POST UTME WELLSPRING UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a building with a cost of ₦500,000 and a useful life of 10 years. What is the annual depreciation expense using the straight-line method?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 2
In a partnership account, if the capital of one partner is increased by ₦50,000 and the capital of another partner is decreased by ₦20,000, what is the net effect on the total capital of the partnership?
A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 3
A company uses the single-entry system of accounting. The following transactions were recorded in the accounting period: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and purchased equipment for ₦80,000. What is the total amount of assets recorded in the accounting period?
A. ₦140,000
B. ₦120,000
C. ₦100,000
D. ₦160,000
Question 4
A company's trial balance showed a credit balance of ₦50,000 in the account 'Sales Returns'.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 5
A company's trial balance shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the total amount of liabilities and equity recorded in the trial balance?
A. ₦170,000
B. ₦130,000
C. ₦150,000
D. ₦120,000
Question 6
A company's bank reconciliation statement shows the following: Bank balance ₦50,000, Deposits in transit ₦10,000, and Outstanding checks ₦20,000. What is the adjusted bank balance?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 7
A company uses the following control accounts: Cash ₦ 100,000, Accounts Payable ₦ 50,000, What is the correct formula to calculate the balance of the Cash account?
A. Cash + Accounts Payable
B. Cash - Accounts Payable
C. Cash + Accounts Payable + Sales
D. Cash - Accounts Payable - Sales
Question 8
A company's bank reconciliation statement shows the following: Bank balance ₦50,000, Deposits in transit ₦10,000, and Outstanding checks ₦20,000. What is the adjusted bank balance?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 9
A company issued 10,000 shares of 1 par value at a premium of 50%.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 10
A company purchased a machine for ₦500,000 and immediately depreciated it by 20%.
A. ₦400,000
B. ₦420,000
C. ₦440,000
D. ₦460,000
Question 11
A company uses the double-entry system of accounting. The company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Equipment | | 15,000 | | 3 | Accounts Payable | | 5,000 | | 4 | Sales | | 20,000 | What is the total amount of the company's liabilities?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 12
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Equipment | | 15,000 | | Accounts Payable | | 5,000 | | Sales | | 20,000 | What is the total amount of the company's assets?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 13
A company issues 1,000 shares of stock at ₦10 per share. What is the total amount of cash received from the sale of these shares?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company's cash book shows the following transactions: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and purchased equipment for ₦80,000. What is the total amount of assets recorded in the cash book?
A. ₦140,000
B. ₦120,000
C. ₦100,000
D. ₦160,000
Question 15
A company's trial balance shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the total amount of liabilities and equity recorded in the trial balance?
A. ₦170,000
B. ₦130,000
C. ₦150,000
D. ₦120,000

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