POST UTME CRAWFORD UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double entry system to record its financial transactions. What is the main advantage of using the double entry system?
A. It helps to increase the accuracy of financial statements.
B. It helps to reduce the amount of time spent on recording financial transactions.
C. It helps to reduce the amount of cash transactions that need to be recorded.
D. It helps to increase the amount of cash available for business operations.
Question 2
A manufacturing company uses a job costing system. The following data relate to Job No. 101: Direct Materials: ₦10,000, Direct Labour: ₦8,000, Factory Overheads: ₦12,000. Calculate the total cost of Job No. 101.
A. ₦30,000
B. ₦30,800
C. ₦31,000
D. ₦31,200
Question 3
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 10% debentures of ₦ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000
Question 4
A public sector organization has the following transactions for the year ended 31st December 2022:
A. Debit Appropriation Account ₦ 50,000, Credit Revenue ₦ 50,000
B. Debit Appropriation Account ₦ 50,000, Credit Capital ₦ 50,000
C. Debit Capital ₦ 50,000, Credit Revenue ₦ 50,000
D. Debit Revenue ₦ 50,000, Credit Capital ₦ 50,000
Question 5
A company prepares its financial statements for the year ended December 31, 2022. The company's cash book shows a balance of ₦250,000 on January 1, 2022, and ₦300,000 on December 31, 2022. The bank statement shows a balance of ₦280,000 on January 1, 2022, and ₦320,000 on December 31, 2022. What is the difference between the cash book balance and the bank statement balance at the beginning of the year?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's trial balance shows a credit balance of ₦15,000 in the 'Salaries' account. The company's accounting records show that it paid ₦20,000 in salaries for the year. Prepare the necessary journal entry to correct the error.
A. Debit Salaries Expense ₦15,000, Credit Salaries Expense ₦20,000
B. Debit Salaries Expense ₦20,000, Credit Salaries Expense ₦15,000
C. Debit Salaries Expense ₦15,000, Credit Salaries Expense ₦15,000
D. Debit Salaries Expense ₦20,000, Credit Salaries Expense ₦15,000
Question 7
A partnership is formed between three individuals, A, B, and C, who contribute capital in the ratio 3:2:1. The partnership agreement specifies that the profits and losses will be shared in the same ratio as the capital contributions. If the partnership makes a profit of ₦120,000, how much will each partner receive?
A. ₦36,000
B. ₦48,000
C. ₦60,000
D. ₦72,000
Question 8
A company's trial balance as at 31st December 2022 is as follows: Debit ₦ 10,000 ₦ 20,000 ₦ 30,000 ₦ 40,000 ₦ 50,000 ₦ 60,000 ₦ 70,000 ₦ 80,000 ₦ 90,000 ₦ 100,000 Credit ₦ 10,000 ₦ 20,000 ₦ 30,000 ₦ 40,000 ₦ 50,000 ₦ 60,000 ₦ 70,000 ₦ 80,000 ₦ 90,000 ₦ 100,000 What is the company's net worth as at 31st December 2022?
A. ₦ 0
B. ₦ 10,000
C. ₦ 20,000
D. ₦ 30,000
Question 9
A company produces two products, X and Y, using two machines, A and B. The production process involves the following steps: cutting, drilling, and assembly. The company uses a job costing system and allocates costs to each product based on the machine hours used. The following data is available for the month of January:
A. Product X should be allocated 60% of the total machine hours and Product Y should be allocated 40% of the total machine hours.
B. Product X should be allocated 50% of the total machine hours and Product Y should be allocated 50% of the total machine hours.
C. Product X should be allocated 40% of the total machine hours and Product Y should be allocated 60% of the total machine hours.
D. Product X should be allocated 30% of the total machine hours and Product Y should be allocated 70% of the total machine hours.
Question 10
A company's cash book shows the following transactions: Cash received from customers ₦1,000,000, Cash paid to suppliers ₦500,000, and Cash received from bank ₦200,000. What is the net increase in cash?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 11
A company uses a self-balancing ledger to record its financial transactions. What is the main advantage of using a self-balancing ledger?
A. It helps to reduce the amount of time spent on recording financial transactions.
B. It helps to increase the accuracy of financial statements.
C. It helps to reduce the amount of cash transactions that need to be recorded.
D. It helps to increase the amount of cash available for business operations.
Question 12
A company uses the cash book to record all its financial transactions. The cash book is a journal that contains all the cash transactions of the company. What is the main advantage of using a cash book?
A. It helps to reduce the amount of cash transactions that need to be recorded.
B. It helps to increase the accuracy of financial statements.
C. It helps to reduce the amount of time spent on recording financial transactions.
D. It helps to increase the amount of cash available for business operations.
Question 13
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The company's cash book also shows a debit balance of ₦5,000 in the bank column. What is the correct balance in the cash book?
A. ₦55,000
B. ₦55,500
C. ₦56,000
D. ₦56,500
Question 14
A company's trading account for the year ended December 31, 2022, shows a profit of ₦500,000. The company's profit and loss account shows a net profit of ₦600,000. What is the company's net worth at the end of the year?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 15
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

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