POST UTME LAUTECH 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 10,000 shares of 1 par value at 5 per share. What is the amount of cash received from the issue of shares?
A. 50,000
B. 40,000
C. 30,000
D. 20,000
Question 2
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 3
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 4
A sole proprietorship has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,200,000 Cash paid to suppliers: ₦800,000 Cash paid to employees: ₦600,000 Cash received from government grant: ₦200,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 What is the total cash inflow for the year?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 5
A partnership has the following capital accounts: Partner A: ₦50,000 Partner B: ₦30,000 Partner C: ₦20,000 The partnership also has the following drawings: Partner A: ₦10,000 Partner B: ₦5,000 Partner C: ₦3,000 What is the total capital of the partnership?
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 6
A company has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,500,000 Cash paid to suppliers: ₦800,000 Cash paid to employees: ₦600,000 Cash received from government grant: ₦200,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 What is the total cash outflow for the year?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 7
A company's trial balance shows an error of ₦20,000 in the credit side of the accounts receivable account. The correct balance is ₦200,000. What is the correct balance in the debit side of the accounts receivable account?
A. ₦220,000
B. ₦220,000
C. ₦220,000
D. ₦220,000
Question 8
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00
Question 9
The following is an extract from the financial statement of a public sector organization. Prepare a statement of sources and applications of funds for the year ended 31st December 2018.
A. Statement of sources and applications of funds
B. Statement of changes in equity
C. Statement of cash flows
D. Statement of comprehensive income
Question 10
A company issued 5,000 shares of ₦1 each at a premium of ₦0.25 per share. Calculate the total amount received from the issue of shares.
A. ₦1,250
B. ₦1,250.00
C. ₦1,250.00
D. ₦1,250.00
Question 11
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: cutting and assembly. The cutting department has a total cost of ₦500,000 and the assembly department has a total cost of ₦750,000. What is the total production cost for the period?
A. ₦1,250,000
B. ₦1,250,000
C. ₦1,250,000
D. ₦1,250,000
Question 12
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦250,000, what is the company's quick ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 13
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 14
A company uses the single entry system of accounting. The following transactions were recorded in the year ended 31st December 2018:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company uses the straight-line method of depreciation for its assets. If the asset cost ₦120,000 and has a residual value of ₦20,000, what is the annual depreciation charge if the asset is used for 5 years?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000

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