POST UTME COVENANT UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000, 10% preference shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 2
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the total amount received from the issue of shares is 250,000, calculate the amount of share capital and the amount of share premium.
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 3
A company has the following ledger balances: Accounts Payable 40,000, Accounts Receivable 20,000, Common Stock 80,000, Dividends 15,000. If the company's total assets are 220,000, calculate the amount of Retained Earnings.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 4
A company has the following ledger balances: Accounts Payable 50,000, Accounts Receivable 30,000, Common Stock 100,000, Dividends 20,000. If the company's total assets are 250,000, calculate the amount of Retained Earnings.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A company purchased a machine for ₦150,000. Depreciation is calculated using the reducing balance method. If the machine is expected to last for 5 years, calculate the annual depreciation.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 6
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦1,000,000. Calculate the company's capital.
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0
Question 7
A company has the following information: Depreciation Expense 10,000, Accumulated Depreciation 20,000, Cost of Goods Sold 50,000, Sales Revenue 100,000. If the company's net income is 30,000, calculate the amount of Gross Profit.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 8
A company's financial statements show a decrease in its current liabilities by ₦30,000 and an increase in its non-current assets by ₦40,000. What is the net effect on the company's working capital?
A. ₦10,000 increase
B. ₦10,000 decrease
C. ₦30,000 increase
D. ₦30,000 decrease
Question 9
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The company's cash book has the following transactions: Debit: ₦30,000, Credit: ₦20,000. What is the reason for the discrepancy between the cash book balance and the bank statement balance?
A. The bank has charged a fee of ₦10,000.
B. The company has deposited ₦10,000 into the bank but has not recorded it in the cash book.
C. The company has withdrawn ₦10,000 from the bank but has not recorded it in the cash book.
D. The company has made an error in recording a transaction in the cash book.
Question 10
A company's cash book at December 31, 2017, showed the following balances:
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,400,000
D. ₦1,600,000
Question 11
A company's assets are valued at ₦500,000, ₦300,000, and ₦200,000. The company's liabilities are ₦100,000 and ₦50,000. What is the company's net worth?
A. ₦650,000
B. ₦550,000
C. ₦450,000
D. ₦350,000
Question 12
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦1,200,000; Gross Profit: ₦300,000; Operating Expenses: ₦100,000; Net Profit: ₦200,000. Calculate the company's net profit percentage.
A. 13.33%
B. 16.67%
C. 20%
D. 25%
Question 13
A company's trial balance shows a credit balance of ₦25,000 in the account 'Dividend Paid'. What is the correct treatment of this account in the company's financial statements?
A. Debit side of the balance sheet
B. Credit side of the balance sheet
C. Income statement
D. Statement of changes in equity
Question 14
A company's manufacturing accounts at December 31, 2017, showed the following balances:
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 15
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.
A. ₦1,300,000
B. ₦1,350,000
C. ₦1,400,000
D. ₦1,450,000

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