POST UTME BOWEN UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a credit balance of ₦50,000. However, the bank statement shows a debit balance of ₦30,000. What is the reason for this discrepancy?
A. The company has not deposited the cash into the bank.
B. The company has not recorded a bank charge.
C. The company has not recorded a cash receipt.
D. The company has not recorded a cash payment.
Question 2
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦50,000, what is the annual depreciation charge if the asset cost ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 3
A company's balance sheet shows a current ratio of 2:1. However, the company's liquidity ratio is 1:1. What is the reason for this discrepancy?
A. The company has a high level of inventory.
B. The company has a high level of accounts payable.
C. The company has a high level of cash.
D. The company has a high level of accounts receivable.
Question 4
A company uses the straight-line method of depreciation. It purchases a machine for ₦120,000 and expects it to last for 5 years. Calculate the annual depreciation charge.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 5
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's capital account balance is ₦50,000. If A withdraws ₦10,000 from the partnership, what is the new balance of A's capital account?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 6
A company's trial balance as at 31 December 2022 is as follows: Debit Accounts Payable 1,500,000 Salaries Payable 2,000,000 Accrued Expenses 1,800,000 Credit Cash 5,000,000 Accounts Receivable 4,000,000 Salaries Payable 2,000,000 Accrued Expenses 1,800,000 What is the correct balance of the Accounts Receivable account?
A. ₦4,000,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦7,000,000
Question 7
A company's financial statements show a net income of ₦300,000. However, the company's tax return shows a tax liability of ₦100,000. What is the reason for the difference?
A. The company has claimed a tax deduction of ₦100,000.
B. The company has paid a tax penalty of ₦100,000.
C. The company has received a tax refund of ₦100,000.
D. The company has not remitted the tax liability.
Question 8
A company uses the accrual basis of accounting. If the company has accounts payable of ₦100,000 and accounts receivable of ₦80,000, what is the net change in working capital?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 9
A company's trial balance shows a discrepancy of ₦1,500 between the debit and credit balances. The company's accounting records show that a payment of ₦2,000 was made to a supplier, but the supplier's invoice was not recorded in the accounts. The company's cash account shows a balance of ₦8,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦2,000, Credit Accounts Payable ₦2,000
B. Debit Accounts Payable ₦2,000, Credit Cash ₦2,000
C. Debit Cash ₦1,500, Credit Accounts Payable ₦1,500
D. Debit Accounts Payable ₦1,500, Credit Cash ₦1,500
Question 10
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 3 hours of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company has a total of 120 hours of direct labor and 180 hours of indirect labor available, how many units of product A and product B should the company produce to maximize profit?
A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)
Question 11
A company's cash book shows a balance of ₦100,000. However, the company's bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has deposited ₦20,000 into the bank.
B. The company has withdrawn ₦20,000 from the bank.
C. The bank has charged the company a fee of ₦20,000.
D. The company has received a credit of ₦20,000 from the bank.
Question 12
A company's balance sheet as at 31 December 2022 is as follows: Assets Cash 5,000,000 Accounts Receivable 4,000,000 Inventory 3,000,000 Liabilities Accounts Payable 1,500,000 Salaries Payable 2,000,000 Accrued Expenses 1,800,000 What is the total amount of current liabilities?
A. ₦5,300,000
B. ₦6,300,000
C. ₦7,300,000
D. ₦8,300,000
Question 13
A company's trial balance shows a discrepancy of ₦1,500 between the debit and credit balances. The company's accounting records show that a payment of ₦2,000 was made to a supplier, but the supplier's invoice was not recorded in the accounts. The company's cash account shows a balance of ₦8,000. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦2,000, Credit Accounts Payable ₦2,000
B. Debit Accounts Payable ₦2,000, Credit Cash ₦2,000
C. Debit Cash ₦1,500, Credit Accounts Payable ₦1,500
D. Debit Accounts Payable ₦1,500, Credit Cash ₦1,500
Question 14
A company's financial statements show a net income of ₦200,000. However, the company's tax return shows a tax liability of ₦50,000. What is the reason for the difference?
A. The company has claimed a tax deduction of ₦50,000.
B. The company has paid a tax penalty of ₦50,000.
C. The company has received a tax refund of ₦50,000.
D. The company has not remitted the tax liability.
Question 15
A company's balance sheet as of December 31, 2022, is as follows: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. Prepare a statement of stockholders' equity.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000

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