POST UTME BSU 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December shows the following: | Particulars | Debit | Credit | | --- | --- | --- | | Sales | ₦500,000 | | | Purchases | | ₦350,000 | | Returns Outwards | ₦20,000 | | | Returns Inwards | | ₦15,000 | What is the gross profit?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 2
A company's income statement shows the following accounts: Sales ₦2,000,000, Cost of Goods Sold ₦1,200,000, Gross Profit ₦800,000, Operating Expenses ₦200,000, and Net Income ₦600,000. What is the gross profit margin?
A. 40%
B. 30%
C. 20%
D. 10%
Question 3
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. If the partnership incurred a loss of ₦120,000, how much will A's share of the loss be?
A. ₦120,000
B. ₦90,000
C. ₦60,000
D. ₦30,000
Question 4
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,500,000; Capital: ₦1,000,000. Calculate the debt-equity ratio.
A. 1.67
B. 2.00
C. 2.33
D. 3.00
Question 5
A company's profit and loss account for the year ended December 31, 2022, shows a net profit of ₦200,000. The company's balance sheet as at December 31, 2022, shows total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's return on equity (ROE) for the year?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A government agency is required to prepare a budget for the upcoming fiscal year. The budget must include a detailed breakdown of projected revenues and expenditures. Which of the following types of budgets is most suitable for this purpose?
A. Zero-based budget
B. Incremental budget
C. Program budget
D. Performance budget
Question 7
A company uses the double-entry system of accounting. The company's ledger shows the following transactions: Debit Cash ₦1,000, Credit Accounts Payable ₦1,000. What is the effect of this transaction on the company's financial position?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases assets
D. Has no effect on the company's financial position
Question 8
A company's balance sheet shows the following accounts: Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦1,000,000, and Retained Earnings ₦300,000. What is the total equity of the company?
A. ₦1,800,000
B. ₦1,500,000
C. ₦1,200,000
D. ₦1,000,000
Question 9
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000
Question 10
A company's balance sheet shows a current asset of ₦50,000 and a current liability of ₦30,000. What is the net working capital?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A company's balance sheet as at December 31, 2022, shows total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦800,000
C. ₦1,000,000
D. ₦1,500,000
Question 12
A company's trial balance shows an error of ₦10,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the income statement. What is the correct procedure to rectify this error?
A. Adjust the trial balance by debiting the incorrect account and crediting the correct account.
B. Prepare a new trial balance after rectifying the error.
C. Reconcile the trial balance with the general ledger.
D. Restate the financial statements for the period.
Question 13
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | ₦8,000 | | | 4th Jan | Bank | | ₦12,000 | What is the balance in the cash book?
A. ₦2,000
B. ₦4,000
C. ₦6,000
D. ₦8,000
Question 14
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00
Question 15
Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, using the straight-line method. The machine is expected to be sold for ₦20,000 after 5 years.
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000

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