POST UTME ABU 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following accounts: Cash 10,000, Accounts Receivable 20,000, Inventory 30,000. What is the total current assets?
A. 60,000
B. 70,000
C. 80,000
D. 90,000
Question 2
A company has the following transactions: 1. Purchased raw materials for ₦ 100,000. 2. Sold goods for ₦ 150,000. 3. Purchased factory equipment for ₦ 180,000. 4. Paid salaries of ₦ 30,000. 5. Collected cash from customers for ₦ 200,000. 6. Paid rent for ₦ 20,000. 7. Purchased office supplies for ₦ 10,000. 8. Sold factory equipment for ₦ 120,000. 9. Purchased office equipment for ₦ 120,000. 10. Collected cash from customers for ₦ 50,000. The journal entries were posted to the ledger. The ledger accounts are as follows: Raw Materials: ₦ 100,000. Factory Equipment: ₦ 180,000. Salaries: ₦ 30,000. Cash: ₦ 450,000. Rent: ₦ 20,000. Office Supplies: ₦ 10,000. Office Equipment: ₦ 120,000. What is the total amount of cash received from customers?
A. ₦ 250,000
B. ₦ 300,000
C. ₦ 350,000
D. ₦ 400,000
Question 3
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership has a net income of 100,000. What is partner B's share of the net income?
A. 40,000
B. 60,000
C. 40,000
D. 20,000
Question 4
A company has the following balance sheet at the end of the year: Assets: Cash: ₦500,000 Accounts Receivable: ₦1,000,000 Inventory: ₦2,000,000 Total Assets: ₦3,500,000 Liabilities: Accounts Payable: ₦1,500,000 Long-term Debt: ₦1,000,000 Total Liabilities: ₦2,500,000 What is the company's net worth?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 5
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. What is the company's net cash position?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 6
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦2,000,000; Liabilities: ₦1,000,000; Capital: ₦1,000,000. Calculate the company's liquidity ratio.
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 7
A company has a cash book and a bank reconciliation statement. If the cash book balance is ₦50,000 and the bank statement balance is ₦60,000, what is the reason for the difference?
A. The company has deposited cash into the bank but has not been credited yet
B. The company has withdrawn cash from the bank but has not been debited yet
C. The bank has charged the company a fee for a service
D. The company has made a mistake in recording a transaction
Question 8
A company has two partners, A and B, who share profits in the ratio 3:2. If the company makes a profit of ₦1,000,000, how much will each partner receive?
A. ₦600,000 and ₦400,000
B. ₦500,000 and ₦500,000
C. ₦400,000 and ₦600,000
D. ₦300,000 and ₦700,000
Question 9
A company uses the single-entry system of accounting. The trial balance shows the following balances: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. What is the net income for the period?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 10
A company has the following transactions: 1. Purchased raw materials for ₦ 100,000. 2. Sold goods for ₦ 150,000. 3. Purchased factory equipment for ₦ 180,000. 4. Paid salaries of ₦ 30,000. 5. Collected cash from customers for ₦ 200,000. 6. Paid rent for ₦ 20,000. 7. Purchased office supplies for ₦ 10,000. 8. Sold factory equipment for ₦ 120,000. 9. Purchased office equipment for ₦ 120,000. 10. Collected cash from customers for ₦ 50,000. The journal entries were posted to the ledger. The ledger accounts are as follows: Raw Materials: ₦ 100,000. Factory Equipment: ₦ 180,000. Salaries: ₦ 30,000. Cash: ₦ 450,000. Rent: ₦ 20,000. Office Supplies: ₦ 10,000. Office Equipment: ₦ 120,000. What is the total amount of cash received from customers?
A. ₦ 250,000
B. ₦ 300,000
C. ₦ 350,000
D. ₦ 400,000
Question 11
In a public sector accounting system, what is the primary purpose of the 'Ledger Account'?
A. To record all financial transactions of the organization
B. To prepare the final accounts of the organization
C. To provide a permanent record of all financial transactions
D. To prepare the budget of the organization
Question 12
A company produces two products, X and Y, using two machines, M1 and M2. The production process for X requires 2 hours on M1 and 3 hours on M2, while the production process for Y requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours, how many units of X and Y should it produce to maximize profit, given that the profit per unit of X is ₦150 and the profit per unit of Y is ₦200?
A. 5 units of X and 5 units of Y
B. 10 units of X and 2 units of Y
C. 15 units of X and 1 unit of Y
D. 20 units of X and 0 units of Y
Question 13
A company uses the FIFO method to value its inventory. If the company has three items in its inventory, with costs of ₦100, ₦200, and ₦300, and the quantities are 10, 20, and 30 units, respectively, what is the cost of goods sold?
A. ₦3,000
B. ₦4,000
C. ₦5,000
D. ₦6,000
Question 14
A company uses the single entry system of accounting. The following transactions were recorded in the journal: 1. Purchased office equipment for ₦ 120,000. 2. Sold goods for ₦ 150,000. 3. Purchased raw materials for ₦ 80,000. 4. Paid salaries of ₦ 30,000. 5. Collected cash from customers for ₦ 200,000. 6. Paid rent for ₦ 20,000. 7. Purchased factory equipment for ₦ 180,000. 8. Sold factory equipment for ₦ 120,000. 9. Purchased office supplies for ₦ 10,000. 10. Collected cash from customers for ₦ 50,000. The journal entries were posted to the ledger. The ledger accounts are as follows: Office Equipment: ₦ 120,000. Raw Materials: ₦ 80,000. Salaries: ₦ 30,000. Cash: ₦ 350,000. Rent: ₦ 20,000. Factory Equipment: ₦ 180,000. Office Supplies: ₦ 10,000. What is the total amount of cash received from customers?
A. ₦ 300,000
B. ₦ 350,000
C. ₦ 400,000
D. ₦ 450,000
Question 15
A company has two departments, A and B. Department A has a budget of ₦1,000,000 and department B has a budget of ₦500,000. If the company allocates 60% of its budget to department A and 40% to department B, what is the total budget allocated to both departments?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

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