POST UTME UNILAG 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the accrual method of accounting. If the company purchases goods on credit for ₦50,000, what is the effect on the company's net income?
A. Increase net income by ₦50,000
B. Decrease net income by ₦50,000
C. No effect on net income
D. Increase net income by ₦25,000
Question 2
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 3
A company issued 10,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 4
A company uses the percentage of completion method to account for its construction contracts. If the contract value is ₦1,000,000, the costs incurred are ₦500,000, and the percentage of completion is 75%, what is the amount of revenue recognized?
A. ₦375,000
B. ₦400,000
C. ₦425,000
D. ₦450,000
Question 5
A company has the following depreciation schedule: Asset Cost 10,000, Depreciation 5,000. What is the book value of the asset?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 6
A company's balance sheet shows an increase in inventory of ₦30,000. What is the effect on the company's net income?
A. Increase net income by ₦30,000
B. Decrease net income by ₦30,000
C. No effect on net income
D. Increase net income by ₦60,000
Question 7
A company issues 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
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 8
A company's bank statement shows a balance of ₦50,000. The company's cash book shows a balance of ₦60,000. What is the reason for the difference?
A. Bank error
B. Cash book error
C. Deposits in transit
D. Withdrawals in transit
Question 9
A company has the following departmental accounts: Sales 10,000, Cost of Goods Sold 5,000. What is the gross profit?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 10
A company's financial statements show that its net income is ₦150,000 and its total liabilities are ₦300,000. What is the company's debt-to-equity ratio?
A. 1:2
B. 1:3
C. 2:3
D. 3:4
Question 11
A company issued 5,000 shares of 1 par value at a premium of 3 per share. If the company received a total of 15,000 from the sale of these shares, what is the total amount of the premium received?
A. ₦7,500
B. ₦10,000
C. ₦12,500
D. ₦15,000
Question 12
A company's trial balance shows a discrepancy of ₦1,500. The accountant suspects that the error occurred in the ledger accounts. Which of the following steps should be taken first?
A. Verify the trial balance by re-computing the totals
B. Check the ledger accounts for any errors or omissions
C. Reconcile the bank statement with the company's records
D. Prepare a new trial balance from the corrected ledger accounts
Question 13
A company's assets are valued as follows: Buildings ₦1,000,000, Machinery ₦800,000, and Vehicles ₦200,000. Calculate the total value of the assets.
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 14
A bank's cash book shows a balance of ₦1,500,000. The bank statement shows a balance of ₦1,800,000. The bank's reconciliation statement shows a difference of ₦50,000 due to outstanding checks. Calculate the bank's cash balance.
A. ₦1,750,000
B. ₦1,800,000
C. ₦1,850,000
D. ₦1,900,000
Question 15
A company issues 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
B. ₦22,000
C. ₦24,000
D. ₦26,000

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