POST UTME OAU 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchased 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. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 2
A company's trial balance as of December 31, 2022, is as follows: Debit Cash: ₦100,000 Accounts Payable: ₦50,000 Sales Revenue: ₦200,000 Cost of Goods Sold: ₦150,000 Credit Accounts Receivable: ₦70,000 Common Stock: ₦150,000 Salaries Expense: ₦30,000 Rent Expense: ₦20,000 What is the net income for the year?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 3
What is the main difference between a sole proprietorship and a partnership?
A. A sole proprietorship is a business owned by one person, while a partnership is owned by two or more people
B. A sole proprietorship is a business owned by two or more people, while a partnership is owned by one person
C. A sole proprietorship is a business that is registered with the government, while a partnership is not
D. A sole proprietorship is a business that is not registered with the government, while a partnership is
Question 4
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a cost of ₦100,000, what is the annual depreciation expense?
A. ₦10,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 5
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦4,750,000
B. ₦4,875,000
C. ₦4,900,000
D. ₦4,925,000
Question 6
A company uses the single-entry system of accounting. If the company's cash account shows a balance of ₦100,000 and the company purchases office supplies worth ₦20,000, what is the correct journal entry?
A. Debit Office Supplies ₦20,000, Credit Cash ₦20,000
B. Debit Office Supplies ₦20,000, Credit Accounts Payable ₦20,000
C. Debit Cash ₦20,000, Credit Office Supplies ₦20,000
D. Debit Office Supplies ₦20,000, Credit Accounts Receivable ₦20,000
Question 7
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the issue price is ₦15 per share, what is the total amount received from the issue of shares?
A. ₦15,000
B. ₦16,000
C. ₦17,000
D. ₦18,000
Question 8
A company's accounting records show that its total assets increased by ₦1,500,000 and its total liabilities increased by ₦800,000 during the year. If the company's net income for the year was ₦1,200,000, what was the increase in its equity?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 9
A company uses the single-entry system of accounting. The following transactions were recorded in the cash book for the month of January:
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 10
The following is a partial extract from the cash book of XYZ Limited:
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 11
A company's balance sheet showed an increase in the value of its assets by ₦20,000. The company's profit before tax was ₦150,000. Calculate the company's return on assets.
A. 10%
B. 12%
C. 15%
D. 18%
Question 12
A company purchases a building for ₦5,000,000 and depreciates it using the straight-line method over 10 years. Calculate the annual depreciation.
A. ₦500,000
B. ₦450,000
C. ₦400,000
D. ₦350,000
Question 13
A machine is purchased for ₦100,000 and has a useful life of 5 years. The machine is depreciated using the straight-line method. Calculate the annual depreciation.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 14
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A company's trial balance showed an error of ₦5,000 in the debit side of the purchases account. The correct amount of purchases was ₦150,000. Prepare the necessary journal entry to correct the error.
A. Debit Purchases ₦155,000, Credit Purchases ₦150,000
B. Debit Purchases ₦145,000, Credit Purchases ₦150,000
C. Debit Purchases ₦155,000, Credit Purchases ₦155,000
D. Debit Purchases ₦145,000, Credit Purchases ₦145,000

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