POST UTME COAL CITY UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. It records the following transactions in its journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the company's cash balance?
A. Increase by ₦10,000
B. Decrease by ₦10,000
C. No effect
D. Increase by ₦20,000
Question 2
A company's balance sheet shows total assets of 500,000 and total liabilities of 300,000. What is the company's net worth?
A. 200,000
B. 300,000
C. 400,000
D. 500,000
Question 3
A company's ledger account for Sales shows a balance of ₦500,000. The company's trial balance shows a balance of ₦600,000. What is the correct balance in the Sales account?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 4
A company's trial balance shows an error of 1,000 in the credit side of the accounts payable account. The correct balance is 15,000. What is the correct balance in the debit side of the accounts payable account?
A. 14,000
B. 15,000
C. 16,000
D. 17,000
Question 5
The following is a diagram of a self-balancing ledger:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 6
The following is an extract from the financial statements of a company:
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 7
A government agency is required to prepare a trial balance. The following balances are extracted from the ledger accounts: Debit ₦100,000, Credit ₦120,000. What is the correct balance in the trial balance?
A. ₦20,000
B. ₦100,000
C. ₦120,000
D. ₦140,000
Question 8
A company's trial balance showed an error of ₦10,000 in the balance of the 'Purchases' account. The correct balance should be ₦50,000. What is the effect of this error on the company's net profit?
A. ₦10,000 decrease
B. ₦10,000 increase
C. ₦20,000 decrease
D. ₦20,000 increase
Question 9
A company's partnership account for the year ended 31st December 2022 shows a profit of ₦1,000,000. The partners' capital accounts are as follows: A ₦500,000, B ₦300,000, C ₦200,000. What is the ratio of the partners' capital?
A. 1:1:1
B. 2:1:1
C. 3:2:1
D. 4:3:2
Question 10
A company's assets depreciated by 10% in value over the year. If the original value of the asset was ₦100,000, what is the current value?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 11
The following is an extract from the financial statements of a partnership firm:
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 12
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000
Question 13
The following is an extract from the financial statements of a partnership firm:
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 14
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials: ₦120,000; Direct Labour: ₦80,000; Factory Overheads: ₦60,000. Calculate the total cost of production.
A. ₦260,000
B. ₦270,000
C. ₦280,000
D. ₦290,000
Question 15
A company's balance sheet as at 31st December 2022 shows a current liability of ₦1,500,000 and a non-current liability of ₦2,000,000. What is the total amount of the company's liabilities?
A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000

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