POST UTME ACHIEVERS UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. What is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 2
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, and Sales Revenue. The ledger is balanced at the end of each month. What is the purpose of the self-balancing ledger in this scenario?
A. To ensure that the company's financial statements are accurate and reliable.
B. To simplify the process of recording and classifying transactions.
C. To reduce the risk of errors in the accounting records.
D. To increase the speed of preparing financial statements.
Question 3
A partnership has two partners, A and B, with capital contributions of ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 2:3. If the net profit for the year is ₦150,000, what is the amount of profit to be distributed to partner A?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 4
A company uses the double-entry system to record its transactions. The company's journal entry for a sale on credit is: Debit Sales Revenue 1,000, Credit Accounts Receivable 1,000. What is the effect of this journal entry on the company's financial statements?
A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Decreases both assets and liabilities
Question 5
A company issued 5,000 debentures of £ 100 each at a premium of £ 10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 6
A firm has a control account balance of ₦500,000 and a ledger account balance of ₦600,000. What is the correct balance in the control account?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 7
A company's assets are valued at ₦1,500,000. Depreciation is provided at 10% per annum on the cost of the assets. Calculate the amount of depreciation for the year.
A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000
Question 8
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. What is the correct balance in the cash book?
A. ₦60,000
B. ₦50,000
C. ₦40,000
D. ₦30,000
Question 9
A public sector organization has the following transactions for the month of January: ₦10,000 cash received from customers ₦5,000 cash paid to suppliers ₦3,000 cash paid to employees ₦2,000 cash received from government grant What is the total cash received by the organization for the month of January?
A. ₦12,000
B. ₦15,000
C. ₦17,000
D. ₦20,000
Question 10
A company's cash book shows a debit balance of ₦25,000 in the account 'Cash' and a credit balance of ₦35,000 in the account 'Bank'. What is the correct journal entry to correct this error?
A. Debit Bank ₦10,000, Credit Cash ₦10,000
B. Debit Bank ₦20,000, Credit Cash ₦15,000
C. Debit Cash ₦25,000, Credit Bank ₦35,000
D. Debit Cash ₦35,000, Credit Bank ₦25,000
Question 11
A company's cash book shows the following transactions: ₦5,000 received from a customer ₦3,000 paid to a supplier What is the correct bank reconciliation statement?
A. ₦5,000 Debit: Cash ₦3,000 Credit: Bank
B. ₦5,000 Credit: Cash ₦3,000 Debit: Bank
C. ₦5,000 Debit: Cash ₦3,000 Credit: Bank
D. ₦5,000 Credit: Cash ₦3,000 Debit: Bank
Question 12
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales £ 50,000, Cost of Goods Sold £ 30,000. Prepare the company's income statement.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 13
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. What is the correct treatment of this account in the preparation of the company's final accounts?
A. Debit side of the Profit and Loss Account
B. Credit side of the Profit and Loss Account
C. Debit side of the Balance Sheet
D. Credit side of the Balance Sheet
Question 14
A public sector organization has the following transactions during the year: ₦10,000 received from the government for a grant ₦20,000 received from the government for a loan ₦15,000 paid to an employee as salary ₦5,000 paid to a supplier for goods purchased What is the correct journal entry to record the above transactions?
A. ₦10,000 Debit: Grant Received ₦20,000 Credit: Loan Received ₦15,000 Debit: Salary Expense ₦5,000 Credit: Purchase of Goods
B. ₦10,000 Credit: Grant Received ₦20,000 Debit: Loan Received ₦15,000 Credit: Salary Expense ₦5,000 Debit: Purchase of Goods
C. ₦10,000 Credit: Grant Received ₦20,000 Debit: Loan Received ₦15,000 Debit: Salary Expense ₦5,000 Credit: Purchase of Goods
D. ₦10,000 Debit: Grant Received ₦20,000 Credit: Loan Received ₦15,000 Credit: Salary Expense ₦5,000 Debit: Purchase of Goods
Question 15
A company issues 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000

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