POST UTME RHEMA UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | 1/1/2022 | Purchased goods from XYZ Ltd | ₦50,000 | | 15/1/2022 | Paid cash to XYZ Ltd | ₦30,000 | | 20/1/2022 | Purchased goods from ABC Ltd | ₦70,000 | | 25/1/2022 | Paid cash to ABC Ltd | ₦50,000 | What is the total amount outstanding in the accounts payable at the end of January 2022?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 2
A company's balance sheet shows a decrease in its current assets by ₦10,000. However, its profit and loss account shows an increase in its revenue by ₦15,000. What is the likely cause of this discrepancy?
A. Error in recording revenue
B. Error in recording current assets
C. Error in preparing the balance sheet
D. Error in accounting records
Question 3
A company has the following transactions related to its cash account: | Date | Description | Amount | | --- | --- | --- | | 1/1/2022 | Cash received from customers | ₦100,000 | | 15/1/2022 | Cash paid to suppliers | ₦50,000 | | 20/1/2022 | Cash received from sale of assets | ₦70,000 | | 25/1/2022 | Cash paid to employees | ₦30,000 | What is the net increase in cash at the end of January 2022?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 4
A company's trial balance shows a debit balance of ₦15,000 in the account 'Salaries and Wages Paid'. However, the company's accounting records show that it has not paid any salaries and wages to its employees. What is the likely cause of this discrepancy?
A. Error in recording salaries and wages paid
B. Error in recording salaries and wages received
C. Error in preparing the trial balance
D. Error in accounting records
Question 5
A company has two partners, A and B. Partner A has a 60% interest in the business and partner B has a 40% interest. If the company makes a profit of ₦100,000, how much will each partner receive?
A. Partner A: ₦60,000, Partner B: ₦40,000
B. Partner A: ₦40,000, Partner B: ₦60,000
C. Partner A: ₦80,000, Partner B: ₦20,000
D. Partner A: ₦20,000, Partner B: ₦80,000
Question 6
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 rectify this discrepancy?
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 7
A public sector organization has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,500,000 Cash paid to suppliers: ₦800,000 Cash received from government grant: ₦200,000 Cash paid to employees: ₦600,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 Cash paid for insurance: ₦100,000 Cash paid for maintenance: ₦75,000 Cash paid for repairs: ₦25,000 Cash paid for travel: ₦50,000 Cash paid for training: ₦25,000 Cash paid for entertainment: ₦10,000 Cash paid for miscellaneous: ₦5,000 What is the total cash outflow for the year?
A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 8
A company uses the self-balancing ledger system. The following information is available for the year ended December 31, 2022:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 9
A trader purchases goods on credit for ₦150,000. He sells the goods for ₦200,000 and incurs a bank charge of ₦5,000. What is the profit made by the trader?
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 10
A public sector organization uses the accrual basis of accounting. The following information is available for the year ended December 31, 2022:
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 11
A company's trial balance as at December 31, 2022, is as follows: Debtors: ₦500,000 Creditors: ₦200,000 Capital: ₦1,000,000 Profit: ₦200,000 What is the total amount of assets?
A. ₦1,700,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,100,000
Question 12
A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends Paid'. However, the company's accounting records show that it has not paid any dividends to its shareholders. What is the likely cause of this discrepancy?
A. Error in recording dividends paid
B. Error in recording dividends received
C. Error in preparing the trial balance
D. Error in accounting records
Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 14
The following is the balance sheet of XYZ Manufacturing Company as at December 31, 2022. Prepare the manufacturing account for the year ended December 31, 2022.
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 15
A manufacturing company uses the weighted average method to value its inventory. The company has two types of inventory: raw materials and work-in-progress. The raw materials inventory has a cost of ₦100,000 and a quantity of 1,000 units. The work-in-progress inventory has a cost of ₦200,000 and a quantity of 500 units. What is the total value of the inventory?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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