POST UTME ESUT 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation expense?
A. +₦90,000
B. +₦100,000
C. +₦110,000
D. +₦120,000
Question 2
A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash at bank: ₦150,000 Debtors: ₦120,000 Stock: ₦200,000 Total assets: ₦470,000 Liabilities: Creditors: ₦100,000 Capital: ₦200,000 Total liabilities: ₦300,000 What is the company's net worth?
A. ₦170,000
B. ₦170,000
C. ₦170,000
D. ₦170,000
Question 3
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦1,500,000 Cash ₦2,000,000 Accounts Receivable ₦3,000,000 Inventory ₦1,000,000 Property, Plant and Equipment Liabilities: ₦1,000,000 Accounts Payable ₦2,000,000 Long-term Debt What is the company's current ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 4
A company's bank statement balance on December 31, 2022, was ₦1,500,000. The company's cash book balance on the same date was ₦1,800,000. The bank statement included a debit of ₦200,000 for a NSF cheque. What is the correct bank reconciliation?
A. ₦1,600,000
B. ₦1,700,000
C. ₦1,800,000
D. ₦1,900,000
Question 5
A company purchased a machine for ₦ 10,000 and depreciated it by 10% at the end of the first year. Calculate the value of the machine at the end of the first year.
A. ₦ 9,000
B. ₦ 9,500
C. ₦ 10,000
D. ₦ 10,500
Question 6
A company's manufacturing account for the year ended 31st December 2022 is as follows: Direct Materials: ₦1,000,000 Direct Labor: ₦500,000 Overhead: ₦200,000 What is the company's total manufacturing cost?
A. ₦1,700,000
B. ₦1,800,000
C. ₦1,900,000
D. ₦2,000,000
Question 7
A company has the following ledger balances: Raw Materials ₦150,000, Work-in-Progress ₦120,000, and Finished Goods ₦80,000. If the company uses the LIFO method, what is the value of Cost of Goods Sold?
A. ₦350,000
B. ₦450,000
C. ₦550,000
D. ₦650,000
Question 8
A company has the following data for the year ended December 31, 2022: Sales ₦2,000,000; Cost of goods sold ₦1,200,000; Beginning inventory ₦400,000; Ending inventory ₦600,000. What is the gross profit for the year?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 9
A manufacturing company has the following data for the year ended December 31, 2022: Cost of goods sold ₦1,800,000; Beginning inventory ₦400,000; Ending inventory ₦600,000. What is the gross profit for the year?
A. ₦1,200,000
B. ₦1,400,000
C. ₦1,600,000
D. ₦1,800,000
Question 10
A company uses the following accounts: Raw Materials, Work-in-Progress, Finished Goods, and Cost of Goods Sold. If the company's balance sheet shows ₦200,000 in Raw Materials, ₦150,000 in Work-in-Progress, and ₦100,000 in Finished Goods, what is the value of Cost of Goods Sold?
A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000
Question 11
A company's departmental accounts for the year ended 31st December 2022 are as follows: Selling Department: ₦1,000,000 Administrative Department: ₦500,000 What is the company's total departmental expenses?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 12
A company uses the accrual basis of accounting. At the end of the year, the company has accounts receivable of ₦100,000 and accounts payable of ₦50,000. What is the net effect on the company's cash balance?
A. +₦50,000
B. +₦100,000
C. -₦50,000
D. -₦100,000
Question 13
A company uses the straight-line method of depreciation. The company's asset has a cost of ₦100,000 and a useful life of 5 years. What is the annual depreciation expense?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
In a self-balancing ledger, the control account is used to record the total of all subsidiary accounts. What is the purpose of the control account?
A. To record the total of all subsidiary accounts
B. To record the total of all control accounts
C. To record the total of all assets
D. To record the total of all liabilities
Question 15
A company has a departmental account for the manufacturing department. The department incurred expenses of ₦ 50,000 and earned revenue of ₦ 100,000. Calculate the profit or loss of the department.
A. Profit of ₦ 50,000
B. Loss of ₦ 50,000
C. Profit of ₦ 50,000
D. Loss of ₦ 50,000

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