POST UTME UNIBEN 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's assets are valued at ₦100,000. The depreciation rate is 10% per annum. What is the value of the asset after 2 years?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 2
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns outwards: ₦50,000; Returns inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 3
A company's balance sheet as at 31st December 2019 showed a capital of ₦2,000,000. The company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. Calculate the company's retained earnings as at 31st December 2020.
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 4
A partnership of three partners, A, B, and C, has a capital of ₦1,500,000. The profit-sharing ratio is 3:2:1. If the profit for the year ended 31st December 2020 is ₦1,200,000, calculate the amount of profit that each partner will receive.
A. ₦450,000
B. ₦600,000
C. ₦900,000
D. ₦1,200,000
Question 5
What is the purpose of a public sector accounting system?
A. To show the financial position of a government at a specific date
B. To show the financial performance of a government over a period of time
C. To show the cash flow of a government over a period of time
D. To show the equity of a government over a period of time
Question 6
A company's balance sheet as at 31st December 2020 is as follows: Fixed Assets: ₦1,500,000; Current Assets: ₦1,200,000; Capital: ₦1,000,000; Reserves: ₦500,000. Calculate the ratio of current assets to fixed assets.
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 7
A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 1st Jan | Bank | | 10,000 | | 15th Jan | Cash | 5,000 | | | 15th Jan | Bank | | 5,000 | | 20th Jan | Cash | | 8,000 | | 20th Jan | Bank | 8,000 | | What is the correct balance in the cash account?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 8
What is the difference between a departmental account and a manufacturing account?
A. A departmental account shows the cost of goods sold, while a manufacturing account shows the cost of production
B. A departmental account shows the profit or loss on the sale of goods, while a manufacturing account shows the selling price of goods
C. A departmental account shows the cost of production, while a manufacturing account shows the cost of goods sold
D. A departmental account shows the selling price of goods, while a manufacturing account shows the profit or loss on the sale of goods
Question 9
A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 1st Jan | Bank | | 10,000 | | 15th Jan | Cash | 5,000 | | | 15th Jan | Bank | | 5,000 | | 20th Jan | Cash | | 8,000 | | 20th Jan | Bank | 8,000 | | What is the correct balance in the bank account?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 10
A company is considering the purchase of a new machine that will cost ₦1,500,000. The machine is expected to last for 5 years and will be depreciated using the straight-line method. If the company expects to sell the machine for ₦300,000 at the end of its useful life, what is the annual depreciation charge?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 11
A company has the following manufacturing costs: Direct Materials ₦120,000, Direct Labour ₦150,000, Factory Overheads ₦100,000. If the company produces 10,000 units, what is the cost per unit?
A. ₦12.50
B. ₦13.00
C. ₦13.50
D. ₦14.00
Question 12
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred the following costs: Direct Materials 10,000, Direct Labor 15,000, and Overhead 20,000. The Assembly department incurred the following costs: Direct Materials 8,000, Direct Labor 12,000, and Overhead 18,000. If the company produced 1,000 units, what is the total cost per unit?
A. ₦48
B. ₦50
C. ₦52
D. ₦54
Question 13
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. Calculate the total amount of capital raised by the company.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 14
What is the purpose of a manufacturing account?
A. To show the cost of goods sold
B. To show the profit or loss on the sale of goods
C. To show the cost of production
D. To show the selling price of goods
Question 15
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦15,000, Credit Rent Paid ₦15,000
B. Debit Rent Paid ₦15,000, Credit Rent Received ₦15,000
C. Debit Rent Received ₦15,000, Credit Cash ₦15,000
D. Debit Cash ₦15,000, Credit Rent Received ₦15,000

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