POST UTME BSU 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000
Question 2
The following is a diagram of a company's balance sheet: { "type": "svg", "category": "accounting", "elements": [ { "type": "asset", "label": "A", "position": "left" }, { "type": "liability", "label": "B", "position": "right" }, { "type": "capital", "label": "C", "position": "center" } ], "connections": [], "style": "black_and_white_textbook" } What is the amount of shareholders' funds?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 3
A company's accounting policy requires that depreciation be calculated using the straight-line method. However, the company's management has decided to use the reducing balance method for a specific asset. What is the implication of this decision on the company's financial statements?
A. The company's profit will be overstated.
B. The company's profit will be understated.
C. The company's profit will remain unchanged.
D. The company's profit will be affected by the change in depreciation method.
Question 4
A company's manufacturing account for the year ended December 31, 2022, shows a cost of goods sold of ₦1,000,000. The company's balance sheet as at December 31, 2022, shows total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's gross profit margin for the year?
A. 50%
B. 60%
C. 70%
D. 80%
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 ₦100,000. If A withdraws ₦20,000 from the business, what is the new capital account balance of B?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 6
A company's trial balance shows an error of ₦15,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct procedure to rectify this error?
A. Adjust the trial balance by debiting the incorrect account and crediting the correct account.
B. Prepare a new trial balance after rectifying the error.
C. Reconcile the trial balance with the general ledger.
D. Restate the financial statements for the period.
Question 7
A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 2,000 debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000
Question 8
A company's income statement shows the following accounts: Sales ₦2,000,000, Cost of Goods Sold ₦1,200,000, Gross Profit ₦800,000, Operating Expenses ₦200,000, and Net Income ₦600,000. What is the gross profit margin?
A. 40%
B. 30%
C. 20%
D. 10%
Question 9
A company's trading account for the year ended 31st December shows the following: | Particulars | Debit | Credit | | --- | --- | --- | | Sales | ₦500,000 | | | Purchases | | ₦350,000 | | Returns Outwards | ₦20,000 | | | Returns Inwards | | ₦15,000 | What is the gross profit?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 10
A partnership has two partners, A and B. The profit-sharing ratio is 3:2. If the total profit is ₦120,000, calculate the amount of profit that will be shared by partner A.
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 11
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit percentage.
A. 16.67%
B. 20.00%
C. 23.33%
D. 25.00%
Question 12
A company's trial balance shows an error of ₦10,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the income statement. What is the correct procedure to rectify this error?
A. Adjust the trial balance by debiting the incorrect account and crediting the correct account.
B. Prepare a new trial balance after rectifying the error.
C. Reconcile the trial balance with the general ledger.
D. Restate the financial statements for the period.
Question 13
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while product B requires 1 hour of direct labor and 2 hours of indirect labor. If the company works 8 hours a day, 5 days a week, and the direct labor rate is ₦50 per hour, what is the total cost of producing 100 units of product A?
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦20,000
Question 14
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. If the partnership incurred a loss of ₦120,000, how much will A's share of the loss be?
A. ₦120,000
B. ₦90,000
C. ₦60,000
D. ₦30,000
Question 15
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000

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