POST UTME WELLSPRING UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following assets: a building worth ₦50,000,000, a machine worth ₦20,000,000, and a vehicle worth ₦10,000,000. The company uses the straight-line method of depreciation. Calculate the accumulated depreciation after 5 years.
A. Building: ₦2,500,000, Machine: ₦100,000, Vehicle: ₦500,000
B. Building: ₦2,000,000, Machine: ₦50,000, Vehicle: ₦250,000
C. Building: ₦3,000,000, Machine: ₦200,000, Vehicle: ₦1,000,000
D. Building: ₦2,500,000, Machine: ₦100,000, Vehicle: ₦500,000
Question 2
A company is considering the adoption of a new accounting system. The new system will cost ₦1,500,000 and will save the company ₦300,000 per year. If the company expects to operate for 5 years, what is the net present value of the new system?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 3
A company's balance sheet shows a total asset value of ₦500,000. However, the company's cash book shows a cash balance of ₦200,000. What is the likely reason for the discrepancy?
A. The company has not yet recorded the cash in the balance sheet.
B. The company has not yet recorded the assets in the balance sheet.
C. The company has made an error in its balance sheet.
D. The company has made an error in its cash book.
Question 4
A company has two departments: A and B. Department A has a budget of ₦1,000,000, while department B has a budget of ₦500,000. The company's accountant has prepared the following departmental accounts: Department A: ₦800,000, Department B: ₦300,000. Using the departmental accounting method, prepare a statement of financial position for the company.
A. ₦1,300,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 5
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2.50 per share. The company also issued 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 6
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product on hand at a cost of ₦150 per unit. During the year, 300 units were sold, and 200 units were purchased at ₦180 per unit. Calculate the cost of goods sold for the year.
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 7
A company purchased a machine for ₦ 15,000. The machine has a useful life of 5 years and a residual value of ₦ 2,000. Calculate the annual depreciation using the straight-line method.
A. ₦ 2,500
B. ₦ 3,000
C. ₦ 3,500
D. ₦ 4,000
Question 8
A company's accounting records are incomplete due to a fire that destroyed its office. The company's accountant has managed to salvage some of the records, but they are not in a usable format. The accountant has estimated the company's total assets to be ₦5,000,000 and its total liabilities to be ₦2,000,000. The company's net income for the year was ₦750,000. Using the single-entry method, prepare a statement of financial position for the company.
A. ₦3,000,000
B. ₦4,000,000
C. ₦5,000,000
D. ₦6,000,000
Question 9
A company uses the straight-line method of depreciation. The cost of the asset is ₦ 50,000 and its residual value is ₦ 10,000. If the asset is depreciated over 5 years, what is the annual depreciation?
A. ₦ 8,000
B. ₦ 10,000
C. ₦ 12,000
D. ₦ 15,000
Question 10
A company is preparing a balance sheet as of December 31, 2021. The company has the following assets and liabilities:
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 11
A company uses the cash basis of accounting. On December 31, 2022, it had the following accounts:
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 12
A company has the following assets: a building worth ₦50,000,000, a machine worth ₦20,000,000, and a vehicle worth ₦10,000,000. The company uses the straight-line method of depreciation. Calculate the annual depreciation for each asset.
A. Building: ₦1,250,000, Machine: ₦83,333, Vehicle: ₦500,000
B. Building: ₦1,000,000, Machine: ₦50,000, Vehicle: ₦250,000
C. Building: ₦1,500,000, Machine: ₦100,000, Vehicle: ₦500,000
D. Building: ₦1,250,000, Machine: ₦83,333, Vehicle: ₦250,000
Question 13
A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦100,000. What is the likely reason for the discrepancy?
A. The company has made an error in its trading account.
B. The company has made an error in its profit and loss account.
C. The company has not yet recorded the profit in the trading account.
D. The company has not yet recorded the loss in the profit and loss account.
Question 14
A company has a cash book that shows the following transactions: Cash received from customers: ₦500,000, Cash paid to suppliers: ₦200,000, Cash received from bank: ₦300,000. Using the cash book method, prepare a statement of cash flows for the company.
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 15
A company's trial balance shows a debit balance in the suspense account of ₦15,000. The company's accountant has identified the following transactions that have not been recorded: a sale of goods for ₦20,000, a purchase of goods for ₦30,000, and a payment of ₦10,000 to a creditor. Prepare the necessary journal entries to correct the suspense account.
A. Debit Suspense Account ₦15,000, Credit Sales Account ₦20,000
B. Debit Purchases Account ₦30,000, Credit Suspense Account ₦30,000
C. Debit Suspense Account ₦15,000, Credit Creditor Account ₦10,000
D. Debit Sales Account ₦20,000, Credit Suspense Account ₦20,000

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