POST UTME CALEB UNIVERSITY 2019 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet as at December 31, 20X8, shows the following:
Share Capital: ₦ 5,000,000; Retained Earnings: ₦ 3,000,000. The company's total equity is ₦ 8,000,000. Calculate the company's debt-to-equity ratio.
Question 2
A government agency is required to prepare a cash flow statement in accordance with the accrual basis of accounting. However, the agency's management has decided to prepare the cash flow statement on a cash basis. What is the effect of this change on the agency's financial statements?
Question 3
A company has a machine that cost ₦100,000 and has a useful life of 5 years. The machine is depreciated using the straight-line method. What is the annual depreciation expense for the machine?
Question 4
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
Question 5
A company's balance sheet shows a current ratio of 2:1. If the company has ₦1,500,000 in current assets and ₦750,000 in current liabilities, what is the company's quick ratio?
Question 6
A company uses the perpetual inventory system. If the company's beginning inventory is ₦50,000, its purchases during the period are ₦100,000, and its sales during the period are ₦150,000, what is the company's cost of goods sold?
Question 7
A government agency has a building that cost ₦500,000 and has a useful life of 10 years. The building is depreciated using the reducing balance method. What is the annual depreciation expense for the building?
Question 8
A company uses the perpetual inventory system. On January 1, the company had 100 units of inventory with a cost of ₦10 per unit. On January 15, the company purchased 50 units of inventory at ₦12 per unit. On February 1, the company sold 75 units of inventory. Calculate the cost of goods sold.
Question 9
A company's accounting policy requires that depreciation be calculated using the straight-line method. However, the company's management has decided to use the reducing balance method for tax purposes. What is the effect of this change on the company's financial statements?
Question 10
A partnership has two partners: John and Mary. John invests ₦50,000 and Mary invests ₦30,000. If the profit is divided in the ratio 2:1, how much will John receive?
Question 11
The management of a public sector organization is considering the adoption of a new accounting system. The system will use a combination of manual and computerized processes. What is the primary advantage of this hybrid system?
Question 12
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset is expected to be used for 5 years?
Question 13
A company uses the double entry system to record its transactions. If the company purchases goods worth ₦100,000 on credit, what is the effect on the accounting equation?
Question 14
A company's trial balance shows the following accounts: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Retained Earnings ₦100,000. Prepare the company's balance sheet.
Question 15
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a net income of ₦1,200,000, how much will partner A receive?
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