POST UTME BELLS UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December, 2022, showed the following balances: Sales: ₦500,000; Cost of Goods Sold: ₦300,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 2
A government agency has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash received from taxpayers | 100,000 | 0 | | 1/2 | Cash paid to suppliers | 0 | 50,000 | | 1/3 | Cash received from taxpayers | 80,000 | 0 | | 1/4 | Cash paid to employees | 0 | 30,000 | What is the balance of the cash account at the end of January?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 3
A company issued 5,000 debentures of ₦1,000 each at a premium of 10%. Calculate the total amount received from the issue of debentures.
A. ₦5,000,000
B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000
Question 4
A company's bank statement shows a balance of ₦50,000 while the company's cash book shows a balance of ₦60,000. The bank statement also shows a debit of ₦10,000 for a cheque that was returned unpaid. What is the correct bank reconciliation statement?
A. ₦50,000 (Bank) + ₦10,000 (returned cheque) = ₦60,000
B. ₦50,000 (Bank) - ₦10,000 (returned cheque) = ₦40,000
C. ₦60,000 (Cash Book) - ₦10,000 (returned cheque) = ₦50,000
D. ₦60,000 (Cash Book) + ₦10,000 (returned cheque) = ₦70,000
Question 5
A manufacturing company has the following departmental expenses: Direct Labour: ₦120,000; Direct Materials: ₦150,000; Factory Overheads: ₦80,000. Calculate the total departmental expenses.
A. ₦350,000
B. ₦380,000
C. ₦410,000
D. ₦440,000
Question 6
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Carriage Inward: ₦20,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 7
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦1,500,000 and the Assembly department has a total cost of ₦2,500,000. What is the total cost of production for the company?
A. ₦4,000,000
B. ₦4,500,000
C. ₦5,000,000
D. ₦6,000,000
Question 8
A company's ledger accounts are prepared using the double-entry system. Which of the following accounts would be credited when a company purchases office supplies on credit?
A. Office Supplies Expense
B. Office Supplies Account
C. Cash Account
D. Accounts Payable
Question 9
A company has the following transactions: Purchased office supplies on credit for ₦10,000; Sold goods for ₦20,000 cash; Purchased a new machine for ₦50,000 cash. Prepare the journal entries for these transactions.
A. Debit Office Supplies Account ₦10,000, Credit Cash Account ₦10,000
B. Debit Office Supplies Account ₦10,000, Credit Accounts Payable ₦10,000
C. Debit Cash Account ₦50,000, Credit Office Supplies Account ₦10,000
D. Debit Cash Account ₦50,000, Credit Accounts Payable ₦50,000
Question 10
A company's trial balance shows the following balances: Office Supplies Account ₦10,000; Office Supplies Expense ₦5,000. What is the net effect of these transactions on the company's financial position?
A. Increase in assets
B. Decrease in assets
C. Increase in liabilities
D. Decrease in liabilities
Question 11
A company's trading account shows a profit of ₦200,000. The profit and loss account shows a loss of ₦50,000. The balance sheet shows a decrease in stock of ₦30,000. Calculate the net profit.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦220,000
Question 12
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦200,000; Accumulated Depreciation: ₦50,000. Calculate the net worth of the company.
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 13
A company has a control account for its accounts payable. The control account shows a balance of ₦100,000 while the ledger account for accounts payable shows a balance of ₦120,000. What is the correct journal entry to rectify this error?
A. ₦20,000 debit to Accounts Payable and ₦20,000 credit to Cash
B. ₦20,000 credit to Accounts Payable and ₦20,000 debit to Cash
C. ₦20,000 debit to Accounts Payable and ₦20,000 debit to Cash
D. ₦20,000 credit to Accounts Payable and ₦20,000 credit to Cash
Question 14
A company issues 5,000, 12% debentures of ₦50 each at a premium of 5%. Calculate the total premium received.
A. ₦12,500
B. ₦25,000
C. ₦37,500
D. ₦50,000
Question 15
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000. Calculate the gross profit for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

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