POST UTME WELLSPRING UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In the public sector, what is the primary purpose of the accounting system?
A. To provide financial information for decision-making
B. To ensure compliance with regulatory requirements
C. To facilitate the preparation of financial statements
D. To manage the organization's resources effectively
Question 2
A company maintains a control account for its cash account. The control account shows a balance of ₦ 15,000. What is the purpose of the control account?
A. To record transactions in a chronological order
B. To record transactions in a classified order
C. To ensure that the cash account is properly controlled
D. To prepare a trial balance
Question 3
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 5% after 5 years. Calculate the amount of premium to be paid.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 4
A company purchases a machine for ₦120,000 and sells it for ₦150,000. Calculate the gain on the sale of the machine.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 5
A partnership is formed between two partners, A and B. A invests ₦50,000 and B invests ₦30,000. The profit is to be shared in the ratio 2:1. If the profit is ₦18,000, how much will A receive?
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000
Question 6
A government agency is required to prepare a budget for the upcoming fiscal year. Which of the following is a characteristic of a zero-based budget?
A. All expenses are assumed to be zero unless justified
B. All expenses are assumed to be justified unless challenged
C. All expenses are assumed to be justified unless challenged and approved
D. All expenses are assumed to be zero unless approved
Question 7
A partnership is formed between two individuals, John and Mary. The partnership agreement states that John will contribute ₦50,000 and Mary will contribute ₦30,000. What is the ratio of John's capital to Mary's capital?
A. 1:1
B. 1:2
C. 2:1
D. 3:2
Question 8
A company issued 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. The debentures were issued at a discount of ₦5 per debenture. Calculate the amount received from the public and the amount paid up by the debenture holders.
A. ₦475,000
B. ₦485,000
C. ₦495,000
D. ₦505,000
Question 9
The following are the ledger accounts for the year ended 31st December, 2016. Prepare the trial balance and balance sheet.
A. ₦225,000
B. ₦250,000
C. ₦275,000
D. ₦300,000
Question 10
A company prepares a trial balance as part of its accounting process. Which of the following is a characteristic of a trial balance?
A. It is a list of all accounts with their respective debit and credit balances
B. It is a list of all accounts with their respective debit and credit balances, and is used to identify any errors in the accounting process
C. It is a list of all accounts with their respective debit and credit balances, and is used to prepare the financial statements
D. It is a list of all accounts with their respective debit and credit balances, and is used to prepare the budget
Question 11
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare a statement of profit or loss for the year.
A. Profit for the year ₦50,000
B. Loss for the year ₦50,000
C. Profit for the year ₦100,000
D. Loss for the year ₦100,000
Question 12
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 5% after 5 years. Calculate the amount of premium to be paid.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 13
The following are the ledger accounts for the year ended 31st December, 2016. Prepare the trial balance and balance sheet.
A. ₦175,000
B. ₦200,000
C. ₦225,000
D. ₦250,000
Question 14
A company uses the double-entry system to record its transactions. If the company purchases office supplies for ₦10,000 cash, what is the effect on the accounting equation?
A. Assets increase, Liabilities increase
B. Assets increase, Liabilities decrease
C. Assets decrease, Liabilities increase
D. Assets decrease, Liabilities decrease
Question 15
A company's cash book shows the following transactions for the month of January 20X8: Debit 1. Cash ₦1,000 2. Bank ₦2,000 3. Sales ₦3,000 4. Purchases ₦4,000 Credit 1. Cash ₦5,000 2. Bank ₦6,000 3. Sales ₦7,000 4. Purchases ₦8,000 What is the company's cash balance as at 31st January 20X8?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000

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
Help others prepare! Share this practice hub: