POST UTME WELLSPRING UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a self-balancing ledger, the control account is the account that is used to record the total of all the subsidiary accounts. What is the name of the control account used to record the total of all the asset accounts?
A. General Ledger
B. Asset Ledger
C. Liability Ledger
D. Equity Ledger
Question 2
A company issued 5,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 5,000. Calculate the amount of share capital.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 3
The following is a partial balance sheet for XYZ Ltd. as at 31st December 2020: Equity: ₦500,000; Liabilities: ₦300,000. What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 4
A company purchased a machine for ₦ 30,000. The machine has a useful life of 4 years and a residual value of ₦ 3,000. Calculate the annual depreciation using the straight-line method.
A. ₦ 6,750
B. ₦ 7,000
C. ₦ 7,250
D. ₦ 7,500
Question 5
A company uses the job costing method to account for its manufacturing costs. The company has a job that requires 10 units of a component that costs ₦50 per unit. The company also requires 5 units of another component that costs ₦75 per unit. The total cost of the job is ₦1,500. What is the cost per unit of the job?
A. ₦150
B. ₦150
C. ₦150
D. ₦150
Question 6
A manufacturing company has a production cost of ₦500,000 and a selling price of ₦700,000. What is the gross profit?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 7
A cash book shows the following transactions: 1st January 2020: Cash: ₦100,000; 15th January 2020: Cash: ₦50,000; 31st December 2020: Cash: ₦200,000. What is the cash balance on 31st December 2020?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 8
A company's trial balance shows a debit balance of ₦15,000 in the account 'Salaries' and a credit balance of ₦20,000 in the account 'Salaries Payable'. What is the correct journal entry to record the adjustment for the difference?
A. ₦5,000 debit to Salaries and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries
C. ₦5,000 debit to Salaries and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Salaries
Question 9
A company has a debt of ₦500,000 and a credit of ₦200,000. What is the net debt?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 10
A partnership is formed between two partners, A and B, with a capital contribution of ₦100,000 and ₦150,000 respectively. What is the ratio of A's capital to B's capital?
A. 1:1
B. 1:2
C. 2:1
D. 3:2
Question 11
A cash book shows the following transactions: 1st January 2020: Cash: ₦100,000; 15th January 2020: Cash: ₦50,000; 31st December 2020: Cash: ₦200,000. What is the cash balance on 31st December 2020?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company's balance sheet as at 31st December 2020 shows a capital of ₦300,000. If the company issued 5,000, 10% debentures of ₦100 each, what is the amount of dividend paid to the debenture holders?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 13
A public sector organization has a budget of ₦1,000,000 for a project. What is the percentage of the budget allocated to personnel costs if ₦300,000 is allocated to personnel costs?
A. 30%
B. 40%
C. 50%
D. 60%
Question 14
A company's balance sheet shows a non-current liability of ₦240,000 in the accounts payable account. However, the ledger accounts show a debit balance of ₦200,000. What is the correct balance in the accounts payable account?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦200,000
Question 15
A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦500,000; Liabilities: ₦300,000. What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

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