POST UTME BSU 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦20,000, and Collected cash from customers of ₦30,000. What is the total amount of cash transactions?
A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 2
A company issues 10,000, 5% debentures of ₦100 each. Calculate the amount of interest payable annually.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 3
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Office Supplies | | 2,000 | | Salaries | | 30,000 | | Rent | | 5,000 | | Dividends | | 15,000 | What is the total amount of assets?
A. ₦52,000
B. ₦57,000
C. ₦62,000
D. ₦67,000
Question 4
A company has the following transactions: Purchased raw materials for ₦50,000, Sold goods for ₦100,000, and Paid salaries of ₦20,000. What is the total amount of expenses?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 5
A company's trading account for the year shows a profit of ₦150,000. The balance sheet shows a current liability of ₦80,000 and a non-current liability of ₦120,000. What is the company's net worth?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 6
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank's statement balance. The company's accounting records show that it has deposited ₦10,000 into the bank but has not yet recorded it. What is the correct journal entry to correct this error?
A. ₦10,000 debit to 'Cash' and ₦10,000 credit to 'Bank'
B. ₦5,000 debit to 'Cash' and ₦5,000 credit to 'Bank'
C. ₦10,000 credit to 'Cash' and ₦10,000 debit to 'Bank'
D. ₦5,000 credit to 'Cash' and ₦5,000 debit to 'Bank'
Question 7
A company's balance sheet showed an increase in the value of its assets from ₦500,000 to ₦750,000. The company also showed an increase in its liabilities from ₦200,000 to ₦350,000. Calculate the company's net worth.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A company has the following ledger accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. Which of the following is a type of ledger account?
A. Asset account
B. Liability account
C. Equity account
D. Revenue account
Question 9
In a partnership account, the capital of each partner is shown on the balance sheet at its
A. cost
B. cost plus accumulated profits
C. cost plus accumulated losses
D. market value
Question 10
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 11
In a public sector accounting system, what is the primary purpose of the 'General Ledger'?
A. To record all financial transactions of the organization
B. To prepare the final accounts of the organization
C. To control and monitor the financial activities of the organization
D. To prepare the budget of the organization
Question 12
The following are the financial statements of XYZ Ltd. for the year ended 31st December 2018.
A. The company's profit is higher than its capital.
B. The company's capital is higher than its profit.
C. The company's profit and capital are equal.
D. The company's profit and capital are not applicable.
Question 13
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's net worth?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 14
A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦60,000 in rent for the year. What is the correct journal entry to correct this error?
A. ₦50,000 debit to 'Rent Expense' and ₦60,000 credit to 'Cash'
B. ₦50,000 credit to 'Rent Expense' and ₦60,000 debit to 'Cash'
C. ₦10,000 debit to 'Rent Expense' and ₦10,000 credit to 'Cash'
D. ₦60,000 debit to 'Rent Expense' and ₦50,000 credit to 'Cash'
Question 15
A company has the following ledger accounts: 'Debentures' (₦100,000), 'Interest on Debentures' (₦10,000), and 'Profit' (₦90,000). What is the correct formula for calculating the company's interest coverage ratio?
A. (Interest on Debentures ÷ Profit) × 100%
B. (Debentures ÷ Profit) × 100%
C. (Profit ÷ Interest on Debentures) × 100%
D. (Interest on Debentures ÷ Debentures) × 100%

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