POST UTME COAL CITY UNIVERSITY 2019 Accounting | Objective

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Question 1
A company uses the FIFO method to value its inventory. The company has two types of inventory: raw materials and finished goods. The cost of raw materials is ₦1,000,000, and finished goods is ₦2,000,000. If the total value of the inventory is ₦3,000,000, what is the value of finished goods?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 2
A company's trial balance as of December 31, 2022, is as follows: Debit: ₦100,000; Credit: ₦120,000. What is the correct journal entry to record the correction of the error?
A. ₦20,000 debit to Cash and ₦20,000 credit to Profit or Loss on Correction of Errors
B. ₦20,000 credit to Cash and ₦20,000 debit to Profit or Loss on Correction of Errors
C. ₦20,000 debit to Profit or Loss on Correction of Errors and ₦20,000 credit to Cash
D. ₦20,000 credit to Profit or Loss on Correction of Errors and ₦20,000 debit to Cash
Question 3
A company has the following transactions: Purchased office supplies for 1,000, Purchased equipment for 10,000, Sold merchandise for 20,000, and Paid salaries of 5,000. What is the total amount of assets?
A. 16,000
B. 21,000
C. 26,000
D. 31,000
Question 4
A company produces two products, X and Y. The production process involves two departments: Manufacturing and Quality Control. The Manufacturing department incurs a fixed cost of ₦120,000 and a variable cost of ₦50 per unit of X and ₦60 per unit of Y. The Quality Control department incurs a fixed cost of ₦80,000 and a variable cost of ₦20 per unit of X and ₦30 per unit of Y. If the company produces 100 units of X and 80 units of Y, what is the total cost of production?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
D. ₦3,000,000
Question 5
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable 12,000, Accounts Receivable 8,000, Common Stock 50,000, and Retained Earnings 25,000. What is the total amount of equity minus liabilities?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 6
A company's balance sheet shows the following accounts: Cash ₦500,000, Accounts Payable ₦200,000, and Common Stock ₦1,000,000. If the company's assets increased by ₦300,000 during the year, what is the value of the company's liabilities?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 7
A company has the following transactions: Purchased office supplies for 1,000, Purchased equipment for 10,000, Sold merchandise for 20,000, and Paid salaries of 5,000. What is the total amount of assets?
A. 16,000
B. 21,000
C. 26,000
D. 31,000
Question 8
A company has the following transactions: Purchased office supplies for 1,000, Purchased equipment for 10,000, Sold merchandise for 20,000, and Paid salaries of 5,000. What is the total amount of assets?
A. 16,000
B. 21,000
C. 26,000
D. 31,000
Question 9
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to an outstanding cheque of ₦5,000. What is the correct balance of the cash book?
A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000
Question 10
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable 12,000, Accounts Receivable 8,000, Common Stock 50,000, and Retained Earnings 25,000. What is the total amount of assets minus liabilities?
A. ₦35,000
B. ₦45,000
C. ₦55,000
D. ₦65,000
Question 11
A company's single entry system shows the following transactions: Date 31st January 2022 ₦1,000,000 31st March 2022 ₦500,000 31st May 2022 ₦200,000 31st July 2022 ₦300,000 31st September 2022 ₦400,000 31st November 2022 ₦600,000 What is the total value of the company's liabilities as at 31st December 2022?
A. ₦2,500,000
B. ₦2,600,000
C. ₦2,700,000
D. ₦2,800,000
Question 12
A partnership has two partners, A and B. The partnership agreement states that the profits and losses are to be shared in the ratio 3:2. The partnership's profit for the year is ₦150,000. What is the share of profit of partner A?
A. ₦90,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 13
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable 12,000, Accounts Receivable 8,000, Common Stock 50,000, and Retained Earnings 25,000. What is the total amount of liabilities?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
A company uses the LIFO method to value its inventory. The company has two types of inventory: raw materials and finished goods. The cost of raw materials is ₦1,000,000, and finished goods is ₦2,000,000. If the total value of the inventory is ₦3,000,000, what is the value of finished goods?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 15
A company's balance sheet as of December 31, 2022, is as follows: Assets: ₦500,000; Liabilities: ₦200,000; Equity: ₦300,000. What is the company's liquidity ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0

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