POST UTME BOWEN UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's assets are valued at ₦500,000. The company's liabilities are ₦200,000. Calculate the company's equity.
A. ₦300,000
B. ₦300,000
C. ₦300,000
D. ₦300,000
Question 2
A company issued 5,000, 10% shares of ₦10 each at a premium of ₦5. Calculate the amount received from share holders.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 3
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit is ₦120,000, how much will A receive?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 4
A company's cash book shows the following transactions: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000, and Debit Sales Revenue ₦15,000. What is the company's net cash inflow?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
B. ₦475,500
C. ₦475,000
D. ₦475,500
Question 6
A company's trial balance showed an error of ₦50,000 in the accounts payable account. The correct balance should be ₦150,000. Prepare the necessary journal entry to correct the error.
A. Debit Accounts Payable ₦50,000, Credit Cash ₦50,000
B. Debit Accounts Payable ₦50,000, Credit Bank Loan ₦50,000
C. Debit Accounts Payable ₦50,000, Credit Retained Earnings ₦50,000
D. Debit Accounts Payable ₦50,000, Credit Dividends ₦50,000
Question 7
In a public sector accounting system, what is the primary purpose of the 'General Ledger'?
A. To record all financial transactions of the government
B. To prepare the annual budget of the government
C. To present the financial position of the government
D. To report the financial performance of the government
Question 8
A company has the following trial balance: Debit ₦10,000 ₦20,000 ₦30,000 Credit ₦15,000 ₦25,000 ₦35,000 What is the correct balance of the company?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 9
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦30,000 is due to the following transactions: a deposit of ₦10,000, a withdrawal of ₦20,000, and an error in the cash book of ₦10,000. What is the correct balance in the cash book?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 10
A company's balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the company's total equity?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 11
A company's trial balance showed an error of ₦20,000 in the accounts receivable account. The correct balance should be ₦80,000. Prepare the necessary journal entry to correct the error.
A. Debit Accounts Receivable ₦20,000, Credit Cash ₦20,000
B. Debit Accounts Receivable ₦20,000, Credit Bank Loan ₦20,000
C. Debit Accounts Receivable ₦20,000, Credit Retained Earnings ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Dividends ₦20,000
Question 12
A company has the following transactions: a purchase of ₦100,000, a sale of ₦150,000, and a return of goods of ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 13
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦4,500,000
B. ₦4,750,000
C. ₦5,000,000
D. ₦5,250,000
Question 14
A company's balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the company's total liabilities?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A company's depreciation policy is to depreciate its assets by 10% per annum. If the company's asset is valued at ₦100,000, calculate the depreciation for the first year.
A. ₦10,000
B. ₦10,000
C. ₦10,000
D. ₦10,000

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