POST UTME RHEMA UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single entry system of accounting. The company's cash book shows a balance of ₦120,000. However, the company's bank statement shows a balance of ₦150,000. What is the amount of the bank's error?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000
Question 2
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 balance of the company's cash account?
A. ₦120,000
B. ₦150,000
C. ₦30,000
D. ₦180,000
Question 3
A government agency has the following transactions: Salaries ₦100,000, Rent ₦50,000, and Utilities ₦20,000. Prepare the agency's statement of cash flows for the year.
A. Cash Flows from Operations ₦150,000, Cash Flows from Investing ₦0, Cash Flows from Financing ₦0
B. Cash Flows from Operations ₦100,000, Cash Flows from Investing ₦50,000, Cash Flows from Financing ₦0
C. Cash Flows from Operations ₦50,000, Cash Flows from Investing ₦100,000, Cash Flows from Financing ₦0
D. Cash Flows from Operations ₦0, Cash Flows from Investing ₦150,000, Cash Flows from Financing ₦0
Question 4
A company uses the straight-line method to depreciate its assets. The asset has a useful life of 10 years and a residual value of ₦20,000. Calculate the annual depreciation for the asset.
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,500
Question 5
A company's balance sheet as at 31st December 2023 showed a total of ₦4,000,000 in the non-current assets section. The company's total liabilities were ₦2,500,000. What is the amount of the company's equity?
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0
Question 6
A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Credit Accounts Payable ₦50,000, and Debit Common Stock ₦200,000. Prepare the company's trial balance.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A company uses the percentage of completion method to account for its construction contracts. At the end of the current year, the company has completed 75% of the contract. The total contract price is ₦10,000,000, and the company has incurred costs of ₦7,500,000. Calculate the profit recognized for the year.
A. ₦1,875,000
B. ₦2,250,000
C. ₦2,500,000
D. ₦3,000,000
Question 8
A company has the following ledger accounts: Cash ₦50,000, Accounts Receivable ₦20,000, Accounts Payable ₦15,000. What is the company's total current assets?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 9
A company's bank statement shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank | ₦20,000 | | | 2 Jan | Sales | | ₦25,000 | | 3 Jan | Purchase | ₦18,000 | | | 4 Jan | Bank | | ₦22,000 | What is the balance on the bank account?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 10
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct the error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Cash ₦20,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
Question 11
A company's balance sheet shows a current asset of ₦100,000 in the 'Accounts Receivable' account. However, the company's accounting records show that it has written off ₦20,000 of the accounts receivable as uncollectible. What is the correct journal entry to record the write-off?
A. Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000
B. Debit Bad Debt Expense ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
C. Debit Allowance for Doubtful Accounts ₦20,000, Credit Bad Debt Expense ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
Question 12
A company has the following transactions: Purchase of land for ₦500,000, Purchase of building for ₦300,000, and Sale of equipment for ₦200,000. If the company uses the accrual method of accounting, what is the total revenue?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,200,000
Question 13
A company uses the straight-line method of depreciation for its assets. If the asset has a useful life of 5 years and a cost of ₦500,000, what is the annual depreciation expense?
A. ₦100,000
B. ₦125,000
C. ₦150,000
D. ₦200,000
Question 14
A company has the following transactions: Purchase of land for ₦500,000, Purchase of building for ₦300,000, and Sale of equipment for ₦200,000. If the company uses the cash method of accounting, what is the total revenue?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,200,000
Question 15
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's profit is ₦240,000, how much will partner A receive?
A. ₦144,000
B. ₦120,000
C. ₦96,000
D. ₦80,000

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