POST UTME COAL CITY UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. What is the total amount of the company's liabilities?
A. ₦80,000
B. ₦120,000
C. ₦180,000
D. ₦200,000
Question 2
A company issued 10,000 shares of 1 par value at a premium of 2 per share. Calculate the total amount received from the issue of shares.
A. ₦20,000,000
B. ₦22,000,000
C. ₦24,000,000
D. ₦26,000,000
Question 3
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. What is the correct procedure to reconcile this discrepancy?
A. Prepare a bank reconciliation statement
B. Prepare a cash book reconciliation statement
C. Prepare a trial balance
D. Prepare a balance sheet
Question 4
A company's financial statements for the year ended December 31, 2020, show a net loss of ₦50,000. However, the company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries Expense'. What is the correct treatment of this discrepancy?
A. Debit the Salaries Expense account by ₦20,000 and credit the Salaries Payable account by ₦20,000.
B. Credit the Salaries Expense account by ₦20,000 and debit the Salaries Payable account by ₦20,000.
C. Debit the Salaries Expense account by ₦30,000 and credit the Salaries Payable account by ₦30,000.
D. Credit the Salaries Expense account by ₦30,000 and debit the Salaries Payable account by ₦30,000.
Question 5
A company's ledger shows the following account balances: Cash 10,000, Bank 15,000. What is the company's total cash balance?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 6
A company's cash book shows a balance of ₦150,000, but the bank statement shows a balance of ₦120,000. The bank charges a service fee of ₦5,000 and a minimum balance fee of ₦2,000. The company's cash book also shows a deposit of ₦20,000 and a withdrawal of ₦30,000. What is the correct balance in the company's cash book after reconciliation?
A. ₦137,000
B. ₦142,000
C. ₦147,000
D. ₦152,000
Question 7
A government agency has the following transactions: a grant of ₦500,000, a loan of ₦200,000, and a grant of ₦300,000. What is the total amount of grants received by the agency?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 8
A company's income statement for the year ended December 31, 2022, shows the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the company's gross profit margin?
A. 30%
B. 40%
C. 50%
D. 60%
Question 9
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦30,000. What is the company's net cash outflow?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 10
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦30,000. What is the company's net cash inflow?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
C. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid
D. ₦20,000 debit to Rent Received and ₦15,000 credit to Rent Paid
Question 12
A company's cash book shows the following transactions: Debit: Cash 10,000, Credit: Bank 15,000. What is the effect of this transaction on the company's cash balance?
A. ₦25,000 decrease
B. ₦25,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase
Question 13
A partnership has two partners: John and Jane. The partnership agreement states that John will receive 60% of the profits and Jane will receive 40%. The partnership has a net income of 100,000. What is John's share of the profits?
A. 60,000
B. 70,000
C. 80,000
D. 90,000
Question 14
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a profit of ₦200,000, how much will partner A receive as their share of the profit?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 15
A company has the following transactions: a purchase of ₦100,000, a sale of ₦150,000, and a purchase of ₦200,000. What is the correct balance in the company's cash account?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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