POST UTME MOUNTAIN TOP UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current asset of ₦50,000 in the 'Accounts Receivable' account. However, the company's accounting records show that the accounts receivable are actually ₦60,000. What is the correct journal entry to record the correction?
A. Debit Accounts Receivable by ₦10,000 and credit Profit and Loss by ₦10,000
B. Debit Profit and Loss by ₦10,000 and credit Accounts Receivable by ₦10,000
C. Debit Accounts Receivable by ₦10,000 and credit Capital by ₦10,000
D. Debit Capital by ₦10,000 and credit Accounts Receivable by ₦10,000
Question 2
A company has the following trading account: Sales: ₦2,000,000; Cost of goods sold: ₦1,500,000. Calculate the gross profit.
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 3
A company has the following balance sheet: Assets 100,000, Liabilities 50,000, and Equity 50,000. Calculate the current ratio.
A. 2:1
B. 1:1
C. 1:2
D. 3:1
Question 4
A company's balance sheet as at December 31, 2022, shows a non-current liability of ₦5,000,000 and a non-current asset of ₦3,000,000. What is the amount of the company's net current asset?
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦5,000,000
Question 5
A company's self-balancing ledger for the year ended 31st December 2020 is as follows: Debit: ₦1,500,000 Credit: ₦1,200,000 Determine the company's net profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
A company's balance sheet showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. Prepare a statement of cash flows for the company.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 7
A company's balance sheet showed a decrease in assets and an increase in liabilities. What is the effect of this on the company's equity?
A. Increase in equity
B. Decrease in equity
C. No effect on equity
D. Increase in liabilities and decrease in equity
Question 8
A company uses the weighted average method to value its inventory. The cost of the inventory is ₦100,000, and the selling price is ₦120,000. The company's accounting records show that the inventory is actually worth ₦110,000. What is the correct journal entry to record the correction?
A. Debit Inventory by ₦10,000 and credit Profit and Loss by ₦10,000
B. Debit Profit and Loss by ₦10,000 and credit Inventory by ₦10,000
C. Debit Inventory by ₦10,000 and credit Capital by ₦10,000
D. Debit Capital by ₦10,000 and credit Inventory by ₦10,000
Question 9
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a debit balance of ₦30,000 in the 'Drawings' account. What is the correct distribution of the drawings between partners A and B?
A. ₦18,000 to A and ₦12,000 to B
B. ₦20,000 to A and ₦10,000 to B
C. ₦22,000 to A and ₦8,000 to B
D. ₦24,000 to A and ₦6,000 to B
Question 10
A company has the following transactions related to its manufacturing department: Raw materials purchased: ₦200,000; Direct labor: ₦150,000; Factory overhead: ₦100,000. Calculate the total cost of goods manufactured.
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 11
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a balance sheet for the company.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company issued 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. ₦100,000
C. ₦150,000
D. ₦200,000
Question 13
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a profit of 10,000, calculate the share of profit for Partner A.
A. ₦6,000
B. ₦8,000
C. ₦10,000
D. ₦12,000
Question 14
A company's trial balance showed an error of ₦1,000 in the debit side of the account. What is the effect of this error on the company's balance sheet?
A. Decrease in assets and decrease in liabilities
B. Decrease in assets and increase in liabilities
C. Increase in assets and decrease in liabilities
D. Increase in assets and increase in liabilities
Question 15
A company has the following bank statement: ₦50,000, Bank Charges ₦5,000, and Interest ₦10,000. Prepare the bank reconciliation statement.
A. ₦50,000, Bank Charges ₦5,000, Interest ₦10,000
B. ₦50,000, Bank Charges ₦10,000, Interest ₦5,000
C. ₦50,000, Bank Charges ₦5,000, Interest ₦5,000
D. ₦50,000, Bank Charges ₦10,000, Interest ₦10,000

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