POST UTME CALEB UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 2
A company uses the double-declining balance method of depreciation for its assets. If the asset's cost is ₦50,000 and its residual value is ₦10,000, what is the annual depreciation charge if the asset's useful life is 5 years?
A. ₦₦20,000
B. ₦₦25,000
C. ₦₦30,000
D. ₦₦35,000
Question 3
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, how many units of product X and Y should the company produce?
A. 10 units of X and 8 units of Y
B. 12 units of X and 6 units of Y
C. 15 units of X and 9 units of Y
D. 18 units of X and 12 units of Y
Question 4
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, what is the amount of the share premium account?
A. ₦₦5,000
B. ₦₦10,000
C. ₦₦15,000
D. ₦₦20,000
Question 5
A company's trading account for the year ended 31st December 2020 is as follows: Debit: Sundry expenses: ₦50,000 Depreciation: ₦20,000 Credit: Sales: ₦500,000 Cost of goods sold: ₦300,000 Determine the net profit for the year.
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 6
A company has the following single-entry accounting system: Cash ₦100,000, Accounts Payable ₦50,000. What is the total assets of the company?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 7
A company has two departments: Manufacturing and Sales. The Manufacturing department has a cost of goods sold of ₦1,500,000 and a direct labor cost of ₦800,000. The Sales department has a cost of goods sold of ₦2,000,000 and a direct labor cost of ₦1,200,000. What is the total cost of goods sold for the company?
A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000
Question 8
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. The difference of ₦30,000 is due to a bank error. What is the correct balance in the cash book?
A. ₦150,000
B. ₦180,000
C. ₦160,000
D. ₦170,000
Question 9
A government agency is required to prepare a public sector financial statement. Which of the following financial statements is NOT required?
A. Statement of Financial Position
B. Statement of Comprehensive Income
C. Statement of Changes in Equity
D. Statement of Cash Flows
Question 10
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 11
A company prepares a trading account for the year ended December 31, 2021. The company's sales revenue is ₦500,000 and its cost of goods sold is ₦350,000. What is the company's gross profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from tenants. What is the correct journal entry to correct the error?
A. ₦15,000 debit to Rent Received and ₦15,000 credit to Cash
B. ₦15,000 debit to Cash and ₦15,000 credit to Rent Received
C. ₦15,000 debit to Rent Received and ₦15,000 credit to Profit or Loss on Disposal of Assets
D. ₦15,000 debit to Profit or Loss on Disposal of Assets and ₦15,000 credit to Rent Received
Question 13
A company's profit and loss account for the year ended 31st December 2020 is as follows: Trading account: ₦500,000 ₦300,000 ₦200,000 ₦100,000 ₦50,000 Determine the net profit for the year.
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 14
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the partnership's net income for the year is ₦120,000, how much will each partner receive?
A. ₦36,000 and ₦24,000
B. ₦42,000 and ₦28,000
C. ₦48,000 and ₦32,000
D. ₦54,000 and ₦36,000
Question 15
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's financial statements show a credit balance of ₦20,000 for the same account. What is the likely cause of this discrepancy?
A. The company has not recorded the rent expense for the current period.
B. The company has recorded the rent expense for the previous period but not yet paid it.
C. The company has recorded the rent expense for the current period but has not yet matched it with the corresponding credit entry.
D. The company has not recorded the rent expense for the previous period but has already paid it.

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