POST UTME CRAWFORD UNIVERSITY 2018 Accounting | Objective

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Question 1
In a partnership account, if the capital of two partners, A and B, is in the ratio 3:2, and the profit-sharing ratio is 5:3, what is the ratio of their salaries?
Correct A. 2:1
B. 3:2
C. 5:3
D. 4:3

Correct Answer: A

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Question 2
A company has a manufacturing department that produces two products, X and Y. The cost of production for X is ₦200 per unit, and for Y is ₦300 per unit. If the company produces 100 units of X and 50 units of Y, what is the total cost of production?
A. ₦25000
B. ₦30000
Correct C. ₦35000
D. ₦40000

Correct Answer: C

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Question 3
A government agency has a department that provides a service to citizens. The department has two sections, A and B, which have different costs of operation. Section A has a fixed cost of ₦10000 and a variable cost of ₦50 per unit of service provided. Section B has a fixed cost of ₦20000 and a variable cost of ₦75 per unit of service provided. If the department provides 100 units of service, what is the total cost of operation?
A. ₦25000
B. ₦30000
Correct C. ₦35000
D. ₦40000

Correct Answer: C

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Question 4
A company has a share capital of ₦1000000, divided into 100000 shares of ₦10 each. If the company issues 50000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦250000
B. ₦275000
C. ₦300000
Correct D. ₦325000

Correct Answer: D

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Question 5
A company has a debenture stock of ₦500000, divided into 500 debentures of ₦1000 each. If the company issues 200 debentures at a premium of ₦10 per debenture, what is the total amount received from the issue of debentures?
A. ₦200000
B. ₦220000
C. ₦240000
Correct D. ₦260000

Correct Answer: D

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Question 6
A public sector organization has a budget of ₦1,500,000 for the year. The organization has the following expenses: Salaries ₦600,000, Rent ₦200,000, Utilities ₦150,000, and Miscellaneous ₦250,000. What is the percentage of the budget spent on Salaries?
A. 40%
B. 30%
Correct C. 50%
D. 60%

Correct Answer: C

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Question 7
A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net income for the year?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 8
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
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 9
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
Correct B. 2.0
C. 2.5
D. 3.0

Correct Answer: B

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Question 10
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
Correct D. ₦1,500,000

Correct Answer: D

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Question 11
In a partnership with a 3:5:7 profit-sharing ratio, the total profit for the year is ₦1,500,000. If the partners' capital contributions are in the ratio 2:3:5, what is the amount of capital contributed by each partner?
A. ₦150,000
Correct B. ₦225,000
C. ₦375,000
D. ₦525,000

Correct Answer: B

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Question 12
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
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 13
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, Common Stock ₦500,000, and Retained Earnings ₦300,000. What is the total amount of assets and liabilities?
A. ₦1,050,000
B. ₦1,200,000
Correct C. ₦1,350,000
D. ₦1,500,000

Correct Answer: C

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Question 14
A company's income statement for the year shows the following: Sales ₦1,500,000, Cost of Goods Sold ₦900,000, and Net Income ₦300,000. What is the company's gross profit margin?
A. 30%
Correct B. 40%
C. 50%
D. 60%

Correct Answer: B

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Question 15
A company's balance sheet shows the following: Cash ₦200,000, Accounts Payable ₦150,000, and Common Stock ₦500,000. What is the company's total equity?
A. ₦750,000
B. ₦850,000
Correct C. ₦950,000
D. ₦1,050,000

Correct Answer: C

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Question 16
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?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 17
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?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 18
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?
Correct A. ₦210,000
B. ₦220,000
C. ₦230,000
D. ₦240,000

Correct Answer: A

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Question 19
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
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 20
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?
Correct A. ₦36,000
B. ₦40,000
C. ₦44,000
D. ₦48,000

Correct Answer: A

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Question 21
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
Correct 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

Correct Answer: C

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Question 22
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
Correct C. Assets: 75,000, Liabilities: 5,000, Equity: 70,000
D. Assets: 70,000, Liabilities: 5,000, Equity: 65,000

Correct Answer: C

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Question 23
A company has two departments: Manufacturing and Selling. The company's total sales for the year were 100,000. The company's total cost of goods sold was 60,000. The company's total selling expenses were 20,000. Prepare the company's income statement for the year.
A. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000
B. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000
Correct C. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000
D. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000

Correct Answer: C

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Question 24
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
Correct C. Assets: 75,000, Liabilities: 5,000, Equity: 70,000
D. Assets: 70,000, Liabilities: 5,000, Equity: 65,000

Correct Answer: C

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Question 25
A company has two departments: Manufacturing and Selling. The company's total sales for the year were 100,000. The company's total cost of goods sold was 60,000. The company's total selling expenses were 20,000. Prepare the company's income statement for the year.
A. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000
B. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000
Correct C. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000
D. Sales: 100,000, Cost of Goods Sold: 60,000, Gross Profit: 40,000, Selling Expenses: 20,000, Net Income: 20,000

Correct Answer: C

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