POST UTME BSU 2018 Accounting | Objective

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Question 1
In a partnership account, the capital of a partner who withdraws cash from the business is reduced by the amount withdrawn. However, if the partner's capital is reduced by the amount withdrawn, and the partner's share of profits is reduced by the same amount, what is the effect on the partner's capital account?
Correct A. The partner's capital account is reduced by the amount withdrawn.
B. The partner's capital account is increased by the amount withdrawn.
C. The partner's capital account remains unchanged.
D. The partner's capital account is reduced by the amount withdrawn, but the partner's share of profits is increased by the same amount.

Correct Answer: A

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Question 2
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦10,000, but the general ledger shows a balance of ₦12,000. What is the reason for the difference?
A. The cash book is not up-to-date.
B. The general ledger is not up-to-date.
Correct C. The cash book and general ledger are both up-to-date, but there is a difference in the accounting treatment of a particular transaction.
D. The cash book and general ledger are both up-to-date, but there is a difference in the accounting treatment of a particular asset.

Correct Answer: C

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Question 3
A company uses a double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect on the company's cash account?
Correct A. The company's cash account is debited by ₦10,000.
B. The company's cash account is credited by ₦10,000.
C. The company's cash account remains unchanged.
D. The company's cash account is debited by ₦10,000, and the company's accounts payable account is credited by ₦10,000.

Correct Answer: A

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Question 4
A company uses a self-balancing ledger. The following transactions are recorded in the ledger: Debit Accounts Receivable ₦10,000, Credit Sales ₦10,000. What is the effect on the company's accounts receivable account?
Correct A. The company's accounts receivable account is debited by ₦10,000.
B. The company's accounts receivable account is credited by ₦10,000.
C. The company's accounts receivable account remains unchanged.
D. The company's accounts receivable account is debited by ₦10,000, and the company's sales account is credited by ₦10,000.

Correct Answer: A

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Question 5
A company uses a single-entry system of accounting. The following transactions are recorded in the ledger: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect on the company's cash account?
Correct A. The company's cash account is debited by ₦10,000.
B. The company's cash account is credited by ₦10,000.
C. The company's cash account remains unchanged.
D. The company's cash account is debited by ₦10,000, and the company's accounts payable account is credited by ₦10,000.

Correct Answer: A

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Question 6
A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 7
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. What is the net income?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 8
A company uses the weighted average method to value its inventory. The following data is available: Cost of Goods Available for Sale ₦300,000, Beginning Inventory ₦100,000, Purchases ₦200,000. What is the cost of goods sold?
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 9
A company's balance sheet shows the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000. What is the total liabilities and equity?
A. ₦170,000
B. ₦180,000
Correct C. ₦190,000
D. ₦200,000

Correct Answer: C

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Question 10
A company's income statement shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Operating Expenses ₦100,000. What is the net income?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 11
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their current capital. If the capital of the remaining partners is in the ratio 3:5 and the total capital of the remaining partners is ₦150,000, what is the capital of the partner who left the business?
A. ₦30,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 12
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦250,000, what is the amount received from the issue of shares?
A. ₦200,000
Correct B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: B

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Question 13
A manufacturing company produces two products, A and B. The selling price of A is ₦100 per unit and the selling price of B is ₦150 per unit. If the company produces 500 units of A and 300 units of B, and the total cost of production is ₦120,000, what is the profit made by the company?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 14
A company's trading account shows a profit of ₦50,000. If the company's profit and loss account shows a net profit of ₦70,000, and the company's balance sheet shows a net worth of ₦200,000, what is the amount of dividends paid to shareholders?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 15
A company issues 5,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦250,000, and the company's balance sheet shows a net worth of ₦150,000, what is the amount of dividends paid to shareholders?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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