POST UTME SUMMIT UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchases a machine for ₦500,000. The machine has an estimated useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation for the first year using the straight-line method.
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 2
A company has the following transactions: Purchased goods for ₦1,000,000, sold goods for ₦1,500,000, and purchased office supplies for ₦200,000. What is the total amount of the company's expenses?
A. ₦1,200,000
B. ₦1,400,000
C. ₦1,600,000
D. ₦1,800,000
Question 3
A company has the following cash book transactions: Debit 1,000 to Cash and Credit 1,000 to Accounts Payable. Debit 500 to Cash and Credit 500 to Sales. What is the net increase in cash?
A. ₦0
B. ₦500
C. ₦1,000
D. ₦1,500
Question 4
A company has the following transactions: Purchased office supplies for ₦10,000, Purchased office equipment for ₦50,000, Sold office equipment for ₦30,000, and Paid salaries of ₦20,000. Prepare a statement of cash flows as at 31st December 2023.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the issue expenses were ₦ 5,000, calculate the amount received from the issue of shares.
A. ₦10,500
B. ₦11,000
C. ₦12,000
D. ₦13,000
Question 6
A company's cash book showed a balance of ₦ 8,000. The bank statement showed a balance of ₦ 10,000. The company's cash book had a debit balance of ₦ 2,000 for bank charges. The bank statement had a credit balance of ₦ 1,000 for interest received. What is the correct balance of the company's cash book?
A. ₦ 10,000
B. ₦ 9,000
C. ₦ 8,000
D. ₦ 7,000
Question 7
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset cost ₦ 10,000 and its useful life is 5 years, calculate the annual depreciation charge.
A. ₦ 2,000
B. ₦ 1,667
C. ₦ 1,500
D. ₦ 1,000
Question 8
A company's bank reconciliation statement shows a difference of ₦10,000 between the company's cash book balance and the bank statement balance. The company's accounting records indicate that the difference is due to an error in the cash book. What is the correct journal entry to correct the error?
A. Debit Cash ₦10,000, Credit Bank Charges ₦10,000
B. Debit Cash ₦10,000, Credit Cash in Hand ₦10,000
C. Debit Cash ₦10,000, Credit Cash at Bank ₦10,000
D. Debit Bank Charges ₦10,000, Credit Cash ₦10,000
Question 9
A company's trial balance shows a debit balance of ₦20,000 in the 'Salaries Expense' account. However, the company's accounting records indicate that the salaries expense for the year was ₦25,000. What is the correct journal entry to correct the error?
A. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000
B. Debit Salaries Expense ₦5,000, Credit Salaries Payable ₦5,000
C. Debit Salaries Expense ₦20,000, Credit Cash ₦20,000
D. Debit Salaries Expense ₦25,000, Credit Cash ₦25,000
Question 10
A company has the following transactions: Purchased office supplies for ₦10,000, Purchased office equipment for ₦50,000, Sold office equipment for ₦30,000, and Paid salaries of ₦20,000. Prepare a trial balance as at 31st December 2023.
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 11
A company has the following balances in its trial balance as at 31st December 2023: Accounts Payable ₦150,000, Accounts Receivable ₦120,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦25,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦600,000, Taxes Payable ₦30,000, and Utilities Expense ₦20,000. Prepare a statement of stockholders' equity as at 31st December 2023.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 12
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000, and Dividends ₦10,000. Prepare a balance sheet for the company.
A. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
Question 13
A company's financial statements for the year ended December 31, 2023, showed the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, Net Income ₦100,000. Prepare a statement of cash flows for the company.
A. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
Question 14
A company's cash book showed a balance of ₦ 12,000. The bank statement showed a balance of ₦ 15,000. The company's cash book had a debit balance of ₦ 3,000 for bank charges. The bank statement had a credit balance of ₦ 2,000 for interest received. What is the correct balance of the company's cash book?
A. ₦ 15,000
B. ₦ 14,000
C. ₦ 12,000
D. ₦ 11,000
Question 15
A company's accounting equation is: Assets 100,000; Liabilities 50,000; Equity 50,000. What is the effect of increasing assets by 20,000 on the accounting equation?
A. Increases assets and decreases liabilities
B. Increases assets and increases liabilities
C. Increases assets and increases equity
D. Decreases assets and decreases liabilities

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