POST UTME RSU 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 2,000 shares at a premium of ₦20 per share, what is the amount of premium received?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 2
A company has incomplete records and uses the 'Single Entry' method to account for its transactions. What is the primary limitation of this method?
A. It is difficult to prepare a trial balance
B. It is not suitable for large companies
C. It does not provide a complete picture of the company's financial position
D. It is not allowed under IFRS
Question 3
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 4
A company's trial balance as at December 31, 2022 is as follows: Debtors: ₦150,000 Creditors: ₦80,000 Capital: ₦200,000 Profit: ₦50,000 What is the total amount of assets?
A. ₦380,000
B. ₦420,000
C. ₦480,000
D. ₦520,000
Question 5
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Receivable, Sales, and Cost of Goods Sold. What is the purpose of the self-balancing ledger?
A. To record transactions in a chronological order
B. To ensure that the ledger is always in balance
C. To simplify the recording process
D. To reduce the number of accounts
Question 6
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership's net income for the year is ₦120,000, how much of the net income will partner A receive?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 7
A company has a capital of ₦200,000 divided into 2,000 shares of ₦100 each. If the company issues 500 shares at a premium of ₦5 per share, what is the amount of premium received?
A. ₦2,500
B. ₦5,000
C. ₦7,500
D. ₦10,000
Question 8
A manufacturing company uses the 'Job Costing' method to account for its production costs. What is the primary advantage of this method?
A. It provides a detailed breakdown of production costs
B. It simplifies the accounting process
C. It reduces the need for inventory valuation
D. It increases the accuracy of financial reporting
Question 9
A company uses the following accounting equation: Assets = Capital + Profit If the company's assets are ₦500,000 and its capital is ₦200,000, what is the amount of profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 10
A company has a capital of ₦500,000 divided into 5,000 shares of ₦100 each. If the company issues 1,000 shares at a premium of ₦10 per share, what is the amount of premium received?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount of interest payable annually.
A. ₦50,000
B. ₦25,000
C. ₦12,500
D. ₦62,500
Question 12
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Received cash from customers of ₦20,000. What is the total amount of cash received?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 13
A company issued 10,000 shares of ₦5 each at a premium of ₦3 per share. The issue expenses were ₦20,000. Prepare the journal entry for the issue of shares.
A. Debit Share Capital ₦50,000, Credit Share Premium ₦30,000, Credit Issue Expenses ₦20,000
B. Debit Share Capital ₦50,000, Credit Share Premium ₦30,000
C. Debit Share Capital ₦50,000, Credit Issue Expenses ₦20,000
D. Debit Share Capital ₦50,000, Credit Share Premium ₦30,000, Debit Issue Expenses ₦20,000
Question 14
A company purchased a machine for ₦150,000. The machine was depreciated by 10% in the first year. Calculate the depreciation expense for the first year.
A. ₦15,000
B. ₦12,000
C. ₦10,000
D. ₦8,000
Question 15
A company's balance sheet as at December 31, 2022 is as follows: Assets: ₦500,000 Capital: ₦200,000 Profit: ₦50,000 What is the amount of liabilities?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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