POST UTME COVENANT UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchased a machine for ₦120,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, calculate the annual depreciation.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 2
A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its non-current liabilities by ₦75,000. What is the net effect on the company's working capital?
A. ₦25,000 decrease
B. ₦25,000 increase
C. ₦50,000 decrease
D. ₦75,000 decrease
Question 3
A partnership of A and B has the following capital balances: A ₦200,000, B ₦300,000. The partnership also has a profit of ₦50,000. Determine the correct distribution of the profit.
A. A ₦25,000, B ₦25,000
B. A ₦30,000, B ₦20,000
C. A ₦20,000, B ₦30,000
D. A ₦25,000, B ₦25,000
Question 4
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦1,000,000. Calculate the company's capital.
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0
Question 5
A company's ledger shows a debit balance of ₦50,000 in the account 'Accrued Expenses'. However, the company's trial balance shows a credit balance of ₦20,000 in the same account. What is the correct balance in the account 'Accrued Expenses'?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 6
A company's trial balance shows a debit balance of ₦50,000 in the account 'Accrued Expenses'. However, the company's ledger shows a credit balance of ₦20,000 in the same account. What is the correct balance in the account 'Accrued Expenses'?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 7
A company's income statement shows the following balances: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦500,000, and Net Income ₦200,000. Determine the correct Gross Profit Margin.
A. 20%
B. 30%
C. 40%
D. 50%
Question 8
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the total amount received from the issue of shares is 40,000, calculate the amount of share capital and the amount of share premium.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 9
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦1,000,000. Calculate the company's capital.
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0
Question 10
A company purchased a machine for ₦150,000. Depreciation is calculated using the reducing balance method. If the machine is expected to last for 5 years, calculate the annual depreciation.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 11
A company issued 5,000, 12% debentures of ₦100 each at a discount of ₦5 per debenture. Calculate the total amount received from the issue of these debentures.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 12
A company uses a job costing system to account for its manufacturing operations. The following information is available for the year ended December 31, 2017:
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 13
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦1,200,000; Gross Profit: ₦300,000; Operating Expenses: ₦100,000; Net Profit: ₦200,000. Calculate the company's gross profit percentage.
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A company's trial balance shows a credit balance of ₦25,000 in the account 'Dividend Paid'. What is the correct treatment of this account in the company's financial statements?
A. Debit side of the balance sheet
B. Credit side of the balance sheet
C. Income statement
D. Statement of changes in equity
Question 15
A company's self-balancing ledger includes a control account for its bank account. The control account shows a balance of ₦100,000. However, the company's cash book shows a balance of ₦120,000. What is the reason for the discrepancy between the control account balance and the cash book balance?
A. The bank has charged a fee of ₦10,000.
B. The company has deposited ₦10,000 into the bank but has not recorded it in the control account.
C. The company has withdrawn ₦10,000 from the bank but has not recorded it in the control account.
D. The company has made an error in recording a transaction in the control account.

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