POST UTME RSU 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 10 per debenture. The issue expenses were ₦ 25,000. Calculate the amount of debenture capital.
A. ₦ 500,000
B. ₦ 550,000
C. ₦ 600,000
D. ₦ 650,000
Question 2
A company's balance sheet shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. Calculate the company's equity.
A. ₦3,000,000
B. ₦2,500,000
C. ₦3,500,000
D. ₦4,000,000
Question 3
A manufacturing company produced 10,000 units of a product at a cost of ₦ 50 per unit. However, due to a defect, 2,000 units were rejected. Calculate the total production cost.
A. ₦ 400,000
B. ₦ 450,000
C. ₦ 500,000
D. ₦ 550,000
Question 4
A company uses a cash book to record all its cash transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has not recorded all its cash transactions.
B. The bank has charged the company a fee.
C. The company has deposited cash into the bank but has not yet recorded it in the cash book.
D. The company has withdrawn cash from the bank but has not yet recorded it in the cash book.
Question 5
A company's cash book showed a balance of ₦ 15,000. However, the bank statement showed a balance of ₦ 20,000. The bank charged a service fee of ₦ 500. Calculate the correct balance.
A. ₦ 18,500
B. ₦ 19,500
C. ₦ 20,500
D. ₦ 21,500
Question 6
A company's trading account showed a profit of ₦50,000. The company's profit and loss account showed a net profit of ₦60,000. What is the amount of the company's non-trading income?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 7
A company has the following balance sheet: Assets: Cash ¡ 100,000 Accounts Receivable ¡ 150,000 Equipment ¡ 200,000 Liabilities: Accounts Payable ¡ 50,000 Salaries Payable ¡ 75,000 What is the total assets?
A. ¡ 350,000
B. ¡ 400,000
C. ¡ 450,000
D. ¡ 500,000
Question 8
A company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs: Type A (100 units, ₦50 per unit), Type B (200 units, ₦75 per unit), and Type C (300 units, ₦100 per unit), what is the total value of the inventory?
A. ₦210,000
B. ₦240,000
C. ₦270,000
D. ₦300,000
Question 9
A company's accounting policy requires that depreciation be calculated using the straight-line method. If the company purchased a machine for ₦120,000 and it has a useful life of 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 10
A company prepares its trial balance and discovers that the debit and credit balances of the accounts do not tally. What is the first step to take?
A. Check the accounts for errors.
B. Reconcile the trial balance with the general ledger.
C. Prepare a new trial balance.
D. Investigate the discrepancy.
Question 11
A public sector organization has the following transactions for the year: Debit: Cash ¡ 500,000, Accounts Payable ¡ 200,000, Equipment ¡ 300,000 Credit: Accounts Receivable ¡ 400,000, Salaries Payable ¡ 150,000, Revenue ¡ 700,000 What is the net cash inflow from investing activities?
A. ¡ 100,000
B. ¡ 200,000
C. ¡ 300,000
D. ¡ 400,000
Question 12
A public sector organization has the following transactions for the year: Debit: Cash ¡ 500,000, Accounts Payable ¡ 200,000, Equipment ¡ 300,000 Credit: Accounts Receivable ¡ 400,000, Salaries Payable ¡ 150,000, Revenue ¡ 700,000 What is the net cash outflow from operating activities?
A. ¡ 100,000
B. ¡ 200,000
C. ¡ 300,000
D. ¡ 400,000
Question 13
A company prepares its final accounts for the year ended 31st December 2020. The company's trading account shows a gross profit of ₦2,500,000 and a net profit of ₦1,800,000. Calculate the company's profit margin.
A. 45%
B. 50%
C. 55%
D. 60%
Question 14
A company prepares its final accounts and discovers that the profit for the year is ₦50,000. However, the company has a cash surplus of ₦20,000. What is the reason for the difference?
A. The company has not recorded all its revenues.
B. The company has not recorded all its expenses.
C. The company has a cash surplus due to the sale of assets.
D. The company has a cash deficit due to the purchase of assets.
Question 15
A company has the following trial balance: Debit: Cash ¡ 100,000 Accounts Payable ¡ 50,000 Equipment ¡ 200,000 Credit: Accounts Receivable ¡ 150,000 Salaries Payable ¡ 75,000 Revenue ¡ 250,000 What is the net income?
A. ¡ 25,000
B. ¡ 50,000
C. ¡ 75,000
D. ¡ 100,000

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