POST UTME BELLS UNIVERSITY 2018 Accounting | Objective

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Question 1
A company's balance sheet as at 31st December 2018 shows a current liability of ₦500,000. The company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦250,000. Calculate the company's net current liability as at 31st December 2018.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 2
A company's balance sheet as at 31st December 2022 shows the following: Equity Share Capital ₦1,000,000, Retained Earnings ₦500,000, and Accumulated Depreciation ₦200,000. If the company's net assets are ₦1,400,000, what is the value of its goodwill?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
A. ₦250,000
B. ₦260,000
C. ₦270,000
D. ₦280,000
Question 4
A company's balance sheet as at 31st December 2018 shows a non-current asset of ₦1,000,000. The company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦250,000. Calculate the company's net non-current asset as at 31st December 2018.
A. ₦1,250,000
B. ₦1,000,000
C. ₦750,000
D. ₦500,000
Question 5
A company has the following transactions in its cash book: Debit: ₦200,000; Credit: ₦250,000. What is the correct balance in the cash book?
A. ₦50,000
B. ₦0
C. -₦50,000
D. ₦50,000
Question 6
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000
Question 7
A company uses the straight-line method to depreciate its assets. The asset was purchased on January 1, 2018, for ₦120,000 and has a useful life of 5 years. Calculate the annual depreciation for the year ended December 31, 2018.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 8
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. If the company's net assets are ₦1,400,000, what is the value of its retained earnings?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 9
A partnership has two partners, A and B. The capital accounts of A and B are ₦500,000 and ₦300,000 respectively. If the profit for the year is ₦150,000, and A's share of profit is 60%, what is B's share of profit?
A. ₦45,000
B. ₦30,000
C. ₦60,000
D. ₦90,000
Question 10
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. Calculate the company's net profit for the year.
A. ₦1,700,000
B. ₦1,600,000
C. ₦1,800,000
D. ₦1,900,000
Question 11
A company's balance sheet as at 31 Dec is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 50,000 | Bank Loan | 100,000 | | Debtors | 150,000 | Share Capital | 200,000 | | Stock | 100,000 | Retained Earnings | 50,000 | | Total | 300,000 | Total | 450,000 | What is the ratio of debtors to stock?
A. 1.5:1
B. 2:1
C. 1:1.5
D. 1:2
Question 12
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦200,000. If the company's total assets are ₦500,000, calculate the amount of retained earnings.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 13
A company's cash book shows a balance of ₦300,000. However, the bank statement shows a balance of ₦320,000. The difference is due to a bank overdraft of ₦20,000. What is the correct balance in the cash book?
A. ₦300,000
B. ₦310,000
C. ₦320,000
D. ₦330,000
Question 14
A company has the following transactions in its cash book: Debit: ₦100,000; Credit: ₦150,000. What is the correct balance in the cash book?
A. ₦50,000
B. ₦0
C. -₦50,000
D. ₦50,000
Question 15
A company has the following balances in its ledger: Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦40,000. Prepare the Balance Sheet for the company as at December 31, 2018.
A. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦40,000
B. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦60,000
C. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦40,000
D. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦80,000

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