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POST UTME BSU 2022 Accounting | Objective

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Question 1

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.

Correct A. ₦12,500

B. ₦15,000

C. ₦17,500

D. ₦20,000

Correct Answer: A

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Question 2

A partnership has two partners, A and B. The profit-sharing ratio is 3:2. If the total profit is ₦120,000, calculate the amount of profit that will be shared by partner A.

Correct A. ₦90,000

B. ₦80,000

C. ₦70,000

D. ₦60,000

Correct Answer: A

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Question 3

A company has a cash book balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. Calculate the cash book balance after the bank overdraft is cleared.

Correct A. ₦60,000

B. ₦50,000

C. ₦40,000

D. ₦30,000

Correct Answer: A

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Question 4

A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 2,000 debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.

A. ₦12,500

B. ₦15,000

C. ₦17,500

Correct D. ₦20,000

Correct Answer: D

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Question 5

A company has a cash book balance of ₦30,000. The bank statement shows a balance of ₦40,000. The difference is due to a bank overdraft of ₦10,000. Calculate the cash book balance after the bank overdraft is cleared.

Correct A. ₦40,000

B. ₦30,000

C. ₦20,000

D. ₦10,000

Correct Answer: A

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Question 6

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

Correct B. ₦24,000

C. ₦28,000

D. ₦32,000

Correct Answer: B

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Question 7

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

Correct B. ₦5,500.00

C. ₦5,500.00

D. ₦5,500.00

Correct Answer: B

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Question 8

A company's balance sheet shows an increase in current liabilities of ₦50,000 and a decrease in current assets of ₦20,000. Calculate the net increase in working capital.

A. ₦30,000

Correct B. ₦30,000.00

C. ₦30,000.00

D. ₦30,000.00

Correct Answer: B

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Question 9

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦5,000 | | 3rd Jan | Cash | | ₦8,000 | Calculate the bank balance on 3rd Jan.

A. ₦2,000

Correct B. ₦2,000.00

C. ₦2,000.00

D. ₦2,000.00

Correct Answer: B

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Question 10

A company issued 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. Calculate the total amount received from the issue of debentures.

A. ₦500,000

Correct B. ₦500,000.00

C. ₦500,000.00

D. ₦500,000.00

Correct Answer: B

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Question 11

A company uses the cash book to record all cash transactions. However, the cash book is not balanced. The trial balance shows a discrepancy of ₦1,500. The company's accountant suspects that the discrepancy is due to an error in the cash book. Which of the following steps should the accountant take to correct the error?

A. Reconcile the bank statement with the cash book

Correct B. Verify the cash book entries for the past month

C. Check the cash book for any unrecorded transactions

D. Reconcile the cash book with the general ledger

Correct Answer: B

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Question 12

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

Correct D. Performance budget

Correct Answer: D

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Question 13

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

Correct C. Increases liabilities and decreases assets

D. Has no effect on the company's financial position

Correct Answer: C

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Question 14

A company's bank statement shows a balance of ₦10,000. The company's cash book shows a balance of ₦12,000. What is the reason for the discrepancy?

A. Bank charges

B. Unrecorded deposit

Correct C. Unrecorded withdrawal

D. Bank error

Correct Answer: C

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Question 15

A company uses the single-entry system of accounting. The company's journal shows the following transaction: Debit Cash ₦1,000. What is the effect of this transaction on the company's financial position?

Correct A. Increases assets

B. Decreases assets

C. Increases liabilities

D. Decreases liabilities

Correct Answer: A

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Question 16

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

Correct C. ₦1,000,000

D. ₦1,050,000

Correct Answer: C

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Question 17

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

Correct D. ₦8,000

Correct Answer: D

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Question 18

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

Correct C. ₦180,000

D. ₦200,000

Correct Answer: C

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Question 19

A. ₦200,000

B. ₦300,000

C. ₦400,000

Correct D. ₦500,000

Correct Answer: D

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Question 20

The following is a diagram of a company's balance sheet: { "type": "svg", "category": "accounting", "elements": [ { "type": "asset", "label": "A", "position": "left" }, { "type": "liability", "label": "B", "position": "right" }, { "type": "capital", "label": "C", "position": "center" } ], "connections": [], "style": "black_and_white_textbook" } What is the amount of shareholders' funds?

A. ₦200,000

B. ₦300,000

C. ₦400,000

Correct D. ₦500,000

Correct Answer: D

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Question 21

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

Correct B. ₦90,000

C. ₦60,000

D. ₦30,000

Correct Answer: B

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Question 22

A company uses the straight-line method of depreciation for its assets. If the asset's original cost is ₦1,000,000 and its residual value is ₦200,000, what is the annual depreciation charge?

Correct A. ₦400,000

B. ₦300,000

C. ₦200,000

D. ₦100,000

Correct Answer: A

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Question 23

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?

Correct A. ₦1,800,000

B. ₦1,500,000

C. ₦1,200,000

D. ₦1,000,000

Correct Answer: A

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Question 24

A company uses the weighted average method to value its inventory. If the total cost of the inventory is ₦1,500,000 and the number of units is 1,000, what is the cost per unit?

Correct A. ₦1,500

B. ₦1,200

C. ₦1,000

D. ₦800

Correct Answer: A

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Question 25

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?

Correct A. 40%

B. 30%

C. 20%

D. 10%

Correct Answer: A

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