POST UTME UI 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦12,000 from the sale of shares, what is the amount of the premium received?
A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦7,000
Question 2
In a partnership account, what is the correct method of valuing the goodwill of a partnership?
A. Average Profit Method
B. Super Profit Method
C. Capitalization Method
D. Net Asset Method
Question 3
A company's trading account shows a profit of ₦150,000. However, the profit and loss account shows a loss of ₦75,000. What is the balance on the retained earnings account?
A. ₦75,000
B. ₦225,000
C. ₦125,000
D. ₦175,000
Question 4
A company uses the self-balancing ledger system. The following transactions are recorded in the ledger:
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 5
A company has the following bank reconciliation statement: Opening balance ₦50,000; deposits ₦20,000; cheques deposited ₦15,000; cheques returned ₦5,000; bank charges ₦2,000. What is the company's new bank balance?
A. ₦62,000
B. ₦60,000
C. ₦58,000
D. ₦56,000
Question 6
A partnership is formed between two partners, A and B. A contributes ₦200,000 and B contributes ₦300,000. The profit is to be shared in the ratio 2:3. If the total profit is ₦150,000, how much will A receive?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 7
A company uses the single-entry system of accounting. The company's trial balance as at December 31, 2022, shows the following balances:
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 8
A company's trial balance shows a discrepancy of ₦10,000. What is the likely cause of this discrepancy?
A. Error in journalizing a transaction
B. Error in posting a transaction
C. Error in preparing the trial balance
D. Error in accounting for depreciation
Question 9
A company's trial balance shows the following balances: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. If the company's total assets are ₦200,000, what is the amount of its total liabilities?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 10
A company uses the double-declining balance method of depreciation. If the cost of the asset is ₦300,000 and the useful life is 5 years, what is the annual depreciation charge?
A. ₦60,000
B. ₦75,000
C. ₦90,000
D. ₦100,000
Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2.50 per share. Calculate the total amount received from the issue of shares.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 12
A company uses the double entry system of accounting. What is the effect of the following transaction on the accounting equation?
A. Increases Assets and Equity
B. Decreases Assets and Equity
C. Increases Assets and Decreases Equity
D. Decreases Assets and Increases Equity
Question 13
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2.50 per share. Calculate the total amount received from the issue of shares.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 14
A company has the following transactions: Purchased goods for ₦100,000; sold goods for ₦120,000; purchased office supplies for ₦5,000. What is the total cost of goods sold?
A. ₦105,000
B. ₦110,000
C. ₦115,000
D. ₦120,000
Question 15
A company uses the straight-line method of depreciation. If the cost of the asset is ₦500,000 and the useful life is 5 years, what is the annual depreciation charge?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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