POST UTME REDEEMERS UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following balances: Cash ₦150,000, Accounts Payable ₦100,000, Common Stock ₦200,000, and Retained Earnings ₦50,000. What is the company's total liabilities?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A company's trading account for the year ended December 31, 2020, showed the following: Sales ¡ 10,000,000; Cost of goods sold ¡ 6,000,000; Gross profit ¡ 4,000,000. Calculate the gross profit percentage.
A. 25%
B. 30%
C. 35%
D. 40%
Question 3
A company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries Expense' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Salaries Expense and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries Expense
C. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Salaries Payable
D. ₦10,000 debit to Salaries Payable and ₦10,000 credit to Salaries Expense
Question 4
A partnership has two partners, A and B. The capital accounts of A and B are ₦200,000 and ₦300,000 respectively. The profit and loss account shows a profit of ₦50,000. The drawings of A and B are ₦20,000 and ₦30,000 respectively. What is the balance on A's capital account at the end of the year?
A. ₦180,000
B. ₦220,000
C. ₦240,000
D. ₦280,000
Question 5
A company's financial statements show a net income of ₦1,000,000. If the company's tax rate is 25%, what is the amount of income tax paid?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦120,000, calculate the amount of capital contributed by partner A.
A. ₦60,000
B. ₦72,000
C. ₦90,000
D. ₦108,000
Question 7
A company's manufacturing overheads for the year ended December 31, 2020, were as follows: Direct materials ¡ 1,500,000; Direct labor ¡ 2,000,000; Variable overheads ¡ 1,200,000; Fixed overheads ¡ 1,800,000. Calculate the total manufacturing overheads for the year.
A. ¡ 6,500,000
B. ¡ 6,300,000
C. ¡ 6,400,000
D. ¡ 6,200,000
Question 8
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, how many units of product X and Y can be produced?
A. 10 units of X and 6 units of Y
B. 8 units of X and 8 units of Y
C. 12 units of X and 4 units of Y
D. 6 units of X and 10 units of Y
Question 9
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦20,000, calculate the annual depreciation charge if the asset's cost is ₦150,000.
A. ₦25,000
B. ₦28,571
C. ₦30,000
D. ₦35,000
Question 10
A company's balance sheet shows a current asset of ₦50,000 in the account 'Accounts Receivable' and a current liability of ₦30,000 in the account 'Accounts Payable'. What is the correct accounting equation to represent this situation?
A. ₦50,000 = ₦30,000 + ₦20,000
B. ₦50,000 = ₦20,000 + ₦30,000
C. ₦30,000 = ₦50,000 - ₦20,000
D. ₦30,000 = ₦20,000 - ₦50,000
Question 11
A partnership is formed between two individuals, A and B, with initial capital contributions of ₦50,000 and ₦30,000 respectively. After one year, the partnership earns a profit of ₦120,000. If A's share of the profit is ₦60,000, what is B's share of the profit?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 12
A company uses the weighted average method of inventory valuation. If the cost of goods available for sale is ₦1,500,000, and the ending inventory is ₦1,200,000, what is the cost of goods sold?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 14
In a partnership account, what is the correct method for calculating the capital of a partner who has been absent for a year?
A. Capital at the beginning of the year
B. Capital at the end of the year
C. Average capital for the year
D. Capital at the beginning of the year plus any drawings made during the year
Question 15
A public sector organization has a cash book balance of ₦1,500,000 and a bank statement balance of ₦1,800,000. The bank statement includes a credit of ₦200,000 for an unearned revenue. What is the correct journal entry to reconcile the cash book and bank statement?
A. ₦1,500,000 debit to cash, ₦1,800,000 credit to bank
B. ₦200,000 debit to cash, ₦200,000 credit to bank
C. ₦1,800,000 debit to bank, ₦1,500,000 credit to cash
D. ₦1,500,000 debit to bank, ₦1,800,000 credit to cash

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