POST UTME KSU 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 correct this discrepancy?
A. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000
B. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000
C. Debit Rent Paid by ₦20,000 and Credit Rent Received by ₦20,000
D. Debit Rent Received by ₦20,000 and Credit Rent Paid by ₦20,000
Question 2
A company has the following ledger balances: Purchases ₦100,000, Sales ₦150,000, Wages ₦20,000. What is the total profit?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 3
A company's assets are valued as follows: Buildings ₦500,000, Machinery ₦300,000, and Vehicles ₦200,000. If the company depreciates its assets by 10% per annum, what is the total depreciation for the year?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 4
A company's trial balance shows a debit balance of ₦12,000 in the account 'Rent Received' and a credit balance of ₦8,000 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. ₦4,000 debit to Rent Paid and ₦4,000 credit to Rent Received
B. ₦4,000 debit to Rent Received and ₦4,000 credit to Rent Paid
C. ₦8,000 debit to Rent Paid and ₦12,000 credit to Rent Received
D. ₦12,000 debit to Rent Received and ₦8,000 credit to Rent Paid
Question 5
A company's balance sheet shows a current liability of ₦150,000. What is the correct classification of this liability?
A. Non-current liability
B. Current liability
C. Equity
D. Asset
Question 6
A partnership has two partners, A and B. The partnership's trial balance shows a debit balance of ₦10,000 in the account 'A's Capital'. What is the correct treatment for this discrepancy?
A. Debit the A's Capital account and credit the Profit or Loss account
B. Credit the A's Capital account and debit the Profit or Loss account
C. Debit the A's Capital account and credit the B's Capital account
D. Credit the A's Capital account and debit the B's Capital account
Question 7
A company has the following balance sheet: Assets: ₦500,000; Liabilities: ₦200,000; Equity: ₦300,000. What is the return on equity?
A. 50%
B. 50%
C. 50%
D. 50%
Question 8
A company's trading account for the year ended 31st December 2020 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2020 shows a decrease in trade debtors of ₦250,000 and an increase in trade creditors of ₦300,000. Calculate the company's net cash inflow from trading activities.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 9
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct treatment for this discrepancy?
A. Debit the Rent Received account and credit the Cash account
B. Credit the Rent Received account and debit the Cash account
C. Debit the Rent Received account and credit the Profit or Loss account
D. Credit the Rent Received account and debit the Profit or Loss account
Question 10
A company's cash book shows a balance of ₦150,000 on January 1, 2023, while the bank statement shows a balance of ₦120,000 on the same date. The bank reconciliation statement reveals that the company's cash book is undercast by ₦10,000 and the bank has credited a service fee of ₦2,000. What is the correct balance of the company's cash book after reconciliation?
A. ₦140,000
B. ₦145,000
C. ₦150,000
D. ₦155,000
Question 11
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 12
A manufacturing company uses a job order costing system. The company has the following costs: direct materials of ₦10,000, direct labor of ₦8,000, and overhead of ₦6,000. What is the total cost of production?
A. ₦24,000
B. ₦24,000
C. ₦24,000
D. ₦24,000
Question 13
A company's profit and loss account for the year ended 31st December 2020 shows a gross profit of ₦1,500,000 and an operating profit of ₦1,200,000. Calculate the company's net profit.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 14
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. What is the correct treatment for this discrepancy?
A. Debit the Cash account and credit the Bank account
B. Credit the Cash account and debit the Bank account
C. Debit the Profit or Loss account and credit the Cash account
D. Credit the Profit or Loss account and debit the Cash account
Question 15
A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received'. What is the correct treatment of this account in the preparation of the company's financial statements?
A. Debit the account in the balance sheet
B. Credit the account in the balance sheet
C. Debit the account in the income statement
D. Credit the account in the income statement

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