POST UTME CRAWFORD UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the accumulated depreciation after 3 years?
A. ₦36,000
B. ₦40,000
C. ₦44,000
D. ₦48,000
Question 2
A trading company's trial balance as at 31st December, 2018 is as follows: Sales ₦1,500,000, Cost of Goods Sold ₦900,000, Rent ₦200,000, and Miscellaneous ₦150,000. What is the company's net profit for the year?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 3
A company has the following information: | Asset | Cost | Accumulated Depreciation | | --- | --- | --- | | A | ₦100,000 | ₦20,000 | | B | ₦80,000 | ₦15,000 | | C | ₦120,000 | ₦30,000 | What is the total value of the assets?
A. ₦210,000
B. ₦220,000
C. ₦230,000
D. ₦240,000
Question 4
A business has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Sales | | ₦20,000 | | 4 Jan | Purchases | ₦5,000 | | What is the balance on the bank account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 6
A company's trial balance as of December 31, 20X7, is as follows: Accounts Receivable 10,000, Accounts Payable 5,000, Common Stock 50,000, Retained Earnings 20,000. Prepare the company's balance sheet as of December 31, 20X7.
A. Assets: 75,000, Liabilities: 5,000, Equity: 70,000
B. Assets: 70,000, Liabilities: 5,000, Equity: 65,000
C. Assets: 75,000, Liabilities: 5,000, Equity: 70,000
D. Assets: 70,000, Liabilities: 5,000, Equity: 65,000
Question 7
A company has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. If the company makes a profit of ₦20,000, how much will each partner receive as their share of the profit?
A. ₦12,000 and ₦8,000
B. ₦10,000 and ₦10,000
C. ₦15,000 and ₦5,000
D. ₦12,000 and ₦8,000
Question 8
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The company also issued 5,000 debentures of 100 each. Prepare the journal entry to record the issuance of shares and debentures.
A. Debit Cash 30,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 20,000
B. Debit Cash 50,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 40,000
C. Debit Cash 30,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 20,000
D. Debit Cash 50,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 40,000
Question 9
A company uses the single entry system of accounting. The following transactions were recorded in the journal during the year: Dr. Cash ¡ 10,000, Dr. Accounts Payable ¡ 8,000, Cr. Sales ¡ 18,000, Cr. Cost of Goods Sold ¡ 12,000. What is the net income for the year?
A. ¡ 6,000
B. ¡ 8,000
C. ¡ 10,000
D. ¡ 12,000
Question 10
A government agency has the following transactions: Debit: Salaries ¡ 80,000, Debit: Rent ¡ 40,000, Credit: Revenue ¡ 120,000, Credit: Expenses ¡ 100,000. What is the net income for the year?
A. ¡ 20,000
B. ¡ 30,000
C. ¡ 40,000
D. ¡ 50,000
Question 11
A company's balance sheet as at 31st December, 2018 is as follows: Assets ₦1,500,000, Liabilities ₦1,000,000, and Equity ₦500,000. What is the company's current ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 12
A business has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Sales | | ₦20,000 | | 4 Jan | Purchases | ₦5,000 | | What is the balance on the cash account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 13
A public sector organization has the following ledger accounts: Salaries ₦600,000, Rent ₦200,000, Utilities ₦150,000, and Miscellaneous ₦250,000. What is the total amount of expenses for the year?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 14
A company uses the straight-line method of depreciation for its assets. If the asset's original cost is ₦500,000 and its residual value is ₦100,000, what is the annual depreciation charge for the asset?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company has the following transactions: Debit: Accounts Payable ¡ 10,000, Debit: Salaries ¡ 20,000, Credit: Sales ¡ 30,000, Credit: Cost of Goods Sold ¡ 15,000. What is the net income for the year?
A. ¡ 5,000
B. ¡ 10,000
C. ¡ 15,000
D. ¡ 20,000

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