POST UTME CALEB UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchased a machine for ₦200,000 and it is expected to have a useful life of 5 years. Calculate the annual depreciation using the straight-line method.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 2
A partnership consists of three partners, A, B, and C. The capital contributions of the partners are as follows: A ₦100,000, B ₦80,000, and C ₦120,000. The profit-sharing ratio is 3:2:1. What is the total profit of the partnership if the total profit is ₦150,000?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 3
A company has two departments: Manufacturing and Sales. The Manufacturing department has a balance of ₦120,000, and the Sales department has a balance of ₦80,000. If the company's total assets are ₦400,000, what is the balance of the Administration department?
A. ₦100,000
B. ₦120,000
C. ₦80,000
D. ₦0
Question 4
A company uses the double-entry system to record its transactions. The company has the following accounts: Cash, Accounts Payable, and Common Stock. The company's ledger is balanced as follows: Cash = ₦1000, Accounts Payable = ₦500, and Common Stock = ₦2000. What is the total value of the company's assets?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 5
A company uses the double-entry system to record transactions. The journal entry for the purchase of equipment on credit is as follows: Debit Equipment 10,000 and Credit Accounts Payable 10,000. What is the effect of this transaction on the accounting equation?
A. Increases Assets and Decreases Liabilities
B. Increases Assets and Increases Liabilities
C. Decreases Assets and Decreases Liabilities
D. Decreases Assets and Increases Liabilities
Question 6
A company uses a double-entry system to record its transactions. What is the purpose of the trial balance?
A. To prepare the financial statements
B. To identify and correct errors in the accounting records
C. To determine the company's net income
D. To calculate the company's tax liability
Question 7
A company has the following balance sheet as of December 31, 2022: Assets ₦500,000; Liabilities ₦200,000; Equity ₦300,000. What is the company's return on equity (ROE) for the year?
A. 0.6
B. 0.7
C. 0.8
D. 0.9
Question 8
A company issued 5,000, 10% debentures of ₦100 each at a premium of ₦10. Calculate the amount received from the issue of debentures.
A. ₦500,000
B. ₦525,000
C. ₦550,000
D. ₦575,000
Question 9
A company purchased a machine for ₦500,000 and it is expected to have a useful life of 5 years. Calculate the annual depreciation using the reducing balance method.
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 10
A company has two departments: Manufacturing and Sales. The Manufacturing department has a balance of ₦120,000, and the Sales department has a balance of ₦80,000. If the company's total assets are ₦400,000, what is the balance of the Administration department?
A. ₦100,000
B. ₦120,000
C. ₦80,000
D. ₦0
Question 11
A company has the following trial balance: Accounts Receivable 50,000, Accounts Payable 30,000, and Common Stock 100,000. What is the total amount of assets?
A. 80,000
B. 120,000
C. 180,000
D. 220,000
Question 12
A partnership is dissolved when a partner dies. What is the accounting treatment for the deceased partner's share of the firm's assets and liabilities?
A. The deceased partner's share is written off against the firm's capital account.
B. The deceased partner's share is transferred to the firm's profit and loss account.
C. The deceased partner's share is distributed to the remaining partners in proportion to their capital.
D. The deceased partner's share is sold to a third party at the current market value.
Question 13
A company uses a single-entry system to record its transactions. The company's trial balance as of December 31, 2022, is as follows: Cash ₦100,000; Accounts Receivable ₦50,000; Inventory ₦80,000; Equipment ₦200,000; Accumulated Depreciation ₦20,000; Accounts Payable ₦30,000; Salaries Payable ₦10,000. What is the company's net worth as of December 31, 2022?
A. ₦250,000
B. ₦270,000
C. ₦290,000
D. ₦310,000
Question 14
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 15
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from the issue of preference shares.
A. ₦100,000
B. ₦120,000
C. ₦140,000
D. ₦160,000

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