POST UTME ELIZADE UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 500 shares of ₦20 each at a premium of ₦10 per share. Calculate the total amount received from the issue of shares.
A. ₦15,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 2
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.
A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 3
A company has a balance sheet that shows the following accounts: Cash, Accounts Receivable, Inventory, and Equipment. The balance sheet shows a total asset value of ₦5,000,000 and a total liability value of ₦2,500,000. What is the net worth of the company?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 4
A company has a profit of ₦240,000 and a loss of ₦120,000. What is the net profit?
A. ₦120,000
B. ₦120,000
C. ₦120,000
D. ₦120,000
Question 5
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. If the machine is expected to last for 5 years, what is the annual depreciation charge?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 6
A company's balance sheet shows a current asset of ₦200,000 in the account 'Accounts Receivable' and a current liability of ₦150,000 in the account 'Accounts Payable'. What is the net working capital of the company?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 7
A company uses the double-declining balance method of depreciation. The cost of a machine is ₦600,000 and its residual value is ₦50,000. If the machine is expected to last for 5 years, what is the annual depreciation charge?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 8
A company has a departmental account for the 'Selling Department'. The department's expenses for the year are ₦150,000, and the department's revenue for the year is ₦200,000. What is the department's net profit?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 9
A company's trial balance shows a debit balance of ₦5,000 in the 'Rent Received' account. Prepare the journal entry to correct this error.
A. Debit Rent Received ₦5,000, Credit Rent Received ₦5,000
B. Debit Rent Received ₦5,000, Credit Rent Paid ₦5,000
C. Debit Rent Paid ₦5,000, Credit Rent Received ₦5,000
D. Debit Rent Received ₦5,000, Credit Rent Received ₦5,000
Question 10
A company purchases a machine for ₦250,000. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦40,000
B. ₦50,000
C. ₦45,000
D. ₦48,000
Question 11
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, how much will A receive?
A. ₦90,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 12
A company's balance sheet as of December 31, 2022, showed the following: Cash £20,000, Accounts Receivable £30,000, Inventory £40,000, Property, Plant, and Equipment £100,000, Total Assets £200,000. Prepare the balance sheet.
A. Assets: Cash £20,000, Accounts Receivable £30,000, Inventory £40,000, Property, Plant, and Equipment £100,000. Liabilities: Accounts Payable £10,000. Equity: Common Stock £50,000, Retained Earnings £30,000
B. Assets: Cash £20,000, Accounts Receivable £30,000, Inventory £40,000, Property, Plant, and Equipment £100,000. Liabilities: Accounts Payable £10,000. Equity: Common Stock £50,000
C. Assets: Cash £20,000, Accounts Receivable £30,000, Inventory £40,000. Liabilities: Accounts Payable £10,000. Equity: Common Stock £50,000, Retained Earnings £30,000
D. Assets: Cash £20,000, Accounts Receivable £30,000, Inventory £40,000. Liabilities: Accounts Payable £10,000. Equity: Common Stock £50,000
Question 13
A company's balance sheet shows a non-current asset of ₦100,000 and a non-current liability of ₦50,000. Calculate the net non-current position.
A. ₦50,000
B. ₦100,000
C. ₦50,000
D. ₦50,000
Question 14
A company's balance sheet shows a current asset of ₦50,000 and a current liability of ₦30,000. Calculate the working capital.
A. ₦20,000
B. ₦50,000
C. ₦30,000
D. ₦20,000
Question 15
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials: ₦120,000; Direct Labour: ₦80,000; Overheads: ₦60,000. Calculate the total cost of production for the month.
A. ₦260,000
B. ₦280,000
C. ₦300,000
D. ₦320,000

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