POST UTME REDEEMERS UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Purchased office supplies for 1,000, Paid rent 2,000, and Sold goods for 5,000. Prepare the journal entries.
A. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Cash 2,000, Debit Sales Revenue 5,000, Credit Cash 5,000
B. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Cash 2,000, Debit Sales Revenue 5,000, Credit Accounts Receivable 5,000
C. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Cash 2,000, Debit Sales Revenue 5,000, Credit Cash 5,000
D. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Accounts Payable 2,000, Debit Sales Revenue 5,000, Credit Cash 5,000
Question 2
A company issued 10,000 9% debentures of ₦100 each on January 1, 2022. The debentures are redeemable at par after 5 years. Calculate the annual charge for interest on the debentures.
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 3
A company's profit and loss account showed the following balances: Cost of Goods Sold ₦150,000, Gross Profit ₦50,000. Calculate the operating expenses.
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 4
A government agency has the following transactions: Salaries ₦100,000, Rent ₦20,000, Utilities ₦10,000. What is the correct classification of these transactions?
A. Operating Expenses
B. Capital Expenditures
C. Revenue
D. Expenses
Question 5
A company's cash book shows the following transactions: Cash Sales ₦50,000, Cash Purchases ₦30,000, Cash Received from Customers ₦20,000. What is the correct balance of the company's cash account?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 6
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000. What is the correct balance of the company's net income?
A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 7
A company uses the self-balancing ledger system to record transactions. The following ledger account is available: Debit 1,000, Credit 1,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases assets and decreases liabilities
Question 8
A manufacturing company produces 100 units of a product per day. Each unit costs ₦500 to produce. If the company operates for 20 days in a month, what is the total production cost for the month?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,200,000
Question 9
A company's balance sheet showed the following balances: Share Capital ₦500,000, Retained Earnings ₦300,000. Calculate the total equity.
A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦500,000
Question 10
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a discrepancy of ₦15,000. What is the reason for this discrepancy?
A. Bank error
B. Cash book error
C. Discrepancy in exchange rates
D. Discrepancy in accounting records
Question 11
A manufacturing company produces two products, X and Y. Product X requires 2 hours of labor and 3 units of raw material, while product Y requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, how many units of product X and product Y should be produced to maximize profit?
A. 10 units of X and 15 units of Y
B. 12 units of X and 18 units of Y
C. 15 units of X and 20 units of Y
D. 18 units of X and 22 units of Y
Question 12
A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?
A. The company has a cash overdraft.
B. The company has a bank overdraft.
C. The company's cash book is incorrect.
D. The company's bank statement is incorrect.
Question 13
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 14
A company uses the bank reconciliation statement to reconcile the bank statement with the cash book. The following information is available: Bank statement balance 10,000, Cash book balance 15,000, Outstanding checks 2,000. What is the net increase in cash?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 15
A company's assets are valued at ₦500,000. The company depreciates its assets by 10% per annum. What is the value of the assets after 2 years?
A. ₦420,000
B. ₦450,000
C. ₦480,000
D. ₦510,000

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