POST UTME VERITAS UNIVERSITY 2018 Accounting | Objective

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Question 1
A company has two types of shares: ordinary and preference. The ordinary shares have a par value of ₦10 each, while the preference shares have a par value of ₦20 each. If the company issues 1,000 ordinary shares and 500 preference shares, what is the total amount of capital raised?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 2
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | ₦10,000 | | | 2 Jan | Cash paid to suppliers | | ₦5,000 | | 3 Jan | Cash received from customers | ₦8,000 | | | 4 Jan | Cash paid to employees | | ₦3,000 | What is the total cash balance at the end of the month?
A. ₦13,000
Correct B. ₦15,000
C. ₦17,000
D. ₦19,000

Correct Answer: B

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Question 3
A company has the following ledger balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Accounts Payable | | ₦5,000 | | Sales Revenue | ₦20,000 | | | Cost of Goods Sold | | ₦15,000 | What is the net profit for the period?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 4
A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount of share capital raised?
A. ₦10,000
Correct B. ₦12,000
C. ₦14,000
D. ₦16,000

Correct Answer: B

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Question 5
A company has the following bank statement: | Date | Debit | Credit | | --- | --- | --- | | 1 Jan | ₦10,000 | | | 2 Jan | | ₦5,000 | | 3 Jan | ₦8,000 | | | 4 Jan | | ₦3,000 | What is the bank balance at the end of the month?
A. ₦13,000
Correct B. ₦15,000
C. ₦17,000
D. ₦19,000

Correct Answer: B

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Question 6
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦60 each and 300 units at ₦70 each. Calculate the cost of goods sold for the year.
A. ₦28,000
Correct B. ₦30,000
C. ₦32,000
D. ₦35,000

Correct Answer: B

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Question 7
A company's trial balance as at December 31, 2022, is as follows: Debit ₦ 50,000 Cash ₦ 20,000 Accounts Payable ₦ 30,000 Equipment ₦ 10,000 Salaries Payable ₦ 40,000 Notes Payable ₦ 20,000 Accounts Receivable ₦ 15,000 Prepaid Rent ₦ 25,000 Inventory ₦ 35,000 Common Stock ₦ 45,000 Retained Earnings Credit ₦ 60,000 Sales Revenue ₦ 25,000 Rent Expense ₦ 30,000 Salaries Expense ₦ 20,000 Utilities Expense ₦ 15,000 Depreciation Expense ₦ 40,000 Cost of Goods Sold What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
Correct D. ₦ 20,000

Correct Answer: D

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Question 8
A company uses the single-entry system of accounting. The following transactions occurred during the year: January 1: Cash 10,000 January 15: Accounts Receivable 5,000 February 1: Equipment 8,000 March 15: Salaries Expense 2,000 April 1: Inventory 6,000 May 15: Utilities Expense 1,500 June 1: Notes Payable 12,000 July 15: Rent Expense 3,000 August 1: Accounts Payable 9,000 September 15: Depreciation Expense 2,500 October 1: Common Stock 18,000 November 15: Retained Earnings 4,000 December 31: Cost of Goods Sold 15,000 What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
Correct D. ₦ 20,000

Correct Answer: D

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Question 9
A company's balance sheet as at December 31, 2022, is as follows: Assets ₦ 50,000 Cash ₦ 20,000 Accounts Receivable ₦ 30,000 Equipment ₦ 10,000 Salaries Payable ₦ 40,000 Notes Payable ₦ 20,000 Accounts Payable ₦ 15,000 Prepaid Rent ₦ 25,000 Inventory ₦ 35,000 Common Stock ₦ 45,000 Retained Earnings Liabilities ₦ 60,000 Sales Revenue ₦ 25,000 Rent Expense ₦ 30,000 Salaries Expense ₦ 20,000 Utilities Expense ₦ 15,000 Depreciation Expense ₦ 40,000 Cost of Goods Sold What is the company's total assets?
A. ₦ 150,000
B. ₦ 160,000
C. ₦ 170,000
Correct D. ₦ 180,000

Correct Answer: D

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Question 10
A company's trial balance as at December 31, 2022, is as follows: Debit ₦ 50,000 Cash ₦ 20,000 Accounts Payable ₦ 30,000 Equipment ₦ 10,000 Salaries Payable ₦ 40,000 Notes Payable ₦ 20,000 Accounts Receivable ₦ 15,000 Prepaid Rent ₦ 25,000 Inventory ₦ 35,000 Common Stock ₦ 45,000 Retained Earnings Credit ₦ 60,000 Sales Revenue ₦ 25,000 Rent Expense ₦ 30,000 Salaries Expense ₦ 20,000 Utilities Expense ₦ 15,000 Depreciation Expense ₦ 40,000 Cost of Goods Sold What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
Correct D. ₦ 20,000

