POST UTME UNN 2018 Accounting | Objective

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Question 1
A manufacturing company uses the weighted average method to assign overhead costs to jobs. The company has two departments: Machining and Assembly. The Machining department has a total overhead cost of ₦120,000 and 10,000 machine hours, while the Assembly department has a total overhead cost of ₦80,000 and 5,000 machine hours. What is the overhead cost per machine hour for the Machining department?
A. ₦12
B. ₦10
C. ₦8
D. ₦6
Question 2
A firm has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000. What is the total equity of the firm?
A. ₦120,000
B. ₦170,000
C. ₦220,000
D. ₦270,000
Question 3
A company's trial balance shows an error of ₦10,000 in the credit side of the accounts receivable account. The correct amount is ₦20,000. What is the effect of this error on the company's net income?
A. ₦10,000 increase
B. ₦10,000 decrease
C. ₦5,000 increase
D. ₦5,000 decrease
Question 4
A company maintains incomplete records and the following transactions are recorded: ₦50,000; ₦200,000; ₦150,000; ₦30,000; ₦20,000; ₦10,000; ₦5,000; ₦30,000; ₦10,000. Prepare the Single Entry System for the year ended December 31, 2018.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 5
A company's bank reconciliation statement showed a difference of £ 1,000 between the bank statement balance and the company's ledger balance. The company's ledger balance was £ 10,000. What is the bank statement balance?
A. £ 11,000
B. £ 9,000
C. £ 11,000
D. £ 9,000
Question 6
A company uses the single-entry system of accounting. The company's journal shows the following transactions: Debit: ₦50,000, Credit: ₦60,000. What is the correct entry in the ledger?
A. Debit: ₦50,000, Credit: ₦60,000.
B. Debit: ₦60,000, Credit: ₦50,000.
C. Debit: ₦50,000, Credit: ₦50,000.
D. Debit: ₦60,000, Credit: ₦60,000.
Question 7
A manufacturing company produces two products, X and Y. The production costs for X are ₦100,000 and for Y are ₦120,000. The selling price for X is ₦150,000 and for Y is ₦180,000. What is the contribution margin for each product?
A. ₦50,000 for X and ₦60,000 for Y.
B. ₦60,000 for X and ₦50,000 for Y.
C. ₦70,000 for X and ₦80,000 for Y.
D. ₦80,000 for X and ₦70,000 for Y.
Question 8
A company's accounting records show the following transactions for the year ended December 31, 2018: Cash: ₦100,000; Sales: ₦500,000; Purchases: ₦300,000; Wages: ₦150,000; Rent: ₦50,000; Depreciation: ₦20,000; Interest on Bank Loan: ₦10,000; Bank Loan: ₦50,000; Drawings: ₦20,000. Prepare the Trading and Profit and Loss Account for the year ended December 31, 2018.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
A company's trial balance shows an error of ₦5,000 in the debit side of the accounts payable account. The correct amount is ₦15,000. What is the effect of this error on the company's net income?
A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 10
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. What is the correct explanation for the difference between the two accounts?
A. The company has a non-trading income of ₦50,000.
B. The company has a non-trading expense of ₦50,000.
C. The company has a trading loss of ₦50,000.
D. The company has a non-trading loss of ₦50,000.
Question 11
A company's cash book shows a debit balance of ₦120,000. The bank statement shows a credit balance of ₦150,000. The difference between the two balances is due to a bank overdraft of ₦30,000. What is the correct journal entry to record the bank overdraft?
A. ₦30,000 Bank Overdraft
B. ₦30,000 Cash at Bank
C. ₦30,000 Bank Overdraft (₦30,000)
D. ₦30,000 Bank Overdraft (₦30,000) - ₦30,000 Cash at Bank
Question 12
A company's cash book shows a debit balance of ₦120,000. The bank statement shows a credit balance of ₦150,000. The difference between the two balances is due to a bank overdraft of ₦30,000. What is the correct journal entry to record the bank overdraft?
A. ₦30,000 Bank Overdraft
B. ₦30,000 Cash at Bank
C. ₦30,000 Bank Overdraft (₦30,000)
D. ₦30,000 Bank Overdraft (₦30,000) - ₦30,000 Cash at Bank
Question 13
A company has the following trial balance: Debit: Accounts Payable ₦ 100,000, Salaries ₦ 200,000, Rent ₦ 50,000 Credit: Sales ₦ 500,000, Purchases ₦ 300,000, Capital ₦ 150,000 What is the correct journal entry to rectify the error?
A. Debit: Salaries ₦ 50,000, Credit: Accounts Payable ₦ 50,000
B. Debit: Rent ₦ 50,000, Credit: Accounts Payable ₦ 50,000
C. Debit: Salaries ₦ 50,000, Credit: Rent ₦ 50,000
D. Debit: Accounts Payable ₦ 50,000, Credit: Salaries ₦ 50,000
Question 14
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales £ 20,000, Cost of Goods Sold £ 15,000. Prepare the income statement.
A. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
B. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
C. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
D. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
Question 15
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales £ 20,000, Cost of Goods Sold £ 15,000. Prepare the income statement.
A. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
B. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
C. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
D. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000

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