POST UTME CHRISTOPHER UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦3,000,000 and its current liabilities are ₦1,500,000, what is the company's quick ratio?
A. 1:1
B. 1.5:1
C. 2:1
D. 3:1
Question 2
A company has the following trial balance: Debit ₦400,000, Credit ₦500,000. What is the correct treatment for the difference?
A. Debit the difference to the Profit and Loss Account
B. Credit the difference to the Profit and Loss Account
C. Debit the difference to the Capital Account
D. Credit the difference to the Capital Account
Question 3
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. After 2 years, A withdraws ₦50,000 and B introduces an additional ₦20,000. Calculate the new ratio of A's and B's capital.
A. 2:3
B. 3:2
C. 4:3
D. 5:4
Question 4
Determine the correct journal entry for the following transaction: On January 1, 2023, Christopher University purchased a new building for ₦500,000,000. The building is expected to have a useful life of 10 years and a residual value of ₦50,000,000.
A. Debit Building ₦500,000,000, Credit Cash ₦500,000,000
B. Debit Building ₦450,000,000, Credit Cash ₦450,000,000
C. Debit Building ₦500,000,000, Credit Cash ₦450,000,000
D. Debit Building ₦450,000,000, Credit Cash ₦450,000,000
Question 5
The balance sheet of XYZ Ltd. as at 31st December 2022 is as follows: Equity Share Capital: ₦500,000; Profit & Loss A/c: ₦200,000; Retained Earnings: ₦150,000. Calculate the total equity.
A. ₦850,000
B. ₦950,000
C. ₦1,050,000
D. ₦1,150,000
Question 6
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦800,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,300,000
C. ₦1,200,000
D. ₦1,000,000
Question 7
A manufacturing company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Raw Materials | 50,000 | | | 2nd Jan | Work-in-Progress | | 75,000 | | 3rd Jan | Raw Materials | | 100,000 | What is the total amount of raw materials purchased?
A. ₦ 150,000
B. ₦ 175,000
C. ₦ 200,000
D. ₦ 225,000
Question 8
A company's balance sheet as at 31st December 2022 is as follows: Equity Share Capital: ₦500,000; Profit & Loss A/c: ₦200,000; Retained Earnings: ₦150,000. Prepare the equity section of the balance sheet.
A. ₦850,000
B. ₦950,000
C. ₦1,050,000
D. ₦1,150,000
Question 9
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method. The machine is expected to be sold for ₦50,000 at the end of its useful life.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 10
A company issues 10,000, 9% 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. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 11
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance in the cash account?
A. ₦ 1,200
B. ₦ 1,500
C. ₦ 1,800
D. ₦ 2,000
Question 12
The following is a balance sheet for a company:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 13
A company's trial balance shows a debit balance of ₦1,200,000 in the accounts payable account. What is the effect on the company's balance sheet?
A. Increase in assets
B. Increase in liabilities
C. Decrease in assets
D. Decrease in liabilities
Question 14
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 15
A company's income statement for the year ended 31st December 2022 is as follows: Sales: ₦80,000 ₦40,000 ₦60,000 Cost of Goods Sold: ₦120,000 ₦90,000 ₦80,000 Gross Profit: ₦40,000 ₦20,000 ₦30,000 Operating Expenses: ₦30,000 ₦25,000 ₦15,000 Net Income: ₦10,000 ₦5,000 ₦10,000 Identify the type of account that is not a revenue account.
A. Cost of Goods Sold
B. Gross Profit
C. Operating Expenses
D. Net Income

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