POST UTME ELIZADE UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions related to its manufacturing department: | Date | Description | Quantity | Unit Cost | Total Cost | | --- | --- | --- | --- | --- | | 1 Jan | Purchase of raw materials | 100 | ₦50 | ₦5,000 | | 15 Jan | Purchase of raw materials | 150 | ₦60 | ₦9,000 | | 20 Jan | Purchase of raw materials | 200 | ₦70 | ₦14,000 | Calculate the total cost of raw materials purchased during the month.
A. ₦28,000
B. ₦30,000
C. ₦32,000
D. ₦35,000
Question 2
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦12,000,000, how much of the amount will be credited to the share capital account?
A. ₦10,000,000
B. ₦12,000,000
C. ₦11,000,000
D. ₦9,000,000
Question 3
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 total of the debit balances?
A. £ 500,000
B. £ 600,000
C. £ 700,000
D. £ 800,000
Question 4
A company's balance sheet shows the following balances: Assets ₦200,000, Liabilities ₦100,000, and Capital ₦100,000. What is the net worth of the company?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 5
A company's balance sheet as at 31st December 2022 is as follows: Assets: £ 100,000 (Cash) £ 200,000 (Debtors) £ 300,000 (Stock) Liabilities: £ 50,000 (Creditors) What is the total of the assets?
A. £ 500,000
B. £ 600,000
C. £ 700,000
D. £ 800,000
Question 6
A company's income statement shows the following balances: Revenue: ₦1,000,000, Cost of Goods Sold: ₦800,000, Gross Profit: ₦200,000 What is the company's net income?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 7
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000, and the cost of purchases is ₦1,200,000. The company uses a periodic inventory system. Calculate the cost of goods sold using the weighted average method.
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,200,000
Question 8
A company uses the single-entry system of accounting. The company's journal entry for the purchase of equipment on 1 Jan is: Debit: Equipment ₦100,000, Credit: Cash ₦100,000 On 15 Jan, the company sells the equipment for ₦120,000. Prepare the journal entry for the sale of equipment.
A. Debit: Cash ₦120,000, Credit: Equipment ₦120,000
B. Debit: Equipment ₦120,000, Credit: Cash ₦120,000
C. Debit: Cash ₦120,000, Credit: Equipment ₦100,000
D. Debit: Equipment ₦100,000, Credit: Cash ₦120,000
Question 9
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the ratio of the distribution of profits?
A. 3:2
B. 2:3
C. 1:1
D. 4:3
Question 10
A company's trial balance shows the following balances: Accounts Payable ₦20,000, Sales Revenue ₦30,000. What is the effect of these balances on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities
Question 11
A company has the following transactions related to its public sector accounting: | Date | Description | Amount | | --- | --- | --- | | 1 Jan | Receipt from government | ₦100,000 | | 15 Jan | Payment to supplier | ₦50,000 | | 20 Jan | Receipt from government | ₦150,000 | Prepare the journal entry for the receipt from government on 20 Jan.
A. Debit: Cash ₦150,000, Credit: Government ₦150,000
B. Debit: Government ₦150,000, Credit: Cash ₦150,000
C. Debit: Cash ₦150,000, Credit: Government ₦100,000
D. Debit: Government ₦100,000, Credit: Cash ₦150,000
Question 12
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 13
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 total of the credit balances?
A. £ 500,000
B. £ 600,000
C. £ 700,000
D. £ 800,000
Question 14
A company uses the double entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Decreases liabilities and increases equity
Question 15
A company's balance sheet shows the following balances: Cash ₦15,000, Accounts Payable ₦20,000. What is the effect of these balances on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities

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