POST UTME NOUN 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a machine that depreciates by 10% per annum. The machine was purchased for ₦100,000. What is the value of the machine after 2 years?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 2
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the asset's book value after 3 years if the asset's cost is ₦120,000?
A. ₦72,000
B. ₦80,000
C. ₦88,000
D. ₦96,000
Question 3
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department has a direct labor cost of ₦100,000 and an overhead cost of ₦50,000. The Assembly department has a direct labor cost of ₦150,000 and an overhead cost of ₦75,000. What is the total cost of production?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 4
A company uses the straight-line method of depreciation. A machine was purchased on 1st January 2020 for ₦100,000 and has a residual value of ₦20,000. Calculate the annual depreciation for the year.
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 5
A company's cash book shows a balance of ₦300,000. The company's bank statement shows a balance of ₦320,000. What is the reason for the difference?
A. The company has a loan from a bank.
B. The company has made a deposit into a bank.
C. The company has written a cheque that has not yet been presented for payment.
D. The company has a credit card account with a bank.
Question 6
A company prepares its trial balance and discovers an error in the accounts. The error is due to a mistake in the recording of a transaction. What is the correct procedure to follow?
A. Prepare a revised trial balance to reflect the correct transaction.
B. Reconcile the trial balance with the ledger accounts.
C. Ignore the error and use the original trial balance.
D. Contact the auditor to rectify the error.
Question 7
A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦500,000; Liabilities: ₦800,000. What is the company's gearing ratio?
A. 1:2
B. 1:3
C. 1:4
D. 1:5
Question 8
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to outstanding checks totaling ₦20,000. What is the correct balance in the cash book?
A. ₦140,000
B. ₦160,000
C. ₦180,000
D. ₦200,000
Question 9
A company's balance sheet shows the following information: Total Assets ₦500,000, Total Liabilities ₦200,000, and Total Equity ₦300,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 10
A company has two departments: production and sales. The production department incurred expenses of ₦20,000, and the sales department incurred expenses of ₦30,000. What is the total expense of the company?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 11
A company uses the cash book to record all its financial transactions. Which of the following is an example of a cash transaction?
A. Sale of goods on credit
B. Payment of salaries to employees
C. Purchase of office equipment on credit
D. Collection of cash from customers
Question 12
A company manufactures two products, A and B. Product A requires 2 hours of direct labor and Product B requires 3 hours of direct labor. The company worked a total of 1,000 hours during the year. If Product A was sold for ₦100 per unit and Product B was sold for ₦150 per unit, and the company sold 500 units of Product A and 300 units of Product B, calculate the total revenue for the year.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 13
A company's depreciation policy is as follows: Straight-line method, 10% per annum. A machine was purchased for ₦100,000 and has a useful life of 5 years. Calculate the annual depreciation for the first year.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 14
A company uses a cash book to record its transactions. The cash book shows the following entries: Date | Debit | Credit 01/01 | | ₦10,000 02/01 | ₦5,000 | 03/01 | | ₦8,000 What is the balance in the cash book?
A. ₦13,000
B. ₦15,000
C. ₦17,000
D. ₦19,000
Question 15
A company's assets are valued at ₦1,000,000. The company depreciates its assets by 10% per annum. What is the value of the assets after 2 years?
A. ₦900,000
B. ₦800,000
C. ₦720,000
D. ₦640,000

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