POST UTME COAL CITY UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦100,000. Prepare the company's income statement.
A. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦150,000, Net Income ₦50,000
B. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦200,000, Net Income ₦0
C. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦250,000, Net Income ₦-50,000
D. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦300,000, Net Income ₦-100,000
Question 2
A company has the following transactions for the year ended December 31, 2022: Debit Cash 10,000 Accounts Receivable 5,000 Inventory 8,000 Prepaid Rent 2,000 Credit Accounts Payable 6,000 Salaries Expense 4,000 Rent Expense 2,000 What is the net income for the year?
A. 2,000
B. 4,000
C. 6,000
D. 8,000
Question 3
A company's income statement for the year ended December 31, 2021, shows the following: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦600,000, Operating Expenses ₦150,000, and Net Income ₦250,000. Prepare the company's statement of cash flows using the indirect method.
A. Cash Flows from Operating Activities ₦500,000, Cash Flows from Investing Activities ₦200,000, Cash Flows from Financing Activities ₦100,000
B. Cash Flows from Operating Activities ₦600,000, Cash Flows from Investing Activities ₦300,000, Cash Flows from Financing Activities ₦200,000
C. Cash Flows from Operating Activities ₦700,000, Cash Flows from Investing Activities ₦400,000, Cash Flows from Financing Activities ₦300,000
D. Cash Flows from Operating Activities ₦800,000, Cash Flows from Investing Activities ₦500,000, Cash Flows from Financing Activities ₦400,000
Question 4
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5% debentures of ₦10,000. Calculate the amount received from the issue of shares and debentures.
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000
Question 5
A company has the following transactions: Purchased a machine for ₦150,000 cash, and issued 10,000 shares to the owner at ₦10 per share. The machine is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦25,000
B. ₦30,000
C. ₦28,000
D. ₦32,000
Question 6
A company has the following transactions: Purchase of raw materials for ₦100,000, Purchase of finished goods for ₦150,000, Sale of goods for ₦400,000, and Payment of salaries for ₦200,000. Prepare the trading account for the year ended December 31, 2022.
A. Raw Materials A/c: Dr. ₦100,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦400,000, Salaries A/c: Cr. ₦200,000
B. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦100,000, Sales A/c: Cr. ₦400,000, Salaries A/c: Cr. ₦200,000
C. Raw Materials A/c: Dr. ₦100,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦400,000
D. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦100,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦400,000
Question 7
A company has the following balance sheet: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. Calculate the company's gearing ratio.
A. 0.4
B. 0.5
C. 0.6
D. 0.7
Question 8
A company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦150 per unit. The variable costs of X and Y are ₦50 per unit and ₦75 per unit, respectively. The fixed costs are ₦50,000 per month. If the company sells 100 units of X and 50 units of Y in a month, what is the total profit?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 9
A company uses the straight-line method to depreciate its assets. The asset cost ₦1,500,000 and has a useful life of 5 years. Calculate the annual depreciation charge.
A. ₦300,000
B. ₦150,000
C. ₦75,000
D. ₦30,000
Question 10
A company has the following transactions: Purchased a machine for ₦150,000 cash, and issued 10,000 shares to the owner at ₦10 per share. The machine is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦25,000
B. ₦30,000
C. ₦28,000
D. ₦32,000
Question 11
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
A. Assets ₦1,100,000, Liabilities ₦200,000, Equity ₦900,000
B. Assets ₦1,200,000, Liabilities ₦300,000, Equity ₦900,000
C. Assets ₦1,300,000, Liabilities ₦400,000, Equity ₦900,000
D. Assets ₦1,400,000, Liabilities ₦500,000, Equity ₦900,000
Question 12
A company's departmental account for the year ended 31st December 2020 showed a profit of ₦1,00,000. The company's overheads were ₦1,00,000. Calculate the department's contribution to the company's profit.
A. ₦1,00,000
B. ₦1,00,000
C. ₦1,00,000
D. ₦1,00,000
Question 13
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦500,000, and its current liabilities are ₦200,000. What is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 14
A company produces two products, A and B, using two machines, M1 and M2. The production process for product A requires 2 hours on M1 and 3 hours on M2, while product B requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours and M1 is available for 18 hours, what is the maximum number of units of product A that can be produced?
A. 10
B. 12
C. 15
D. 18
Question 15
A company has the following transactions: Purchased office supplies for 1,000 cash, Purchased office equipment for 5,000 on credit, Paid 2,000 cash for salaries. What is the balance in the Office Supplies account after these transactions?
A. 1,000
B. 2,000
C. 3,000
D. 4,000

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