POST UTME OAU 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions in its public sector accounting system: Debit: - Cash 1,000 - Bank 500 Credit: - Bank 1,500 What is the net effect of these transactions on the bank balance?
A. 1,000
B. 500
C. 1,500
D. 0
Question 2
A company's balance sheet shows the following accounts: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's liquidity ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 3
A company's cash book for the year ended 31st December 2022 is as follows: Cash at Bank: ₦500,000; Cash in Hand: ₦200,000; Bank Overdraft: ₦300,000. Calculate the total cash and bank balance.
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 4
A bank's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the difference between the two balances?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 5
A company has a capital of ₦500,000 and a reserve of ₦200,000. If the company makes a profit of ₦150,000, what is the new capital and reserve?
A. ₦650,000 and ₦250,000
B. ₦700,000 and ₦300,000
C. ₦750,000 and ₦350,000
D. ₦800,000 and ₦400,000
Question 6
A firm's balance sheet shows an error of ₦10,000 due to an incorrect posting of an account. The error is discovered during the preparation of the income statement. What is the effect of this error on the income statement?
A. The error will result in an overstatement of revenue.
B. The error will result in an understatement of expenses.
C. The error will not affect the income statement.
D. The error will result in an overstatement of expenses.
Question 7
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,800,000; Capital: ₦700,000. Calculate the ratio of capital to liabilities.
A. 1:1
B. 2:3
C. 3:5
D. 5:8
Question 8
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 9
A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 10
A company uses the job order costing method. The following information is available for the month of January: Direct Materials: - January 1: 10,000 - January 31: 15,000 Direct Labor: - January 1: 8,000 - January 31: 12,000 Manufacturing Overhead: - January 1: 6,000 - January 31: 9,000 What is the total cost of direct materials, direct labor, and manufacturing overhead for January?
A. 40,000
B. 50,000
C. 60,000
D. 70,000
Question 11
A company's trial balance shows an error of ₦10,000 due to an omission. What is the correct balance of the company's accounts?
A. ₦500,000
B. ₦510,000
C. ₦520,000
D. ₦530,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records indicate that it has not paid any rent for the year. What is the most likely explanation for this debit balance?
A. The company has prepaid rent for the next year.
B. The company has accrued rent for the current year.
C. The company has not recorded any rent expense for the year.
D. The company has paid rent in advance for the current year.
Question 13
A manufacturing company uses a job costing system. The following information is available for Job No. 123: Materials: ₦120,000; Labour: ₦80,000; Overheads: ₦60,000. Calculate the total cost of the job.
A. ₦260,000
B. ₦270,000
C. ₦280,000
D. ₦290,000
Question 14
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
A. Bank charges
B. Unrecorded cash sales
C. Unrecorded cash purchases
D. Bank interest
Question 15
A company has a capital of ₦500,000 divided into 5,000 shares of ₦100 each. The company issues 1,000 shares at a premium of ₦20 per share. Calculate the amount received from the issue of shares.
A. ₦220,000
B. ₦230,000
C. ₦240,000
D. ₦250,000

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