POST UTME VERITAS UNIVERSITY 2021 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company has a bank statement that shows the following transactions:
| Date | Description | Debit | Credit |
| --- | --- | --- | --- |
| 01/01 | Bank deposit | ₦100,000 | |
| 02/01 | Bank withdrawal | | ₦50,000 |
| 03/01 | Bank deposit | ₦150,000 | |
| 04/01 | Bank withdrawal | | ₦75,000 |
What is the total bank balance at the end of the month?
Question 2
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦100 each. During the year, 500 units were sold, and 200 units were purchased at ₦120 each. The company uses the weighted average method to value its inventory. What is the total cost of goods sold for the year?
Question 3
A firm's trial balance shows an error of ₦50,000 due to a mistake in the posting of a transaction. The error is discovered after the balance sheet has been prepared. Prepare a correcting entry to rectify the error.
Question 4
A company uses the double-entry system to record its transactions. If the company purchases office supplies for ₦10,000 cash, what would be the effect on the accounting equation?
Question 5
A company uses the accrual method of accounting. On December 31, 2022, it had the following accounts: Accounts Receivable ₦100,000, Accounts Payable ₦50,000, and Salaries Expense ₦20,000. What is the total amount of cash received from customers during the year?
Question 6
A company issued 5,000 shares of ₠ 10 each at a premium of ₠ 5 per share. Calculate the total amount received from the issue of shares.
Question 7
A company has the following balance sheet: ₦500,000 in assets, ₦200,000 in liabilities, and ₦300,000 in equity. Calculate the ratio of debt to equity.
Question 8
A company's balance sheet shows a current ratio of 2:3. If the current assets are ₦120,000 and the current liabilities are ₦60,000, what is the amount of the company's long-term liabilities?
Question 9
A company's single entry system showed a balance of ₠ 20,000. However, the company's trial balance showed a balance of ₠ 22,000. What is the reason for the difference?
Question 10
A company has the following balance sheet: Assets ₦200,000, Liabilities ₦100,000, and Capital ₦100,000. What is the net worth of the company?
Question 11
A company's income statement for the year ended December 31, 2022, shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the gross profit margin?
Question 12
A company uses the straight-line method of depreciation. If the cost of the asset is ₦1,000,000 and its residual value is ₦200,000, calculate the annual depreciation charge for the first year.
Question 13
A company's bank statement showed a balance of ₠ 10,000. However, the company's cash book showed a balance of ₠ 12,000. What is the reason for the difference?
Question 14
A cash book shows the following transactions: Debit: ₦10,000, Credit: ₦15,000. What is the net effect on the cash balance?
Question 15
A company's manufacturing department uses a machine that depreciates by 10% every year. If the initial cost of the machine is ₦1,500,000, what is its value after 3 years?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows