POST UTME BELLS UNIVERSITY 2024 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A government agency is required to prepare a cash flow statement. What is the purpose of this statement?
Question 2
A company's balance sheet shows an increase in its current liabilities of ₦10,000 and a decrease in its non-current liabilities of ₦5,000. What is the net effect on the company's liquidity position?
Question 3
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
Question 4
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦150,000 in cash from the issue of shares, what is the amount of share capital?
Question 5
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Accounts Receivable, and Common Stock. If the company's cash account has a debit balance of ₦50,000 and its accounts payable account has a credit balance of ₦30,000, what is the total amount of the company's assets?
Question 6
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Question 7
A company's Balance Sheet as at 31st December 2023 shows a capital of ₦2,500,000. The company's drawings for the year were ₦200,000. Calculate the company's retained earnings for the year.
Question 8
A company uses the double-entry system of accounting. The company's trial balance shows the following accounts: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's assets plus liabilities?
Question 9
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The balance on the Profit and Loss Account is ₦800,000. The company's Balance Sheet as at 31st December 2023 shows a capital of ₦2,500,000. Calculate the company's retained earnings for the year.
Question 10
A company has a trial balance that shows a debit balance of ₦10,000 in the account 'Rent Received'. If the company's accounting policy is to recognize revenue when earned, what is the correct treatment for the 'Rent Received' account?
Question 11
A company uses the double-entry system of accounting. The company's trial balance shows the following accounts: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's equity?
Question 12
A company uses the accrual basis of accounting. What is the effect of this method on the financial statements?
Question 13
A manufacturing company uses the process costing method to value its products. The company's production costs for the month are as follows: direct materials ₦120,000, direct labor ₦150,000, and manufacturing overhead ₦80,000. If the company produces 10,000 units of product during the month, what is the total cost per unit?
Question 14
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. What is the net income?
Question 15
A company's trial balance shows a discrepancy of ₦1,500 between the debit and credit sides. The company's accountant has identified the following errors: (i) an item of ₦2,000 was posted twice on the debit side, (ii) an item of ₦1,500 was posted twice on the credit side, and (iii) an item of ₦500 was posted on the wrong side. What is the correct amount of the discrepancy?
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