POST UTME ELIZADE UNIVERSITY 2021 Accounting | Objective

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Question 1 View Details
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2020 is as follows: Debit Cash: ₦120,000 Accounts Payable: ₦50,000 Sales Revenue: ₦150,000 Credit Accounts Receivable: ₦30,000 Cost of Goods Sold: ₦80,000 What is the net income of the company for the year ended 31st December 2020?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 2 View Details
A company uses the double-entry system of accounting. The company's ledger accounts are as follows: Debit Cash: ₦120,000 Accounts Payable: ₦50,000 Sales Revenue: ₦150,000 Credit Accounts Receivable: ₦30,000 Cost of Goods Sold: ₦80,000 What is the net income of the company for the year ended 31st December 2020?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 3 View Details
A company uses the double-entry system of accounting. The company's ledger accounts are as follows: Debit Cash: ₦120,000 Accounts Payable: ₦50,000 Sales Revenue: ₦150,000 Credit Accounts Receivable: ₦30,000 Cost of Goods Sold: ₦80,000 What is the net income of the company for the year ended 31st December 2020?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 4 View Details
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2020 is as follows: Debit Cash: ₦120,000 Accounts Payable: ₦50,000 Sales Revenue: ₦150,000 Credit Accounts Receivable: ₦30,000 Cost of Goods Sold: ₦80,000 What is the net income of the company for the year ended 31st December 2020?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 5 View Details
A company uses the double-entry system of accounting. The company's ledger accounts are as follows: Debit Cash: ₦120,000 Accounts Payable: ₦50,000 Sales Revenue: ₦150,000 Credit Accounts Receivable: ₦30,000 Cost of Goods Sold: ₦80,000 What is the net income of the company for the year ended 31st December 2020?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 6 View Details
A company's trading account for the year ended 31st December 2021 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2021 shows a current liability of ₦800,000. What is the company's net worth as at 31st December 2021?
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,300,000
D. ₦1,200,000

Correct Answer: A

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Question 7 View Details
A company's trial balance as at 31st December 2021 shows the following balances: Debtors ₦1,200,000, Creditors ₦800,000, and Capital ₦2,000,000. What is the company's net current asset position as at 31st December 2021?
Correct A. ₦400,000
B. ₦1,200,000
C. ₦1,600,000
D. ₦2,000,000

Correct Answer: A

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Question 8 View Details
A company's balance sheet as at 31st December 2021 shows the following: Fixed Assets ₦3,000,000, Current Assets ₦1,500,000, and Current Liabilities ₦800,000. What is the company's net worth as at 31st December 2021?
Correct A. ₦4,700,000
B. ₦4,600,000
C. ₦4,300,000
D. ₦4,200,000

Correct Answer: A

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Question 9 View Details
A company's profit and loss account for the year ended 31st December 2021 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2021 shows a current liability of ₦800,000. What is the company's net worth as at 31st December 2021?
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,300,000
D. ₦1,200,000

Correct Answer: A

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Question 10 View Details
A company's trial balance as at 31st December 2021 shows the following balances: Debtors ₦1,200,000, Creditors ₦800,000, and Capital ₦2,000,000. What is the company's net current asset position as at 31st December 2021?
Correct A. ₦400,000
B. ₦1,200,000
C. ₦1,600,000
D. ₦2,000,000

Correct Answer: A

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Question 11 View Details
A company has the following transactions in its cash book: Debit: Cash £ 1,000 Bank £ 500 Sales £ 2,000 Credit: Bank £ 1,500 Purchases £ 1,000 What is the balance on the cash account?
A. £ 1,500
Correct B. £ 1,000
C. £ 500
D. £ 2,000

Correct Answer: B

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Question 12 View Details
A manufacturing company has the following departmental accounts: Department of Production: Opening Balance £ 10,000 Sales £ 20,000 Purchases £ 15,000 Department of Marketing: Opening Balance £ 5,000 Sales £ 10,000 Purchases £ 8,000 What is the total profit of the company?
A. £ 5,000
B. £ 10,000
Correct C. £ 15,000
D. £ 20,000

