POST UTME ACHIEVERS UNIVERSITY 2018 Accounting | Objective

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Question 1
A company uses the single entry system to record its transactions. The company's assets increased by ₦50,000 and its liabilities increased by ₦20,000. What is the amount of the owner's capital?
A. ₦30,000
B. ₦40,000
Correct C. ₦60,000
D. ₦70,000

Correct Answer: C

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Question 2
A partnership has two partners, A and B. The capital contributions of A and B are ₦80,000 and ₦60,000 respectively. The profit-sharing ratio is 3:2. What is the amount of profit that A will receive?
A. ₦24,000
B. ₦30,000
Correct C. ₦36,000
D. ₦42,000

Correct Answer: C

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Question 3
A company uses the self-balancing ledger system. The company's assets increased by ₦100,000 and its liabilities increased by ₦50,000. What is the amount of the owner's capital?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 4
A company uses the straight-line method of depreciation. The company's asset has a useful life of 10 years and a residual value of ₦20,000. What is the amount of depreciation for the first year?
A. ₦8,000
Correct B. ₦10,000
C. ₦12,000
D. ₦14,000

Correct Answer: B

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Question 5
A company uses the percentage of completion method of depreciation. The company's asset has a useful life of 10 years and a residual value of ₦20,000. What is the amount of depreciation for the first year?
A. ₦8,000
B. ₦10,000
Correct C. ₦12,000
D. ₦14,000

Correct Answer: C

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that it has paid ₦20,000 for rent and rates. Prepare the necessary journal entry to correct the discrepancy.
A. ₦20,000 debit to Rent and Rates, ₦5,000 credit to Cash
B. ₦15,000 credit to Rent and Rates, ₦20,000 debit to Cash
C. ₦20,000 credit to Rent and Rates, ₦5,000 debit to Cash
Correct D. ₦15,000 debit to Rent and Rates, ₦20,000 credit to Cash

Correct Answer: D

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Prepare the necessary journal entry to distribute the profit of ₦20,000.
A. ₦18,000 debit to A's Capital, ₦2,000 credit to B's Capital
B. ₦12,000 debit to A's Capital, ₦8,000 credit to B's Capital
Correct C. ₦20,000 credit to Profit and Loss, ₦12,000 debit to A's Capital, ₦8,000 debit to B's Capital
D. ₦18,000 credit to Profit and Loss, ₦12,000 debit to A's Capital, ₦6,000 credit to B's Capital

Correct Answer: C

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Question 8
A company's cash book shows a balance of ₦10,000. However, the bank statement shows a balance of ₦15,000. Prepare the necessary bank reconciliation statement.
A. ₦5,000 debit to Bank, ₦5,000 credit to Cash
B. ₦10,000 credit to Bank, ₦5,000 debit to Cash
C. ₦5,000 credit to Bank, ₦10,000 debit to Cash
Correct D. ₦5,000 debit to Bank, ₦10,000 credit to Cash

Correct Answer: D

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Question 9
A company's trial balance shows a debit balance of ₦20,000 in the 'Salaries and Wages' account. However, the company's accounting records show that it has paid ₦25,000 for salaries and wages. Prepare the necessary journal entry to correct the discrepancy.
A. ₦25,000 debit to Salaries and Wages, ₦5,000 credit to Cash
B. ₦20,000 credit to Salaries and Wages, ₦25,000 debit to Cash
C. ₦25,000 credit to Salaries and Wages, ₦5,000 debit to Cash
Correct D. ₦20,000 debit to Salaries and Wages, ₦25,000 credit to Cash

Correct Answer: D

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Question 10
A company's balance sheet shows a current liability of ₦50,000. However, the company's accounting records show that it has paid ₦60,000 to settle the liability. Prepare the necessary journal entry to correct the discrepancy.
A. ₦60,000 debit to Current Liability, ₦10,000 credit to Cash
B. ₦50,000 credit to Current Liability, ₦60,000 debit to Cash
C. ₦60,000 credit to Current Liability, ₦10,000 debit to Cash
Correct D. ₦50,000 debit to Current Liability, ₦60,000 credit to Cash

Correct Answer: D

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Question 11
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦12,000. The company's bank statement shows a credit balance of ₦15,000. What is the correct journal entry to reconcile the cash book and bank statement?
Correct A. ₦3,000 debit to Cash and ₦3,000 credit to Bank
B. ₦3,000 credit to Cash and ₦3,000 debit to Bank
C. ₦12,000 debit to Cash and ₦15,000 credit to Bank
D. ₦15,000 debit to Cash and ₦12,000 credit to Bank

Correct Answer: A

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Question 12
A public sector organization has the following transactions for the year: - Received ₦50,000 cash from the government for a grant. - Paid ₦20,000 cash to a supplier for goods purchased. - Received ₦30,000 cash from customers for services rendered. - Paid ₦10,000 cash to an employee as salary. What is the total cash received by the organization for the year?
Correct A. ₦60,000
B. ₦50,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 13
A company uses the double-entry system of accounting. The company's ledger shows the following balances: - Cash: ₦20,000 - Accounts Payable: ₦15,000 - Sales Revenue: ₦30,000 What is the total amount of assets owned by the company?
Correct A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000

Correct Answer: A

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Question 14
A company purchases a machine for ₦100,000. The machine is expected to last for 5 years and has a residual value of ₦20,000. What is the annual depreciation of the machine?
A. ₦16,000
B. ₦18,000
Correct C. ₦20,000
D. ₦22,000

Correct Answer: C

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Question 15
A company has the following assets: - Land: ₦50,000 - Building: ₦100,000 - Machinery: ₦30,000 What is the total value of the company's assets?
Correct A. ₦180,000
B. ₦180,000
C. ₦180,000
D. ₦180,000

Correct Answer: A

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Question 16
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company also declared dividends of ₦10,000. Prepare the company's statement of financial position at the end of the year.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 17
A company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company also declared dividends of ₦10,000. Prepare the company's statement of financial position at the end of the year using the double-entry system of accounting.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 18
A company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company also declared dividends of ₦10,000. Prepare the company's statement of financial position at the end of the year using the single-entry system of accounting.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 19
A company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company also declared dividends of ₦10,000. Prepare the company's statement of financial position at the end of the year using the double-entry system of accounting.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 20
A company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company also declared dividends of ₦10,000. Prepare the company's statement of financial position at the end of the year using the single-entry system of accounting.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 21
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦1,500,000?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 22
A government agency prepares a budget for the upcoming fiscal year. The budget includes an appropriation of ₦500 million for a new project. If the project is expected to generate revenue of ₦200 million, what is the net appropriation for the project?
Correct A. ₦300 million
B. ₦400 million
C. ₦500 million
D. ₦600 million

Correct Answer: A

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Question 23
A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product A and product B should the company produce to maximize profit?
A. 10 units of A and 15 units of B
Correct B. 15 units of A and 10 units of B
C. 20 units of A and 5 units of B
D. 5 units of A and 20 units of B

Correct Answer: B

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Question 24
A company's trial balance shows the following balances: Accounts Payable ₦500,000, Sales Revenue ₦1,500,000, Cost of Goods Sold ₦800,000, and Net Income ₦200,000. What is the company's total assets?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
Correct D. ₦4,000,000

Correct Answer: D

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Question 25
A company uses the double-entry system of accounting. If the company's journal entry for the month includes the following transactions: Debit Cash ₦100,000, Credit Accounts Payable ₦50,000, and Debit Sales Revenue ₦200,000, what is the company's net income for the month?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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