POST UTME CALEB UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following single-entry accounting system: Cash ₦100,000, Accounts Payable ₦50,000. What is the total assets of the company?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 2
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦100,000 and the Assembly department has a total cost of ₦150,000. What is the total cost of the product if the Cutting department contributes 30% of the total cost and the Assembly department contributes 70%?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 3
A company uses the double-declining balance method of depreciation for its assets. If the asset's cost is ₦50,000 and its residual value is ₦10,000, what is the annual depreciation charge if the asset's useful life is 5 years?
A. ₦₦20,000
B. ₦₦25,000
C. ₦₦30,000
D. ₦₦35,000
Question 4
A company uses the straight-line method of depreciation for its assets. If the asset's useful life is 5 years and its residual value is ₦10,000, what is the annual depreciation charge if the asset's cost is ₦50,000?
A. ₦₦8,000
B. ₦₦9,000
C. ₦₦10,000
D. ₦₦11,000
Question 5
A company has the following ledger balances: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total equity of the company?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
A manufacturing company produces a product that requires 2 kg of raw material A and 3 kg of raw material B to produce 1 unit of the product. The company uses 100 kg of raw material A and 150 kg of raw material B to produce 50 units of the product. What is the company's total cost of raw materials?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 7
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, what is the amount of the share premium account?
A. ₦₦5,000
B. ₦₦10,000
C. ₦₦15,000
D. ₦₦20,000
Question 8
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's financial statements show a credit balance of ₦20,000 for the same account. What is the likely cause of this discrepancy?
A. The company has not recorded the rent expense for the current period.
B. The company has recorded the rent expense for the previous period but not yet paid it.
C. The company has recorded the rent expense for the current period but has not yet matched it with the corresponding credit entry.
D. The company has not recorded the rent expense for the previous period but has already paid it.
Question 9
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from tenants. What is the correct journal entry to correct the error?
A. ₦15,000 debit to Rent Received and ₦15,000 credit to Cash
B. ₦15,000 debit to Cash and ₦15,000 credit to Rent Received
C. ₦15,000 debit to Rent Received and ₦15,000 credit to Profit or Loss on Disposal of Assets
D. ₦15,000 debit to Profit or Loss on Disposal of Assets and ₦15,000 credit to Rent Received
Question 10
A company uses the double-entry system to record its transactions. The following ledger accounts are provided: Debitors, Creditors, Capital, and Profit. Which of the following journal entries would be recorded in the ledger?
A. Debit Debitors, Credit Capital
B. Credit Creditors, Debit Capital
C. Debit Capital, Credit Profit
D. Credit Debitors, Debit Creditors
Question 11
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦100,000 ₦50,000 ₦30,000 ₦20,000 Liabilities: ₦50,000 ₦30,000 ₦20,000 Determine the company's net worth.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 12
A company has the following trial balance: Debit ₦100,000, Credit ₦150,000. What is the net income of the company?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 13
A public sector organization has a cash book that shows a balance of ₦500,000. However, the bank statement shows a balance of ₦600,000. What is the correct explanation for the difference?
A. The cash book balance includes a deposit of ₦100,000 that has not been recorded in the bank statement
B. The bank statement balance includes a credit of ₦100,000 that has not been recorded in the cash book
C. The cash book balance includes a debit of ₦100,000 that has not been recorded in the bank statement
D. The bank statement balance includes a debit of ₦100,000 that has not been recorded in the cash book
Question 14
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C, with costs of ₦20, ₦30, and ₦40 per unit, respectively. The company has 100 units of A, 80 units of B, and 60 units of C. What is the total cost of the inventory?
A. ₦6,000
B. ₦7,000
C. ₦8,000
D. ₦9,000
Question 15
A company prepares a trading account for the year ended December 31, 2021. The company's sales revenue is ₦500,000 and its cost of goods sold is ₦350,000. What is the company's gross profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

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