POST UTME WELLSPRING UNIVERSITY 2019 Accounting | Objective

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Question 1
A manufacturing company uses the weighted average method to value its inventory. The company has two departments: Production and Sales. The Production department has a total of 10,000 units of finished goods with a cost of ₦50 each, while the Sales department has 5,000 units with a cost of ₦75 each. The company wants to calculate the total value of its inventory using the weighted average method. What is the total value of the inventory?
A. ₦475,000
Correct B. ₦500,000
C. ₦525,000
D. ₦550,000

Correct Answer: B

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Question 2
A partnership is formed between two individuals, John and Mary, who contribute ₦200,000 and ₦300,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3. If the partnership earns a profit of ₦150,000, how much will John receive?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 3
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and a useful life of 5 years. If the asset is depreciated by 10% per annum, what is the annual depreciation charge?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 4
A public sector organization has a budget of ₦1,000,000 for a project. The organization wants to allocate the budget to three departments: A, B, and C. Department A requires ₦300,000, Department B requires ₦200,000, and Department C requires ₦500,000. What is the total amount allocated to Department C?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 5
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. What is the total amount of cash and bank overdraft?
A. ₦600,000
Correct B. ₦700,000
C. ₦800,000
D. ₦900,000

Correct Answer: B

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Question 6
A company uses the single entry system of accounting. The following transactions were recorded in the journal during the year: 1. Cash received from customers, ₦150,000 2. Cash paid to suppliers, ₦80,000 3. Cash received from the sale of assets, ₦20,000 4. Cash paid for rent, ₦30,000 5. Cash paid for salaries, ₦40,000 6. Cash received from the sale of goods, ₦120,000 7. Cash paid for interest, ₦10,000 8. Cash received from the sale of services, ₦50,000 9. Cash paid for taxes, ₦20,000 10. Cash received from the sale of investments, ₦30,000 Prepare the ledger accounts for the following: a) Cash b) Suppliers Show your workings and calculations.
Correct A. ₦150,000
B. ₦80,000
C. ₦20,000
D. ₦30,000

Correct Answer: A

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Question 7
A company has the following transactions for the year: 1. Purchased office equipment for ₦120,000 2. Sold office equipment for ₦80,000 3. Purchased a vehicle for ₦200,000 4. Sold a vehicle for ₦150,000 5. Purchased a building for ₦500,000 6. Sold a building for ₦400,000 Determine the gain or loss on the disposal of assets.
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 8
A company has the following transactions for the year: 1. Purchased office equipment for ₦120,000 2. Sold office equipment for ₦80,000 3. Purchased a vehicle for ₦200,000 4. Sold a vehicle for ₦150,000 5. Purchased a building for ₦500,000 6. Sold a building for ₦400,000 Determine the gain or loss on the disposal of assets.
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 9
A company has the following transactions for the year: 1. Purchased office equipment for ₦120,000 2. Sold office equipment for ₦80,000 3. Purchased a vehicle for ₦200,000 4. Sold a vehicle for ₦150,000 5. Purchased a building for ₦500,000 6. Sold a building for ₦400,000 Determine the gain or loss on the disposal of assets.
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 10
A company has the following transactions for the year: 1. Purchased office equipment for ₦120,000 2. Sold office equipment for ₦80,000 3. Purchased a vehicle for ₦200,000 4. Sold a vehicle for ₦150,000 5. Purchased a building for ₦500,000 6. Sold a building for ₦400,000 Determine the gain or loss on the disposal of assets.
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 11
In a partnership account, the capital of each partner is recorded on the debit side of the capital account. Which of the following is true about the capital account?
A. The capital account is a nominal account.
Correct B. The capital account is a real account.
C. The capital account is a temporary account.
D. The capital account is a permanent account.

Correct Answer: B

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Question 12
A company uses the double-entry system of accounting. Which of the following is an example of a journal entry?
A. Debit Cash and Credit Accounts Payable.
Correct B. Credit Cash and Debit Accounts Payable.
C. Debit Accounts Payable and Credit Cash.
D. Credit Accounts Payable and Debit Cash.

Correct Answer: B

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Question 13
A bank reconciliation statement is prepared to reconcile the differences between the bank statement and the cash book. Which of the following is a common reason for the difference?
A. Cheques issued but not presented for payment.
B. Cheques deposited but not yet credited.
C. Bank charges not recorded in the cash book.
Correct D. All of the above.

Correct Answer: D

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Question 14
A company uses the single-entry system of accounting. Which of the following is a limitation of this system?
Correct A. It is difficult to prepare a trial balance.
B. It is difficult to prepare a balance sheet.
C. It is difficult to prepare a profit and loss account.
D. It is difficult to prepare a cash flow statement.

Correct Answer: A

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Question 15
A company has the following transactions: Purchased goods for ₦10,000, sold goods for ₦15,000, and purchased goods for ₦20,000. What is the total cost of goods sold?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 16
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the shares were sold for 5 each, calculate the total amount received from the sale of shares.
A. ₦30,000,000
Correct B. ₦50,000,000
C. ₦60,000,000
D. ₦70,000,000

Correct Answer: B

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Question 17
A company's trial balance showed the following balances: Accounts Payable 50,000, Accounts Receivable 20,000, Sales Revenue 100,000, Cost of Goods Sold 60,000. Prepare a classified balance sheet.
Correct A. {Assets: 120,000, Liabilities: 50,000, Equity: 70,000}
B. {Assets: 140,000, Liabilities: 50,000, Equity: 90,000}
C. {Assets: 160,000, Liabilities: 50,000, Equity: 110,000}
D. {Assets: 180,000, Liabilities: 50,000, Equity: 130,000}

Correct Answer: A

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Question 18
A company's manufacturing overheads were 100,000, and its direct labor costs were 80,000. If the company produced 10,000 units, calculate the total manufacturing cost per unit.
A. ₦18 per unit
Correct B. ₦20 per unit
C. ₦22 per unit
D. ₦24 per unit

Correct Answer: B

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Question 19
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the shares were sold for 5 each, calculate the total amount received from the sale of shares.
A. ₦30,000,000
Correct B. ₦50,000,000
C. ₦60,000,000
D. ₦70,000,000

Correct Answer: B

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Question 20
A company's trial balance showed the following balances: Accounts Payable 50,000, Accounts Receivable 20,000, Sales Revenue 100,000, Cost of Goods Sold 60,000. Prepare a classified balance sheet.
Correct A. {Assets: 120,000, Liabilities: 50,000, Equity: 70,000}
B. {Assets: 140,000, Liabilities: 50,000, Equity: 90,000}
C. {Assets: 160,000, Liabilities: 50,000, Equity: 110,000}
D. {Assets: 180,000, Liabilities: 50,000, Equity: 130,000}

Correct Answer: A

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Question 21
A company uses a single-entry system. The following transactions occurred during the year: Deposits: ₦10,000, ₦5,000, ₦8,000 Withdrawals: ₦3,000, ₦2,000, ₦6,000 What is the total amount of cash available at the end of the year?
A. ₦21,000
Correct B. ₦22,000
C. ₦23,000
D. ₦24,000

Correct Answer: B

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Question 22
A company uses a double-entry system. The following transactions occurred during the year: Debit: ₦10,000, ₦5,000, ₦8,000 Credit: ₦3,000, ₦2,000, ₦6,000 What is the total amount of cash available at the end of the year?
A. ₦21,000
Correct B. ₦22,000
C. ₦23,000
D. ₦24,000

Correct Answer: B

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Question 23
A company uses a single-entry system. The following transactions occurred during the year: Deposits: ₦10,000, ₦5,000, ₦8,000 Withdrawals: ₦3,000, ₦2,000, ₦6,000 What is the total amount of cash available at the end of the year?
A. ₦21,000
Correct B. ₦22,000
C. ₦23,000
D. ₦24,000

Correct Answer: B

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Question 24
A company uses a double-entry system. The following transactions occurred during the year: Debit: ₦10,000, ₦5,000, ₦8,000 Credit: ₦3,000, ₦2,000, ₦6,000 What is the total amount of cash available at the end of the year?
A. ₦21,000
Correct B. ₦22,000
C. ₦23,000
D. ₦24,000

Correct Answer: B

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Question 25
A company uses a single-entry system. The following transactions occurred during the year: Deposits: ₦10,000, ₦5,000, ₦8,000 Withdrawals: ₦3,000, ₦2,000, ₦6,000 What is the total amount of cash available at the end of the year?
A. ₦21,000
Correct B. ₦22,000
C. ₦23,000
D. ₦24,000

Correct Answer: B

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