POST UTME EKSU 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as of December 31, 2022, shows total assets of ₦5,000,000, total liabilities of ₦2,000,000, and total equity of ₦3,000,000. If the company's net income for the year is ₦1,000,000, what is the company's total assets as of December 31, 2023?
A. ₦6,000,000
B. ₦6,500,000
C. ₦7,000,000
D. ₦7,500,000
Question 2
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000
Question 3
A business has the following transactions in its bank reconciliation statement: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 10,000 | | | 2nd Jan | Cash | | 5,000 | | 3rd Jan | Bank | | 8,000 | What is the balance in the bank account?
A. ₦2,000
B. ₦8,000
C. ₦10,000
D. ₦12,000
Question 4
A company uses the weighted average method to value its inventory. If the cost of goods available for sale is ₦1,500,000, the total cost of the beginning inventory is ₦300,000, and the total cost of the purchases made during the period is ₦1,200,000, what is the cost of goods sold?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 5
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 6
A company issued 10,000 shares of ₦ 10 each at a premium of ₦ 2 per share. The company also issued 5,000 debentures of ₦ 100 each at a discount of 5%. Calculate the total amount received from the issue of shares and debentures.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 7
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000 and the Sales department has a budget of ₦2,000,000. What is the total budget for the company?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 8
A company's bank statement shows a balance of ₦150,000. However, the company's cash book shows a balance of ₦200,000. What is the correct explanation for the difference?
A. The company has deposited ₦50,000 into the bank but has not yet been credited.
B. The company has withdrawn ₦50,000 from the bank but has not yet been debited.
C. The company has written a cheque for ₦50,000 but has not yet been debited.
D. The company has received a bank transfer of ₦50,000 but has not yet been credited.
Question 9
A company has an incomplete record of its transactions. The record shows that the company has a credit balance of ₦50,000 in the cash account and a debit balance of ₦20,000 in the accounts payable account. What is the net effect on the company's financial position?
A. The company's financial position is improved.
B. The company's financial position is worsened.
C. The company's financial position remains unchanged.
D. The company's financial position is neutral.
Question 10
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. Calculate the total amount received from the issue of shares and debentures.
A. ₦150,000
B. ₦250,000
C. ₦350,000
D. ₦450,000
Question 11
A company uses the double-entry system to record its financial transactions. The double-entry system requires that every transaction be recorded in at least two accounts. Which of the following is a characteristic of the double-entry system?
A. It is a simple system that only requires one account to be recorded
B. It is a complex system that requires at least two accounts to be recorded
C. It is a system that only records cash transactions
D. It is a system that only records credit transactions
Question 12
A company issued 10,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 13
A manufacturing company has the following transactions for the month of January: Purchased raw materials on credit ₦50,000; sold goods on credit ₦80,000; purchased factory equipment for ₦20,000 cash; and paid salaries ₦15,000. Prepare a cash flow statement for the month.
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 14
A company's trial balance shows a debit balance of ₦25,000 in the account 'Rent Received'. The company's accounting policy requires that all rent received be recognized as revenue when received. However, the company's management has decided to recognize the rent received as revenue only when it is used. What is the correct accounting treatment for the debit balance of ₦25,000 in the account 'Rent Received'?
A. Debit the Rent Received account and credit the Revenue account for ₦25,000.
B. Debit the Rent Received account and credit the Cash account for ₦25,000.
C. Debit the Rent Received account and credit the Accounts Payable account for ₦25,000.
D. Debit the Rent Received account and credit the Revenue account for ₦0.
Question 15
A business has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Cash | | 8,000 | What is the balance in the cash account?
A. ₦2,000
B. ₦8,000
C. ₦10,000
D. ₦12,000

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: