POST UTME SKYLINE UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦50,000, the cost of inventory B is ₦60,000, and the cost of inventory C is ₦70,000. The quantity of inventory A is 100 units, the quantity of inventory B is 150 units, and the quantity of inventory C is 200 units. What is the total value of the inventory?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,500,000
Question 2
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
D. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Question 3
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. What is the total amount received from the issue of debentures?
A. ₦90,000
B. ₦95,000
C. ₦100,000
D. ₦105,000
Question 4
A sole trader, XYZ, has the following transactions for the year ended December 31, 2022: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | Jan 1 | Capital | ₦50,000 | | | Jan 15 | Sales | | ₦20,000 | | Feb 1 | Purchase | ₦10,000 | | | Mar 1 | Rent | | ₦5,000 | | Apr 1 | Purchase | ₦15,000 | | | May 1 | Sales | | ₦30,000 | | Jun 1 | Purchase | ₦20,000 | | | Jul 1 | Rent | | ₦10,000 | | Aug 1 | Purchase | ₦25,000 | | | Sep 1 | Sales | | ₦40,000 | | Oct 1 | Purchase | ₦30,000 | | | Nov 1 | Rent | | ₦15,000 | | Dec 1 | Purchase | ₦35,000 | | What is the amount of the sole trader's net income for the year?
A. ₦100,000
B. ₦120,000
C. ₦140,000
D. ₦160,000
Question 5
A company's balance sheet shows an increase in its current assets of ₦50,000 and a decrease in its current liabilities of ₦30,000. What is the effect on its net working capital?
A. ₦20,000 increase
B. ₦20,000 decrease
C. ₦50,000 increase
D. ₦30,000 increase
Question 6
A company issued 5,000 shares of ₦10 par value at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦24,000
D. ₦25,000
Question 8
A company issued 10,000 9% debentures of ₦100 each. Calculate the total amount received from the issue of debentures.
A. ₦1,000,000
B. ₦1,090,000
C. ₦1,090,000
D. ₦1,000,000
Question 9
A company uses the perpetual inventory system to value its inventory. The company has two types of inventory: A and B. The cost of inventory A is ₦120,000, and it has a weightage of 50%. The cost of inventory B is ₦80,000, and it has a weightage of 50%. What is the total cost of the inventory?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 10
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and it has a weightage of 30%. The cost of inventory B is ₦80,000, and it has a weightage of 40%. The cost of inventory C is ₦60,000, and it has a weightage of 30%. What is the total cost of the inventory?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 11
A company has a bank statement with a balance of ₦30,000. The company's cash book balance is ₦20,000. What is the difference between the bank statement balance and the cash book balance?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
A company's balance sheet as at 31st December, 2022, showed the following: Cash ₦100,000, Accounts Payable ₦150,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦10,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦1,200,000, Taxes Expense ₦30,000, Utilities Expense ₦20,000. Prepare a statement of changes in stockholders' equity for the year ended 31st December, 2022.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 13
A government agency is responsible for collecting taxes on behalf of the government. The agency's income statement for the year ended December 31, 2022, showed a revenue of ₦10,000,000 and an expense of ₦8,000,000. If the agency's financial year begins on January 1, 2022, what is the amount of the agency's net income for the year?
A. ₦1,000,000
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000
Question 14
A company purchased a machine for ₦150,000 and sold it for ₦200,000. Calculate the gain or loss on the sale of the machine.
A. ₦50,000
B. ₦50,000 loss
C. ₦50,000 gain
D. ₦50,000 loss
Question 15
A government agency prepares its financial statements in accordance with the Public Sector Accounting Standards (PSAS). Which of the following statements is true about the PSAS?
A. PSAS requires the use of accrual accounting
B. PSAS requires the use of cash accounting
C. PSAS requires the use of modified cash accounting
D. PSAS requires the use of special purpose financial statements

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: