POST UTME ABU 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the self-balancing ledger system. The ledger shows the following balances: Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, and Common Stock: ₦200,000. What is the net income for the year?
A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000
Question 2
A company issued 5,000 debentures of ₦100 each at a discount of ₦5 per debenture. If the company received ₦400,000 in cash, what is the amount of debenture issue?
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 3
A manufacturing company has the following costs associated with the production of a product:
A. Direct Materials 10,000, Direct Labor 5,000, Manufacturing Overhead 3,000
B. Direct Materials 5,000, Direct Labor 10,000, Manufacturing Overhead 3,000
C. Direct Materials 10,000, Direct Labor 3,000, Manufacturing Overhead 5,000
D. Direct Materials 5,000, Direct Labor 3,000, Manufacturing Overhead 10,000
Question 4
A company uses the double-entry system of accounting. The trial balance for the year ended December 31, 2022, shows the following balances: Accounts Payable: ₦120,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, and Common Stock: ₦200,000. What is the net income for the year?
A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000
Question 5
A company has the following incomplete records: Cash: ₦100,000, Accounts Receivable: ₦50,000, Inventory: ₦200,000, and Equipment: ₦150,000. What is the total amount of assets?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 6
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect on the accounting equation?
A. Increases Assets, Decreases Liabilities
B. Increases Liabilities, Decreases Assets
C. Increases Equity, Decreases Assets
D. Increases Assets, Increases Liabilities
Question 7
A company's trading account shows a profit of ₦1,500,000. However, the profit is reduced by ₦300,000 due to depreciation. What is the net profit?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,700,000
D. ₦2,000,000
Question 8
A company issued 5,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount.
A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000
Question 9
A company has the following ledger balances: Accounts Receivable 100,000, Accounts Payable 50,000, Common Stock 200,000, Retained Earnings 150,000. Prepare the balance sheet.
A. Assets: 250,000, Liabilities: 50,000, Equity: 200,000
B. Assets: 250,000, Liabilities: 50,000, Equity: 200,000
C. Assets: 250,000, Liabilities: 50,000, Equity: 200,000
D. Assets: 250,000, Liabilities: 50,000, Equity: 200,000
Question 10
A manufacturing company uses the process cost method to account for its production costs. The company's production costs for the month of January are as follows: direct materials ₦1,500,000, direct labor ₦2,000,000, and manufacturing overhead ₦1,800,000. What is the total production cost for January?
A. ₦5,300,000
B. ₦5,300,000
C. ₦5,300,000
D. ₦5,300,000
Question 11
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the company received ₦50,000 in cash, what is the amount of share capital?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 12
A company uses the self-balancing ledger system. The ledger shows a debit balance of ₦500,000 in the trading account. What is the corresponding credit balance in the capital account?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 13
A company's balance sheet shows a current asset of ₦2,000,000 and a non-current asset of ₦3,000,000. What is the total asset value?
A. ₦5,000,000
B. ₦6,000,000
C. ₦7,000,000
D. ₦8,000,000
Question 14
A company uses the straight-line method of depreciation. The asset's original cost is ₦10,000, and its residual value is ₦2,000. What is the annual depreciation?
A. ₦3,000
B. ₦4,000
C. ₦5,000
D. ₦6,000
Question 15
A company prepares the following trial balance at the end of the year:
A. Debit 100,000, Credit 100,000
B. Debit 50,000, Credit 50,000
C. Debit 200,000, Credit 200,000
D. Debit 150,000, Credit 150,000

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