POST UTME IMS U 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦300,000?
A. ₦50,000
B. ₦60,000
C. ₦62,500
D. ₦65,000
Question 2
A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accountant has informed you that the correct value of the office equipment is ₦20,000. What is the correct entry to record the adjustment?
A. ₦5,000 debit to 'Office Equipment' and ₦5,000 credit to 'Profit or Loss on Disposal of Assets'
B. ₦5,000 credit to 'Office Equipment' and ₦5,000 debit to 'Profit or Loss on Disposal of Assets'
C. ₦5,000 debit to 'Profit or Loss on Disposal of Assets' and ₦5,000 credit to 'Office Equipment'
D. ₦5,000 credit to 'Office Equipment' and ₦5,000 debit to 'Office Expenses'
Question 3
A company's trial balance shows a discrepancy of ₦10,000. The company's accountant suspects that the error occurred due to an incorrect posting of a transaction. Which of the following steps should the accountant take to correct the error?
A. Repost the transaction
B. Reconcile the bank statement
C. Adjust the trial balance
D. Revalue the assets
Question 4
In a partnership account, what is the correct method of valuing the goodwill of a partnership when a new partner joins?
A. Average of the book value and the market value
B. Market value
C. Book value
D. Cost of the new partner's investment
Question 5
A partnership has two partners, A and B. Partner A invested ₦200,000 and Partner B invested ₦150,000. If the profit is divided in the ratio 3:2, what is the share of profit of Partner A?
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 6
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset has a useful life of 5 years, what is the annual depreciation charge?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 7
A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The difference between the two balances is ₦5,000. What is the reason for this difference?
A. The company has not yet deposited the cash into the bank.
B. The company has not yet received the cash from the bank.
C. The company has written a cheque that has not yet been presented for payment.
D. The company has made an error in its cash book.
Question 8
A government agency has the following transactions: Debit: ₦500,000, Credit: ₦600,000. What is the net effect of this transaction on the government agency's financial position?
A. Increase in financial position by ₦100,000
B. Decrease in financial position by ₦100,000
C. No effect on financial position
D. Increase in financial position by ₦100,000 and decrease in financial position by ₦100,000
Question 9
A company prepares its financial statements for the year ended December 31, 2021. The company's trading account shows a profit of ₦500,000, and the profit and loss account shows a net profit of ₦750,000. What is the company's net profit for the year?
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 10
A company's cash book shows a balance of ₦120,000, but the bank statement shows a balance of ₦100,000. The bank reconciliation statement shows a difference of ₦15,000 due to outstanding cheques. What is the correct balance in the company's cash book?
A. ₦135,000
B. ₦125,000
C. ₦115,000
D. ₦105,000
Question 11
A company's bank statement shows a balance of ₦50,000, but the company's cash book shows a balance of ₦60,000. What is the reason for the discrepancy?
A. The bank has charged a service fee of ₦10,000
B. The company has deposited ₦10,000 into the bank but has not yet been credited
C. The company has withdrawn ₦10,000 from the bank but has not yet been debited
D. The bank has credited an interest of ₦10,000 to the company's account
Question 12
A company uses the perpetual inventory system. On January 1, the inventory balance was ₦50,000. During the year, purchases were ₦200,000 and sales were ₦300,000. If the cost of goods sold is 25% of the sales, what is the inventory balance on December 31?
A. ₦75,000
B. ₦80,000
C. ₦85,000
D. ₦90,000
Question 13
A company has the following transactions: Purchased office equipment for ₦50,000, sold goods for ₦120,000, and paid salaries of ₦30,000. What is the total amount of the company's expenses?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 14
A company's balance sheet shows the following: Cash ₦20,000, Accounts Payable ₦50,000, and Common Stock ₦100,000. What is the company's total liabilities?
A. ₦150,000
B. ₦170,000
C. ₦190,000
D. ₦210,000
Question 15
A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the end of the period. The Assembly department has a balance of ₦150,000 in its WIP account at the end of the period. If the company's total manufacturing costs for the period were ₦500,000, what is the amount of the company's total manufacturing costs that were incurred in the Cutting department?
A. ₦120,000
B. ₦150,000
C. ₦200,000
D. ₦250,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: