POST UTME OAU 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's assets are valued at ₦100,000, liabilities are ₦50,000, and equity is ₦50,000. What is the company's net asset value?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 2
A company has the following trial balance as of December 31, 2022: Debit 100,000; Credit 150,000. What is the correct balance in the general ledger?
A. 50,000
B. 75,000
C. 100,000
D. 150,000
Question 3
A company issued 1,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Prepare the journal entry to record the issuance of these shares.
A. Debit Cash 15,000; Credit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000
B. Debit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000; Credit Cash 15,000
C. Debit Paid-in Capital in Excess of Par Value 5,000; Credit Common Stock 10,000; Credit Cash 15,000
D. Debit Cash 15,000; Credit Common Stock 10,000; Credit Paid-in Capital in Excess of Par Value 5,000
Question 4
A company issues 1,000 shares of 10 par value at a premium of 5 per share. What is the total amount received from the sale of these shares?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 5
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records indicate that the actual rent paid for the year was ₦20,000. What is the correct journal entry to record the adjustment?
A. ₦5,000 debit to 'Rent and Rates' and ₦5,000 credit to 'Profit or Loss'
B. ₦5,000 debit to 'Profit or Loss' and ₦5,000 credit to 'Rent and Rates'
C. ₦20,000 debit to 'Rent and Rates' and ₦20,000 credit to 'Profit or Loss'
D. ₦15,000 debit to 'Rent and Rates' and ₦15,000 credit to 'Profit or Loss'
Question 6
A company has the following trial balance: Assets ₦100,000, Liabilities ₦80,000, Capital ₦20,000. What is the amount of the company's equity?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 7
A manufacturing company uses the process costing method. The following data are given: Opening work-in-progress (WIP) inventory: ₦150,000; Direct materials: ₦300,000; Direct labor: ₦250,000; Factory overhead: ₦200,000. Calculate the total cost of production.
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 8
A company has the following ledger accounts: Cash 10,000; Accounts Payable 5,000; Common Stock 20,000. What is the total amount of equity?
A. 25,000
B. 30,000
C. 35,000
D. 40,000
Question 9
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Collected cash from customers of ₦30,000. What is the net effect on the company's cash balance?
A. ₦10,000 increase
B. ₦20,000 increase
C. ₦30,000 decrease
D. ₦40,000 decrease
Question 10
In a public sector accounting system, what is the primary purpose of the 'Chart of Accounts'?
A. To provide a detailed description of the organization's financial activities
B. To facilitate the preparation of financial statements
C. To enable the identification of assets, liabilities, and equity
D. To provide a framework for budgeting and financial planning
Question 11
A partnership has two partners, A and B. The capital accounts of A and B are ₦80,000 and ₦60,000 respectively. The profit-sharing ratio is 3:2. What is the amount of profit to be distributed to partner A?
A. ₦24,000
B. ₦28,000
C. ₦32,000
D. ₦36,000
Question 12
A company's balance sheet shows the following items: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the total amount of liabilities?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 13
A company's trading account shows the following: Sales ₦100,000, Cost of Goods Sold ₦80,000, Gross Profit ₦20,000. What is the company's gross profit percentage?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A partnership has two partners, A and B. A invested ₦0,000 and B invested ₣0,000. The profit-sharing ratio is 3:2. Calculate the profit share of A.
A. ₡2,000
B. ₡5,000
C. ₡8,000
D. ₢1,000
Question 15
A company's trial balance shows a debit balance of ₦20,000 in the 'Depreciation' account. However, the company's accounting records indicate that the actual depreciation for the year was ₦25,000. What is the correct journal entry to record the adjustment?
A. ₦5,000 debit to 'Depreciation' and ₦5,000 credit to 'Profit or Loss'
B. ₦5,000 debit to 'Profit or Loss' and ₦5,000 credit to 'Depreciation'
C. ₦20,000 debit to 'Depreciation' and ₦20,000 credit to 'Profit or Loss'
D. ₦25,000 debit to 'Depreciation' and ₦25,000 credit to 'Profit or Loss'

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