POST UTME LAUTECH 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows the following transactions: Cash Sale ₦100,000, Cash Purchase ₦50,000, and Bank Deposit ₦20,000. What is the correct balance in the cash book?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 2
A company's balance sheet shows an increase in accounts payable of ₦20,000. Prepare the necessary journal entry to record this increase.
A. Debit Accounts Payable ₦20,000, Credit Purchases ₦20,000
B. Debit Purchases ₦20,000, Credit Accounts Payable ₦20,000
C. Debit Accounts Payable ₦20,000, Credit Sales ₦20,000
D. Debit Sales ₦20,000, Credit Accounts Payable ₦20,000
Question 3
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit: Cash 10,000, Accounts Payable 20,000 Credit: Equipment 30,000, Common Stock 10,000 What is the correct entry in the general ledger for the Accounts Payable account?
A. Debit 20,000, Credit 0
B. Debit 0, Credit 20,000
C. Debit 20,000, Credit 20,000
D. Debit 0, Credit 0
Question 4
A partnership is formed by three individuals: John, Mary, and David. John contributes ₦300,000, Mary contributes ₦200,000, and David contributes ₦100,000. The partnership agreement states that the profits and losses will be shared in the ratio 3:2:1. If the partnership makes a profit of ₦150,000, how much will John receive?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 5
A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦180,000. However, the bank statement shows a balance of ₦160,000. What is the reason for the discrepancy?
A. The company has outstanding checks.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has made an error in recording transactions.
Question 6
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Profit ₦200,000. What is the correct amount of Gross Profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 7
A company has the following transactions: Debit: ₦10,000, Credit: ₦15,000. What is the accounting equation?
A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets - Liabilities = Equity
D. Assets + Liabilities = Equity
Question 8
A company's balance sheet shows the following accounts: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the correct amount of Net Worth?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 9
A company's balance sheet as at 31st December, 2022, showed the following: Share Capital ₦1,000,000, Retained Earnings ₦500,000, Non-Current Assets ₦1,500,000, Current Assets ₦1,000,000, Total Assets ₦3,000,000. Prepare the company's statement of changes in equity for the year ended 31st December, 2022.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 10
Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, using the straight-line method.
A. ₦12,000
B. ₦24,000
C. ₦36,000
D. ₦48,000
Question 11
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 12
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦110,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦8,000 and a deposit of ₦2,000. What is the correct balance in the cash book?
A. ₦130,000
B. ₦120,000
C. ₦110,000
D. ₦100,000
Question 13
A company uses the cash basis of accounting. The following transactions are recorded in the cash book: Debit: Cash 10,000, Accounts Payable 20,000 Credit: Equipment 30,000, Common Stock 10,000 What is the correct entry in the general ledger for the Equipment account?
A. Debit 30,000, Credit 0
B. Debit 0, Credit 30,000
C. Debit 30,000, Credit 30,000
D. Debit 0, Credit 0
Question 14
A company uses the double entry system to record its financial transactions. The company's assets are ₦200,000, liabilities are ₦80,000, and equity is ₦120,000. What is the company's net worth?
A. ₦120,000
B. ₦180,000
C. ₦220,000
D. ₦280,000
Question 15
A company uses the single entry system to record its financial transactions. The company's assets are ₦220,000, liabilities are ₦60,000, and equity is ₦160,000. What is the company's net worth?
A. ₦160,000
B. ₦220,000
C. ₦280,000
D. ₦320,000

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