POST UTME RHEMA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single entry system to record its financial transactions. The company's cash book shows a balance of ₦80,000. However, the company's bank statement shows a balance of ₦100,000. What is the reason for the difference?
A. The company has not recorded all its financial transactions.
B. The bank has charged a fee for the overdraft.
C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded a deposit made by a customer.
Question 2
A company issues 10,000 shares of ₡0 par value at ₡5 per share. What is the total amount of cash received?
A. ₡50,000
B. ₡60,000
C. ₡70,000
D. ₡80,000
Question 3
A company has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦20,000, and purchased equipment for ₦30,000. What is the total amount of cash inflows?
A. ₦0
B. ₦10,000
C. ₦20,000
D. ₦30,000
Question 4
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦800 | | 3rd Jan | Cash | ₦200 | | | 4th Jan | Bank | | ₦300 | What is the balance in the cash account?
A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800
Question 5
A company's balance sheet as at 31st December, 2020, was as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦30,000 Stock: ₦40,000 Total Assets: ₦120,000 Liabilities: Creditors: ₦20,000 Capital: ₦100,000 Total Liabilities: ₦120,000 The company's accountant wants to prepare a new balance sheet as at 31st December, 2021. The company's cash balance as at 31st December, 2021, is ₦60,000. The debtors' balance as at 31st December, 2021, is ₦35,000. The stock balance as at 31st December, 2021, is ₦45,000. The creditors' balance as at 31st December, 2021, is ₦22,000. The capital balance as at 31st December, 2021, is ₦105,000. Prepare the new balance sheet.
A. ₦140,000
B. ₦130,000
C. ₦120,000
D. ₦110,000
Question 6
A company has a capital of ₦1,500,000, divided into 150,000 ordinary shares of ₦10 each. If the company issues 20% of its shares at a premium of ₦5 per share, calculate the amount received from the issue of shares.
A. ₦300,000
B. ₦375,000
C. ₦450,000
D. ₦525,000
Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. If the profit for the year is ₦ 20,000, and A's share of profit is 60%, calculate the amount of profit to be distributed to A.
A. ₦ 12,000
B. ₦ 15,000
C. ₦ 18,000
D. ₦ 20,000
Question 8
A company's profit and loss account shows the following balances: | Revenue | Expense | Profit | | --- | --- | --- | | ₦1,200 | ₦800 | ₦400 | What is the net profit?
A. ₦400
B. ₦600
C. ₦800
D. ₦1,000
Question 9
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 10
A company issues 10% debentures of ₦100 each at a premium of ₦10 per debenture. If the company issues 1,000 debentures, calculate the total amount received from the issue of debentures.
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 11
A company prepares a trial balance but discovers that the total debit balance is ₦50,000 more than the total credit balance. What is the reason for this discrepancy?
A. There is an error in the preparation of the trial balance.
B. There is an error in the posting of transactions to the ledger accounts.
C. There is an error in the calculation of the total debit and credit balances.
D. The company has not recorded all its financial transactions.
Question 12
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦200,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000
Question 13
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | Calculate the balance of cash at the end of the year.
A. ₦ 1,200
B. ₦ 1,500
C. ₦ 1,800
D. ₦ 2,000
Question 14
A company has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦20,000, and purchased equipment for ₦30,000. What is the total amount of cash outflows?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company's trial balance shows an error of ₦1,000 due to an incorrect posting of an account. The error is discovered during the preparation of the financial statements. The company's accountant has prepared the following journal entry to correct the error: Debit: ₦1,000, Credit: ₦1,000. What is the correct journal entry to correct the error?
A. Debit: ₦1,000, Credit: ₦1,000
B. Debit: ₦1,000, Credit: ₦1,000 (to correct the error)
C. Debit: ₦1,000, Credit: ₦1,000 (to correct the error in the trial balance)
D. Debit: ₦1,000, Credit: ₦1,000 (to correct the error in the financial statements)

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