POST UTME AL-HIKMAH UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a capital of ₦100,000 divided into 20,000 shares of ₦5 each. If the firm issues 5,000 more shares of ₦10 each, what is the new capital?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 2
A company uses the straight-line method of depreciation for its assets. The asset has a cost of ₦200,000 and an estimated useful life of 5 years. What is the annual depreciation expense?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000
Question 3
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. The partnership has a net income of ₦500,000 for the year. How much of the net income will Partner A receive?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 4
A company has a profit of ₦80,000 and a loss of ₦30,000. What is the net profit?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A company issues 10,000 shares of ₦5 each at a premium of ₦3 per share. If the company receives a total of ₦150,000, what is the amount of share premium?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 6
A firm has a capital of ₦150,000 divided into 30,000 shares of ₦5 each. If the firm issues 10,000 more shares of ₦10 each, what is the new capital?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 7
A company has a building with a cost of ₦1,000,000. The building is depreciated using the straight-line method over a period of 10 years. Calculate the annual depreciation.
A. ₦100,000
B. ₦50,000
C. ₦200,000
D. ₦500,000
Question 8
A company's balance sheet shows a current ratio of 2:1. The current assets are ₦2,000,000 and the current liabilities are ₦1,000,000. What is the amount of non-current assets?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 9
A company has the following ledger balances: Share Capital ₦100,000; Profit and Loss Account ₦20,000. Prepare a balance sheet.
A. ₦100,000; ₦20,000
B. ₦20,000; ₦100,000
C. ₦100,000; ₦50,000
D. ₦50,000; ₦100,000
Question 10
A company has the following ledger accounts: Cash, Accounts Payable, Accounts Receivable, Common Stock, Dividends, Retained Earnings, Sales Revenue, and Cost of Goods Sold. Which of the following accounts is a contra-asset account?
A. Accounts Payable
B. Accounts Receivable
C. Cost of Goods Sold
D. Sales Revenue
Question 11
A company's balance sheet shows a current asset of ₦50,000 and a non-current asset of ₦150,000. What is the total amount of assets?
A. ₦200,000
B. ₦200,000 + ₦50,000
C. ₦200,000 + ₦150,000
D. ₦200,000 + ₦50,000 + ₦150,000
Question 12
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦500,000
Question 13
A public sector organization has a capital expenditure of ₦100,000,000 for the year. The organization uses the accrual basis of accounting. What is the accounting treatment for this expenditure?
A. Recognize as an expense in the income statement
B. Recognize as a liability in the balance sheet
C. Recognize as an asset in the balance sheet
D. Recognize as a revenue in the income statement
Question 14
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦10,000 + ₦5,000
C. ₦10,000 + ₦5,000 + ₦5,000
D. ₦10,000 + ₦5,000 + ₦5,000 + ₦5,000
Question 15
A company's trading account shows a profit of ₦1,500,000. The profit and loss account shows a profit of ₦2,000,000. The balance sheet shows a net worth of ₦4,500,000. What is the amount of dividends paid to shareholders?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦3,000,000

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