Correct Answer: C

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Question 13 View Details
A company has the following trial balance: Debit: Cash £ 10,000 Bank £ 5,000 Sales £ 20,000 Credit: Bank £ 15,000 Purchases £ 10,000 What is the balance on the cash account?
Correct A. £ 10,000
B. £ 5,000
C. £ 15,000
D. £ 20,000

Correct Answer: A

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Question 14 View Details
A company has the following company accounts: Share Capital: £ 10,000 Debentures: £ 5,000 What is the total capital of the company?
A. £ 15,000
Correct B. £ 10,000
C. £ 5,000
D. £ 20,000

Correct Answer: B

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Question 15 View Details
A company has the following incomplete records: Cash £ 10,000 Bank £ 5,000 What is the total cash of the company?
A. £ 15,000
Correct B. £ 10,000
C. £ 5,000
D. £ 20,000

Correct Answer: B

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Question 16 View Details
A company's trial balance showed a debit balance in the account 'Dividends Received' of ₦50,000. The company's accounting records showed that it received a dividend of ₦60,000 from its investment in another company. However, the company also paid a dividend of ₦10,000 to its shareholders. What is the correct journal entry to rectify the error in the trial balance?
A. ₦50,000 debit to Dividends Received and ₦50,000 credit to Cash
B. ₦60,000 debit to Dividends Received and ₦60,000 credit to Cash
C. ₦10,000 debit to Dividends Paid and ₦10,000 credit to Cash
Correct D. ₦50,000 debit to Dividends Received and ₦10,000 credit to Dividends Paid

Correct Answer: D

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Question 17 View Details
A partnership account shows the following balances: Capital: ₦200,000; Drawing: ₦50,000; Profit: ₦30,000. What is the correct order of the accounts in the partnership ledger?
Correct A. Capital, Drawing, Profit
B. Profit, Drawing, Capital
C. Drawing, Capital, Profit
D. Profit, Capital, Drawing

Correct Answer: A

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Question 18 View Details
A company's manufacturing account shows the following costs: Direct Materials: ₦100,000; Direct Labour: ₦150,000; Factory Overheads: ₦200,000. What is the total cost of production?
A. ₦450,000
B. ₦550,000
Correct C. ₦650,000
D. ₦750,000

Correct Answer: C

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Question 19 View Details
A company's cash book shows the following transactions: Cash received from customers: ₦100,000; Cash paid to suppliers: ₦80,000; Cash paid to employees: ₦20,000. What is the net increase in cash?
Correct A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 20 View Details
A company's bank reconciliation statement shows the following discrepancies: Bank balance: ₦50,000; Cash balance: ₦60,000; Outstanding cheques: ₦10,000. What is the correct bank balance?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 21 View Details
A company uses the single-entry system of accounting. The company's cash account shows a balance of ₦120,000. The company's bank statement shows a balance of ₦150,000. What is the amount of the company's outstanding checks?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 22 View Details
A partnership has two partners, A and B. The partnership's capital account shows a balance of ₦500,000. Partner A's capital account shows a balance of ₦200,000. Partner B's capital account shows a balance of ₦300,000. What is the ratio of Partner A's capital to Partner B's capital?
A. 1:1
Correct B. 2:3
C. 3:2
D. 4:5

Correct Answer: B

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Question 23 View Details
A company uses the double-entry system of accounting. The company's trial balance shows a debit balance of ₦100,000 in the accounts payable account. The company's balance sheet shows a credit balance of ₦150,000 in the accounts payable account. What is the amount of the company's outstanding accounts payable?
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 24 View Details
A partnership has three partners, A, B, and C. The partnership's capital account shows a balance of ₦1,000,000. Partner A's capital account shows a balance of ₦300,000. Partner B's capital account shows a balance of ₦400,000. Partner C's capital account shows a balance of ₦300,000. What is the ratio of Partner A's capital to Partner B's capital to Partner C's capital?
Correct A. 3:4:3
B. 4:3:2
C. 2:3:4
D. 3:2:1

Correct Answer: A

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Question 25 View Details
A company uses the single-entry system of accounting. The company's cash account shows a balance of ₦200,000. The company's bank statement shows a balance of ₦250,000. What is the amount of the company's outstanding checks?
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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