POST UTME LEAD CITY UNIVERSITY 2024 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company uses the double-declining balance method of depreciation for its assets. If the asset's cost is ₦100,000 and its useful life is 5 years, what is the annual depreciation expense?
Question 2
A company has the following balance sheet: assets (₦1,000,000), liabilities (₦500,000), and equity (₦500,000). What is the ratio of the equity to the total assets?
Question 3
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the share issue.
Question 4
A company's ledger shows the following transactions:
| Date | Account | Debit | Credit |
| --- | --- | --- | --- |
| 1 | Cash | 10,000 | |
| 2 | Bank | | 8,000 |
| 3 | Cash | | 4,000 |
| 4 | Bank | | 6,000 |
| 5 | Cash | | 2,000 |
What is the balance in the cash account?
Question 5
The following is an extract from the financial statements of a public sector organization. Prepare a statement of changes in equity for the year ended 31st December 2023.
Question 6
A public sector organization uses the accrual basis of accounting. What is the accounting treatment for the following transaction: 'Received ₦10000 from the government for services rendered'?
Question 7
A partnership is dissolved when a partner dies. What is the accounting treatment for the deceased partner's share of the profits?
Question 8
A company has the following trial balance: Sales ₦1,500,000, Cost of Goods Sold ₦1,000,000, and Net Income ₦500,000. What is the correct balance of the retained earnings account?
Question 9
A company has a cash book balance of ₦250,000 and a bank statement balance of ₦300,000. The bank statement shows a credit balance of ₦20,000 for an outstanding cheque. The cash book shows a debit balance of ₦10,000 for an uncleared cheque. What is the correct balance of the company's cash account?
Question 10
A company uses the straight-line method of depreciation for its assets. If the asset's useful life is 5 years and its cost is ₦100,000, what is the annual depreciation expense?
Question 11
A company has the following transactions: purchase of goods (₦500,000), sale of goods (₦700,000), and purchase of equipment (₦300,000). What is the net profit of the company?
Question 12
A company has the following income statement: revenue (₦1,200,000), cost of goods sold (₦800,000), and net income (₦400,000). What is the gross profit margin?
Question 13
A public sector organization has a cash book balance of ₦1,500,000 and a bank statement balance of ₦1,800,000. The bank statement includes a credit of ₦200,000 for a loan received from the government. The cash book, however, shows a debit of ₦150,000 for a loan repaid to the government. What is the correct balance of the cash book after reconciliation?
Question 14
A company has a self-balancing ledger with the following accounts: Cash, Bank, Accounts Payable, and Common Stock. If the Cash account has a debit balance of ₦50,000 and the Bank account has a credit balance of ₦30,000, what is the net effect on the ledger?
Question 15
A company uses the perpetual inventory system. The cost of goods sold for the month of January is ₦1,200,000. The beginning inventory is ₦800,000, and the ending inventory is ₦600,000. What is the cost of goods available for sale for the month of January?
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