POST UTME SUMMIT UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following single entry records: Rent: ₦50,000, Salaries: ₦100,000, and Purchases: ₦200,000. What is the total value of the company's expenses?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 2
What is the accounting equation?
A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets = Equity - Liabilities
D. Assets = Equity + Liabilities
Question 3
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦ 150,000, how much will A receive?
A. ₦ 90,000
B. ₦ 120,000
C. ₦ 135,000
D. ₦ 150,000
Question 4
A company's balance sheet shows a current asset of ₦120,000 and a current liability of ₦90,000. What is the company's working capital?
A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦120,000
Question 5
A company's balance sheet showed a total asset value of ₦500,000 and a total liability value of ₦300,000. Calculate the company's equity.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
B. ₦6,000
C. ₦6,500
D. ₦7,000
Question 7
A company has the following transactions: Purchased goods for ₦100,000 cash; Sold goods for ₦120,000 on credit; Purchased goods for ₦80,000 on credit. What is the total amount of cash received from customers?
A. ₦120,000
B. ₦100,000
C. ₦80,000
D. ₦20,000
Question 8
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Liabilities: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Equity: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Identify the error in the balance sheet.
A. The asset balance is incorrect.
B. The liability balance is incorrect.
C. The equity balance is incorrect.
D. The total asset balance is incorrect.
Question 9
In a partnership account, what is the correct method to calculate the capital of a partner who has been absent for the past two years?
A. Capital is calculated based on the average profit of the past three years.
B. Capital is calculated based on the average profit of the past two years.
C. Capital is calculated based on the average profit of the past five years.
D. Capital is calculated based on the current year's profit.
Question 10
A company issued 15,000 shares of 10 par value at a premium of 3 per share. If the company received a total of 225,000, what is the amount of the premium received?
A. ₦35,000
B. ₦45,000
C. ₦55,000
D. ₦65,000
Question 11
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received a total of 60,000, what is the amount of the premium received?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
What is the purpose of a control account?
A. To record all transactions affecting a particular account
B. To provide a summary of all transactions affecting a particular account
C. To reconcile the balance of a particular account
D. To verify the accuracy of a particular account
Question 13
A company purchases a machine for ₦1,500,000. The machine has an estimated useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 14
A company has the following transactions: Purchased goods for ₦80,000 on credit; Sold goods for ₦100,000 on credit; Purchased goods for ₦60,000 cash. What is the total amount of cash paid for purchases?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 15
A company uses the cash basis of accounting. It records all cash receipts and payments in the cash book. However, it does not record any transactions that do not involve cash. Which of the following is a characteristic of the cash basis of accounting?
A. It records all transactions in the cash book.
B. It records all cash receipts and payments in the cash book.
C. It records all transactions that do not involve cash in the cash book.
D. It records all transactions in the ledger.

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