POST UTME MOUNTAIN TOP UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference is due to a bank error. The company's accountant wants to reconcile the two balances. What is the first step the accountant should take?
A. Verify the cash book and bank statement entries
B. Contact the bank to investigate the error
C. Reconcile the two balances without investigating the error
D. Adjust the cash book balance to match the bank statement balance
Question 2
A government agency uses the cash basis of accounting. The agency receives ₦100,000 in cash and spends ₦80,000 on expenses. What is the net increase in cash?
A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies'. However, the company's accounting records show that the office supplies were valued at ₦20,000 at the end of the year. What is the correct journal entry to record the correction?
A. ₦15,000 debit to Office Supplies and ₦20,000 credit to Office Supplies
B. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Supplies
C. ₦20,000 debit to Office Supplies and ₦15,000 credit to Office Supplies
D. ₦15,000 credit to Office Supplies and ₦20,000 debit to Office Supplies
Question 4
A company's cash book for the year ended 31 December 2023 is as follows: Date | Debit | Credit -----|-------|-------- 1 Jan | ₠ 10,000 | ₠ 0 15 Jan | ₠ 0 | ₠ 5,000 Calculate the bank balance as at 31 December 2023.
A. ₠ 5,000
B. ₠ 10,000
C. ₠ 15,000
D. ₠ 20,000
Question 5
A company's balance sheet shows a total assets of ₦500,000. However, the total liabilities and equity is ₦600,000. What is the likely reason for the discrepancy?
A. The company has not recorded a bank loan.
B. The company has not recorded a bank overdraft.
C. The company has not recorded a bank deposit.
D. The company has not recorded a bank withdrawal.
Question 6
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. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 7
A company maintains a cash book and a general ledger. The cash book shows a debit balance of ₦10,000, while the general ledger shows a credit balance of ₦5,000. What is the correct journal entry to reconcile the two accounts?
A. Debit Cash A/c ₦15,000, Credit Bank A/c ₦5,000
B. Debit Cash A/c ₦15,000, Credit Bank A/c ₦10,000
C. Debit Cash A/c ₦10,000, Credit Bank A/c ₦5,000
D. Debit Cash A/c ₦5,000, Credit Bank A/c ₦10,000
Question 8
A company's trial balance shows the following balances: Debitors ₦50,000, Creditors ₦30,000, Capital ₦100,000. What is the correct journal entry to close the accounts?
A. Debit Debitors A/c ₦50,000, Credit Capital A/c ₦50,000
B. Debit Creditors A/c ₦30,000, Credit Capital A/c ₦30,000
C. Debit Debitors A/c ₦50,000, Credit Creditors A/c ₦30,000
D. Debit Capital A/c ₦100,000, Credit Debitors A/c ₦50,000
Question 9
A company's trial balance as at 31 Dec shows the following: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Purchases | | ₦120,000 | | Wages | ₦20,000 | | | Rent | | ₦30,000 | | Capital | | ₦150,000 | Identify the error in the trial balance and state the correct balance.
A. Sales = ₦80,000
B. Purchases = ₦100,000
C. Wages = ₦30,000
D. Rent = ₦20,000
Question 10
A company is preparing its financial statements for the year ended December 31, 2023. The company has the following transactions: Sale of goods for ₦100,000 Purchase of goods for ₦80,000 Payment of salaries for ₦20,000 What is the total amount of expenses for the year?
A. ₦100,000
B. ₦80,000
C. ₦20,000
D. ₦120,000
Question 11
A company has the following transactions: Purchased office supplies for ₦20,000 Sold goods for ₦150,000 Purchased equipment for ₦300,000 What is the total amount of assets acquired?
A. ₦520,000
B. ₦520,000
C. ₦520,000
D. ₦520,000
Question 12
A company issues 500 shares of 5 par value common stock at 10 per share. What is the amount of additional paid-in capital?
A. ₦2,500
B. ₦5,000
C. ₦10,000
D. ₦15,000
Question 13
A company purchases a machine for ₦100,000 and depreciates it using the straight-line method over a 10-year useful life. What is the annual depreciation expense?
A. ₦10,000
B. ₦5,000
C. ₦20,000
D. ₦15,000
Question 14
A company maintains a cash book that shows the following transactions: Cash ₦10,000; Bank ₦20,000; and Accounts Payable ₦30,000. What is the total cash balance?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 15
A company issued 10,000 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at par after 5 years. Calculate the amount of discount on the issue of debentures.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000

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