POST UTME COVENANT UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a depreciation policy of 10% per annum on its assets. If the asset value is ₦100,000, what is the depreciation expense for the first year?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A company's cash book shows a debit balance of ₦150,000. The bank statement shows a credit balance of ₦180,000. The difference between the two balances is ₦30,000. What is the reason for this difference?
A. The company has outstanding cheques
B. The company has deposited cash into the bank
C. The company has withdrawn cash from the bank
D. The company has a bank overdraft
Question 3
A company produces two products, X and Y, using two machines, M1 and M2. The production process for X requires 2 hours on M1 and 3 hours on M2, while the production process for Y requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours, and M1 and M2 operate for 12 hours each, what is the maximum number of units of product X that can be produced?
A. 12
B. 15
C. 18
D. 20
Question 4
A company has the following transactions in its manufacturing account for the year: Raw Materials Purchased: ₦150,000 Work-in-Progress: ₦120,000 Finished Goods: ₦180,000 What is the total cost of goods manufactured for the year?
A. ₦450,000
B. ₦480,000
C. ₦500,000
D. ₦520,000
Question 5
A company has the following transactions in its trial balance for the year: Debit: ₦150,000 Credit: ₦120,000 What is the net change in the company's equity for the year?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 6
A company uses the perpetual inventory system. On January 1, it had 500 units of inventory with a cost of ₦100 each. During the month, 200 units were sold, and 300 units were purchased at a cost of ₦120 each. Prepare the journal entry to record the purchase and sale of inventory.
A. ₦24,000
B. ₦26,000
C. ₦28,000
D. ₦30,000
Question 7
A company has two partners, A and B. Partner A has a capital of ₦200,000, and partner B has a capital of ₦150,000. The company makes a profit of ₦50,000. What is the share of profit of partner A?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 8
A company issues 2,000 shares of ₦20 each at a premium of ₦10 per share. The total amount received from the issue of shares is ₦240,000. What is the amount received from the issue of shares at a premium?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 9
A company has the following balance sheet as at December 31:
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 10
A company uses the perpetual inventory system. The company has the following transactions in its inventory account for the year: Purchases: ₦150,000 Sales: ₦180,000 What is the net change in inventory for the year?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 11
A government agency has a budget of ₦5,000,000 for a project. The project requires an initial investment of ₦2,000,000 and a recurring expense of ₦1,000,000 per year for 5 years. What is the total cost of the project?
A. ₦7,500,000
B. ₦8,000,000
C. ₦8,500,000
D. ₦9,000,000
Question 12
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The total amount received from the issue of shares is ₦1,100,000. What is the amount received from the issue of shares at a premium?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000
Question 13
A company's assets are ₦500,000, liabilities are ₦200,000, and equity is ₦300,000. What is the return on equity (ROE) of the company?
A. 60%
B. 50%
C. 40%
D. 30%
Question 14
A company has the following transactions for the year:
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,400,000
D. ₦1,600,000
Question 15
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,300,000

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