POST UTME NILE UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 5,000 8% preference shares of ₦50 each at a premium of ₦10 per share. Calculate the amount received from the issue of preference shares.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 2
A company's ledger accounts show the following balances:
A. Debit 10,000 and Credit 10,000
B. Credit 10,000 and Debit 10,000
C. Debit 5,000 and Credit 5,000
D. Credit 5,000 and Debit 5,000
Question 3
A government agency prepares its financial statements for the year ended 31st December 2020. The financial statements show a surplus of ₦500,000. What is the correct explanation for this surplus?
A. The agency has collected more revenue than it has spent.
B. The agency has spent more than it has collected.
C. The agency has made an error in its financial statements.
D. The agency has made an error in its budget.
Question 4
A company's ledger account for wages payable shows a debit balance of ₦150,000. The company's balance sheet shows a credit balance of ₦100,000 in the wages payable account. Calculate the company's wages payable.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 5
A company uses the double-entry system of accounting. It records the following transactions in its journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the correct entry in the ledger?
A. Debit Purchases ₦10,000, Credit Cash ₦10,000.
B. Debit Purchases ₦10,000, Credit Cash ₦10,000.
C. Debit Cash ₦10,000, Credit Purchases ₦10,000.
D. Debit Purchases ₦10,000, Credit Purchases ₦10,000.
Question 6
A company uses the straight-line method of depreciation. It has a machine that cost ₦100,000 and has a useful life of 5 years. What is the annual depreciation charge?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 7
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease
Question 8
A company's balance sheet showed the following balances: Assets ₦200,000, Liabilities ₦100,000, Capital ₦100,000. What is the company's net worth?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 9
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease
Question 10
A company's bank reconciliation statement shows a difference of ₦20,000 due to outstanding deposits. If the bank statement shows a balance of ₦200,000, what is the correct balance in the cash book?
A. ₦220,000
B. ₦200,000
C. ₦180,000
D. ₦220,000
Question 11
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000
Question 12
A company uses a job costing system to account for its manufacturing costs. The following information is extracted from the company's ledger accounts:
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 13
A company's manufacturing costs for the year are as follows:
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 14
A company's departmental accounts show the following balances:
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company's trial balance showed the following balances: Debitors ₦50,000, Creditors ₦20,000, Capital ₦100,000. What is the total amount of the company's assets?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

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