POST UTME CALEB UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business maintains a cash book and a general ledger. The cash book shows the following transactions:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A manufacturing company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials inventory has a cost of ₦100,000 and a quantity of 100 units. The work-in-progress inventory has a cost of ₦150,000 and a quantity of 50 units. The finished goods inventory has a cost of ₦200,000 and a quantity of 200 units. What is the total value of the inventory?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 3
A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦180,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦10,000 and a deposit in transit of ₦5,000. What is the correct balance of the company's cash book?
A. ₦190,000
B. ₦200,000
C. ₦210,000
D. ₦220,000
Question 4
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦20,000 and a deposit in transit of ₦10,000. What is the correct balance of the company's cash book?
A. ₦140,000
B. ₦150,000
C. ₦160,000
D. ₦170,000
Question 5
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. The profit for the year is ₦200,000. Calculate the share of profit for A.
A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦160,000
Question 6
A company's financial statements for the year ended December 31, 2016, are as follows: Profit before tax: ₦1,500,000; Tax expense: ₦300,000; Profit after tax: ₦1,200,000. Calculate the company's earnings per share (EPS) if the number of ordinary shares in issue is 200,000.
A. ₦6.00
B. ₦6.50
C. ₦7.00
D. ₦7.50
Question 7
A company has a control account for its cash account, which shows a balance of ₦50,000. The cash book shows a balance of ₦60,000. What is the likely reason for the discrepancy?
A. The company has not yet received the cash book.
B. The cash book has been incorrectly balanced.
C. The company has made an error in recording the transactions.
D. The cash account has been incorrectly posted to the control account.
Question 8
A company's balance sheet shows a non-current asset of ₦200,000 and a non-current liability of ₦180,000. The company's net working capital is:
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦20,000
Question 9
A company has the following transactions: Purchased goods for ₦100,000; sold goods for ₦120,000; and returned goods worth ₦10,000 to the supplier. Prepare the journal entries for these transactions.
A. Debit Purchases ₦100,000, Credit Returns Inwards ₦10,000
B. Debit Sales ₦120,000, Credit Returns Inwards ₦10,000
C. Debit Purchases ₦100,000, Credit Sales ₦120,000
D. Debit Returns Inwards ₦10,000, Credit Purchases ₦100,000
Question 10
A company purchases a building for ₦1,500,000 and depreciates it using the straight-line method over a useful life of 10 years. Calculate the annual depreciation charge if the building is expected to have a residual value of ₦150,000.
A. ₦135,000
B. ₦145,000
C. ₦155,000
D. ₦165,000
Question 11
A company's income statement for the year ended December 31, 2022, shows the following: Sales ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, and Net Profit ₦100,000. What is the gross profit margin?
A. 40%
B. 50%
C. 60%
D. 70%
Question 12
A business has the following balances in its ledger accounts:
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 13
A company's balance sheet shows a current asset of ₦150,000 and a current liability of ₦120,000. The company's working capital is:
A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦30,000
Question 14
A government agency has a fixed asset of ₦10 million, which is depreciated by 10% per annum. What is the carrying value of the asset after 3 years?
A. ₦7,100,000
B. ₦8,100,000
C. ₦9,100,000
D. ₦10,100,000
Question 15
A company's trial balance as at December 31, 2016, is as follows: Accounts Receivable: ₦500,000; Accounts Payable: ₦300,000; Common Stock: ₦1,000,000; Retained Earnings: ₦800,000. Prepare a balance sheet for the company as at December 31, 2016.
A. ₦2,300,000
B. ₦2,400,000
C. ₦2,500,000
D. ₦2,600,000

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