POST UTME OSUSTECH 2023 Accounting | Objective

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Question 1
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 2
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2021 showed a capital of ₦2,000,000. The company issued 20,000 shares of ₦10 each on 1st January 2022. Calculate the company's retained earnings as at 31st December 2022.
A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 3
A company has the following trial balance: Debit: Cash: ₦50,000 Bank: ₦30,000 Credit: Sales: ₦100,000 Purchases: ₦80,000 What is the correct balance of the company's cash account?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 4
A company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 8,000 units with a cost of ₦40,000. During the period, the Assembly department incurred direct materials of ₦100,000 and direct labor of ₦60,000. The company uses a predetermined overhead rate of 150% of direct labor costs. What is the total cost of goods manufactured for the period?
A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000
Question 5
A company has the following trial balance as at December 31, 2022: Accounts Payable 50,000, Accounts Receivable 20,000, Common Stock 100,000, Dividends 5,000, Equipment 80,000, Interest Expense 10,000, Net Income 20,000, Retained Earnings 30,000, Salaries Expense 15,000, Sales Revenue 150,000, Taxes Payable 10,000, Utilities Expense 5,000. What is the total amount of the company's equity as at December 31, 2022?
A. 220,000
B. 200,000
C. 210,000
D. 190,000
Question 6
A company's balance sheet shows a current asset of ₦50,000 and a current liability of ₦30,000. What is the company's working capital?
A. ₦20,000
B. ₦10,000
C. ₦30,000
D. ₦40,000
Question 7
A company issued 5,000 debentures of 100 each at a premium of 10%. The total amount received from the issue of debentures is 525,000. Calculate the amount received from the issue of debentures in excess of the face value.
A. ₦25,500
B. ₦26,000
C. ₦26,500
D. ₦27,000
Question 8
A company's trial balance shows the following accounts: Land (₦50,000), Buildings (₦200,000), Equipment (₦150,000), Accumulated Depreciation (₦30,000). Calculate the net book value of the company's assets.
A. ₦370,000
B. ₦420,000
C. ₦470,000
D. ₦520,000
Question 9
A company's financial statements show the following information: Revenue (₦500,000), Cost of Goods Sold (₦300,000), Gross Profit (₦200,000), Operating Expenses (₦150,000), Net Income (₦50,000). Calculate the company's operating profit.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 10
A company's cash book shows a debit balance of ₦500,000. The company's bank statement shows a credit balance of ₦200,000. Calculate the company's bank overdraft.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 11
A company uses the job costing method to account for its production costs. The company has a job that requires 10,000 units of direct materials at a cost of ₦50 per unit and 5,000 units of direct labor at a cost of ₦100 per hour. The company uses a predetermined overhead rate of 150% of direct labor costs. The total production cost for the job is ₦500,000. What is the total cost of direct materials for the job?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company purchased a machine for 10,000. The machine has a useful life of 5 years and a residual value of 2,000. Calculate the annual depreciation using the straight-line method.
A. 1,600
B. 1,800
C. 1,900
D. 2,000
Question 13
A company uses the perpetual inventory system. The company's beginning inventory is 500 units at a cost of ₦100 per unit. During the period, the company purchases 1,000 units at ₦120 per unit and sells 600 units at ₦150 per unit. The company uses the FIFO method to value its inventory. What is the cost of goods sold for the period?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 14
A company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 8,000 units with a cost of ₦40,000. During the period, the Assembly department incurred direct materials of ₦100,000 and direct labor of ₦60,000. The company uses a predetermined overhead rate of 150% of direct labor costs. The total production cost for the period is ₦500,000. What is the total cost of goods manufactured for the period?
A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000
Question 15
A company has the following transactions recorded in its cash book: Debit: Cash: ₦15,000 Bank: ₦20,000 Credit: Cash: ₦10,000 Bank: ₦25,000 What is the correct balance of the company's cash account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

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