000. If the company purchases additional inventory during the period for ₦800,000, what is the total cost of goods available for sale?
Correct A. ₦1,800,000
B. ₦1,700,000
C. ₦1,600,000
D. ₦1,900,000

Correct Answer: A

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Question 22
A partnership has two partners, A and B. Partner A invests ₦200,000 and Partner B invests ₦300,000. The profit-sharing ratio is 3:2. If the total profit for the year is ₦150,000, how much will Partner A receive?
Correct A. ₦90,000
B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: A

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Question 23
A company uses the straight-line method to depreciate its assets. The cost of the asset is ₦500,000, and the useful life is 5 years. If the asset is sold after 3 years for ₦250,000, what is the amount of depreciation for the 3rd year?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 24
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦100,000, and the general ledger shows a balance of ₦150,000. If the company's bank statement shows a balance of ₦120,000, what is the amount of the bank reconciliation difference?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 25
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 the opening inventory is ₦300,000. If the company purchases additional inventory during the period for ₦800,000, what is the total cost of goods available for sale?
Correct A. ₦1,800,000
B. ₦1,700,000
C. ₦1,600,000
D. ₦1,900,000

Correct Answer: A

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