POST UTME AL-HIKMAH UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 shares of ₠ 10 each at a premium of ₠ 5 per share. Calculate the total amount received from the issue of shares.
A. ₠ 50,000
B. ₠ 52,500
C. ₠ 55,000
D. ₠ 57,500
Question 2
A firm's cash book showed a balance of ₠ 10,000. If the firm's bank statement showed a balance of ₠ 12,000, what was the firm's bank overdraft?
A. ₠ 2,000
B. ₠ 4,000
C. ₠ 6,000
D. ₠ 8,000
Question 3
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
B. ₦92,000
C. ₦95,000
D. ₦97,000
Question 4
The following is the balance sheet of XYZ Ltd. as at 31st December 2021.
A. ₦1,000,000
B. ₦1,250,000
C. ₦1,500,000
D. ₦1,750,000
Question 5
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Sales ₦500,000, Purchases ₦300,000, and Capital ₦200,000. What is the total of the ledger?
A. ₦700,000
B. ₦500,000
C. ₦700,000
D. ₦500,000
Question 6
A company has the following balances in its ledger: Cash ₦100,000, Debtors ₦200,000, Creditors ₦150,000, and Capital ₦500,000. Prepare the trial balance.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 7
A firm's profit for the year ended 31st December 2022 was ₠ 1,200,000. If the firm's capital was ₠ 800,000 and the drawings were ₠ 120,000, what was the firm's net profit?
A. ₠ 1,200,000
B. ₠ 1,080,000
C. ₠ 1,440,000
D. ₠ 1,560,000
Question 8
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦90,000
Question 9
A company uses the double-entry system of accounting. The following transactions are recorded: Purchased office supplies for ₦5,000; paid cash of ₦3,000 for office supplies. What is the effect on the accounting equation?
A. Assets increase by ₦2,000
B. Liabilities increase by ₦2,000
C. Equity increases by ₦2,000
D. Assets decrease by ₦2,000
Question 10
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦200,000, and Net Income ₦50,000. Prepare the company's income statement.
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 11
A company's trial balance shows an error of \pm 500 in the cash account. If the company's cash balance is \pm 10,000, what is the correct cash balance?
A. \pm 9,500
B. \pm 10,500
C. \pm 11,000
D. \pm 12,000
Question 12
A trial balance is prepared by a company with the following balances: Debitors ₦100,000, Creditors ₦80,000, and Capital ₦200,000. What is the total of the trial balance?
A. ₦380,000
B. ₦280,000
C. ₦380,000
D. ₦280,000
Question 13
A company has the following transactions: Purchased office supplies for ₦5,000; paid cash of ₦3,000 for office supplies. What is the effect on the accounting equation?
A. Assets increase by ₦2,000
B. Liabilities increase by ₦2,000
C. Equity increases by ₦2,000
D. Assets decrease by ₦2,000
Question 14
A company has a single entry system. The company's journal entries show a total debit balance of \pm 10,000 and a total credit balance of \pm 12,000. What is the company's net income?
A. \pm 2,000
B. \pm 4,000
C. \pm 6,000
D. \pm 8,000
Question 15
A company uses the self-balancing ledger system. The ledger has the following accounts: Cash, Accounts Payable, and Sales Revenue. What is the purpose of the Accounts Payable account?
A. To record cash received from customers
B. To record cash paid to suppliers
C. To record purchases made by the company
D. To record sales revenue

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