POST UTME BSU 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦100,000 and its current liabilities are ₦50,000. What is the company's quick ratio?
A. 1:1
B. 1.5:1
C. 2:1
D. 3:1
Question 2
A company's trial balance as of December 31, 2022, shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the total amount of assets on the balance sheet?
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 3
A company has a capital of ₦1,000,000 and a reserve of ₦200,000. Calculate the ratio of capital to reserve.
A. 1:2
B. 2:1
C. 3:1
D. 1:5
Question 4
A public sector organization has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦50,000, and collected taxes of ₦20,000. What is the net cash outflow for the period?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 5
A company uses the FIFO method to value its inventory. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦200 each. During the year, 500 units were sold, and 200 units were purchased at ₦250 each. What is the total value of the inventory at December 31, 2022?
A. ₦120,000
B. ₦125,000
C. ₦130,000
D. ₦135,000
Question 6
A company issued 10,000, 5% debentures of ₦100 each at a premium of 10%. What is the total amount received from debenture holders?
A. ₦1,100,000
B. ₦1,150,000
C. ₦1,200,000
D. ₦1,250,000
Question 7
A company prepares a trial balance at the end of the year. The trial balance shows a total debit balance of ₦200,000 and a total credit balance of ₦250,000. What is the reason for the difference?
A. The company has made a mistake in recording its transactions.
B. The company has outstanding checks that have not been recorded in the trial balance.
C. The company has deposited cash into the bank that has not been recorded in the trial balance.
D. The company has made an error in preparing the trial balance.
Question 8
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 9
A company has a balance sheet as follows: Assets ₦200,000, Liabilities ₦100,000, Equity ₦50,000. Prepare a statement of changes in equity.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 10
A partnership has the following capital accounts: John has a capital of ₦50,000, Mary has a capital of ₦30,000, and David has a capital of ₦20,000. If the profit for the year is ₦60,000, what is the share of profit for each partner?
A. John: ₦20,000, Mary: ₦12,000, David: ₦8,000
B. John: ₦15,000, Mary: ₦9,000, David: ₦6,000
C. John: ₦18,000, Mary: ₦10,000, David: ₦7,000
D. John: ₦12,000, Mary: ₦8,000, David: ₦5,000
Question 11
A company's trial balance showed the following balances: Debtors ₦50,000, Creditors ₦30,000, Capital ₦100,000, Profit and Loss A/c ₦20,000. What is the total amount of the company's assets?
A. ₦160,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 12
A company's profit and loss account for the year ended 31st December 2017 showed the following: Trading profit ₦150,000, Interest on investments ₦20,000, Dividend income ₦10,000, Rent received ₦5,000. What is the total profit for the year?
A. ₦185,000
B. ₦190,000
C. ₦195,000
D. ₦200,000
Question 13
A company has the following ledger accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000. Prepare a trial balance.
A. Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000
B. Cash ₦20,000, Accounts Payable ₦50,000, Sales Revenue ₦100,000
C. Cash ₦50,000, Accounts Payable ₦100,000, Sales Revenue ₦20,000
D. Cash ₦100,000, Accounts Payable ₦20,000, Sales Revenue ₦50,000
Question 14
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. What is the total amount received from debenture holders?
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 15
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
A. ₦50,000
B. ₦45,000
C. ₦40,000
D. ₦35,000

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