POST UTME IGBINEDION UNIVERSITY 2023 Accounting | Objective

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Question 1
A company has two departments: Manufacturing and Sales. The Manufacturing department has a total of 500 employees, with 200 working in the production line and 300 in other roles. The Sales department has 150 employees. If the company has a total of 700 employees, what is the percentage of employees in the Manufacturing department?
A. 30%
B. 40%
Correct C. 50%
D. 60%

Correct Answer: C

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Question 2
A company uses a job costing system to track its manufacturing costs. The company has two jobs: Job A and Job B. Job A has a total cost of ₦150,000, with ₦80,000 allocated to direct materials and ₦70,000 to direct labor. Job B has a total cost of ₦120,000, with ₦60,000 allocated to direct materials and ₦60,000 to direct labor. What is the total cost of direct materials for both jobs?
A. ₦140,000
Correct B. ₦160,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 3
A company has a cash book that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 15,000 | | 1/3 | Purchase | 8,000 | | | 1/4 | Cash | | 12,000 | What is the balance of the cash account after all transactions have been recorded?
A. ₦2,000
B. ₦4,000
C. ₦6,000
Correct D. ₦8,000

Correct Answer: D

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Question 4
A company uses a self-balancing ledger to record its transactions. The ledger shows the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Sales | | 15,000 | | Purchase | 8,000 | | | Cash | | 12,000 | What is the balance of the Sales account after all transactions have been recorded?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 5
A company has a building that was purchased for ₦1,000,000. The building has a useful life of 10 years and a residual value of ₦100,000. What is the annual depreciation expense for the first year?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 6
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After one year, the profit is shared in the ratio 3:2. If A's share of the profit is ₦150,000, what is the value of B's share?
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 7
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, what is the amount received from the issue of shares?
A. ₦10,000,000
B. ₦11,000,000
Correct C. ₦12,000,000
D. ₦13,000,000

Correct Answer: C

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Question 8
A company has an account receivable of ₦500,000 and an account payable of ₦200,000. If the company's cash balance is ₦300,000, what is the net amount of cash available for distribution?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 9
A company issues 1,000 debentures of ₦1,000 each at a premium of 10%. If the company receives a total of ₦1,100,000, what is the amount received from the issue of debentures?
A. ₦1,000,000
B. ₦1,050,000
Correct C. ₦1,100,000
D. ₦1,150,000

Correct Answer: C

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Question 10
A company has an account receivable of ₦500,000 and an account payable of ₦200,000. If the company's cash balance is ₦300,000, what is the net amount of cash available for distribution?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 11
In a manufacturing company, the following transactions occurred during the year: Purchased raw materials worth ₦120,000 on credit. Sold goods worth ₦150,000 for cash. Purchased a machine worth ₦80,000 on credit. Sold goods worth ₦100,000 on credit. Paid cash of ₦20,000 to settle part of the credit purchase of raw materials. What is the total amount of cash paid out by the company during the year?
A. ₦100,000
B. ₦120,000
Correct C. ₦140,000
D. ₦160,000

Correct Answer: C

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Question 12
A company's trial balance as at 31st December, 2022 is as follows: Debit ₦ 50,000 - Raw Materials ₦ 20,000 - Wages ₦ 30,000 - Rent ₦ 10,000 - Salaries ₦ 20,000 - Depreciation ₦ 50,000 - Interest ₦ 10,000 - Miscellaneous Credit ₦ 30,000 - Sales ₦ 20,000 - Purchases ₦ 10,000 - Returns Outwards ₦ 5,000 - Bank Balance What is the company's net profit for the year?
A. ₦ 5,000
Correct B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000

Correct Answer: B

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Question 13
A company's balance sheet as at 31st December, 2022 is as follows: Assets ₦ 50,000 - Cash ₦ 20,000 - Accounts Receivable ₦ 30,000 - Inventory ₦ 10,000 - Prepaid Rent Liabilities ₦ 20,000 - Accounts Payable ₦ 10,000 - Notes Payable What is the company's total equity?
A. ₦ 30,000
B. ₦ 40,000
Correct C. ₦ 50,000
D. ₦ 60,000

Correct Answer: C

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Question 14
A company's income statement for the year ended 31st December, 2022 is as follows: Sales ₦ 50,000 Cost of Goods Sold ₦ 20,000 Gross Profit ₦ 30,000 Operating Expenses ₦ 10,000 Net Income ₦ 20,000 What is the company's gross profit margin?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 15
A company's balance sheet as at 31st December, 2022 is as follows: Assets ₦ 50,000 - Cash ₦ 20,000 - Accounts Receivable ₦ 30,000 - Inventory ₦ 10,000 - Prepaid Rent Liabilities ₦ 20,000 - Accounts Payable ₦ 10,000 - Notes Payable What is the company's current ratio?
A. 2:1
Correct B. 3:1
C. 4:1
D. 5:1

Correct Answer: B

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Question 16
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000 and the Sales department has a budget of ₦2,000,000. If the company's total budget is ₦3,500,000, what is the ratio of the Manufacturing department's budget to the Sales department's budget?
Correct A. 1:2
B. 2:3
C. 3:4
D. 4:5

Correct Answer: A

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Question 17
A company's balance sheet shows the following information: ₦1,000,000 in assets, ₦500,000 in liabilities, and ₦200,000 in equity. What is the company's net worth?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 18
A company's income statement shows the following information: ₦1,500,000 in revenue, ₦1,000,000 in expenses, and ₦500,000 in net income. What is the company's gross profit?
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000

Correct Answer: B

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Question 19
A company has the following ledger accounts: Cash ₦1,000,000, Accounts Payable ₦500,000, and Common Stock ₦200,000. What is the company's total assets?
Correct A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000

Correct Answer: A

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Question 20
A company's financial statements show the following information: ₦1,500,000 in total assets, ₦1,000,000 in total liabilities, and ₦500,000 in total equity. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 21
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. Calculate the total amount received from the issue of shares.
A. ₦ 200,000
Correct B. ₦ 210,000
C. ₦ 220,000
D. ₦ 230,000

Correct Answer: B

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Question 22
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance in the cash account?
Correct A. ₦ 1,200
B. ₦ 1,800
C. ₦ 2,000
D. ₦ 2,200

Correct Answer: A

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Question 23
A company's fixed assets are depreciated using the straight-line method. The cost of the assets is ₦ 100,000 and the residual value is ₦ 20,000. Calculate the annual depreciation charge.
A. ₦ 40,000
Correct B. ₦ 50,000
C. ₦ 60,000
D. ₦ 70,000

Correct Answer: B

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Question 24
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 1,000 | | | 2nd Jan | Cash | | 500 | | 3rd Jan | Bank | | 800 | What is the balance in the bank account?
Correct A. ₦ 1,200
B. ₦ 1,800
C. ₦ 2,000
D. ₦ 2,200

Correct Answer: A

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Question 25
A company's manufacturing account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Raw Materials | 10,000 | | | 2nd Jan | Labour | | 5,000 | | 3rd Jan | Factory Overheads | | 3,000 | What is the cost of goods manufactured?
A. ₦ 18,000
Correct B. ₦ 20,000
C. ₦ 22,000
D. ₦ 25,000

Correct Answer: B

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