POST UTME BOWEN UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦50,000, sold goods for ₦200,000, and paid salaries of ₦150,000. Prepare the company's ledger accounts for office equipment and sales.
A. Office Equipment: Debit ₦50,000, Credit ₦0; Sales: Debit ₦0, Credit ₦200,000
B. Office Equipment: Debit ₦0, Credit ₦50,000; Sales: Debit ₦200,000, Credit ₦0
C. Office Equipment: Debit ₦50,000, Credit ₦0; Sales: Debit ₦0, Credit ₦200,000
D. Office Equipment: Debit ₦0, Credit ₦50,000; Sales: Debit ₦200,000, Credit ₦0
Question 2
A company uses the double-entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦150,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦200,000
B. Debit Sales Revenue ₦200,000, Credit Cost of Goods Sold ₦120,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
D. Debit Sales Revenue ₦200,000, Credit Common Stock ₦150,000
Question 3
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦150,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦200,000
B. Debit Sales Revenue ₦200,000, Credit Cost of Goods Sold ₦120,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
D. Debit Sales Revenue ₦200,000, Credit Common Stock ₦150,000
Question 4
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦15,000, Credit Rent Received ₦15,000
B. Debit Rent Received ₦15,000, Credit Cash ₦15,000
C. Debit Rent Received ₦15,000, Credit Profit or Loss on Error ₦15,000
D. Debit Cash ₦15,000, Credit Rent Received ₦15,000
Question 5
A company's financial statements show the following: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's return on equity?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A company's trial balance as at December 31, 2023, is as follows: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦500,000. Prepare the company's balance sheet as at December 31, 2023.
A. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
B. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
C. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
D. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
Question 7
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦150,000. What is the correct journal entry to record the purchase of goods on credit from a supplier?
A. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
B. Debit Sales Revenue ₦200,000, Credit Common Stock ₦150,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
D. Debit Sales Revenue ₦200,000, Credit Accounts Payable ₦50,000
Question 8
A company issues 5,000, 8% debentures of ₦100 each at a premium of 5%. The debentures are redeemable at a premium of 10% after 10 years. Calculate the amount of interest that should be paid on the debentures for the first year.
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦17,500
Question 9
A company's balance sheet shows that its total assets are ₦500,000, total liabilities are ₦200,000, and equity is ₦300,000. What is the company's current ratio?
A. 2:1
B. 3:2
C. 1:1
D. 4:3
Question 10
A company has a trial balance that shows the following balances: Accounts Payable ₦60,000, Accounts Receivable ₦40,000, and Common Stock ₦150,000. The company's assets are ₦250,000 and its liabilities are ₦200,000. Calculate the company's net worth.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 11
A company uses the single-entry system to record its transactions. The company receives rent of ₦20,000 and pays salaries of ₦50,000. What is the correct journal entry to record these transactions?
A. Debit Rent Received ₦20,000, Debit Salaries ₦50,000, Credit Cash ₦70,000
B. Debit Rent Received ₦20,000, Credit Salaries ₦50,000, Debit Cash ₦70,000
C. Debit Rent Received ₦20,000, Credit Salaries ₦50,000, Credit Cash ₦70,000
D. Debit Salaries ₦50,000, Debit Cash ₦70,000, Credit Rent Received ₦20,000
Question 12
A company's trial balance shows an error of ₦1,500 in the debit side of the accounts payable account. If the correct balance is ₦120,000, what is the correct balance of the accounts payable account?
A. ₦121,500
B. ₦119,500
C. ₦121,000
D. ₦119,000
Question 13
A company's profit and loss account for the year ended December 31, 2023, is as follows: Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000, Operating Expenses ₦20,000, Net Profit ₦30,000. Prepare the company's statement of changes in equity for the year ended December 31, 2023.
A. Statement of Changes in Equity: ₦30,000
B. Statement of Changes in Equity: ₦50,000
C. Statement of Changes in Equity: ₦20,000
D. Statement of Changes in Equity: ₦10,000
Question 14
A company has a cash book balance of ₦50,000 and a bank balance of ₦20,000. The cash book shows a debit balance of ₦10,000 and a credit balance of ₦30,000. The bank statement shows a debit balance of ₦15,000 and a credit balance of ₦25,000. Calculate the correct balance of the company's cash and bank accounts.
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 15
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

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