POST UTME CHRISTOPHER UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦800,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,300,000
C. ₦1,200,000
D. ₦1,000,000
Question 2
A manufacturing company has the following costs: Direct Materials ₦150,000, Direct Labor ₦100,000, and Manufacturing Overhead ₦50,000. Determine the total cost of production.
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 3
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦3,000,000 and its current liabilities are ₦1,500,000, what is the company's quick ratio?
A. 1:1
B. 1.5:1
C. 2:1
D. 3:1
Question 4
A company's balance sheet shows a current ratio of 2:1. If the current assets are ₦400,000 and the current liabilities are ₦200,000, what is the value of the non-current assets?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 5
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦100,000 (Cash) ₦50,000 (Accounts Receivable) ₦20,000 (Inventory) ₦30,000 (Prepaid Rent) ₦25,000 (Prepaid Insurance) ₦15,000 (Accrued Expenses) Liabilities: ₦80,000 (Accounts Payable) ₦40,000 (Notes Payable) ₦60,000 (Long-term Debt) Identify the type of account that is not a current asset.
A. Prepaid Rent
B. Prepaid Insurance
C. Accrued Expenses
D. Long-term Debt
Question 6
A company's trial balance as at 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Prepare the trading account.
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 7
A company uses the single entry system of accounting. The following transactions occurred during the year: Deposits: ₦100,000, ₦50,000, ₦20,000 Withdrawals: ₦30,000, ₦25,000, ₦15,000 Sales: ₦80,000, ₦40,000, ₦60,000 Purchases: ₦120,000, ₦90,000, ₦80,000 Calculate the net profit for the year.
A. ₦150,000
B. ₦120,000
C. ₦100,000
D. ₦80,000
Question 8
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method. The machine is expected to be sold for ₦50,000 at the end of its useful life.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 9
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 10
A company's balance sheet as at 31st December 2022 is as follows: Equity Share Capital: ₦500,000; Profit & Loss A/c: ₦200,000; Retained Earnings: ₦150,000. Prepare the equity section of the balance sheet.
A. ₦850,000
B. ₦950,000
C. ₦1,050,000
D. ₦1,150,000
Question 11
A company has the following trial balance: Debit ₦400,000, Credit ₦500,000. What is the correct treatment for the difference?
A. Debit the difference to the Profit and Loss Account
B. Credit the difference to the Profit and Loss Account
C. Debit the difference to the Capital Account
D. Credit the difference to the Capital Account
Question 12
A company has the following transactions in its trial balance: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦200,000, and Common Stock ₦300,000. Determine the net income of the company.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 13
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. After 2 years, A withdraws ₦50,000 and B introduces an additional ₦20,000. Calculate the new ratio of A's and B's capital.
A. 2:3
B. 3:2
C. 4:3
D. 5:4
Question 14
A company has the following incomplete records: Sales ₦500,000, Purchases ₦300,000. What is the correct method to determine the cost of goods sold?
A. Use the Direct Method
B. Use the Indirect Method
C. Use the Absorption Method
D. Use the Marginal Costing Method
Question 15
A government agency has the following transactions: Salaries ₦200,000, Rent ₦50,000, and Utilities ₦30,000. Determine the total expenses of the agency.
A. ₦280,000
B. ₦300,000
C. ₦320,000
D. ₦340,000

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