POST UTME COVENANT UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following balances: Cash ₦10,000, Accounts Payable ₦20,000, Common Stock ₦50,000. What is the total assets of the company?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. If the profit for the year is ₦20,000, what is the share of profit of A?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount received from the issue of shares?
A. ₦12,000
B. ₦12,000
C. ₦12,000
D. ₦12,000
Question 4
A company issued 10,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦9,500,000
B. ₦9,750,000
C. ₦10,000,000
D. ₦10,250,000
Question 5
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 5 each. Calculate the total amount received from the sale of shares.
A. ₦30,000,000
B. ₦35,000,000
C. ₦40,000,000
D. ₦45,000,000
Question 6
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 shows the following balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. The company also has a note payable of 8,000. What is the company's total liabilities as at 31st December 2022?
A. 13,000
B. 15,000
C. 18,000
D. 20,000
Question 7
A company uses the trial balance method to prepare its financial statements. The company's trial balance as at 31st December 2022 shows the following balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the company's total equity as at 31st December 2022?
A. 35,000
B. 40,000
C. 45,000
D. 50,000
Question 8
A company prepares a bank reconciliation statement. The bank statement shows a balance of ₦150,000. However, the company's records show that the cash balance is actually ₦120,000. What is the reason for the difference?
A. The company has not recorded a deposit of ₦30,000.
B. The company has not recorded a withdrawal of ₦30,000.
C. The bank has charged a fee of ₦30,000.
D. The company has not recorded a loan of ₦30,000.
Question 9
A company uses the allowance method for estimating bad debts. The following information is available: Accounts Receivable: ₦500,000 Allowance for Bad Debts: ₦20,000 Bad Debts Expense: ₦10,000 What is the net realizable value of Accounts Receivable?
A. ₦480,000
B. ₦490,000
C. ₦500,000
D. ₦510,000
Question 10
A company's balance sheet shows the following balances: Cash ₦10,000, Accounts Payable ₦20,000, Common Stock ₦50,000. What is the total equity of the company?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A company has a building with a cost of ₦5,000,000 and a useful life of 10 years. The company uses the straight-line method of depreciation. Calculate the annual depreciation for the first year.
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 12
A company issued 5,000 shares of 1 par value at a premium of 2 per share. The shares were sold for 4 each. Calculate the total amount received from the sale of shares.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. ₦30,000 bank charge
B. ₦30,000 interest on bank loan
C. ₦30,000 cash deposited in error
D. ₦30,000 cash withdrawn in error
Question 14
A manufacturing company uses the process costing method to assign costs to its products. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of 100,000 and the Assembly department has a total cost of 150,000. If the company produces 10,000 units, what is the total cost per unit?
A. 15
B. 20
C. 25
D. 30
Question 15
A company issued 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦500,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: