POST UTME CALEB UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's manufacturing account for the year ended 31st December 2018 is as follows: Cost of Goods Manufactured: ₦1,500,000; Closing Stock: ₦200,000. Calculate the company's cost of goods sold.
A. ₦1,300,000
B. ₦1,400,000
C. ₦1,500,000
D. ₦1,600,000
Question 2
A company's balance sheet shows a current ratio of 2:1. If the company has ₦1,500,000 in current assets and ₦750,000 in current liabilities, what is the company's quick ratio?
A. 1.5
B. 1.2
C. 1.0
D. 0.8
Question 3
A company has a machine that cost ₦100,000 and has a useful life of 5 years. The machine is depreciated using the straight-line method. What is the annual depreciation expense for the machine?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 4
A company's profit and loss account for the year ended 31st December 2018 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦1,200,000; Operating Expenses: ₦150,000. Calculate the company's net profit for the year.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 5
A company has a ledger account with the following transactions: Debit: ₦10,000, Credit: ₦5,000. What is the net effect on the account?
A. ₦5,000 debit
B. ₦5,000 credit
C. ₦10,000 debit
D. ₦10,000 credit
Question 6
A company's trial balance shows a debit balance of ₦1,200,000 in the accounts receivable account. If the company's balance sheet shows a credit balance of ₦900,000 in the accounts payable account, what is the company's net working capital?
A. ₦300,000
B. ₦600,000
C. ₦900,000
D. ₦1,200,000
Question 7
A company has two departments: Manufacturing and Sales. The Manufacturing department has a machine that depreciates by 10% per year. If the initial cost of the machine is ₦120,000, what is its value after 3 years?
A. ₦90,000
B. ₦108,000
C. ₦110,000
D. ₦100,000
Question 8
A company uses the double entry system to record its transactions. If the company purchases goods worth ₦100,000 on credit, what is the effect on the accounting equation?
A. Assets increase, Liabilities increase
B. Assets increase, Liabilities decrease
C. Assets decrease, Liabilities increase
D. Assets decrease, Liabilities decrease
Question 9
A company's financial statements show a net income of ₦1,500,000 and a cash dividend of ₦750,000. If the company's retained earnings balance is ₦2,000,000, what is the company's new retained earnings balance?
A. ₦2,250,000
B. ₦2,500,000
C. ₦2,750,000
D. ₦3,000,000
Question 10
A company has a cash book that shows a balance of ₦100,000. However, the company's bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has deposited cash into the bank.
B. The company has withdrawn cash from the bank.
C. The company has made a mistake in the cash book.
D. The company has made a mistake in the bank statement.
Question 11
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 tax purposes. What is the effect of this change on the company's financial statements?
A. The company's net income will increase.
B. The company's net income will decrease.
C. The company's tax expense will increase.
D. The company's tax expense will decrease.
Question 12
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a net income of ₦1,200,000, how much will partner A receive?
A. ₦720,000
B. ₦600,000
C. ₦480,000
D. ₦360,000
Question 13
A company's balance sheet as at 31st December 2018 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦300,000; Long-term Debt: ₦200,000. Calculate the company's total equity.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 14
A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labor and 1 hour of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company produces 100 units of product X and 50 units of product Y, calculate the total direct labor hours and total indirect labor hours.
A. Direct labor: 350 hours, Indirect labor: 150 hours
B. Direct labor: 200 hours, Indirect labor: 100 hours
C. Direct labor: 300 hours, Indirect labor: 200 hours
D. Direct labor: 400 hours, Indirect labor: 300 hours
Question 15
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
C. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid
D. ₦20,000 debit to Rent Received and ₦15,000 credit to Rent Paid

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