POST UTME CHRISTOPHER UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements show a net income of ₦500,000. However, the company's tax return shows a tax liability of ₦200,000. What is the reason for the difference?
A. The company has made a donation of ₦300,000
B. The company has made a payment of ₦300,000
C. The company has made a capital expenditure of ₦300,000
D. The company has made a depreciation expense of ₦300,000
Question 2
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000. What is the net effect on the accounting equation?
A. ₦80,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 3
A company uses the double-entry system to record transactions. The following journal entry was posted to the ledger:
A. Debit Cash 1,000, Credit Accounts Payable 1,000
B. Debit Accounts Payable 1,000, Credit Cash 1,000
C. Debit Cash 1,000, Credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000, Credit Cash 1,000
Question 4
A company uses the straight-line method to depreciate its assets. The following information is available:
A. Depreciation Expense = 1,000, Accumulated Depreciation = 1,000
B. Depreciation Expense = 500, Accumulated Depreciation = 500
C. Depreciation Expense = 2,000, Accumulated Depreciation = 2,000
D. Depreciation Expense = 1,500, Accumulated Depreciation = 1,500
Question 5
A company issued 10,000, 10% shares of ₦10 each at a premium of ₦5. The shares are redeemable at the end of 5 years. Calculate the amount of premium on the shares.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 6
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 7
A company has two departments, A and B. Department A has a budget of ₦1,500,000 and department B has a budget of ₦2,000,000. If department A spends 80% of its budget on salaries and department B spends 70% of its budget on salaries, what is the total amount spent on salaries by both departments?
A. ₦1,400,000
B. ₦1,600,000
C. ₦1,800,000
D. ₦2,000,000
Question 8
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit-sharing ratio?
A. 3:2
B. 5:3
C. 6:4
D. 7:5
Question 9
A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦10,000, what is the annual depreciation charge?
A. ₦20,000
B. ₦22,000
C. ₦25,000
D. ₦30,000
Question 10
A company's assets are valued at ₦100,000. The company depreciates its assets by 10% each year. What is the value of the company's assets after 5 years?
A. ₦61,610
B. ₦63,210
C. ₦65,810
D. ₦68,410
Question 11
A company uses the double entry system to record transactions. If the company purchases office equipment for ₦50,000, what is the effect on the accounting equation?
A. Assets increase by ₦50,000 and Liabilities increase by ₦50,000
B. Assets increase by ₦50,000 and Equity increases by ₦50,000
C. Assets decrease by ₦50,000 and Liabilities decrease by ₦50,000
D. Assets decrease by ₦50,000 and Equity decreases by ₦50,000
Question 12
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 12 hours and machine B operates for 15 hours, how many units of product X and Y should the company produce?
A. 10 units of X and 15 units of Y
B. 15 units of X and 10 units of Y
C. 12 units of X and 18 units of Y
D. 18 units of X and 12 units of Y
Question 13
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 14
A company uses the double-entry system of accounting. The journal entry for the purchase of equipment is:
A. Debit Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Equipment ₦50,000, Credit Bank ₦50,000
C. Debit Bank ₦50,000, Credit Equipment ₦50,000
D. Debit Cash ₦50,000, Credit Bank ₦50,000
Question 15
A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦20,000. What is the reason for the discrepancy?
A. The company has deposited more money than it has withdrawn.
B. The company has withdrawn more money than it has deposited.
C. The bank has made an error in its statement.
D. The company's cash book is not up-to-date.

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