POST UTME CHRISTOPHER UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system to record transactions. If the company purchases office equipment for ₦150,000 cash, what is the accounting equation after the transaction?
A. ₦150,000
B. ₦0
C. ₦300,000
D. ₦250,000
Question 2
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 3
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦100,000. What is the reason for the difference?
A. Bank charges
B. Cheques deposited but not yet credited
C. Cheques issued but not yet debited
D. Interest earned
Question 4
A company's ledger accounts are as follows: Purchases ₦10,000, Sales ₦15,000, Returns Outwards ₦1,000, Returns Inwards ₦500. What is the correct journal entry to record the above transactions?
A. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500
B. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000
C. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500
D. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000
Question 5
A company has a cash book account with a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The bank reconciliation statement reveals a difference of ₦5,000. What is the reason for the difference?
A. Bank charges
B. Interest on overdraft
C. Unrecorded cash sales
D. Unrecorded cash purchases
Question 6
A company's ledger accounts are as follows: Purchases ₦10,000, Sales ₦15,000, Returns Outwards ₦1,000, Returns Inwards ₦500. What is the correct journal entry to record the above transactions?
A. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500
B. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000
C. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500
D. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000
Question 7
A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦60,000. What is the reason for the discrepancy?
A. The company has made an error in its trading account.
B. The company has made an error in its profit and loss account.
C. The company has made an error in its balance sheet.
D. The company's profit and loss account is not up-to-date.
Question 8
A company prepares a trial balance that includes the following accounts:
A. Cash, Accounts Payable, Sales Revenue
B. Accounts Payable, Sales Revenue, Cost of Goods Sold
C. Cash, Sales Revenue, Cost of Goods Sold
D. Accounts Payable, Cost of Goods Sold, Sales Revenue
Question 9
A company's balance sheet showed a decrease in stock of ₦500,000. The company's profit and loss account showed a net profit of ₦2,000,000. The company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. Calculate the company's net profit for the year.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 10
A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦10,000, what is the annual depreciation charge?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 11
A company's cash book shows the following transactions: Cash received from customers ₦50,000, Cash paid to suppliers ₦30,000. What is the net effect on the cash balance?
A. ₦20,000
B. ₦10,000
C. ₦0
D. ₦-20,000
Question 12
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The company's profit and loss account showed a net profit of ₦2,000,000. The company's balance sheet showed a decrease in stock of ₦500,000. Calculate the company's net profit for the year.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 13
A company uses the double-entry system of accounting. The journal entry for the purchase of equipment is:
A. Debit Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Equipment ₦50,000, Credit Bank ₦50,000
C. Debit Bank ₦50,000, Credit Equipment ₦50,000
D. Debit Cash ₦50,000, Credit Bank ₦50,000
Question 14
A company uses the double entry system to record transactions. If the company purchases office equipment for ₦50,000, what is the effect on the accounting equation?
A. Assets increase by ₦50,000 and Liabilities increase by ₦50,000
B. Assets increase by ₦50,000 and Equity increases by ₦50,000
C. Assets decrease by ₦50,000 and Liabilities decrease by ₦50,000
D. Assets decrease by ₦50,000 and Equity decreases by ₦50,000
Question 15
A company's assets are valued at ₦100,000. The company depreciates its assets by 10% each year. What is the value of the company's assets after 5 years?
A. ₦61,610
B. ₦63,210
C. ₦65,810
D. ₦68,410

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