POST UTME ABU 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a debit balance of ₦10,000 in the 'Bank' account. However, the company's accounting records show that it has a credit balance of ₦15,000 in the 'Bank' account. What is the correct journal entry to record the error?
A. Debit Bank ₦15,000, Credit Cash ₦10,000
B. Debit Bank ₦10,000, Credit Cash ₦15,000
C. Debit Bank ₦15,000, Credit Cash ₦25,000
D. Debit Bank ₦25,000, Credit Cash ₦15,000
Question 2
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Calculate the total amount received from the sale of shares.
A. ₦40,000,000
B. ₦50,000,000
C. ₦60,000,000
D. ₦70,000,000
Question 3
A company issued 5,000 debentures of ₦1,000 each at a premium of ₦100 per debenture. The debentures were sold for ₦1,200 each. Calculate the total amount received from the sale of debentures.
A. ₦6,000,000
B. ₦7,000,000
C. ₦8,000,000
D. ₦9,000,000
Question 4
A company has the following transactions: Purchase of equipment for ₦100,000, Sale of goods for ₦150,000, and Purchase of inventory for ₦80,000. Calculate the net income of the company.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A company uses the double-entry system of accounting. The company's cash account shows a balance of ₦150,000. The company's bank statement shows a balance of ₦120,000. The bank has charged a service fee of ₦2,000. What is the correct journal entry to record the bank reconciliation?
A. ₦2,000 debit to Cash and ₦2,000 credit to Bank Charges
B. ₦2,000 debit to Bank Charges and ₦2,000 credit to Cash
C. ₦2,000 debit to Bank Charges and ₦2,000 credit to Profit and Loss
D. ₦2,000 debit to Cash and ₦2,000 credit to Profit and Loss
Question 6
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦120,000 and its current liabilities are ₦60,000, what is the company's quick ratio?
A. 1:1
B. 1.5:1
C. 2:1
D. 3:1
Question 7
A company's financial statements show a net income of ₦150,000. If the company's tax rate is 25%, what is the company's tax expense?
A. ₦37,500
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 8
A company uses the accrual method to account for its revenues and expenses. If the company's revenues are ₦500,000 and its expenses are ₦300,000, what is the company's net income?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 9
A company has a capital of ₦1,500,000, divided into 300,000 shares of ₦5 each. If the company issues 30,000 shares at a premium of ₦2, what is the amount received from the issue of shares?
A. ₦60,000
B. ₦120,000
C. ₦180,000
D. ₦240,000
Question 10
A company has a capital of ₦500,000, divided into 100,000 shares of ₦5 each. If the company issues 10,000 shares at a premium of ₦2, what is the amount received from the issue of shares?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 11
A company's balance sheet shows a total equity of ₦200,000. If the company's retained earnings are ₦100,000, what is the company's total liabilities?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 12
A company uses the single-entry system of accounting. The company's cash account shows a balance of ₦150,000. The company's bank statement shows a balance of ₦120,000. The bank has charged a service fee of ₦2,000. What is the correct journal entry to record the bank reconciliation?
A. ₦2,000 debit to Cash and ₦2,000 credit to Bank Charges
B. ₦2,000 debit to Bank Charges and ₦2,000 credit to Cash
C. ₦2,000 debit to Bank Charges and ₦2,000 credit to Profit and Loss
D. ₦2,000 debit to Cash and ₦2,000 credit to Profit and Loss
Question 13
A company's cash book shows a balance of ₦100,000. The bank statement shows a balance of ₦120,000. The difference is due to an outstanding cheque of ₦20,000. Calculate the company's cash balance.
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 14
A company's trial balance shows a credit balance of ₦1,500 in the 'Dividends Received' account. However, the company's accounting records show that no dividends were received during the year. What is the most likely explanation for this discrepancy?
A. The company's accountant made an error in preparing the trial balance.
B. The company received dividends from a subsidiary, which was incorrectly recorded as a credit.
C. The company's financial statements were incorrectly prepared, resulting in an incorrect trial balance.
D. The company's accounting records were not up-to-date, resulting in an incorrect trial balance.
Question 15
A company's trading account for the year ended 31st December 2023 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: