POST UTME UI 2023 Accounting | Objective

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Question 1 View Details
A company uses the straight-line method to depreciate its assets. The asset's cost is ₦120,000 and its useful life is 5 years. If the asset is sold after 3 years for ₦60,000, what is the amount of depreciation expense for the 3rd year?
A. ₦24,000
B. ₦30,000
Correct C. ₦36,000
D. ₦42,000

Correct Answer: C

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Question 2 View Details
A bank's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. What is the reason for the discrepancy?
A. The bank has made an error in its cash book
B. The bank has made an error in its bank statement
C. The bank has made a deposit of ₦30,000
Correct D. The bank has made a withdrawal of ₦30,000

Correct Answer: D

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Question 3 View Details
A company's trial balance shows the following accounts: Accounts Payable ₦100,000, Accounts Receivable ₦50,000, and Common Stock ₦200,000. What is the total amount of assets?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 4 View Details
A company uses the double-entry system of accounting. The company's journal entry for the purchase of a piece of equipment is as follows: Debit Equipment ₦80,000 and Credit Accounts Payable ₦80,000. What is the effect of this transaction on the company's balance sheet?
A. The company's assets increase by ₦80,000
Correct B. The company's liabilities increase by ₦80,000
C. The company's equity increases by ₦80,000
D. The company's assets decrease by ₦80,000

Correct Answer: B

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Question 5 View Details
A company's income statement for the year ended December 31, 2022, shows the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the company's gross profit?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 6 View Details
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
Correct B. ₦ 22,000
C. ₦ 24,000
D. ₦ 26,000

Correct Answer: B

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Question 7 View Details
A cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 1,000 | What is the balance of the cash account?
Correct A. ₦ 500
B. ₦ 1,000
C. ₦ 1,500
D. ₦ 2,000

Correct Answer: A

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Question 8 View Details
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Cash | | 10,000 | What is the balance of the bank account?
A. ₦ 5,000
Correct B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000

Correct Answer: B

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Question 9 View Details
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Cash | | 10,000 | What is the balance of the cash account?
A. ₦ 5,000
Correct B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000

Correct Answer: B

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Question 10 View Details
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Cash | | 10,000 | What is the balance of the bank account?
A. ₦ 5,000
Correct B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000

Correct Answer: B

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Question 11 View Details
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?
A. The company has not recorded a deposit of ₦30,000.
Correct B. The company has not recorded a withdrawal of ₦30,000.
C. The company has not recorded a bank charge of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: B

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Question 12 View Details
A company has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit for the year is ₦120,000. How much will be credited to the capital accounts of A and B?
Correct A. ₦180,000 and ₦140,000
B. ₦200,000 and ₦160,000
C. ₦220,000 and ₦180,000
D. ₦240,000 and ₦200,000

Correct Answer: A

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Question 13 View Details
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦15,500
B. ₦16,500
Correct C. ₦17,500
D. ₦18,500

Correct Answer: C

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Question 14 View Details
A company's assets are ₦200,000, liabilities are ₦80,000, and equity is ₦120,000. What is the company's net asset value?
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

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Question 15 View Details
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?
A. The company has not recorded a deposit of ₦30,000.
Correct B. The company has not recorded a withdrawal of ₦30,000.
C. The company has not recorded a bank charge of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: B

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Question 16 View Details
A company issued 5,000 shares of 10 par value at a premium of 20%.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 17 View Details
A trial balance is prepared to ensure that the total debit equals the total credit.
Correct A. True
B. False
C. Maybe
D. Depends

Correct Answer: A

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Question 18 View Details
A company's balance sheet is prepared at the end of the accounting period.
Correct A. True
B. False
C. Maybe
D. Depends

Correct Answer: A

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Question 19 View Details
A company's profit and loss account is prepared to show the company's profit or loss for the period.
Correct A. True
B. False
C. Maybe
D. Depends

Correct Answer: A

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Question 20 View Details
A company's cash flow statement is prepared to show the company's inflows and outflows of cash and cash equivalents.
Correct A. True
B. False
C. Maybe
D. Depends

Correct Answer: A

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Question 21 View Details
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 22 View Details
A manufacturing company uses a job costing system. The following data relate to a particular job: Direct Materials ₦15,000, Direct Labour ₦8,000, Factory Overheads ₦12,000. Calculate the total cost of the job.
A. ₦35,000
B. ₦40,000
C. ₦45,000
Correct D. ₦50,000

Correct Answer: D

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Question 23 View Details
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 24 View Details
A company's cash book shows the following transactions: ₦10,000 received from customers, ₦8,000 paid to suppliers, ₦5,000 received from bank, ₦3,000 paid to bank. Prepare a cash book and bank reconciliation statement.
A. ₦12,000
Correct B. ₦15,000
C. ₦18,000
D. ₦20,000

Correct Answer: B

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Question 25 View Details
A government agency has the following transactions: ₦50,000 received from taxpayers, ₦30,000 paid to suppliers, ₦20,000 received from bank, ₦15,000 paid to bank. Prepare a cash book and bank reconciliation statement.
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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