POST UTME CALEB UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
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
Question 2
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
C. ₦190,000
D. ₦200,000
Question 3
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
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 4
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
B. ₦108,000
C. ₦120,000
D. ₦132,000
Question 5
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
C. ₦200,000
D. ₦150,000
Question 6
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
C. ₦18,000
D. ₦20,000
Question 7
A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset's original cost is ₦10,000, what is its value after 2 years?
A. ₦8,100
B. ₦8,200
C. ₦8,300
D. ₦8,400
Question 8
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'
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'
Question 9
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦150,000, Cost of Goods Sold ₦80,000. Prepare a statement of financial position for the company.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 10
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?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 11
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
D. Check for errors in the trial balance
Question 12
A company's bank statement shows the following transactions:
A. ₦2,000
B. ₦1,500
C. ₦1,200
D. ₦1,800
Question 13
A company's cash book shows the following transactions:
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 14
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
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 15
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
B. ₦600,000
C. ₦650,000
D. ₦700,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: