POST UTME IMS U 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's bank statement as of December 31, 2022, is as follows: Debit Cash: ₦100,000 Credit Bank Service Charge: ₦5,000 Prepare the company's bank reconciliation statement as of December 31, 2022.
A. Bank Balance: ₦95,000, Company Balance: ₦100,000
B. Bank Balance: ₦90,000, Company Balance: ₦100,000
C. Bank Balance: ₦95,000, Company Balance: ₦90,000
D. Bank Balance: ₦90,000, Company Balance: ₦95,000
Question 2
A company's balance sheet shows a current ratio of 2:1. If the company has a total current asset of ₦500,000 and a total current liability of ₦200,000, what is the total current asset?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 3
A company uses the double entry system. The following transactions occurred during the month: Debit: Raw Materials ₦ 10,000, Work-in-Progress ₦ 20,000, Factory Overheads ₦ 15,000 Credit: Purchases ₦ 30,000, Wages ₦ 25,000, Rent ₦ 10,000 What is the total amount of the debit entries?
A. ₦ 65,000
B. ₦ 55,000
C. ₦ 45,000
D. ₦ 35,000
Question 4
A company's trial balance shows the following account balances: Accounts Payable ₦50,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦80,000. Determine the correct journal entry to record the sale of goods.
A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦100,000
B. Debit Cost of Goods Sold ₦80,000, Credit Sales Revenue ₦100,000
C. Debit Accounts Payable ₦50,000, Debit Cost of Goods Sold ₦80,000, Credit Sales Revenue ₦130,000
D. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦100,000, Debit Cost of Goods Sold ₦80,000
Question 5
A company uses the straight-line method of depreciation. The asset's cost is ₦100,000, and its useful life is 5 years. What is the annual depreciation expense?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 6
A company's balance sheet showed a decrease in cash from ₦20,000 to ₦10,000. Calculate the amount of cash paid to suppliers.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 7
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
Question 8
A company's trial balance as of December 31, 2022, is as follows: Debit Cash: ₦100,000 Accounts Payable: ₦50,000 Credit Accounts Receivable: ₦80,000 Sales Revenue: ₦200,000 Prepare the company's balance sheet as of December 31, 2022.
A. Assets: ₦230,000, Liabilities: ₦50,000, Equity: ₦180,000
B. Assets: ₦280,000, Liabilities: ₦50,000, Equity: ₦230,000
C. Assets: ₦230,000, Liabilities: ₦80,000, Equity: ₦150,000
D. Assets: ₦280,000, Liabilities: ₦80,000, Equity: ₦200,000
Question 9
A manufacturing company produces two products, A and B. The selling price of product A is ₦50 per unit, and the variable cost is ₦20 per unit. The selling price of product B is ₦75 per unit, and the variable cost is ₦30 per unit. If the company produces 100 units of product A and 50 units of product B, what is the total contribution margin?
A. ₦3,500
B. ₦4,000
C. ₦4,500
D. ₦5,000
Question 10
A company's manufacturing account for the year ended 31st December 20X7 is as follows: Direct Materials ₦ 50,000 Direct Labour ₦ 30,000 Overheads ₦ 20,000 Total Cost ₦ 100,000 What is the correct cost of goods manufactured?
A. ₦ 100,000
B. ₦ 120,000
C. ₦ 150,000
D. ₦ 180,000
Question 11
A company's financial statements show a net income of ₦500,000. The company's accountant wants to prepare a cash flow statement. What is the first step the accountant should take?
A. Prepare a statement of cash flows using the indirect method
B. Prepare a statement of cash flows using the direct method
C. Prepare a statement of changes in equity
D. Prepare a balance sheet
Question 12
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦1,000 | | | Bank | | ₦500 | | Purchases | ₦200 | | | Sales | | ₦300 | Prepare the ledger accounts.
A. ₦1,200
B. ₦1,300
C. ₦1,400
D. ₦1,500
Question 13
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries' and a credit balance of ₦20,000 in the account 'Wages'. What is the correct journal entry to rectify this error?
A. ₦10,000 debit to Salaries and ₦10,000 credit to Wages
B. ₦10,000 debit to Wages and ₦10,000 credit to Salaries
C. ₦20,000 debit to Salaries and ₦20,000 credit to Wages
D. ₦20,000 debit to Wages and ₦20,000 credit to Salaries
Question 14
A company uses the weighted average method to value its inventory. The company had the following data for the year: Beginning inventory: 1,000 units @ ₦50 per unit Purchases: 5,000 units @ ₦60 per unit Sales: 3,000 units @ ₦120 per unit Ending inventory: 1,500 units @ ₦55 per unit Calculate the cost of goods sold for the year.
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 15
A government agency is responsible for collecting taxes on behalf of the government. The agency's accounting system is based on the accrual basis of accounting. What is the primary purpose of the accrual basis of accounting?
A. To match revenues and expenses with the period in which they are earned or incurred
B. To match revenues and expenses with the period in which they are paid or received
C. To match revenues and expenses with the period in which they are recorded
D. To match revenues and expenses with the period in which they are budgeted

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