POST UTME COVENANT UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the total profit for the year?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 2
A company has the following ledger balances: Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000. Prepare a Balance Sheet.
A. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000
B. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦400,000
C. Cash ₦500,000, Accounts Payable ₦300,000, Common Stock ₦300,000
D. Cash ₦500,000, Accounts Payable ₦300,000, Common Stock ₦400,000
Question 3
A company's income statement for the year ended December 31, 2020, shows the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Gross Profit ₦200,000. What is the company's net income for the year?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 4
A company issued 5,000, 12% preference shares of ₦50 each at a premium of ₦10. Calculate the amount received from the issue of preference shares.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 5
A company has the following transactions: Purchased office supplies for ₦20,000, paid salaries of ₦40,000, and received revenue of ₦80,000. Prepare a ledger account for office supplies.
A. Office Supplies Ledger: ₦20,000
B. Salaries Ledger: ₦40,000
C. Revenue Ledger: ₦80,000
D. Expenses Ledger: ₦60,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Cash | | 8,000 | | 4th Jan | Bank | | 3,000 | | 5th Jan | Cash | | 12,000 | What is the balance of the cash book?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 7
A company has the following trial balance: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Dividends ₦10,000, Equipment ₦80,000, Interest Expense ₦5,000, Interest Income ₦10,000, Net Income ₦20,000, Prepaid Rent ₦15,000, Salaries Expense ₦30,000, Sales Revenue ₦150,000, Taxes Expense ₦10,000. Prepare a statement of cash flows.
A. Cash Flows from Operating Activities: ₦90,000, Cash Flows from Investing Activities: ₦20,000, Cash Flows from Financing Activities: ₦10,000
B. Cash Flows from Operating Activities: ₦80,000, Cash Flows from Investing Activities: ₦30,000, Cash Flows from Financing Activities: ₦20,000
C. Cash Flows from Operating Activities: ₦100,000, Cash Flows from Investing Activities: ₦40,000, Cash Flows from Financing Activities: ₦30,000
D. Cash Flows from Operating Activities: ₦70,000, Cash Flows from Investing Activities: ₦50,000, Cash Flows from Financing Activities: ₦40,000
Question 8
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Prepare the journal entries to record the issue of debentures and the subsequent redemption.
A. Debit Cash ₦450,000, Credit Debentures ₦500,000
B. Debit Debentures ₦500,000, Credit Cash ₦450,000
C. Debit Cash ₦500,000, Credit Debentures ₦450,000
D. Debit Debentures ₦450,000, Credit Cash ₦500,000
Question 9
The following trial balance of a company is given. Prepare the ledger accounts for the company.
A. Assets = ₦100,000, Liabilities = ₦50,000, Capital = ₦50,000
B. Assets = ₦50,000, Liabilities = ₦100,000, Capital = ₦50,000
C. Assets = ₦100,000, Liabilities = ₦50,000, Capital = ₦50,000
D. Assets = ₦50,000, Liabilities = ₦50,000, Capital = ₦100,000
Question 10
A public sector organization has the following transactions for the year ended December 31, 2022: Purchased office supplies for ₦10,000, paid salaries of ₦500,000, and received revenue of ₦750,000. Prepare a simple ledger account for office supplies.
A. Office Supplies Ledger
B. Salaries Ledger
C. Revenue Ledger
D. Expenses Ledger
Question 11
A company has the following ledger balances: Cash = ₦50,000, Bank = ₦100,000, Debtors = ₦150,000, Creditors = ₦50,000. Prepare the trial balance.
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 12
A company issued 10,000 shares of 1 par value at a premium of 50%.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 13
A company has the following ledger balances: Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000. Prepare a Balance Sheet.
A. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000
B. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦400,000
C. Cash ₦500,000, Accounts Payable ₦300,000, Common Stock ₦300,000
D. Cash ₦500,000, Accounts Payable ₦300,000, Common Stock ₦400,000
Question 14
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 value of the company's liabilities and equity?
A. ₦180,000
B. ₦180,000
C. ₦180,000
D. ₦180,000
Question 15
A company issued 10,000 9% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

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