POST UTME CALEB UNIVERSITY 2023 Accounting | Objective

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Question 1 View Details
A company uses the double-entry system to record transactions. The journal entry for the purchase of office supplies on credit is debited to Office Supplies Expense and credited to Accounts Payable. What is the correct ledger account to debit?
Correct A. Office Supplies Expense
B. Accounts Payable
C. Cash
D. Office Supplies

Correct Answer: A

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Question 2 View Details
A company's trial balance shows a discrepancy of ₦1,500. What is the first step in correcting the error?
A. Reconcile the bank statement
B. Verify the journal entries
C. Reconcile the ledger accounts
Correct D. Check for errors in the trial balance

Correct Answer: D

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Question 3 View Details
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. What is the book value of the machine after 2 years?
A. ₦90,000
Correct B. ₦108,000
C. ₦120,000
D. ₦132,000

Correct Answer: B

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Question 4 View Details
A company's financial statements show a net income of ₦500,000. What is the accounting equation?
Correct A. Assets = Liabilities + Equity
B. Equity = Assets - Liabilities
C. Liabilities = Assets - Equity
D. Assets = Equity + Liabilities

Correct Answer: A

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Question 5 View Details
A government agency prepares a budget that includes a revenue of ₦1,000,000 and an expenditure of ₦800,000. What is the budget surplus?
Correct A. ₦200,000
B. ₦100,000
C. ₦0
D. ₦300,000

Correct Answer: A

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Question 6 View Details
A company's accounting policy requires that all assets be recorded at their historical cost. However, the company has recently adopted the revaluation model for its property, plant, and equipment (PP&E). What is the primary reason for adopting the revaluation model for PP&E?
Correct A. To reflect the current market value of the assets
B. To reduce the risk of obsolescence
C. To increase the company's tax liability
D. To improve the company's financial reporting

Correct Answer: A

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Question 7 View Details
A manufacturing company uses a job-order costing system. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 for direct materials and ₦80,000 for direct labor. The Assembly department incurs costs of ₦150,000 for direct materials and ₦100,000 for direct labor. What is the total cost of production for the company?
A. ₦450,000
Correct B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: B

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Question 8 View Details
A company's trial balance shows the following accounts: Accounts Payable ₦100,000, Accounts Receivable ₦150,000, and Common Stock ₦500,000. What is the total amount of the company's liabilities and equity?
A. ₦650,000
Correct B. ₦700,000
C. ₦750,000
D. ₦800,000

Correct Answer: B

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Question 9 View Details
A company's income statement shows the following revenues and expenses: Revenues ₦1,000,000, Cost of Goods Sold ₦600,000, and Operating Expenses ₦200,000. What is the company's net income?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 10 View Details
A company's balance sheet shows the following assets and liabilities: Cash ₦200,000, Accounts Payable ₦100,000, and Common Stock ₦500,000. What is the company's total assets?
A. ₦600,000
B. ₦700,000
C. ₦800,000
Correct D. ₦900,000

Correct Answer: D

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Question 11 View Details
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 320,000. Calculate the amount of share capital and the amount of share premium.
A. ₦320,000
B. ₦320,000
Correct C. ₦320,000
D. ₦320,000

Correct Answer: C

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Question 12 View Details
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare the company's income statement.
A. ₦50,000
B. ₦20,000
Correct C. ₦200,000
D. ₦150,000

Correct Answer: C

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Question 13 View Details
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 320,000. Calculate the amount of share capital and the amount of share premium.
A. ₦320,000
B. ₦320,000
Correct C. ₦320,000
D. ₦320,000

Correct Answer: C

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Question 14 View Details
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare the company's income statement.
A. ₦50,000
B. ₦20,000
Correct C. ₦200,000
D. ₦150,000

Correct Answer: C

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Question 15 View Details
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 320,000. Calculate the amount of share capital and the amount of share premium.
A. ₦320,000
B. ₦320,000
Correct C. ₦320,000
D. ₦320,000

Correct Answer: C

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Question 16 View Details
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records indicate that the rent was actually paid in advance. What is the correct treatment of this account?
A. Debit the account 'Rent Received' and credit the account 'Rent Paid'
Correct B. Credit the account 'Rent Received' and debit the account 'Rent Paid'
C. Debit the account 'Rent Received' and credit the account 'Cash'
D. Credit the account 'Rent Received' and debit the account 'Accrued Expenses'

Correct Answer: B

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Question 17 View Details
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit to be shared?
A. ₦12,000
B. ₦15,000
Correct C. ₦18,000
D. ₦20,000

Correct Answer: C

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Question 18 View Details
A company uses the straight-line method of depreciation. The cost of the asset is ₦120,000 and its useful life is 5 years. What is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 19 View Details
A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the total equity of the company?
A. ₦170,000
B. ₦180,000
Correct C. ₦190,000
D. ₦200,000

Correct Answer: C

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Question 20 View Details
A company has the following trial balance: Debit ₦80,000, Credit ₦60,000. What is the correct treatment of this account?
A. Debit the account and credit the account 'Accrued Expenses'
Correct B. Credit the account and debit the account 'Accrued Expenses'
C. Debit the account and credit the account 'Cash'
D. Credit the account and debit the account 'Rent Paid'

Correct Answer: B

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Question 21 View Details
A company's accounting policy requires that depreciation be calculated using the straight-line method. If the company purchased a machine for ₦1,500,000 and it has a useful life of 5 years, what is the annual depreciation charge?
A. ₦300,000
Correct B. ₦150,000
C. ₦75,000
D. ₦30,000

Correct Answer: B

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Question 22 View Details
A company has the following transactions: Purchased office supplies for ₦50,000, Paid salaries of ₦200,000, and Collected cash from customers of ₦300,000. What is the net increase in cash?
A. ₦50,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 23 View Details
A company's trial balance has the following accounts: Accounts Payable ₦100,000, Accounts Receivable ₦50,000, and Common Stock ₦500,000. What is the total equity of the company?
A. ₦550,000
Correct B. ₦600,000
C. ₦650,000
D. ₦700,000

Correct Answer: B

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Question 24 View Details
A company has the following transactions: Issued 1,000 shares of ₦10 par value at ₦15 per share, and Purchased equipment for ₦200,000. What is the total amount of cash received from the issuance of shares?
A. ₦15,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 25 View Details
A company's balance sheet has the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦500,000. What is the total assets of the company?
A. ₦550,000
Correct B. ₦600,000
C. ₦650,000
D. ₦700,000

Correct Answer: B

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