POST UTME COVENANT UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The total amount received from the issue of shares is ₦1,100,000. What is the amount received from the issue of shares at a premium?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000
Question 2
A government agency is required to prepare a budget for the upcoming fiscal year. The budget must include a breakdown of all revenues and expenditures. What is the purpose of this budget?
A. To determine the agency's financial position at the end of the fiscal year.
B. To allocate resources to different departments within the agency.
C. To provide a plan for the agency's financial activities for the upcoming fiscal year.
D. To identify areas where the agency can reduce costs.
Question 3
A company has a cash account of ₦500,000 and a bank account of ₦300,000. The company also has a credit balance of ₦200,000 in a bank account. What is the total amount of cash and bank accounts?
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 4
A company has the following transactions in its manufacturing account for the year: Raw Materials Purchased: ₦150,000 Work-in-Progress: ₦120,000 Finished Goods: ₦180,000 What is the total cost of goods manufactured for the year?
A. ₦450,000
B. ₦480,000
C. ₦500,000
D. ₦520,000
Question 5
A company has the following transactions in its trial balance for the year: Debit: ₦150,000 Credit: ₦120,000 What is the net change in the company's equity for the year?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 6
A company uses the single-entry system. The company has the following transactions in its journal for the year: Debit: ₦150,000 Credit: ₦120,000 What is the net change in the company's equity for the year?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 7
A company uses the perpetual inventory system. The company has the following transactions in its inventory account for the year: Purchases: ₦150,000 Sales: ₦180,000 What is the net change in inventory for the year?
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦0
Question 8
A company uses the double-entry system to record its financial transactions. The company's journal shows the following entry: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the purpose of this entry?
A. To record a sale of goods to a customer.
B. To record a purchase of goods from a supplier.
C. To record a payment made to a creditor.
D. To record a receipt of cash from a customer.
Question 9
A partnership is formed between two individuals, A and B, with a capital of ₦1,000,000 each. During the year, A withdraws ₦200,000 for personal use, while B invests an additional ₦300,000. The profit for the year is ₦500,000. Prepare the partnership's statement of profit or loss and the statement of changes in equity.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 10
A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labor and 1 hour of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 160 hours of direct labor and 120 hours of indirect labor in a week, how many units of product X and product Y should be produced?
A. 10 units of X and 20 units of Y
B. 15 units of X and 30 units of Y
C. 20 units of X and 40 units of Y
D. 25 units of X and 50 units of Y
Question 11
A company has the following transactions for the year:
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,400,000
D. ₦1,600,000
Question 12
A company uses the FIFO method to value its inventory. On January 1, 2024, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦60 each and 300 units at ₦70 each. Calculate the cost of goods sold for the year.
A. ₦28,000
B. ₦30,000
C. ₦32,000
D. ₦35,000
Question 13
A company has the following trial balance as at December 31:
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 14
A company's statement of cash flows shows a net increase in cash of ₦500,000. The company's balance sheet shows a decrease in accounts receivable of ₦200,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 15
A company uses the cash book to record all its financial transactions. The 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. The company has not recorded all its financial transactions.
B. The bank has charged a fee for the service.
C. The company has deposited cash into the bank but has not yet recorded it in the cash book.
D. The company has withdrawn cash from the bank but has not yet recorded it in the cash book.

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