Correct Answer: D

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Question 11
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. What is the company's total asset value as at 31st December 2022?
A. ₦5,500,000
Correct B. ₦6,000,000
C. ₦5,000,000
D. ₦4,500,000

Correct Answer: B

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Question 12
A company's cash book shows the following transactions:
A. ₦1,000
B. ₦2,000
Correct C. ₦3,000
D. ₦4,000

Correct Answer: C

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Question 13
A government agency is responsible for the collection of taxes. The agency's financial year ends on 31st December 2022. The agency's balance sheet as at 31st December 2022 shows a current liability of ₦1,000,000 and a non-current liability of ₦2,000,000. What is the agency's total liability as at 31st December 2022?
Correct A. ₦3,000,000
B. ₦2,500,000
C. ₦3,500,000
D. ₦2,000,000

Correct Answer: A

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Question 14
A company's ledger shows the following transactions:
A. ₦1,500
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

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Question 15
A company's depreciation policy is to depreciate its assets by 10% per annum. The company's asset value as at 31st December 2021 was ₦1,000,000. What is the company's asset value as at 31st December 2022?
A. ₦900,000
B. ₦1,000,000
Correct C. ₦1,100,000
D. ₦1,200,000

Correct Answer: C

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Question 16
A company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issues 5,000 12% debentures of ₦ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
Correct B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

Correct Answer: B

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Question 17
A trader purchases goods worth ₦ 50,000 on credit. He sells the goods for ₦ 75,000 and returns ₦ 10,000 to the customer. Calculate the profit made by the trader.
A. ₦ 15,000
B. ₦ 20,000
Correct C. ₦ 25,000
D. ₦ 30,000

Correct Answer: C

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Question 18
A company's trial balance shows the following balances: Accounts Payable ₦ 10,000, Accounts Receivable ₦ 20,000, and Common Stock ₦ 50,000. Prepare the company's balance sheet.
A. ₦ 80,000
B. ₦ 90,000
Correct C. ₦ 100,000
D. ₦ 110,000

Correct Answer: C

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Question 19
A company issues 1,000 shares of ₦ 10 each at a premium of ₦ 5 per share. The company also issues 500 10% debentures of ₦ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 15,000
B. ₦ 20,000
Correct C. ₦ 25,000
D. ₦ 30,000

Correct Answer: C

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Question 20
A company's cash book shows the following transactions: Cash ₦ 10,000, Bank ₦ 20,000, and Accounts Payable ₦ 30,000. Prepare the company's cash book.
A. ₦ 60,000
B. ₦ 70,000
Correct C. ₦ 80,000
D. ₦ 90,000

Correct Answer: C

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Question 21
A company issued 5,000 shares of ₠ 10 each at a premium of ₠ 5 per share. The company also issued 2,000 10% debentures of ₠ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₠ 52,500
Correct B. ₠ 55,000
C. ₠ 57,500
D. ₠ 60,000

Correct Answer: B

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Question 22
A trader bought 200 units of a product at ₠ 50 each. He also bought 100 units of another product at ₠ 75 each. Calculate the total cost of the products bought.
A. ₠ 12,500
B. ₠ 13,000
Correct C. ₠ 13,500
D. ₠ 14,000

Correct Answer: C

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Question 23
A company's trading account for the year ended 31st December 20XX showed a profit of ₠ 150,000. The company also had a non-trading income of ₠ 20,000. Calculate the total profit for the year.
A. ₠ 170,000
B. ₠ 170,500
Correct C. ₠ 171,000
D. ₠ 172,000

Correct Answer: C

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Question 24
A company's balance sheet as at 31st December 20XX showed a current liability of ₠ 50,000 and a non-current liability of ₠ 100,000. Calculate the total liability.
A. ₠ 150,000
B. ₠ 150,500
Correct C. ₠ 151,000
D. ₠ 152,000

Correct Answer: C

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Question 25
A company's cash book showed a balance of ₠ 20,000. The company also had a bank overdraft of ₠ 10,000. Calculate the net cash position.
A. ₠ 10,000
B. ₠ 10,500
Correct C. ₠ 11,000
D. ₠ 12,000

Correct Answer: C

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