POST UTME COVENANT UNIVERSITY 2020 Accounting | Objective

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Question 1
A company issued 5,000, 12% preference shares of ₦50 each at a premium of ₦10. Calculate the amount received from the issue of preference shares.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 2
A company has the following trial balance: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Dividends ₦10,000, Equipment ₦80,000, Interest Expense ₦5,000, Interest Income ₦10,000, Net Income ₦20,000, Prepaid Rent ₦15,000, Salaries Expense ₦30,000, Sales Revenue ₦150,000, Taxes Expense ₦10,000. Prepare a balance sheet.
A. Assets: ₦250,000, Liabilities: ₦70,000, Equity: ₦180,000
B. Assets: ₦220,000, Liabilities: ₦60,000, Equity: ₦160,000
C. Assets: ₦280,000, Liabilities: ₦80,000, Equity: ₦200,000
D. Assets: ₦240,000, Liabilities: ₦70,000, Equity: ₦170,000
Question 3
A company's balance sheet as at 31st December 2020 shows a capital of ₦3,000,000 and a profit and loss account balance of ₦1,500,000. The company's trading account for the year ended 31st December 2020 shows a profit of ₦2,500,000. Calculate the amount of dividends paid to shareholders.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 4
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. What is the total value of the company's liabilities and equity?
A. ₦180,000
B. ₦180,000
C. ₦180,000
D. ₦180,000
Question 5
A company's trial balance shows a discrepancy of ₦10,000.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Cash | | 8,000 | | 4th Jan | Bank | | 3,000 | | 5th Jan | Cash | | 12,000 | What is the balance of the cash book?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 7
A company uses the single-entry system of accounting. The journal entries for the year are as follows: Debit Cash ₦50,000, Credit Accounts Payable ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 8
A company's cash book as at 31st December, 2022 is as follows: | Date | Debit | Credit | | --- | --- | --- | | 1st January | ₦10,000 | ₦0 | | 15th January | ₦20,000 | ₦0 | | 31st December | ₦0 | ₦30,000 | The company's accountant has made an error in the cash book. Identify the error and correct it.
A. The error is in the 1st January entry. The debit balance should be ₦0.
B. The error is in the 15th January entry. The debit balance should be ₦0.
C. The error is in the 31st December entry. The credit balance should be ₦0.
D. The error is in the Cash account. The debit balance should be ₦0.
Question 9
A company has the following trial balance: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Dividends ₦10,000, Equipment ₦80,000, Interest Expense ₦5,000, Interest Income ₦10,000, Net Income ₦20,000, Prepaid Rent ₦15,000, Salaries Expense ₦30,000, Sales Revenue ₦150,000, Taxes Expense ₦10,000. Prepare a statement of cash flows.
A. Cash Flows from Operating Activities: ₦90,000, Cash Flows from Investing Activities: ₦20,000, Cash Flows from Financing Activities: ₦10,000
B. Cash Flows from Operating Activities: ₦80,000, Cash Flows from Investing Activities: ₦30,000, Cash Flows from Financing Activities: ₦20,000
C. Cash Flows from Operating Activities: ₦100,000, Cash Flows from Investing Activities: ₦40,000, Cash Flows from Financing Activities: ₦30,000
D. Cash Flows from Operating Activities: ₦70,000, Cash Flows from Investing Activities: ₦50,000, Cash Flows from Financing Activities: ₦40,000
Question 10
A company's income statement shows a net income of ₦200,000.
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 11
A public sector organization has the following transactions for the year ended December 31, 2022: Purchased office supplies for ₦10,000, paid salaries of ₦500,000, and received revenue of ₦750,000. Prepare a simple ledger account for office supplies.
A. Office Supplies Ledger
B. Salaries Ledger
C. Revenue Ledger
D. Expenses Ledger
Question 12
A company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦100,000. The company's cash book also shows a debit balance of ₦20,000 in the bank account. What is the correct balance of the bank account?
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 13
A manufacturing company has the following information: Cost of goods sold ₦1,500,000, Gross Profit ₦250,000, Operating Expenses ₦150,000. Calculate the Net Profit.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 14
A company's balance sheet as of December 31, 2020, shows the following: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦100,000. What is the company's total assets?
A. ₦180,000
B. ₦180,000
C. ₦180,000
D. ₦180,000
Question 15
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the total profit for the year?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

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