POST UTME SKYLINE UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the cash book to record its transactions. The cash book shows the following entries: Debit: Cash ₦10,000, Credit: Sales ₦15,000. What is the net effect on the cash balance?
A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 2
A company has a balance sheet showing assets of ₦100,000, liabilities of ₦50,000, and equity of ₦50,000. Calculate the return on equity (ROE) of the company.
A. 100%
B. 50%
C. 25%
D. 10%
Question 3
A government agency uses the accrual basis of accounting. The agency receives ₦100,000 in cash from customers and records a revenue of ₦120,000. What is the net effect on the agency's cash balance?
A. ₦20,000 increase
B. ₦20,000 decrease
C. ₦40,000 increase
D. ₦40,000 decrease
Question 4
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦200,000; Long-term Loans: ₦300,000. Calculate the total equity of the company.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 5
A company's balance sheet as at 31st December 2022, showed the following balances: Equity Share Capital ₦500,000, Profit and Loss Account ₦300,000, and Retained Earnings ₦200,000. What is the amount of the company's total equity?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,500,000
Question 6
A company's profit and loss account for the year ended 31st December 2022, showed a profit of ₦150,000. The balance on the capital account was ₦200,000. The balance on the drawings account was ₦30,000. What is the balance on the profit and loss account after the appropriation?
A. ₦80,000
B. ₦100,000
C. ₦120,000
D. ₦150,000
Question 7
A partnership consists of three partners, A, B, and C. The capital contributions of the partners are as follows: A ₦100,000, B ₦80,000, and C ₦120,000. If the profit is divided in the ratio 2:3:4, what is the share of profit for partner A?
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000
Question 8
A government agency has the following transactions: Cash received from customers = ₦500,000; Cash paid to suppliers = ₦300,000; Cash paid to employees = ₦200,000. Prepare a cash flow statement for the agency.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 9
A company's trading account shows a profit of ₦150,000. If the company's profit and loss account shows a net profit of ₦180,000, what is the amount transferred to the retained earnings account?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000
Question 10
A company's balance sheet as at 31st December 2022 shows an increase in the value of its non-current assets by ₦1,200,000. If the company's total liabilities increased by ₦800,000, what is the increase in shareholders' equity?
A. ₦400,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,800,000
Question 11
A partnership has two partners, A and B. A contributes ₦50,000 and B contributes ₦30,000. The profit is divided in the ratio 3:2. Calculate the share of profit of A.
A. ₦45,000
B. ₦60,000
C. ₦75,000
D. ₦90,000
Question 12
In a partnership account, the capital of each partner is usually recorded at the beginning of the year as a _______.
A. Drawings Account
B. Capital Account
C. Profit and Loss Account
D. Current Account
Question 13
A company uses the single-entry system to record its transactions. The following entry is made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation
Question 14
A company's trading account for the year ended 31st December 2022, showed a profit of ₦120,000. The balance on the profit and loss account was ₦150,000. The balance on the capital account was ₦200,000. The balance on the drawings account was ₦30,000. What is the balance on the profit and loss account after the appropriation?
A. ₦80,000
B. ₦100,000
C. ₦120,000
D. ₦150,000
Question 15
A company uses the double-entry system to record its transactions. The following journal entry is made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation

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