POST UTME AAUA 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A manufacturing company's production costs are ₦50,000 for direct materials and ₦30,000 for direct labor. What is the total production cost?
A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000
Question 2
A company's balance sheet as at December 31, 2022, is as follows: ₦ Cash ₦1,000,000; ₦ Accounts Payable ₦500,000; ₦ Common Stock ₦2,000,000. If the company issues 10,000 shares of common stock at ₦100 per share, what is the new balance of common stock?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 3
A company prepares its financial statements using the accrual basis of accounting. If the company has accounts payable of ₦150,000 and accounts receivable of ₦200,000, what is the net working capital?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 4
A company's bank statement shows a balance of ₦50,000, but the company's cash book shows a balance of ₦60,000. What is the correct reconciliation?
A. ₦10,000 overdraft
B. ₦10,000 credit
C. ₦10,000 debit
D. ₦10,000 deposit
Question 5
A company prepares a trading account for the year ended December 31, 2022. The company's sales for the year were ₦500,000, and the company's purchases for the year were ₦400,000. What is the company's gross profit for the year?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A company prepares a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Accounts Payable | ₦0 | ₦15,000 | | Sales | ₦0 | ₦20,000 | | Cost of Goods Sold | ₦0 | ₦15,000 | | Net Income | ₦0 | ₦5,000 | Identify the error in the trial balance.
A. Cash has a debit balance of ₦10,000
B. Accounts Payable has a credit balance of ₦15,000
C. Sales has a credit balance of ₦20,000
D. Cost of Goods Sold has a debit balance of ₦15,000
Question 7
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦0,500
B. ₦1,000
C. ₦1,050
D. ₦1,500
Question 8
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the profit for the year is ₦180,000, how much will A receive?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 9
A company uses the self-balancing ledger system. The company's ledger shows a balance of ₦180,000. The company's bank statement shows a balance of ₦200,000. What is the correct explanation for the discrepancy?
A. The company has not yet recorded a deposit of ₦20,000.
B. The company has not yet recorded a withdrawal of ₦10,000.
C. The company has not yet recorded a bank charge of ₦5,000.
D. The company has not yet recorded a loan of ₦2,000.
Question 10
A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦0, the annual depreciation charge would be:
A. ₦0,000
B. ₦0,800
C. ₦0,900
D. ₦1,000
Question 11
A company prepares its financial statements using the cash basis of accounting. If the company has cash inflows of ₦200,000 and cash outflows of ₦150,000, what is the net cash flow?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 12
In a partnership account, if the capital of one partner is increased by ₦50,000 and the capital of another partner is decreased by ₦30,000, what is the net effect on the total capital of the partnership?
A. ₦20,000 increase
B. ₦20,000 decrease
C. ₦20,000 no change
D. ₦20,000 unknown
Question 13
A company's cash book shows a balance of ₦500,000. The bank statement shows a balance of ₦550,000. The difference is due to a bank error. If the company's cash book balance is ₦50,000 less than the bank statement balance, what is the bank error?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 14
A company's manufacturing account shows a cost of goods manufactured of ₦500,000 and a cost of goods sold of ₦400,000. If the company's beginning inventory is ₦100,000, what is the cost of ending inventory?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A company's income statement for the year ended December 31, 2022, is as follows: ₦ Sales ₦5,000,000; ₦ Cost of Goods Sold ₦3,000,000; ₦ Gross Profit ₦2,000,000. If the company's tax rate is 25%, what is the company's net income?
A. ₦1,500,000
B. ₦1,750,000
C. ₦2,000,000
D. ₦2,250,000

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