POST UTME MOUNTAIN TOP UNIVERSITY 2023 Accounting | Objective

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Question 1
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000. The purchases during the period are ₦900,000. The total cost of goods available for sale is ₦1,500,000. The company uses a perpetual inventory system. What is the cost of goods sold?
A. ₦900,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 2
A company has the following ledger accounts: Cash ₦100,000, Accounts Payable ₦50,000, Common Stock ₦200,000, Retained Earnings ₦150,000. What is the total equity of the company?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 3
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦20,000; Returns Inwards: ₦15,000. Calculate the gross profit for the year.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 4
A company uses the control account system. The following transactions are recorded: Debit Purchases ₦50,000, Credit Purchases Returns and Allowances ₦10,000. What is the effect of this transaction on the control account?
A. Increases Purchases and Decreases Purchases Returns and Allowances
B. Increases Purchases Returns and Allowances and Decreases Purchases
C. Increases Assets and Decreases Liabilities
D. Increases Liabilities and Decreases Assets
Question 5
A company's income statement shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's balance sheet.
A. ₦200,000 in Accounts Payable and ₦300,000 in Sales Revenue
B. ₦500,000 in Sales Revenue and ₦300,000 in Cost of Goods Sold
C. ₦200,000 in Accounts Payable and ₦500,000 in Sales Revenue
D. ₦100,000 in Common Stock and ₦300,000 in Cost of Goods Sold
Question 6
A company's balance sheet shows a current ratio of 2:3. If the company's current assets are ₦1,200,000, calculate the company's current liabilities.
A. ₦1,800,000
B. ₦2,400,000
C. ₦3,000,000
D. ₦3,600,000
Question 7
A company's balance sheet as at 31st December 2022 is as follows: Equity Share Capital: ₦500,000; Profit and Loss Account: ₦300,000; Drawings: ₦20,000. Calculate the total equity of the company.
A. ₦820,000
B. ₦820,000
C. ₦820,000
D. ₦820,000
Question 8
A company issues 1,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
A. ₦90,000
B. ₦95,000
C. ₦100,000
D. ₦105,000
Question 9
A company issues 5,000, 12% preference shares of ₦10 each. Calculate the amount of dividend paid to the preference shareholders.
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 10
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases Assets and Decreases Liabilities
B. Increases Liabilities and Decreases Assets
C. Increases Equity and Decreases Assets
D. Increases Assets and Decreases Equity
Question 11
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If an asset cost ₦100,000 and has a residual value of ₦20,000, what is the annual depreciation charge?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 12
A company uses the self-balancing ledger system. The following transactions are recorded: Debit Sales ₦20,000, Credit Sales Returns and Allowances ₦5,000. What is the effect of this transaction on the accounting equation?
A. Increases Revenue and Decreases Expenses
B. Increases Expenses and Decreases Revenue
C. Increases Assets and Decreases Liabilities
D. Increases Liabilities and Decreases Assets
Question 13
A company's ledger shows a debit balance of ₦40,000 in the account 'Rent Paid' and a credit balance of ₦35,000 in the account 'Rent Received'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
C. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
Question 14
A company's balance sheet as at 31st December 2022 is as follows: Share capital: ₦600,000; Reserves: ₦400,000; Debtors: ₦250,000; Creditors: ₦200,000. Calculate the total liabilities of the company.
A. ₦1,150,000
B. ₦1,200,000
C. ₦1,250,000
D. ₦1,300,000
Question 15
A company's balance sheet as at 31st December 2022 is as follows: Share capital: ₦500,000; Reserves: ₦300,000; Debtors: ₦200,000; Creditors: ₦150,000. Calculate the total assets of the company.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000

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