POST UTME ABU 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: | Date | Account | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦50,000 | ₦0 | | 1-Jan | Accounts Payable | ₦0 | ₦30,000 | | 2-Jan | Sales | ₦0 | ₦100,000 | | 3-Jan | Cost of Goods Sold | ₦80,000 | ₦0 | | 4-Jan | Net Income | ₦20,000 | ₦0 | What is the company's net income?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 2
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦120,000, calculate the amount of profit that will be shared by A.
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 3
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,300,000
Question 4
A partnership has three partners, A, B, and C. Partner A has a capital of ₦100,000, Partner B has a capital of ₦80,000, and Partner C has a capital of ₦60,000. The partnership's total capital is ₦300,000. What is the ratio of Partner A's capital to Partner B's capital?
A. 1:1
B. 2:1
C. 3:2
D. 4:3
Question 5
A company has the following ledger accounts: Debit: Cash ¡ 50,000 Accounts Payable ¡ 30,000 Equipment ¡ 100,000 Credit: Accounts Receivable ¡ 20,000 Common Stock ¡ 150,000 Total ¡ 350,000
A. ¡ 20,000
B. ¡ 30,000
C. ¡ 50,000
D. ¡ 100,000
Question 6
A government agency is required to prepare a budget for the upcoming fiscal year. The budget includes the following line items: Salaries 1,000,000, Rent 200,000, Utilities 50,000. What is the total amount of the budget?
A. 1,250,000
B. 1,200,000
C. 1,250,000
D. 1,300,000
Question 7
A company uses the double-entry system to record its transactions. The following journal entry was made on December 31, 2022: Debit: Cash 10,000, Credit: Dividends 10,000. What is the effect of this transaction on the company's equity?
A. Decrease in equity
B. Increase in equity
C. No effect on equity
D. Decrease in liabilities
Question 8
A company's balance sheet shows a current asset of ₦500,000 and a current liability of ₦300,000. What is the company's working capital?
A. ₦200,000
B. ₦300,000
C. ₦500,000
D. ₦700,000
Question 9
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of interest to be paid at the end of the first year.
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 10
A company's balance sheet as at 31st December, 2022 is as follows: Assets: Cash ₦10,000 Debtors ₦20,000 Stock ₦30,000 Equipment ₦40,000 Total ₦100,000 Liabilities: Creditors ₦10,000 Capital ₦90,000 Total ₦100,000 What is the correct treatment for the following error in the balance sheet? The equipment was incorrectly valued at ₦50,000 instead of ₦40,000.
A. Debit the equipment account by ₦10,000 and credit the capital account by ₦10,000
B. Debit the capital account by ₦10,000 and credit the equipment account by ₦10,000
C. Debit the creditors account by ₦10,000 and credit the equipment account by ₦10,000
D. Debit the equipment account by ₦10,000 and credit the creditors account by ₦10,000
Question 11
A company uses the straight-line method of depreciation for its assets. If the asset has a useful life of 5 years and a cost of ₦50,000, what is the annual depreciation charge?
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦20,000
Question 12
A company uses the double entry system. The following transactions were recorded: 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦100,000. 3. Paid rent of ₦20,000. What is the total value of the assets?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 13
A company uses the cash book to record its transactions. The cash book shows a balance of ₦50,000 on December 31. The bank statement shows a balance of ₦60,000 on December 31. The company's accountant has prepared a bank reconciliation statement, which shows that the difference between the cash book balance and the bank statement balance is due to an outstanding cheque of ₦5,000. What is the correct balance of the company's cash account on December 31?
A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000
Question 14
A company purchases a machine for ¡ 80,000. The machine is expected to have a useful life of 5 years and a residual value of ¡ 10,000. Calculate the annual depreciation using the straight-line method.
A. ¡ 14,000
B. ¡ 15,000
C. ¡ 16,000
D. ¡ 17,000
Question 15
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦500,000 Liabilities: ₦200,000 Capital: ₦300,000 What is the net worth of the company?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

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