POST UTME COAL CITY UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following balance sheet: ₦100,000 in cash, ₦50,000 in accounts receivable, ₦20,000 in inventory, ₦30,000 in prepaid rent, and ₦10,000 in equipment. What is the total assets of the company?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 2
A company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦150 per unit. The variable costs of X and Y are ₦50 per unit and ₦75 per unit, respectively. The fixed costs are ₦50,000 per month. If the company sells 100 units of X and 50 units of Y in a month, what is the total profit?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 3
A company has the following transactions: Purchase of raw materials for ₦100,000, Purchase of finished goods for ₦150,000, Sale of goods for ₦400,000, and Payment of salaries for ₦200,000. Prepare the trading account for the year ended December 31, 2022.
A. Raw Materials A/c: Dr. ₦100,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦400,000, Salaries A/c: Cr. ₦200,000
B. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦100,000, Sales A/c: Cr. ₦400,000, Salaries A/c: Cr. ₦200,000
C. Raw Materials A/c: Dr. ₦100,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦400,000
D. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦100,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦400,000
Question 4
A company's manufacturing account for the year ended 31st December 2020 showed a cost of goods sold of ₦1,00,000. The company's selling price per unit was ₦100. Calculate the number of units sold.
A. 10,000 units
B. 20,000 units
C. 30,000 units
D. 40,000 units
Question 5
A company produces two products, A and B, using two machines, M1 and M2. The production process for product A requires 2 hours on M1 and 3 hours on M2, while product B requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours and M1 is available for 18 hours, what is the maximum number of units of product A that can be produced?
A. 10
B. 12
C. 15
D. 18
Question 6
A company has the following transactions: Purchased a machine for ₦150,000 cash, and issued 10,000 shares to the owner at ₦10 per share. The machine is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦25,000
B. ₦30,000
C. ₦28,000
D. ₦32,000
Question 7
A company's income statement for the year ended December 31, 2021, shows the following: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦600,000, Operating Expenses ₦150,000, and Net Income ₦250,000. Prepare the company's statement of cash flows using the indirect method.
A. Cash Flows from Operating Activities ₦500,000, Cash Flows from Investing Activities ₦200,000, Cash Flows from Financing Activities ₦100,000
B. Cash Flows from Operating Activities ₦600,000, Cash Flows from Investing Activities ₦300,000, Cash Flows from Financing Activities ₦200,000
C. Cash Flows from Operating Activities ₦700,000, Cash Flows from Investing Activities ₦400,000, Cash Flows from Financing Activities ₦300,000
D. Cash Flows from Operating Activities ₦800,000, Cash Flows from Investing Activities ₦500,000, Cash Flows from Financing Activities ₦400,000
Question 8
A government agency is responsible for collecting taxes on behalf of the state. The agency's cash book shows a balance of ₦1,500,000. The bank statement shows a balance of ₦1,800,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 9
A company has the following balance sheet as of December 31, 2022: Assets: Cash 10,000 Accounts Receivable 5,000 Inventory 8,000 Total Assets 23,000 Liabilities: Accounts Payable 6,000 Salaries Payable 4,000 Total Liabilities 10,000 What is the total equity of the company?
A. 13,000
B. 15,000
C. 17,000
D. 19,000
Question 10
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
A. Assets ₦1,100,000, Liabilities ₦200,000, Equity ₦900,000
B. Assets ₦1,200,000, Liabilities ₦300,000, Equity ₦900,000
C. Assets ₦1,300,000, Liabilities ₦400,000, Equity ₦900,000
D. Assets ₦1,400,000, Liabilities ₦500,000, Equity ₦900,000
Question 11
A company issued 5,000 shares at ₦20 per share. The company also purchased a machine for ₦100,000 cash. What is the total amount received from the issue of shares?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 12
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦500,000, and its current liabilities are ₦200,000. What is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 13
A company's trading account for the year ended 31st December 2020 showed a profit of ₦1,00,000. The company's profit and loss account also showed a gain of ₦1,00,000 on the revaluation of assets. The company's balance sheet as at 31st December 2020 showed a decrease in equity of ₦1,00,000. Calculate the company's retained earnings as at 31st December 2020.
A. ₦1,00,000
B. ₦1,00,000
C. ₦1,00,000
D. ₦1,00,000
Question 14
A company has the following transactions: Purchased a machine for ₦150,000 cash, and issued 10,000 shares to the owner at ₦10 per share. The machine is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦25,000
B. ₦30,000
C. ₦28,000
D. ₦32,000
Question 15
A company has the following transactions: Purchase of raw materials for ₦120,000, Purchase of finished goods for ₦180,000, Sale of goods for ₦500,000, and Payment of salaries for ₦250,000. Prepare the profit and loss account for the year ended December 31, 2022.
A. Raw Materials A/c: Dr. ₦120,000, Finished Goods A/c: Dr. ₦180,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦250,000
B. Raw Materials A/c: Dr. ₦180,000, Finished Goods A/c: Dr. ₦120,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦250,000
C. Raw Materials A/c: Dr. ₦120,000, Finished Goods A/c: Dr. ₦180,000, Sales A/c: Cr. ₦250,000, Salaries A/c: Cr. ₦500,000
D. Raw Materials A/c: Dr. ₦180,000, Finished Goods A/c: Dr. ₦120,000, Sales A/c: Cr. ₦250,000, Salaries A/c: Cr. ₦500,000

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