POST UTME AL-HIKMAH UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Purchased raw materials on credit for ₦50,000. Sold goods on credit for ₦100,000. Purchased office supplies for ₦20,000 in cash. What is the total amount of cash paid or received during the period?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 2
What is the difference between a cash flow statement and a balance sheet?
A. A cash flow statement shows the financial position of a business at a particular date, while a balance sheet shows the cash flow of a business over a period of time.
B. A cash flow statement shows the financial performance of a business over a period of time, while a balance sheet shows the financial position of a business at a particular date.
C. A cash flow statement shows the profit or loss of a business over a period of time, while a balance sheet shows the cash flow of a business over a period of time.
D. A cash flow statement shows the cash flow of a business over a period of time, while a balance sheet shows the profit or loss of a business over a period of time.
Question 3
A company prepares its final accounts for the year ended December 31, 2022. The trading account shows a profit of ₦500,000, and the profit and loss account shows a profit of ₦200,000. What is the total profit for the year?
A. ₦700,000
B. ₦500,000
C. ₦200,000
D. ₦300,000
Question 4
A company has a machine with a cost of ₦300,000 and a useful life of 5 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 5
A company has the following transactions: Purchased raw materials on credit for ₦50,000. Sold goods on credit for ₦100,000. Purchased office supplies for ₦20,000 in cash. What is the total amount of cash paid or received during the period?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit for the year is ₦60,000. What is the ratio of A's and B's shares of the profit?
A. 1:1
B. 2:1
C. 3:2
D. 4:3
Question 7
A company has a building with a cost of ₦1,500,000 and a useful life of 10 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 8
A company has the following trial balance: Debitors ₦100,000, Creditors ₦50,000, Capital ₦200,000, Profit and Loss Account ₦50,000. What is the total amount of assets?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 9
A company purchased a machine for ₦50,000 and immediately sold it for ₦60,000. What is the gain or loss on the sale of the machine?
A. ₦10,000 gain
B. ₦10,000 loss
C. ₦5,000 gain
D. ₦5,000 loss
Question 10
A company issues 10,000 9% debentures of ₦100 each on January 1, 2020. The debentures are redeemable at par on January 1, 2025. Interest is payable half-yearly on June 30 and December 31. Calculate the amount of interest payable on December 31, 2021.
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 11
A company's balance sheet shows a total assets of ₦500,000 and total liabilities of ₦300,000. What is the company's net worth?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 12
What is the purpose of a balance sheet?
A. To show the financial position of a business at a particular date.
B. To show the financial performance of a business over a period of time.
C. To show the cash flow of a business over a period of time.
D. To show the profit of a business over a period of time.
Question 13
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and the number of units is 500. The cost of inventory B is ₦150,000, and the number of units is 300. The cost of inventory C is ₦180,000, and the number of units is 200. The total cost of goods available for sale is ₦420,000. What is the cost of goods sold using the weighted average method?
A. ₦140,000
B. ₦150,000
C. ₦160,000
D. ₦170,000
Question 14
A company has a machine with a cost of ₦200,000 and a useful life of 5 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 15
What is the purpose of a public sector accounting?
A. To show the financial position of a government at a particular date.
B. To show the financial performance of a government over a period of time.
C. To show the cash flow of a government over a period of time.
D. To show the profit or loss of a government over a period of time.

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