POST UTME BOWEN UNIVERSITY 2018 Accounting | Objective

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Question 1
A company uses the LIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. The company uses a perpetual inventory system. Calculate the cost of goods sold using the LIFO method.
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 2
Determine the correct order of operations for the following expression: ( rac{1}{2} imes (3 + 4) - 2 )
A. ( \frac{1}{2} \times 7 - 2
B. ( \frac{1}{2} \times (3 + 4) - 2
C. ( \frac{1}{2} \times 3 + 4 - 2
D. ( \frac{1}{2} \times (3 + 4) + 2
Question 3
A partnership has two partners, A and B. The capital accounts of the partners are as follows: A: ₦500,000; B: ₦300,000. The profit for the year is ₦200,000. What is the share of profit for each partner?
A. A: ₦150,000; B: ₦50,000
B. A: ₦100,000; B: ₦100,000
C. A: ₦200,000; B: ₦0
D. A: ₦0; B: ₦200,000
Question 4
A manufacturing company produces two products: A and B. Product A requires 2 hours of labor and 3 units of raw material, while Product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, determine the maximum number of units of Product A that can be produced.
A. ( 30
B. ( 40
C. ( 50
D. ( 60
Question 5
A company uses the perpetual inventory system. The following data is available for the month of January: Beginning inventory: 100 units @ ₦50 each; Purchases: 500 units @ ₦60 each; Sales: 300 units @ ₦80 each. What is the cost of goods sold for the month?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 6
A manufacturing company uses the process costing method. The following data is available for the month of January: Direct Materials: ₦100,000; Direct Labor: ₦150,000; Factory Overhead: ₦200,000. What is the total cost of production for the month?
A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000
Question 7
A government agency has the following transactions: Revenue: ₦100,000, Expenditure: ₦80,000, and Capital Expenditure: ₦20,000. Prepare a statement of financial performance.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 8
A company's bank statement balance on December 31, 2022, was ₦150,000. The company's cash book balance on the same date was ₦120,000. The bank statement showed a credit balance of ₦20,000 for a customer's account that was not recorded in the cash book. The cash book showed a debit balance of ₦30,000 for a bank overdraft that was not recorded in the bank statement. What is the correct balance of the company's cash account?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 9
A company's income statement shows the following accounts: Sales Revenue ( ₦ 500,000 ), Cost of Goods Sold ( ₦ 250,000 ), Operating Expenses ( ₦ 100,000 ). Determine the correct amount of net income.
A. ( ₦ 150,000
B. ( ₦ 200,000
C. ( ₦ 250,000
D. ( ₦ 300,000
Question 10
A company's balance sheet as at December 31, 2022, showed the following balances: Assets: ₦500,000 Liabilities: ₦200,000 Capital: ₦300,000 What is the company's total equity?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 11
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the share holders.
A. ₦120,000
B. ₦125,000
C. ₦130,000
D. ₦135,000
Question 12
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its residual value is ₦20,000. Calculate the annual depreciation charge.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
A company uses the perpetual inventory system. The cost of goods sold is ₦150,000 and the net realizable value of the inventory is ₦80,000. Calculate the cost of goods sold.
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 14
A company uses the double-entry system. On January 1, 2020, it had the following ledger accounts: Cash (₦100,000), Accounts Payable (₦50,000), and Common Stock (₦200,000). Prepare the journal entries for the following transactions: (1) Purchased office supplies for ₦20,000, (2) Sold merchandise for ₦30,000, and (3) Issued common stock for ₦50,000.
A. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
B. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000
C. (1) Debit Cash: ₦20,000, Credit Office Supplies: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
D. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000
Question 15
A company prepares its final accounts for the year ended December 31. The trading profit for the year is ₦1,200,000 and the non-trading income for the year is ₦300,000. If the company's tax rate is 25%, what is the amount of tax payable for the year?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

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