POST UTME WELLSPRING UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a self-balancing ledger to record its transactions. The ledger contains the following accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. The ledger is balanced at the end of each month. What is the purpose of the self-balancing ledger in this scenario?
A. To record and classify transactions
B. To prepare the trial balance
C. To ensure the ledger is balanced at the end of each month
D. To prepare the financial statements
Question 2
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the cost of goods sold for the year.
A. ₦1,230,000
B. ₦1,250,000
C. ₦1,270,000
D. ₦1,290,000
Question 3
A company has two partners, A and B, who share profits in the ratio 3:2. The capital of the company is ₦1,500,000, and the profit for the year is ₦450,000. If A's drawings are ₦30,000, calculate the amount of profit to be distributed to A.
A. ₦135,000
B. ₦150,000
C. ₦165,000
D. ₦180,000
Question 4
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦100,000 and a useful life of 5 years. If the asset is sold for ₦20,000 after 3 years, calculate the amount of depreciation for the 3rd year.
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 5
A manufacturing company uses a job order costing system. The company has the following costs: direct materials ₦10,000, direct labor ₦8,000, and overhead ₦6,000. What is the total cost of production?
A. ₦24,000
B. ₦24,000
C. ₦24,000
D. ₦24,000
Question 6
A company's trial balance showed an error of ₦5,000 in the debit side of the purchases account.
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 7
The following is a trial balance for a company: | Account | Debit | Credit | | --- | --- | --- | | Sales | | 100,000 | | Purchases | 80,000 | | | Cash | 10,000 | | | Bank | | 50,000 | | Capital | | 150,000 | What is the amount of the error in the trial balance?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 8
A company has the following incomplete records: Cash 5,000, Accounts Payable 8,000. What is the total amount of assets?
A. 13,000
B. 12,000
C. 11,000
D. 10,000
Question 9
A company's trial balance shows the following balances:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 15,000 | | 1/3 | Purchases | 8,000 | | | 1/4 | Cash | | 5,000 | What is the balance in the cash account?
A. ₦7,000
B. ₦3,000
C. ₦5,000
D. ₦10,000
Question 11
A company has a balance sheet that shows total assets of ₦500,000 and total liabilities of ₦200,000. If the company's equity is ₦300,000, calculate the company's return on equity (ROE).
A. 50%
B. 60%
C. 70%
D. 80%
Question 12
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦800,000. Calculate the company's total assets.
A. ₦1,300,000
B. ₦1,300,000
C. ₦1,300,000
D. ₦1,300,000
Question 13
A company uses the double-entry system of accounting. The following transactions occurred during the year:
A. Debit Cash 1,000 and Credit Accounts Payable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000 and Credit Cash 1,000
Question 14
A company's assets are valued at ₦10,000,000. The company's liabilities are ₦3,000,000. What is the company's equity?
A. ₦7,000,000
B. ₦10,000,000
C. ₦3,000,000
D. ₦4,000,000
Question 15
A company has the following bank reconciliation statement: Bank Balance 10,000, Cash Balance 12,000. What is the correct treatment for this discrepancy?
A. Debit the difference to the income statement
B. Credit the difference to the income statement
C. Debit the difference to the balance sheet
D. Credit the difference to the balance sheet

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