POST UTME COVENANT UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's profit and loss account for the year ended December 31, 2022, shows a profit of ₦150,000. The company's balance sheet as at December 31, 2022, shows an asset of ₦500,000 and a liability of ₦200,000. What is the company's equity?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be distributed to each partner.
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 3
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
D. ₦25,000
Question 4
A company's balance sheet as at December 31, 2022, shows an asset of ₦500,000 and a liability of ₦200,000. What is the company's equity?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 5
A company produces 500 units of a product at a cost of ₦50 per unit. What is the total cost of production?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 6
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct balance in the cash account?
A. ₦35,000
B. ₦15,000
C. ₦20,000
D. ₦5,000
Question 7
A company's final accounts for the year are as follows:
A. ₦100,000
B. ₦125,000
C. ₦150,000
D. ₦175,000
Question 8
A company's trial balance shows a discrepancy of ₦5,000. What is the correct procedure to rectify the discrepancy?
A. Prepare a revised trial balance
B. Adjust the ledger accounts
C. Reconcile the bank statement
D. Revalue the assets
Question 9
A company's profit and loss account for the year ended December 31, 2022, shows the following: Trading Profit: ₦200,000 Non-Trading Income: ₦50,000 What is the total profit?
A. ₦250,000
B. ₦250,000
C. ₦250,000
D. ₦250,000
Question 10
A company's trial balance contains the following accounts: Accounts Payable, Sales Revenue, Cost of Goods Sold, and Retained Earnings. The trial balance is as follows:
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 11
The following is a partial statement of a manufacturing account for the year ended 31st December 2022: Dr. Work-in-Progress 1,500,000 Work-in-Progress 2,000,000 Cr. Opening Work-in-Progress 1,000,000 Materials Consumed 800,000 Labour 400,000 What is the total value of work-in-progress at the end of the year?
A. ₦3,500,000
B. ₦3,000,000
C. ₦4,000,000
D. ₦4,500,000
Question 12
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit balance of ₦10,000 for an outstanding cheque. The cash book shows a debit balance of ₦5,000 for an uncleared cheque. What is the correct balance of the company's cash account?
A. ₦130,000
B. ₦125,000
C. ₦140,000
D. ₦145,000
Question 13
A company has the following transactions related to its accounts receivable account: Jan 1: Accounts receivable: ₦30,000 Jan 10: Sold goods on credit to customers: ₦25,000 Jan 15: Received cash from customers: ₦20,000 Jan 20: Sold goods on credit to customers: ₦35,000 What is the balance in the accounts receivable account on January 31?
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 14
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. The company also issued 5,000 6% debentures of £ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 15
A company's accounting policy is to value its inventory at the lower of cost and net realizable value. The company's inventory is valued at ₦50,000 at the beginning of the year and ₦75,000 at the end of the year. What is the total amount of inventory written off during the year?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: