POST UTME COVENANT UNIVERSITY 2021 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦1,000,000; Liabilities: ₦800,000. Calculate the company's net worth.
Question 2
A company has the following trial balance: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's net worth?
Question 3
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
Question 4
A company has the following balance sheet: Cash ₦100,000, Accounts Payable ₦200,000, Common Stock ₦500,000, and Retained Earnings ₦300,000. If the company issues 10,000 shares of common stock at ₦50 per share, what is the new balance of Common Stock?
Question 5
A partnership is formed by three individuals: A, B, and C. A contributes ₦200,000, B contributes ₦150,000, and C contributes ₦100,000. The profit-sharing ratio is 3:2:1. What is the total profit for the year if the total profit is ₦500,000?
Question 6
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a premium of 5%. Calculate the amount received from debenture holders.
Question 7
A company's trial balance shows an error of ₦1,500 in the accounts. The error is due to an omission of a transaction. The company's net profit for the year is ₦250,000. Prepare a statement of affairs as at the end of the year.
Question 8
A company has two partners, A and B. Partner A has a 60% interest in the company and Partner B has a 40% interest. If the company's net income is ₦120,000, how much will Partner A receive as their share of the net income?
Question 9
A company has the following transactions: Purchased goods for ₦100,000, sold goods for ₦120,000, and purchased additional goods for ₦80,000. What is the total amount of cash spent by the company?
Question 10
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦12,000, what is the amount received from the issue of shares?
Question 11
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Question 12
A company uses the straight-line method to depreciate its assets. The cost of the asset is ₦500,000, and the useful life is 10 years. If the asset is sold for ₦200,000 after 5 years, what is the gain or loss on sale?
Question 13
A company uses the accrual basis of accounting. On January 1, 2022, it had an accounts payable balance of ₦100,000. During the year, it purchased goods worth ₦500,000 on credit and paid ₦200,000 of the amount. On December 31, 2022, the accounts payable balance was ₦150,000. What is the net change in accounts payable for the year?
Question 14
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Question 15
A company's balance sheet as at 31st December, 2020 is as follows: ₦1,500,000; ₦800,000. Prepare a statement of changes in equity for the year ended 31st December, 2021.
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