POST UTME WELLSPRING UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 2
A company's financial statements for the year ended 31 December 2022 are as follows: Revenue ¦1,500,000; Expenditure ¦1,800,000; Surplus/(Deficit) ¦1,200,000. What is the company's financial position?
A. Surplus
B. Deficit
C. Break-even
D. Unknown
Question 3
A company issues 10,000, 10% preference shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 4
A company's balance sheet as at 31st December 2022 shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 5
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 3 hours of indirect labor, while Product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 40 hours of direct labor and 60 hours of indirect labor in a week, how many units of Product A and Product B should be produced?
A. 10 units of Product A and 15 units of Product B
B. 15 units of Product A and 10 units of Product B
C. 20 units of Product A and 30 units of Product B
D. 30 units of Product A and 20 units of Product B
Question 6
A government agency prepares a trial balance as of December 31, 2022. The trial balance shows a debit balance of ₦50,000 in the account 'Allowance for Doubtful Accounts'. However, the agency's accountant believes that the correct balance should be a credit balance of ₦20,000. What is the correct journal entry to correct the error?
A. Debit Allowance for Doubtful Accounts ₦50,000; Credit Allowance for Doubtful Accounts ₦30,000
B. Debit Allowance for Doubtful Accounts ₦20,000; Credit Allowance for Doubtful Accounts ₦50,000
C. Debit Allowance for Doubtful Accounts ₦30,000; Credit Allowance for Doubtful Accounts ₦20,000
D. Debit Allowance for Doubtful Accounts ₦50,000; Credit Allowance for Doubtful Accounts ₦20,000
Question 7
A company's cash book shows a discrepancy of ₦5,000 between the cash balance as per the cash book and the cash balance as per the bank statement. The cash balance as per the cash book is ₦20,000. What is the correct cash balance?
A. ₦25,000
B. ₦20,000
C. ₦15,000
D. ₦10,000
Question 8
A company uses the weighted average method to value its inventory. The following data is available: Cost of goods available for sale: ₦500,000; Net realizable value: ₦450,000; Beginning inventory: ₦100,000. What is the cost of goods sold?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 9
A company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦130,000. The difference is due to a bank overdraft of ₦10,000. What is the correct journal entry to record the bank overdraft?
A. Debit Cash ₦10,000, Credit Bank Overdraft ₦10,000
B. Debit Bank Overdraft ₦10,000, Credit Cash ₦10,000
C. Debit Cash ₦10,000, Credit Bank ₦10,000
D. Debit Bank ₦10,000, Credit Cash ₦10,000
Question 10
A public sector organization's financial statements for the year ended 31 December 2022 are as follows: Revenue ¦1,500,000; Expenditure ¦1,800,000; Surplus/(Deficit) ¦1,200,000. What is the organization's financial position?
A. Surplus
B. Deficit
C. Break-even
D. Unknown
Question 11
A single entry system is used to record transactions. The journal entry for a sale of goods on credit is: Debit Sales A/c ₦10,000, Credit Debtors A/c ₦10,000. What is the correct classification of this transaction?
A. Trading transaction
B. Non-trading transaction
C. Capital transaction
D. Revenue transaction
Question 12
A company's balance sheet shows an error of ₦10,000 in the credit side of the accounts payable account. The correct amount of accounts payable is ₦50,000. What is the correct amount of accounts payable?
A. ₦60,000
B. ₦50,000
C. ₦40,000
D. ₦30,000
Question 13
A company's financial statements for the year ended 31 December 2022 are as follows: Trading profit ¦1,500,000; Profit before tax ¦1,800,000; Taxation ¦1,200,000; Profit after tax ¦1,600,000. What is the company's net profit for the year?
A. ¦1,800,000
B. ¦1,600,000
C. ¦1,500,000
D. ¦1,200,000
Question 14
A manufacturing company uses the process costing method. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦100,000 and the Assembly department has a production cost of ₦150,000. What is the total production cost?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 15
A company's balance sheet as at 31st December 2022 shows the following: Fixed Assets: ₦2,500,000; Current Assets: ₦1,500,000; Capital: ₦1,000,000; Profit: ₦200,000. Calculate the amount of Current Liabilities.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

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