POST UTME COVENANT UNIVERSITY 2023 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company uses the allowance method for estimating bad debts. The following information is available:
Accounts Receivable: ₦500,000
Allowance for Bad Debts: ₦20,000
Bad Debts Expense: ₦10,000
What is the net realizable value of Accounts Receivable?
Question 2
A company's accounting records show the following balances:
Cash: ₦100,000
Accounts Receivable: ₦50,000
Inventory: ₦200,000
Prepaid Rent: ₦20,000
Equipment: ₦150,000
Accumulated Depreciation: ₦30,000
Common Stock: ₦300,000
Retained Earnings: ₦200,000
What is the total amount of assets?
Question 3
A company's balance sheet shows the following balances: Cash ₦10,000, Accounts Payable ₦20,000, Common Stock ₦50,000. What is the total assets of the company?
Question 4
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?
Question 5
A company uses the trial balance method to prepare its financial statements. The company's trial balance as at 31st December 2022 shows the following balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the company's total equity as at 31st December 2022?
Question 6
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 shared by A.
Question 7
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
Question 8
A company's income statement shows the following balances: Cost of Goods Sold ₦30,000, Gross Profit ₦20,000, Operating Expenses ₦10,000. What is the net income of the company?
Question 9
A company's balance sheet shows the following balances: Cash ₦10,000, Accounts Payable ₦20,000, Common Stock ₦50,000. What is the total equity of the company?
Question 10
A company's trial balance shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. What is the company's total liabilities?
Question 11
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership's net income is ₦120,000, how much will Partner A receive in salary?
Question 12
A company's balance sheet shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. What is the company's total assets?
Question 13
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦270,000. What is the reason for the difference?
Question 14
A company's trial balance shows the following balances: Accounts Payable ₦20,000, Sales Revenue ₦50,000, Cost of Goods Sold ₦30,000. What is the net income of the company?
Question 15
A company's cash book shows the following transactions:
1. Purchased office supplies for ₦10,000 cash.
2. Sold goods for ₦50,000 on credit.
3. Paid salaries of ₦20,000 by cheque.
4. Collected cash of ₦30,000 from a customer who owed the company ₦50,000.
What is the total amount of cash received or paid?
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