POST UTME VERITAS UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10-year debentures of ₦10,000 each at a discount of 5%. The debentures are redeemable at par. Prepare the journal entry to record the issue of debentures.
A. Debit Debenture Discount 5,000, Credit Cash 95,000
B. Debit Debenture Discount 5,000, Credit Cash 100,000
C. Debit Cash 95,000, Credit Debenture Discount 5,000
D. Debit Cash 100,000, Credit Debenture Discount 5,000
Question 2
A company has a public sector accounting system. The journal entry to record the receipt of government grant of ₦100,000 is:
A. Debit Government Grant 100,000, Credit Cash 100,000
B. Debit Cash 100,000, Credit Government Grant 100,000
C. Debit Government Grant 100,000, Credit Bank 100,000
D. Debit Bank 100,000, Credit Government Grant 100,000
Question 3
A company's departmental accounts for the year ended 31st December 2022 shows the following: Sales ₦1,000,000, Cost of Goods Sold ₦800,000, and Gross Profit ₦200,000. If the company's selling and administrative expenses are ₦150,000, what is the net profit?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 4
A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its current liabilities by ₦30,000. What is the effect on the company's net working capital?
A. ₦20,000 decrease
B. ₦50,000 decrease
C. ₦30,000 increase
D. ₦20,000 increase
Question 5
A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the amount of depreciation for the first year?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 6
A company has a double-entry system of accounting. The journal entry to record the purchase of goods for ₦50,000 cash is:
A. Debit Purchases 50,000, Credit Cash 50,000
B. Debit Cash 50,000, Credit Purchases 50,000
C. Debit Purchases 50,000, Credit Bank 50,000
D. Debit Bank 50,000, Credit Purchases 50,000
Question 7
A company uses the perpetual inventory system. The company's inventory consists of three types of goods: A, B, and C. The cost of goods A is ₦120,000, and the quantity is 500 units. The cost of goods B is ₦80,000, and the quantity is 300 units. The cost of goods C is ₦100,000, and the quantity is 200 units. If the total cost of goods A and B is ₦240,000, and the total quantity of goods A and B is 800 units, what is the cost per unit of goods C?
A. ₦150
B. ₦120
C. ₦100
D. ₦80
Question 8
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 9
A company's balance sheet as at 31st December 2022 shows the following: Share Capital ₦1,000,000, Retained Earnings ₦500,000, and Accumulated Depreciation ₦200,000. If the company issues 10,000 new shares at ₦10 per share, what is the new balance of Share Capital?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 10
A company's profit and loss account shows a gross profit of ₦1,000,000 and a net profit of ₦500,000. What is the operating profit?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 11
A company's manufacturing account for the year ended 31st December 2022 shows the following: Cost of Goods Sold ₦1,500,000, Opening Work-in-Progress ₦200,000, and Closing Work-in-Progress ₦300,000. What is the value of Finished Goods?
A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000
Question 12
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 13
A company uses the weighted average method to value its inventory. The company's inventory consists of three types of goods: A, B, and C. The cost of goods A is ₦120,000, and the quantity is 500 units. The cost of goods B is ₦80,000, and the quantity is 300 units. The cost of goods C is ₦100,000, and the quantity is 200 units. If the total cost of goods A and B is ₦240,000, and the total quantity of goods A and B is 800 units, what is the cost per unit of goods C?
A. ₦150
B. ₦120
C. ₦100
D. ₦80
Question 14
A company uses the self-balancing ledger system. The company's cash account shows a balance of ₦500,000 and the company's accounts payable account shows a balance of ₦200,000. If the company purchases goods worth ₦300,000 on credit, what is the total amount of the company's assets?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 15
A company's bank statement as at 31st December 2022 shows a balance of ₦250,000. However, the company's cash book shows a balance of ₦300,000. What is the reason for the difference?
A. Bank charges
B. Interest earned
C. Cheques issued but not yet presented
D. Cheques deposited but not yet credited

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