POST UTME ACHIEVERS UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company prepares a cash book. Which of the following is a characteristic of a cash book?
A. It is a list of all cash transactions
B. It is a list of all bank transactions
C. It is a list of all assets
D. It is a list of all liabilities
Question 2
A company has the following balance sheet: Assets ₦1,000,000, Liabilities ₦500,000, Equity ₦500,000. Prepare a statement of cash flows.
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 3
A company has the following transactions: Purchase of goods for ₦100,000 and payment of salaries of ₦50,000. What is the total amount of expenditure?
A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦0
Question 4
A company prepares a bank reconciliation statement. Which of the following is a characteristic of a bank reconciliation statement?
A. It is a list of all bank transactions
B. It is a list of all cash transactions
C. It is a list of all assets
D. It is a list of all liabilities
Question 5
A company has the following journal entry: Debit Cash ₦100,000, Credit Accounts Payable ₦100,000. Prepare a journal entry.
A. Debit Cash ₦100,000, Credit Accounts Payable ₦100,000
B. Debit Accounts Payable ₦100,000, Credit Cash ₦100,000
C. Debit Cash ₦100,000, Credit Accounts Receivable ₦100,000
D. Debit Accounts Payable ₦100,000, Credit Cash ₦100,000
Question 6
A firm has a capital of ₦300,000 and a profit of ₦120,000. If the capital is to be divided in the ratio 3:2, what is the share of the partner who gets 3/5 of the profit?
A. ₦180,000
B. ₦240,000
C. ₦300,000
D. ₦360,000
Question 7
A public sector organization has the following transactions: Purchase of goods for ₦100,000 and payment of salaries of ₦50,000. What is the total amount of expenditure?
A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦0
Question 8
A company uses the perpetual inventory system. On January 1, 2020, it had 500 units of a product in stock, costing ₦120 each. During the year, 300 units were sold, and 200 units were purchased at ₦150 each. Calculate the cost of goods sold for the year.
A. ₦36,000
B. ₦42,000
C. ₦48,000
D. ₦54,000
Question 9
A company's balance sheet showed the following balances: Cash ₦ 100,000, Accounts Payable ₦ 50,000, Common Stock ₦ 200,000, Retained Earnings ₦ 50,000. Prepare the company's statement of stockholders' equity.
A. Common Stock ₦ 200,000, Retained Earnings ₦ 50,000, Total Stockholders' Equity ₦ 250,000
B. Common Stock ₦ 200,000, Retained Earnings ₦ 50,000, Total Stockholders' Equity ₦ 250,000
C. Common Stock ₦ 200,000, Retained Earnings ₦ 50,000, Total Stockholders' Equity ₦ 250,000
D. Common Stock ₦ 200,000, Retained Earnings ₦ 50,000, Total Stockholders' Equity ₦ 250,000
Question 10
A company has the following transactions: Purchase of goods for ₦100,000, Sale of goods for ₦150,000, Purchase of office equipment for ₦20,000. What is the correct journal entry for the purchase of goods?
A. Debit Goods ₹100,000, Credit Cash ₹100,000
B. Debit Goods ₹100,000, Credit Bank ₹100,000
C. Debit Goods ₹100,000, Debit Cash ₹100,000
D. Debit Goods ₹100,000, Credit Bank ₹100,000
Question 11
A company has two departments: Manufacturing and Sales. The Manufacturing department has a direct labor cost of ₦1,500,000 and a direct material cost of ₦2,000,000. If the company uses the absorption costing method, what is the total cost of the Manufacturing department?
A. ₦3,500,000
B. ₦3,500,500
C. ₦3,500,000
D. ₦3,500,500
Question 12
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000, and its useful life is 5 years. Calculate the annual depreciation expense.
A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦42,000
Question 13
A company uses the double-entry system of accounting. If the company has a debit balance of ₦100,000 in the 'Accounts Payable' account and a credit balance of ₦200,000 in the 'Accounts Receivable' account, what is the net effect on the company's assets?
A. Increase in assets by ₦100,000
B. Decrease in assets by ₦100,000
C. Increase in assets by ₦100,000
D. Decrease in assets by ₦100,000
Question 14
A partnership has two partners: John and Jane. John has a 60% interest in the partnership and Jane has a 40% interest. If the partnership has a net income of ₦500,000, what is John's share of the net income?
A. ₦300,000
B. ₦400,000
C. ₦300,000
D. ₦400,000
Question 15
A company has the following trial balance: Cash ₦200,000, Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. Prepare a balance sheet.
A. Assets ₦1,000,000, Liabilities ₦500,000, Equity ₦500,000
B. Assets ₦1,000,000, Liabilities ₦600,000, Equity ₦400,000
C. Assets ₦1,000,000, Liabilities ₦400,000, Equity ₦600,000
D. Assets ₦1,000,000, Liabilities ₦300,000, Equity ₦700,000

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