POST UTME VERITAS UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company prepares a trial balance as at 31st December, 2017. The trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦20,000, Equipment ₦80,000, Retained Earnings ₦40,000, Sales Revenue ₦200,000, Salaries Expense ₦30,000, and Utilities Expense ₦20,000. What is the net income for the year?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 2
Determine the amount of depreciation on a machine that cost ₦150,000 and has a useful life of 5 years, with a residual value of ₦20,000. The machine is depreciated using the straight-line method. Calculate the annual depreciation charge.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 3
A company has the following transactions in its manufacturing account for the year: Opening inventory: ₦50,000 Direct materials used: ₦120,000 Direct labour: ₦80,000 Overheads: ₦60,000 Closing inventory: ₦90,000 What is the cost of goods manufactured?
A. ₦300,000
B. ₦320,000
C. ₦340,000
D. ₦360,000
Question 4
A government agency has the following transactions in its public sector accounting system: Receipts: ₦100,000 Expenditures: ₦80,000 Transfers: ₦20,000 What is the net result of the transactions?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 5
A company's trial balance as at December 31, 2022, is as follows: Debit ₦1,000,000 Credit ₦1,200,000 What is the correct journal entry to rectify the error?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 6
A company's control account for the year ended December 31, 2022, is as follows: ₦1,000,000 What is the correct journal entry to rectify the error?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 7
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦150,000, while the general ledger shows a balance of ₦200,000. The bank statement shows a balance of ₦180,000. What is the cause of the discrepancy?
A. The company has not recorded a deposit of ₦30,000.
B. The company has not recorded a withdrawal of ₦30,000.
C. The bank has charged a service fee of ₦30,000.
D. The company has not recorded a loan of ₦30,000.
Question 8
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦120,000, calculate the amount of premium received.
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 9
A company has a balance sheet as follows: Assets ₦100,000, Liabilities ₦50,000, and Capital ₦50,000. If the company issues 1,000 shares of ₦10 each at a premium of ₦2 per share, calculate the amount of capital that will be increased.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be shared by A and B.
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 11
A company's trial balance shows an error of ₦10,000 due to an incorrect posting of a credit entry. The correct entry should have been a debit of ₦10,000. What is the effect of this error on the company's net profit?
A. ₦10,000 increase in net profit
B. ₦10,000 decrease in net profit
C. ₦10,000 increase in net loss
D. ₦10,000 decrease in net loss
Question 12
A company has a building valued at ₦1,000,000. If the building is revalued at ₦1,200,000, calculate the increase in value.
A. ₦200,000
B. ₦150,000
C. ₦180,000
D. ₦220,000
Question 13
A company purchased a machine for ₦200,000. The machine is depreciated using the reducing balance method. Calculate the value of the machine after 3 years, given that the annual depreciation rate is 20%.
A. ₦128,000
B. ₦144,000
C. ₦160,000
D. ₦176,000
Question 14
A company has the following transactions in its incomplete records system: Cash sales: ₦50,000 Credit sales: ₦80,000 Returns: ₦10,000 What is the total sales revenue?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 15
A company issued 5% debentures of ₦1,000 each. The company pays interest annually. Calculate the annual interest payable on the debentures.
A. ₦50
B. ₦100
C. ₦150
D. ₦200

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