POST UTME ELIZADE UNIVERSITY 2017 Accounting | Objective

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Question 1
A company's trial balance showed the following balances: Debtors: ₦80,000; Creditors: ₦40,000; Capital: ₦100,000; Profit: ₦20,000. What is the total amount of assets?
A. ₦140,000
B. ₦160,000
C. ₦180,000
D. ₦200,000
Question 2
A company purchases a machine for ₦120,000 and depreciates it using the straight-line method over a useful life of 5 years. If the machine is expected to have a residual value of ₦20,000, what is the annual depreciation charge?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 3
A company's financial statements for the year ended December 31, 2022, are as follows: Balance Sheet: Assets: ₦100,000 Liabilities: ₦0,000 Equity: ₦0,000 Income Statement: Revenue: ₦100,000 Expenses: ₦0,000 Net Income: ₦0,000 Determine the company's return on equity (ROE) for the year.
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A company issued 5,000 shares of ₦10 each at a premium of ₦2 per share. The company also issued 2,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 5
A company issues 10,000, 10% shares of ₦10 each at a premium of ₦5. Calculate the amount received from the shareholders.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A partnership was formed between two individuals, A and B, who invested ₦50,000 and ₦30,000 respectively. The profit-sharing ratio was 2:1. If the total profit for the year was ₦60,000, how much did A receive?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 7
A company's trial balance shows the following balances: Debit Cash: ₦0,000 Accounts Payable: ₦0,000 Credit Accounts Receivable: ₦0,000 Common Stock: ₦0,000 Identify the error in the trial balance and correct it.
A. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
B. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
C. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
D. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
Question 8
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows an increase in the value of its investments of ₦2,000,000. The company's retained earnings as at 31st December 2021 were ₦1,000,000. What is the company's retained earnings as at 31st December 2022?
A. ₦3,500,000
B. ₦3,000,000
C. ₦2,500,000
D. ₦2,000,000
Question 9
A company maintains the following ledger accounts: Debit Cash: ₦0,000 Accounts Payable: ₦0,000 Credit Accounts Receivable: ₦0,000 Common Stock: ₦0,000 Prepare a trial balance from the above ledger accounts.
A. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
B. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
C. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
D. Cash: ₦0,000; Accounts Payable: ₦0,000; Accounts Receivable: ₦0,000; Common Stock: ₦0,000
Question 10
A company has a cash book balance of ₦ 50,000. The bank statement shows a balance of ₦ 60,000. The cash book shows a debit balance of ₦ 10,000 in the clearing account. What is the correct balance of the company's cash?
A. ₦ 40,000
B. ₦ 50,000
C. ₦ 60,000
D. ₦ 70,000
Question 11
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows an increase in the value of its investments of ₦2,000,000. The company's retained earnings as at 31st December 2021 were ₦1,000,000. What is the company's retained earnings as at 31st December 2022?
A. ₦3,500,000
B. ₦3,000,000
C. ₦2,500,000
D. ₦2,000,000
Question 12
A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at par after 5 years. Calculate the amount of interest payable annually.
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000
Question 13
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
A. 1:1
B. 1.5:1
C. 2:1
D. 3:1
Question 14
A partnership is formed between three individuals, A, B, and C, who contribute ₦200,000, ₦300,000, and ₦400,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3:4. If the total profit for the year is ₦600,000, calculate the amount of profit that will be shared by B.
A. ₦180,000
B. ₦240,000
C. ₦300,000
D. ₦360,000
Question 15
A company purchases goods for ₦100,000 and sells them for ₦120,000. Calculate the gross profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

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