POST UTME AAUA 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, and Cost of Goods Sold ₦200,000. What is the company's net income?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 2
A company's balance sheet as at 31st December, 2022 is as follows: ₦ 10,000,000 ₦ 20,000,000 ₦ 30,000,000 ₦ 40,000,000 ₦ 50,000,000 ₦ 10,000,000 ₦ 20,000,000 ₦ 30,000,000 ₦ 40,000,000 ₦ 50,000,000 Identify the error in the balance sheet.
A. The assets are overvalued by ₦10,000,000
B. The liabilities are undervalued by ₦10,000,000
C. The assets are undervalued by ₦10,000,000
D. The liabilities are overvalued by ₦10,000,000
Question 3
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 4
A manufacturing company has the following transactions for the year ended December 31, 2022: Cost of goods sold: ₦500,000 Selling expenses: ₦150,000 Administrative expenses: ₦100,000 What is the net profit for the year?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 5
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 6
A company issues 500 debentures of ₦100 each at a premium of ₦20 per debenture. If the company receives a cash payment of ₦50,000, what is the amount of the debenture capital?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 7
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The proceeds from the issue are used to pay off a loan of ₦500,000. What is the amount of share capital?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 8
A company issued 5,000, 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. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 9
A company issues 500 shares of ₦20 each at a premium of ₦10 per share. The proceeds from the issue are used to pay off a loan of ₦750,000. What is the amount of share capital?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 10
A company's trading account shows a profit of ₦150,000. The balance sheet shows a decrease in inventory of ₦20,000 and an increase in accounts payable of ₦15,000. What is the net profit for the period?
A. ₦120,000
B. ₦125,000
C. ₦130,000
D. ₦135,000
Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 10 years and the residual value is ₦20,000, what is the annual depreciation charge if the asset's cost is ₦300,000?
A. ₦28,000
B. ₦30,000
C. ₦32,000
D. ₦35,000
Question 12
A company issues 10,000 shares of ₦5 par value at ₦10 per share. What is the amount of cash received from the issue of shares?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 13
A company has the following balance sheet as at December 31, 2022: Assets: ₦1,000,000, Liabilities: ₦500,000, Equity: ₦500,000 What is the company's current ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 14
A company has a cash book that shows a debit balance of ₦80,000. The company's bank statement shows a credit balance of ₦90,000. What is the net effect on the company's cash balance?
A. ₦10,000 debit
B. ₦10,000 credit
C. ₦20,000 debit
D. ₦20,000 credit
Question 15
A manufacturing company produces two products: A and B. Product A requires 2 hours of direct labor and Product B requires 3 hours of direct labor. If the company works 40 hours in a week, how many units of Product A can be produced?
A. 20 units
B. 25 units
C. 30 units
D. 35 units

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