POST UTME CRAWFORD UNIVERSITY 2020 Accounting | Objective

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Question 1 View Details
A company's trial balance shows an error of ₦1,500 in the debit side of the accounts payable account. The correct amount is ₦1,200. What is the effect of this error on the balance sheet?
A. The company's assets will decrease by ₦1,500.
B. The company's liabilities will increase by ₦1,500.
C. The company's equity will decrease by ₦1,500.
Correct D. The company's assets will increase by ₦1,500.

Correct Answer: D

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Question 2 View Details
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's net income is ₦120,000, how much will partner A receive as their share of the net income?
Correct A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 3 View Details
A company's balance sheet shows the following information: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the company's current ratio?
A. 2.5
Correct B. 3.0
C. 2.0
D. 1.5

Correct Answer: B

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Question 4 View Details
A company's trial balance shows the following information: Accounts Payable ₦100,000, Accounts Receivable ₦50,000, and Inventory ₦200,000. What is the company's total current assets?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 5 View Details
A company's income statement shows the following information: Cost of Goods Sold ₦500,000, Gross Profit ₦200,000, and Operating Expenses ₦100,000. What is the company's net income?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 6 View Details
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦200,000. What is the correct journal entry to record the decrease in inventory?
A. Debit Inventory ₦200,000, Credit Cost of Goods Sold ₦200,000
Correct B. Debit Cost of Goods Sold ₦200,000, Credit Inventory ₦200,000
C. Debit Inventory ₦200,000, Credit Sales ₦200,000
D. Debit Sales ₦200,000, Credit Inventory ₦200,000

Correct Answer: B

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Question 7 View Details
A public sector organization has the following transactions: Purchase of office supplies ₦50,000, Payment of salaries ₦200,000, Receipt of cash from customers ₦150,000. What is the correct accounting equation after these transactions?
Correct A. Assets = ₦300,000, Liabilities = ₦0, Equity = ₦300,000
B. Assets = ₦250,000, Liabilities = ₦0, Equity = ₦250,000
C. Assets = ₦350,000, Liabilities = ₦0, Equity = ₦350,000
D. Assets = ₦400,000, Liabilities = ₦0, Equity = ₦400,000

Correct Answer: A

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Question 8 View Details
A company uses the straight-line method of depreciation. The asset's cost is ₦500,000, and its useful life is 5 years. What is the annual depreciation charge?
A. ₦100,000
Correct B. ₦80,000
C. ₦60,000
D. ₦50,000

Correct Answer: B

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Question 9 View Details
A company's cash book shows a balance of ₦200,000. The bank statement shows a balance of ₦250,000. What is the correct reason for the difference?
A. Bank charges
B. Interest earned
Correct C. Cheques deposited but not yet credited
D. Cheques issued but not yet debited

Correct Answer: C

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Question 10 View Details
A company's balance sheet shows a decrease in cash of ₦50,000. The statement of cash flows shows a decrease in cash of ₦100,000. What is the correct reason for the difference?
A. Depreciation
B. Interest paid
Correct C. Cheques deposited but not yet credited
D. Cheques issued but not yet debited

Correct Answer: C

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Question 11 View Details
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
Correct B. ₦950,000
C. ₦990,000
D. ₦1,000,000

Correct Answer: B

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Question 12 View Details
A company uses the double-entry system to record its transactions. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
Correct B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Inventory 1,000
D. Debit Inventory 1,000 and Credit Accounts Payable 1,000

Correct Answer: B

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Question 13 View Details
A company's trial balance as of December 31, 2020, is as follows:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 14 View Details
A company manufactures and sells products. The following data is available for the year ended December 31, 2020:
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 15 View Details
A partnership is formed by two individuals, A and B, who contribute ₦100,000 and ₦150,000 respectively. The following transactions occurred during the year ended December 31, 2020:
A. ₦250,000
B. ₦270,000
Correct C. ₦290,000
D. ₦310,000

Correct Answer: C

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Question 16 View Details
A company uses the single-entry system to record its transactions. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
Correct B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Inventory 1,000
D. Debit Inventory 1,000 and Credit Accounts Payable 1,000

Correct Answer: B

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Question 17 View Details
A company uses the single-entry system of accounting. The following transactions were recorded during the year:
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 18 View Details
A company's trial balance as at 31st December, 2020 is as follows:
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

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Question 19 View Details
A company's balance sheet as at 31st December, 2020 is as follows:
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 20 View Details
A company's profit and loss account for the year ended 31st December, 2020 is as follows:
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

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Question 21 View Details
A company's cash flow statement for the year ended 31st December, 2020 is as follows:
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 22 View Details
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. If the machine is sold for ₦30,000 after 3 years, what is the accumulated depreciation at the end of 3 years?
A. ₦60,000
Correct B. ₦72,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 23 View Details
A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and purchased office supplies for ₦10,000 in cash. What is the total amount of cash received from customers?
A. ₦120,000
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 24 View Details
A company has the following trial balance: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the total amount of assets?
A. ₦400,000
Correct B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: B

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Question 25 View Details
A company has the following transactions: Purchased goods for ₦150,000 on credit, sold goods for ₦180,000 on credit, and purchased office supplies for ₦15,000 in cash. What is the total amount of cash paid for office supplies?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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