POST UTME VERITAS UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current asset of ₦100,000 and a current liability of ₦80,000. What is the company's working capital?
A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 2
A company issues 10% debentures of ₦50 each at a premium of ₦5 per debenture. If the company receives ₦250,000 in cash, what is the amount of the debenture capital?
A. ₦225,000
B. ₦250,000
C. ₦275,000
D. ₦300,000
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that the rent expense for the year was actually ₦20,000. What is the correct journal entry to record the correction?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Rent Expense ₦5,000
D. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Question 4
A company issues 1,000 shares of common stock at a price of 10 per share. What is the total amount received from the issuance of common stock?
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 5
A company's profit and loss account shows a net loss of ₦150,000. The balance on the capital account is ₦250,000. What is the balance on the drawing account?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company has a manufacturing department that produces 500 units of a product. The cost of raw materials is ₦30 per unit, labor costs are ₦15 per unit, and overhead costs are ₦8 per unit. If the selling price is ₦60 per unit, what is the gross profit?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 7
A company's manufacturing account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Raw Materials | ₦10,000 | | | 2 | Labour | ₦5,000 | | | 3 | Factory Overheads | ₦8,000 | | | 4 | Work-in-Progress | | ₦23,000 | What is the total cost of production?
A. ₦23,000
B. ₦23,000.00
C. ₦23,000.00
D. ₦23,000.00
Question 8
A company's balance sheet shows total assets of ₦500,000 and total liabilities of ₦300,000. What is the company's net worth?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 9
A company's trading account for the year ended 31st December 2022, showed a profit of ₦0,000. The company's profit and loss account also showed a depreciation of ₦0,500. Calculate the company's net profit for the year.
A. ₦0,500
B. ₦0,000
C. ₦0,500
D. ₦0,000
Question 10
A company issued 10,000 debentures of ₦100 each at a premium of ₦0.50 per debenture. Calculate the total amount received from the issue of debentures.
A. ₡0,500,000
B. ₡0,000,000
C. ₡0,500,000
D. ₡0,000,000
Question 11
A company's balance sheet shows total assets of ₦800,000 and total liabilities of ₦600,000. What is the company's net worth?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 12
A company's trial balance shows a credit balance of ₦15,000 in the 'Salaries Expense' account. However, the company's accounting records show that the salaries expense for the year was actually ₦20,000. What is the correct journal entry to record the correction?
A. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000
B. Debit Salaries Expense ₦5,000, Credit Salaries Payable ₦5,000
C. Debit Salaries Expense ₦5,000, Credit Salaries Expense ₦5,000
D. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000
Question 13
A company's profit and loss account shows a net loss of ₦100,000. The balance on the capital account is ₦250,000. What is the balance on the drawing account?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 14
A company has two departments: Manufacturing and Sales. The Manufacturing department has a balance of ₦120,000 in its control account, while the Sales department has a balance of ₦80,000. If the company's total assets are ₦500,000 and its total liabilities are ₦200,000, what is the balance in the Sales department's control account after adjusting for the difference between the Manufacturing and Sales departments?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 15
A company uses the straight-line method of depreciation. If the asset's original cost is ₦100,000 and its residual value is ₦20,000, what is the annual depreciation expense?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

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