POST UTME CHRISTOPHER UNIVERSITY 2023 Accounting | Objective

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Question 1
Determine the correct journal entry for the following transaction: On January 1, 2023, Christopher University purchased a new building for ₦500,000,000. The building is expected to have a useful life of 10 years and a residual value of ₦50,000,000.
Correct A. Debit Building ₦500,000,000, Credit Cash ₦500,000,000
B. Debit Building ₦450,000,000, Credit Cash ₦450,000,000
C. Debit Building ₦500,000,000, Credit Cash ₦450,000,000
D. Debit Building ₦450,000,000, Credit Cash ₦450,000,000

Correct Answer: A

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Question 2
A company has the following trial balance: Debit ₦500,000, Credit ₦600,000. What is the correct treatment for the difference?
Correct 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

Correct Answer: A

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Question 3
A partnership has the following capital accounts: John ₦200,000, Mary ₦300,000. If John withdraws ₦50,000, what is the new balance of John's capital account?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 4
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
Correct B. Use the Indirect Method
C. Use the Absorption Method
D. Use the Marginal Costing Method

Correct Answer: B

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Question 5
A company has the following trial balance: Debit ₦400,000, Credit ₦500,000. What is the correct treatment for the difference?
Correct 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

Correct Answer: A

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Question 6
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the cost of goods sold.
Correct A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: A

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Question 7
The balance sheet of XYZ Ltd. as at 31st December 2022 is as follows: Equity Share Capital: ₦500,000; Profit & Loss A/c: ₦200,000; Retained Earnings: ₦150,000. Calculate the total equity.
Correct A. ₦850,000
B. ₦950,000
C. ₦1,050,000
D. ₦1,150,000

Correct Answer: A

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Question 8
A, B, and C are partners in a firm sharing profits and losses in the ratio 3:2:1. Their capitals are ₦300,000, ₦200,000, and ₦150,000 respectively. Calculate the total capital of the firm.
A. ₦650,000
B. ₦750,000
Correct C. ₦850,000
D. ₦950,000

Correct Answer: C

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Question 9
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.
Correct A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: A

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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.
Correct A. ₦850,000
B. ₦950,000
C. ₦1,050,000
D. ₦1,150,000

Correct Answer: A

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Question 11
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
Correct B. ₦1,300,000
C. ₦1,200,000
D. ₦1,000,000

Correct Answer: B

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Question 12
A government agency is required to prepare a statement of cash flows. The agency's cash inflows include ₦2,000,000 from taxes and ₦500,000 from interest on investments. The cash outflows include ₦1,500,000 for salaries and ₦300,000 for rent. What is the net increase in cash?
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 13
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
Correct B. 1.5:1
C. 2:1
D. 3:1

Correct Answer: B

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Question 14
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
Correct D. ₦25,000

Correct Answer: D

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Question 15
A company's trial balance shows a debit balance of ₦1,200,000 in the accounts payable account. What is the effect on the company's balance sheet?
A. Increase in assets
Correct B. Increase in liabilities
C. Decrease in assets
D. Decrease in liabilities

Correct Answer: B

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Question 16
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
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 17
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
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 18
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
Correct D. ₦450,000

Correct Answer: D

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Question 19
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
Correct C. ₦320,000
D. ₦340,000

Correct Answer: C

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Question 20
A company has the following assets: Cash ₦100,000, Accounts Receivable ₦50,000, and Inventory ₦200,000. Determine the total assets of the company.
A. ₦350,000
B. ₦400,000
C. ₦450,000
Correct D. ₦500,000

Correct Answer: D

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Question 21
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.
Correct A. ₦150,000
B. ₦120,000
C. ₦100,000
D. ₦80,000

Correct Answer: A

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Question 22
A company's trial balance as at 31st December 2022 is as follows: Debit ₦100,000 ₦50,000 ₦20,000 ₦30,000 ₦25,000 ₦15,000 ₦80,000 ₦40,000 ₦60,000 ₦120,000 ₦90,000 ₦80,000 Credit ₦80,000 ₦40,000 ₦60,000 ₦120,000 ₦90,000 ₦80,000 ₦30,000 ₦25,000 ₦15,000 ₦50,000 ₦100,000 ₦20,000 Identify the error in the trial balance.
A. ₦50,000
Correct B. ₦100,000
C. ₦20,000
D. ₦30,000

Correct Answer: B

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Question 23
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
Correct D. Long-term Debt

Correct Answer: D

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Question 24
A company's income statement for the year ended 31st December 2022 is as follows: Sales: ₦80,000 ₦40,000 ₦60,000 Cost of Goods Sold: ₦120,000 ₦90,000 ₦80,000 Gross Profit: ₦40,000 ₦20,000 ₦30,000 Operating Expenses: ₦30,000 ₦25,000 ₦15,000 Net Income: ₦10,000 ₦5,000 ₦10,000 Identify the type of account that is not a revenue account.
A. Cost of Goods Sold
B. Gross Profit
Correct C. Operating Expenses
D. Net Income

Correct Answer: C

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Question 25
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦100,000 (Cash) ₦50,000 (Accounts Receivable) ₦20,000 (Inventory) Liabilities: ₦80,000 (Accounts Payable) Identify the type of account that is not a current liability.
A. Accounts Payable
B. Notes Payable
Correct C. Long-term Debt
D. Accrued Expenses

Correct Answer: C

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