POST UTME ESUT 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's bank statement as of December 31, 2022, shows a balance of 10,000. The company's cash account in the general ledger shows a balance of 12,000. The bank statement also shows a service charge of 50 and a NSF check of 200. What is the correct balance of the cash account in the general ledger?
A. 11,750
B. 12,250
C. 12,500
D. 13,000
Question 2
A company uses the single-entry system. The following transactions are recorded: Debit: ₦100,000 to Cash, ₦50,000 to Accounts Payable, and Credit: ₦150,000 to Sales. What is the net effect on the company's cash balance?
A. ₦50,000 increase
B. ₦50,000 decrease
C. ₦100,000 increase
D. ₦100,000 decrease
Question 3
A company's balance sheet shows a current liability of ₦200,000. If the company's current assets are ₦300,000, what is the company's working capital?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 4
A company's balance sheet shows an increase in its current assets by ₦50,000 and a decrease in its current liabilities by ₦20,000. Calculate the net increase in working capital.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 5
In a partnership with a 3:2:1 capital ratio, the net profit is ₦180,000. If the profit-sharing ratio is the same as the capital ratio, what is the share of the partner with a 1:1 capital ratio?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A public sector organization's final accounts show the following: Trading Profit ₦500,000, Profit Before Tax ₦700,000, Tax Expense ₦200,000. What is the correct calculation of the Net Profit?
A. ₦500,000.
B. ₦700,000.
C. ₦900,000.
D. ₦1,000,000.
Question 7
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding cheque that has not been presented to the bank.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has an error in its cash book.
Question 8
A company has the following balance sheet: Assets ₦ 200,000, Liabilities ₦ 100,000. Calculate the net worth of the company.
A. ₦ 100,000
B. ₦ 150,000
C. ₦ 200,000
D. ₦ 250,000
Question 9
A company has the following balance sheet: ₦500,000 in Cash, ₦200,000 in Accounts Payable, and ₦300,000 in Sales. What is the net worth of the company?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 10
A government agency's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank error. The agency's accountant wants to reconcile the two balances. What is the correct procedure to follow?
A. Prepare a bank reconciliation statement to identify the differences.
B. Contact the bank to correct the error.
C. Adjust the cash book balance to match the bank statement balance.
D. Ignore the difference and continue with the cash book balance.
Question 11
A government agency's bank reconciliation statement shows the following: Opening Balance ₦100,000, Deposits ₦50,000, Withdrawals ₦20,000, Bank Errors ₦10,000. What is the correct closing balance?
A. ₦130,000.
B. ₦140,000.
C. ₦150,000.
D. ₦160,000.
Question 12
A company's profit and loss account shows a net profit of ₦150,000. If the company's turnover is ₦500,000, what is the company's gross profit percentage?
A. 30%
B. 40%
C. 50%
D. 60%
Question 13
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 14
A company uses the perpetual inventory system. On January 1, 2022, it had 100 units of inventory on hand with a cost of 10 per unit. During the year, 50 units were sold, and 20 units were purchased at a cost of 12 per unit. What is the total cost of goods sold for the year?
A. 550
B. 600
C. 650
D. 700
Question 15
A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product A and product B should the company produce to maximize profit?
A. Product A: 30 units, Product B: 20 units
B. Product A: 20 units, Product B: 30 units
C. Product A: 40 units, Product B: 10 units
D. Product A: 10 units, Product B: 40 units

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