POST UTME COAL CITY UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as of December 31, 2022, is as follows: Assets: ₦500,000; Liabilities: ₦200,000; Equity: ₦300,000. What is the company's liquidity ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 2
A company has the following transactions: Purchased office supplies for 1,000, Purchased equipment for 10,000, Sold merchandise for 20,000, and Paid salaries of 5,000. What is the total amount of assets?
A. 16,000
B. 21,000
C. 26,000
D. 31,000
Question 3
A company's incomplete records show the following transactions: Date 31st January 2022 ₦1,000,000 31st March 2022 ₦500,000 31st May 2022 ₦200,000 31st July 2022 ₦300,000 31st September 2022 ₦400,000 31st November 2022 ₦600,000 What is the total value of the company's assets as at 31st December 2022?
A. ₦2,500,000
B. ₦2,600,000
C. ₦2,700,000
D. ₦2,800,000
Question 4
A company uses the single-entry system of accounting. The journal entries show the following: Debit Cash 5,000, Credit Accounts Payable 5,000, Debit Accounts Receivable 8,000, Credit Sales Revenue 8,000, Debit Wages Expense 30,000, Credit Retained Earnings 30,000. What is the net income of the company?
A. 25,000
B. 30,000
C. 35,000
D. 40,000
Question 5
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable 12,000, Accounts Receivable 8,000, Common Stock 50,000, and Retained Earnings 25,000. What is the total amount of assets minus liabilities?
A. ₦35,000
B. ₦45,000
C. ₦55,000
D. ₦65,000
Question 6
A company produces two products, X and Y. The production process involves two departments: Manufacturing and Quality Control. The Manufacturing department incurs a fixed cost of ₦120,000 and a variable cost of ₦50 per unit of X and ₦60 per unit of Y. The Quality Control department incurs a fixed cost of ₦80,000 and a variable cost of ₦20 per unit of X and ₦30 per unit of Y. If the company produces 100 units of X and 80 units of Y, what is the total cost of production?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
D. ₦3,000,000
Question 7
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 8
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable 12,000, Accounts Receivable 8,000, Common Stock 50,000, and Retained Earnings 25,000. What is the total amount of liabilities?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 9
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 10
A partnership has two partners, A and B. The partnership agreement states that the profits and losses are to be shared in the ratio 3:2. The partnership's profit for the year is ₦150,000. What is the share of profit of partner A?
A. ₦90,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 11
A company prepares its financial statements for the year ended 31st December 2022. The company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a profit of ₦250,000. What is the company's net profit for the year?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 12
A company uses the FIFO method to value its inventory. The company has two types of inventory: raw materials and finished goods. The cost of raw materials is ₦1,000,000, and finished goods is ₦2,000,000. If the total value of the inventory is ₦3,000,000, what is the value of finished goods?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 13
A company has the following transactions: Purchased office supplies for 1,000, Purchased equipment for 10,000, Sold merchandise for 20,000, and Paid salaries of 5,000. What is the total amount of assets?
A. 16,000
B. 21,000
C. 26,000
D. 31,000
Question 14
A company's trial balance as of December 31, 2022, is as follows: Debit: ₦100,000; Credit: ₦120,000. What is the correct journal entry to record the correction of the error?
A. ₦20,000 debit to Cash and ₦20,000 credit to Profit or Loss on Correction of Errors
B. ₦20,000 credit to Cash and ₦20,000 debit to Profit or Loss on Correction of Errors
C. ₦20,000 debit to Profit or Loss on Correction of Errors and ₦20,000 credit to Cash
D. ₦20,000 credit to Profit or Loss on Correction of Errors and ₦20,000 debit to Cash
Question 15
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct treatment of this discrepancy in the preparation of the company's financial statements?
A. The discrepancy is ignored as it is not material.
B. The discrepancy is adjusted by debiting 'Rent Received' and crediting 'Rent Paid'.
C. The discrepancy is adjusted by debiting 'Rent Paid' and crediting 'Rent Received'.
D. The discrepancy is investigated and corrected before preparing the financial statements.

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