POST UTME BSU 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchased a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A company uses the weighted average method to value its inventory. The following data is available: Cost of goods available for sale: ₦1,500,000; Net realizable value of ending inventory: ₦1,200,000. What is the cost of goods sold?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,100,000
Question 3
A company's Trial Balance shows an error of £ 1,000 in the debit side of the Sales Account. The error is due to an incorrect posting of £ 1,000 from the Sales Account to the Purchases Account. Prepare the necessary journal entry to correct the error.
A. Debit Sales Account £ 1,000, Credit Purchases Account £ 1,000
B. Debit Purchases Account £ 1,000, Credit Sales Account £ 1,000
C. Debit Sales Account £ 1,000, Credit Bank Account £ 1,000
D. Debit Purchases Account £ 1,000, Credit Sales Account £ 1,000
Question 4
A company issued 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 5
A sole proprietorship business has the following transactions for the year ended December 31, 2020: Cash received from customers: ₦500,000 Cash paid to suppliers: ₦300,000 Cash paid to employees: ₦200,000 Cash received from loans: ₦100,000 Cash paid to loans: ₦50,000 Calculate the net cash flow for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦150,000; Purchased office supplies for ₦20,000. What is the total cost of goods sold?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 7
A manufacturing company uses a job costing system. The company has a direct material cost of ₦50,000 and direct labor cost of ₦30,000. If the company uses a factory overhead rate of 150% of direct labor cost, calculate the total cost of production.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 8
A company has a capital of ₦1,000,000 and a reserve of ₦200,000. If it issues 10,000 shares of ₦10 each at a premium of ₦5 per share, calculate the amount received from the issue of shares.
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 9
A company's bank reconciliation statement shows a difference of ₹5,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₹50,000. What is the correct bank statement balance?
A. ₹55,000
B. ₹50,000
C. ₹45,000
D. ₹40,000
Question 10
A company has a capital of ₦500,000 divided into 100,000 ordinary shares of ₦5 each. If the company issues 10,000 shares at a premium of ₦2, calculate the new capital.
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦1,000,000
Question 11
A company's trial balance shows the following balances: Accounts Payable ₹50,000, Sales ₹1,50,000, Cost of Goods Sold ₹75,000, and Common Stock ₹1,00,000. What is the correct balance of the company's retained earnings?
A. ₹25,000
B. ₹50,000
C. ₹75,000
D. ₹1,00,000
Question 12
A government agency received a grant of ₦5,000,000 for a project. The grant was received on January 1, 2020, and the project was completed on December 31, 2020. Calculate the amount of the grant that should be recognized as revenue for the year 2020.
A. ₦4,000,000
B. ₦4,500,000
C. ₦5,000,000
D. ₦5,500,000
Question 13
A company has a balance sheet as follows: ₦100,000 in cash, ₦50,000 in accounts receivable, ₦20,000 in inventory, ₦30,000 in prepaid expenses, and ₦10,000 in long-term investments. If the company has a total liabilities of ₦150,000, calculate the amount of long-term investments.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company's Trial Balance shows an error of £ 2,500 in the debit side of the Purchases Account. The error is due to an incorrect posting of £ 2,500 from the Purchases Account to the Sales Account. Prepare the necessary journal entry to correct the error.
A. Debit Purchases Account £ 2,500, Credit Sales Account £ 2,500
B. Debit Sales Account £ 2,500, Credit Purchases Account £ 2,500
C. Debit Purchases Account £ 2,500, Credit Bank Account £ 2,500
D. Debit Sales Account £ 2,500, Credit Purchases Account £ 2,500
Question 15
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦500,000

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