POST UTME CRAWFORD UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method of depreciation for its assets. If the asset's original cost is ₦500,000 and its residual value is ₦100,000, what is the annual depreciation charge for the asset?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 2
A public sector organization has the following ledger accounts: Salaries ₦600,000, Rent ₦200,000, Utilities ₦150,000, and Miscellaneous ₦250,000. What is the total amount of expenses for the year?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 3
A government agency has the following transactions: Debit: Salaries ¡ 100,000, Debit: Rent ¡ 50,000, Credit: Revenue ¡ 150,000, Credit: Expenses ¡ 120,000. What is the net income for the year?
A. ¡ 30,000
B. ¡ 40,000
C. ¡ 50,000
D. ¡ 60,000
Question 4
A business has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Sales | | ₦20,000 | | 4 Jan | Purchases | ₦5,000 | | What is the balance on the cash account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
A government agency has the following transactions: Debit: Salaries ¡ 80,000, Debit: Rent ¡ 40,000, Credit: Revenue ¡ 120,000, Credit: Expenses ¡ 100,000. What is the net income for the year?
A. ¡ 20,000
B. ¡ 30,000
C. ¡ 40,000
D. ¡ 50,000
Question 6
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The company also issued 5,000 debentures of 100 each. Prepare the journal entry to record the issuance of shares and debentures.
A. Debit Cash 30,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 20,000
B. Debit Cash 50,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 40,000
C. Debit Cash 30,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 20,000
D. Debit Cash 50,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 40,000
Question 7
A company has the following transactions: Debit: Accounts Payable ¡ 10,000, Debit: Salaries ¡ 20,000, Credit: Sales ¡ 30,000, Credit: Cost of Goods Sold ¡ 15,000. What is the net income for the year?
A. ¡ 5,000
B. ¡ 10,000
C. ¡ 15,000
D. ¡ 20,000
Question 8
A government agency has a department that provides a service to citizens. The department has two sections, A and B, which have different costs of operation. Section A has a fixed cost of ₦10000 and a variable cost of ₦50 per unit of service provided. Section B has a fixed cost of ₦20000 and a variable cost of ₦75 per unit of service provided. If the department provides 100 units of service, what is the total cost of operation?
A. ₦25000
B. ₦30000
C. ₦35000
D. ₦40000
Question 9
A company has a debenture stock of ₦500000, divided into 500 debentures of ₦1000 each. If the company issues 200 debentures at a premium of ₦10 per debenture, what is the total amount received from the issue of debentures?
A. ₦200000
B. ₦220000
C. ₦240000
D. ₦260000
Question 10
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 11
A company uses the percentage of sales method to calculate depreciation. If the company's sales for the year were ₦1,500,000 and the depreciation rate is 2%, what is the amount of depreciation for the year?
A. ₦30,000
B. ₦30,000
C. ₦30,000
D. ₦30,000
Question 12
A trading company's trial balance as at 31st December, 2018 is as follows: Sales ₦1,500,000, Cost of Goods Sold ₦900,000, Rent ₦200,000, and Miscellaneous ₦150,000. What is the company's net profit for the year?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 13
A company uses the single entry system of accounting. The following transactions were recorded in the journal during the year: Dr. Cash ¡ 10,000, Dr. Accounts Payable ¡ 8,000, Cr. Sales ¡ 18,000, Cr. Cost of Goods Sold ¡ 12,000. What is the net income for the year?
A. ¡ 6,000
B. ¡ 8,000
C. ¡ 10,000
D. ¡ 12,000
Question 14
A company's trial balance as of December 31, 20X7, is as follows: Accounts Receivable 10,000, Accounts Payable 5,000, Common Stock 50,000, Retained Earnings 20,000. Prepare the company's balance sheet as of December 31, 20X7.
A. Assets: 75,000, Liabilities: 5,000, Equity: 70,000
B. Assets: 70,000, Liabilities: 5,000, Equity: 65,000
C. Assets: 75,000, Liabilities: 5,000, Equity: 70,000
D. Assets: 70,000, Liabilities: 5,000, Equity: 65,000
Question 15
A public sector organization has a budget of ₦1,500,000 for the year. The organization has the following expenses: Salaries ₦600,000, Rent ₦200,000, Utilities ₦150,000, and Miscellaneous ₦250,000. What is the percentage of the budget spent on Salaries?
A. 40%
B. 30%
C. 50%
D. 60%

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