POST UTME BSU 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a profit and loss account as follows: ₦100,000 in sales, ₦50,000 in cost of goods sold, ₦20,000 in operating expenses, and ₦10,000 in interest expense. If the company has a net income of ₦30,000, calculate the amount of operating expenses.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦150,000; Purchased office supplies for ₦20,000. What is the total expense?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 3
A company purchased a piece of equipment for ₦200,000. The equipment was sold for ₦150,000 after 2 years. Calculate the loss on sale of the equipment.
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 4
A company issued 10,000 debentures of ₦100 each at a premium of ₦5. Calculate the total amount received from the issue of debentures.
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,500,000
Question 5
A company's Trial Balance shows an error of £ 1,000 in the debit side of the Sales Account. The error is due to an incorrect posting of £ 1,000 from the Sales Account to the Purchases Account. Prepare the necessary journal entry to correct the error.
A. Debit Sales Account £ 1,000, Credit Purchases Account £ 1,000
B. Debit Purchases Account £ 1,000, Credit Sales Account £ 1,000
C. Debit Sales Account £ 1,000, Credit Bank Account £ 1,000
D. Debit Purchases Account £ 1,000, Credit Sales Account £ 1,000
Question 6
A company's Balance Sheet shows an error of £ 3,000 in the debit side of the Bank Account. The error is due to an incorrect posting of £ 3,000 from the Bank Account to the Purchases Account. Prepare the necessary journal entry to correct the error.
A. Debit Bank Account £ 3,000, Credit Purchases Account £ 3,000
B. Debit Purchases Account £ 3,000, Credit Bank Account £ 3,000
C. Debit Bank Account £ 3,000, Credit Sales Account £ 3,000
D. Debit Purchases Account £ 3,000, Credit Bank Account £ 3,000
Question 7
A partnership is formed between two partners, A and B, with a capital of ₦1,000,000 and ₦500,000 respectively. After one year, the profit is ₦200,000. If A and B share the profit in the ratio 2:1, how much will A receive?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 8
A company's bank reconciliation statement shows a difference of ₹5,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₹50,000. What is the correct bank statement balance?
A. ₹55,000
B. ₹50,000
C. ₹45,000
D. ₹40,000
Question 9
A company's trial balance shows the following balances: Accounts Payable ₹50,000, Sales ₹1,50,000, Cost of Goods Sold ₹75,000, and Common Stock ₹1,00,000. What is the correct balance of the company's retained earnings?
A. ₹25,000
B. ₹50,000
C. ₹75,000
D. ₹1,00,000
Question 10
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦500,000
Question 11
A trader maintains a cash book and a sales day book. The cash book shows a balance of ₹50,000. The sales day book shows a balance of ₹75,000. The cash book also shows a debit balance of ₹25,000. What is the correct balance of the sales day book?
A. ₹75,000
B. ₹80,000
C. ₹85,000
D. ₹90,000
Question 12
A company issued 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 13
A manufacturing company uses a job costing system. The company has a direct material cost of ₦50,000 and direct labor cost of ₦30,000. If the company uses a factory overhead rate of 150% of direct labor cost, calculate the total cost of production.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 14
In a partnership account, the capital of one partner is withdrawn and replaced by a loan from another partner. The loan is repayable on demand. What is the effect on the partnership's balance sheet?
A. Increase in loan account and decrease in capital account
B. Increase in capital account and decrease in loan account
C. No effect on the balance sheet
D. Decrease in loan account and increase in capital account
Question 15
A company has a balance sheet as follows: ₦100,000 in cash, ₦50,000 in accounts receivable, ₦20,000 in inventory, ₦30,000 in prepaid expenses, and ₦10,000 in long-term investments. If the company has a total assets of ₦250,000, calculate the amount of long-term investments.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

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