POST UTME IMS U 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's bank reconciliation statement shows the following discrepancies: Outstanding cheque: ₦20,000; Deposits in transit: ₦10,000; Bank errors: ₦5,000. What is the total discrepancy?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 2
A company's trial balance shows a credit balance of ₦30,000 in the account 'Dividends'. However, the company's accounting records show that the dividends were actually paid to the shareholders. What is the correct journal entry to correct this error?
A. ₦30,000 debit to Dividends and ₦30,000 credit to Cash
B. ₦30,000 debit to Cash and ₦30,000 credit to Dividends
C. ₦30,000 debit to Dividends and ₦30,000 credit to Profit
D. ₦30,000 debit to Profit and ₦30,000 credit to Dividends
Question 3
A company prepares a balance sheet as of December 31. The following accounts are listed: Cash 10,000, Accounts Receivable 20,000, Inventory 30,000, Total Assets 60,000. What is the total equity of the company?
A. 20,000
B. 30,000
C. 40,000
D. 50,000
Question 4
A company's cash book as of December 31, 2024, is as follows: Debit Cash ₦50,000 Bank ₦30,000 Credit Sales ₦100,000 Purchases ₦80,000 What is the net cash balance of the company?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. If the company issues 10,000 shares of common stock at ₦10 per share, what is the new balance in the Common Stock account?
A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 6
A company's balance sheet shows a current asset of ₦150,000 in the account 'Accounts Receivable'. However, the company's accounting records show that the amount is actually ₦180,000. What is the correct journal entry to correct this error?
A. ₦30,000 debit to Accounts Receivable and ₦30,000 credit to Cash
B. ₦30,000 debit to Cash and ₦30,000 credit to Accounts Receivable
C. ₦30,000 debit to Accounts Receivable and ₦30,000 credit to Profit
D. ₦30,000 debit to Profit and ₦30,000 credit to Accounts Receivable
Question 7
A manufacturing company produces 1,000 units of a product. The cost of raw materials is 10,000, labor cost is 15,000, and overhead cost is 8,000. What is the total cost of production?
A. 33,000
B. 38,000
C. 43,000
D. 48,000
Question 8
A partnership is dissolved when a partner dies. Calculate the amount of goodwill to be written off in the books of XYZ Partnership, which has a capital of ₦1,500,000, divided in the ratio 3:2:1 between partners A, B, and C respectively.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦800,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,000,000
D. ₦800,000
Question 10
A company uses the weighted average method to value its inventory. If the total cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000, what is the cost of goods sold per unit, if the total number of units available for sale is 10,000 and the total number of units sold is 8,000?
A. ₦150
B. ₦120
C. ₦180
D. ₦200
Question 11
A company's balance sheet shows a non-current liability of ₦100,000 in the account 'Bonds Payable'. However, the company's accounting records show that the bonds were actually redeemed. What is the correct journal entry to correct this error?
A. ₦100,000 debit to Bonds Payable and ₦100,000 credit to Cash
B. ₦100,000 debit to Cash and ₦100,000 credit to Bonds Payable
C. ₦100,000 debit to Bonds Payable and ₦100,000 credit to Profit
D. ₦100,000 debit to Profit and ₦100,000 credit to Bonds Payable
Question 12
A company uses the double-entry system to record transactions. The following journal entry is made: Debit Cash 1,000, Credit Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities
Question 13
A company uses the straight-line method of depreciation. The cost of a machine is ₦50,000, and its useful life is 5 years. What is the annual depreciation expense?
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦17,500
Question 14
A company's balance sheet as at 31st December 2023 is as follows: Assets ₦2,500,000, Liabilities ₦1,500,000, and Equity ₦1,000,000. What is the company's debt-equity ratio?
A. 1.50
B. 2.00
C. 2.50
D. 3.00
Question 15
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the total profit-sharing ratio?
A. 3:2
B. 5:3
C. 7:4
D. 9:5

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