POST UTME COVENANT UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows an error of ₦1,500 in the accounts. The error is due to an omission of a transaction. The company's net profit for the year is ₦250,000. Prepare a statement of affairs as at the end of the year.
A. ₦247,500
B. ₦248,000
C. ₦249,500
D. ₦250,500
Question 2
A company has the following balance sheet: Cash ₦100,000, Accounts Payable ₦200,000, Common Stock ₦500,000, and Retained Earnings ₦300,000. If the company issues 10,000 shares of common stock at ₦50 per share, what is the new balance of Common Stock?
A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000
Question 3
A partnership is formed by three individuals: A, B, and C. A contributes ₦200,000, B contributes ₦150,000, and C contributes ₦100,000. The profit-sharing ratio is 3:2:1. What is the total profit for the year if the total profit is ₦500,000?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 4
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. They share profits and losses in the ratio 3:2. If the profit for the year is ₦750,000, how much will A receive?
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 5
A company's public sector accounting records show that the company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. Calculate the company's net cash position.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 6
A company has the following transactions: Purchased goods for ₦100,000, sold goods for ₦120,000, and purchased additional goods for ₦80,000. What is the total amount of cash spent by the company?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 7
A company's balance sheet as at 31st December, 2020 is as follows: ₦1,500,000; ₦800,000. Prepare a statement of changes in equity for the year ended 31st December, 2021.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 8
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000
Question 9
A company manufactures and sells a product. The company's cost of goods sold is ₦1,200,000 and the selling price is ₦1,800,000. Calculate the company's gross profit margin.
A. 66.67%
B. 75%
C. 80%
D. 85%
Question 10
A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦1,000,000; Liabilities: ₦800,000. Calculate the company's net worth.
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 11
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a premium of 5%. Calculate the amount received from debenture holders.
A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000
Question 12
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,200,000, and the total cost of the opening inventory is ₦300,000. If the company uses a perpetual inventory system, what is the cost of goods sold?
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 13
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000
Question 14
A partnership has two partners: John and Mary. John's capital is ₦500,000, and Mary's capital is ₦300,000. If the partnership's total capital is ₦1,000,000, what is the ratio of John's capital to Mary's capital?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 15
A company has the following trial balance: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's net worth?
A. ₦0
B. ₦500,000
C. ₦1,000,000
D. ₦1,500,000

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