POST UTME CRAWFORD UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single-entry system to record its transactions. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Inventory 1,000
D. Debit Inventory 1,000 and Credit Accounts Payable 1,000
Question 2
A company's balance sheet shows the following information: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the company's current ratio?
A. 2.5
B. 3.0
C. 2.0
D. 1.5
Question 3
A company's trial balance as of December 31, 2020, is as follows:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 4
A company's balance sheet as at 31st December, 2020 is as follows:
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 5
A company has the following trial balance: Assets ₦700,000, Liabilities ₦300,000, and Equity ₦400,000. What is the total amount of equity?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 6
A company's cash flow statement for the year ended 31st December, 2020 is as follows:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 7
A company's balance sheet as at 31st December 2020 is as follows: Assets: Cash ¦10,000 Debtors ¦20,000 Stock ¦30,000 Total Assets ¦60,000 Liabilities: Creditors ¦15,000 Capital ¦45,000 Total Liabilities ¦60,000 What is the company's net worth?
A. ¦30,000
B. ¦45,000
C. ¦60,000
D. ¦75,000
Question 8
A partnership is formed by two individuals, A and B, who contribute ₦100,000 and ₦150,000 respectively. The following transactions occurred during the year ended December 31, 2020:
A. ₦250,000
B. ₦270,000
C. ₦290,000
D. ₦310,000
Question 9
A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and purchased office supplies for ₦10,000 in cash. What is the total amount of cash received from customers?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 10
A company's trial balance as at 31st December, 2020 is as follows:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 11
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. If the machine is sold for ₦30,000 after 3 years, what is the accumulated depreciation at the end of 3 years?
A. ₦60,000
B. ₦72,000
C. ₦80,000
D. ₦90,000
Question 12
A company's balance sheet as at 31st December 2020 is as follows: Assets: Cash ¦10,000 Debtors ¦20,000 Stock ¦30,000 Total Assets ¦60,000 Liabilities: Creditors ¦15,000 Capital ¦45,000 Total Liabilities ¦60,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 13
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's net income is ₦120,000, how much will partner A receive as their share of the net income?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 14
A company's trial balance shows an error of ₦1,500 in the debit side of the accounts payable account. The correct amount is ₦1,200. What is the effect of this error on the balance sheet?
A. The company's assets will decrease by ₦1,500.
B. The company's liabilities will increase by ₦1,500.
C. The company's equity will decrease by ₦1,500.
D. The company's assets will increase by ₦1,500.
Question 15
A company's trial balance shows an error of ₦10,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct step to take?
A. Omit the error and prepare the balance sheet as usual.
B. Correct the error by adjusting the trial balance and re-preparing the balance sheet.
C. Prepare a revised trial balance and re-preparing the balance sheet.
D. Ignore the error and proceed with the balance sheet.

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