POST UTME CHRISTOPHER UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2022 shows a non-current asset of ₦3,000,000 and a current asset of ₦2,000,000. The company's equity as at 31st December 2021 was ₦1,000,000. Calculate the company's total equity as at 31st December 2022.
A. ₦5,000,000
B. ₦6,000,000
C. ₦7,000,000
D. ₦8,000,000
Question 2
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge using the straight-line method?
A. ₦90,000
B. ₦95,000
C. ₦100,000
D. ₦105,000
Question 3
A company's trial balance shows an error of ₦8,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct treatment of this error?
A. ₦8,000 is debited to the error account.
B. ₦8,000 is credited to the error account.
C. ₦8,000 is ignored as it is a minor error.
D. ₦8,000 is posted to the profit and loss account.
Question 4
A company's balance sheet at the beginning of the year showed a capital of ₦2,500,000 and a profit and loss account balance of ₦300,000. During the year, the company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦5,500,000 and a profit and loss account balance of ₦1,200,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 5
A company's balance sheet shows a decrease in cash of ₦20,000 and an increase in accounts receivable of ₦30,000. What is the company's net change in cash?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's balance sheet as at 31st December 2022 shows a non-current liability of ₦3,000,000 and a current liability of ₦2,000,000. The company's equity as at 31st December 2021 was ₦1,000,000. Calculate the company's total equity as at 31st December 2022.
A. ₦4,000,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦7,000,000
Question 7
A company's balance sheet shows a decrease in inventory of ₦20,000. However, the company's profit and loss account shows an increase in cost of goods sold of ₦30,000. What is the correct treatment of this discrepancy?
A. ₦10,000 is debited to the error account.
B. ₦10,000 is credited to the error account.
C. ₦10,000 is ignored as it is a minor error.
D. ₦10,000 is posted to the profit and loss account.
Question 8
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,200,000, what is the amount of profit that partner A will receive?
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 9
A company's profit and loss account shows a net loss of ₦50,000. However, the company's balance sheet shows an increase in the 'Accounts Payable' account from ₦30,000 to ₦50,000. What is the most likely reason for this increase?
A. The company has purchased more goods on credit.
B. The company has sold some of its inventory.
C. The company has not recorded the purchase of more goods on credit.
D. The company has not recorded the sale of its inventory.
Question 10
A company's trading account for the year ended 31st December 2020 shows a profit of ₦2,000,000. The balance sheet at the beginning of the year showed a capital of ₦1,000,000 and a profit and loss account balance of ₦500,000. The company issued 20,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 10,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦4,000,000 and a profit and loss account balance of ₦1,500,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,000,000
B. ₦1,250,000
C. ₦1,500,000
D. ₦1,750,000
Question 11
A sole proprietorship has the following transactions for the year:
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 12
A company purchased a building for ₦1,500,000. The building has a useful life of 10 years and a residual value of ₦200,000. Calculate the annual depreciation for the first year using the straight-line method.
A. ₦140,000
B. ₦150,000
C. ₦160,000
D. ₦170,000
Question 13
A manufacturing company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦120 per unit. The company produces 500 units of X and 300 units of Y. If the total cost of production is ₦150,000, what is the gross profit of the company?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
A company's bank reconciliation statement shows a difference of ₦2,000. The company's accountant has identified the following errors:
A. Error in recording a deposit of ₦1,000
B. Error in recording a withdrawal of ₦1,000
C. Error in recording a bank charge of ₦1,000
D. Error in recording a bank interest of ₦1,000
Question 15
The following is a statement of financial position for a company as at 31 December 2020.
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦2,000,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: