POST UTME ELIZADE UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a non-current asset of ₦100,000 and a non-current liability of ₦50,000. Calculate the net non-current position.
A. ₦50,000
B. ₦100,000
C. ₦50,000
D. ₦50,000
Question 2
A manufacturing company produces two products, X and Y. The selling price of X is ₦500 per unit, and the selling price of Y is ₦300 per unit. If the company sells 200 units of X and 300 units of Y, what is the total revenue?
A. ₦250,000
B. ₦280,000
C. ₦300,000
D. ₦320,000
Question 3
A company uses the double-entry system of accounting. The company's assets are ₦500,000, and the company's liabilities are ₦200,000. What is the company's equity?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 4
A trader purchases goods for ₦120,000 and sells them for ₦180,000. Calculate the profit made by the trader.
A. ₦60,000
B. ₦80,000
C. ₦60,000
D. ₦80,000
Question 5
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.
A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 6
A company's profit and loss account shows a net profit of ₦100,000. If the company's tax rate is 25%, calculate the amount of tax payable.
A. ₦25,000
B. ₦100,000
C. ₦25,000
D. ₦25,000
Question 7
A company has a profit of ₦240,000 and a loss of ₦120,000. What is the net profit?
A. ₦120,000
B. ₦120,000
C. ₦120,000
D. ₦120,000
Question 8
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦12,000
D. ₦18,000
Question 9
A company uses the double-declining balance method of depreciation. The cost of a machine is ₦600,000 and its residual value is ₦50,000. If the machine is expected to last for 5 years, what is the annual depreciation charge?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 10
A company's trial balance shows a debit balance of ₦100,000 in the account 'Salaries Expense' and a credit balance of ₦120,000 in the account 'Salaries Payable'. What is the correct journal entry to record the correction of this error?
A. ₦20,000 debit to Salaries Expense and ₦20,000 credit to Salaries Payable
B. ₦20,000 debit to Salaries Payable and ₦20,000 credit to Salaries Expense
C. ₦20,000 debit to Salaries Expense and ₦20,000 credit to Salaries Payable
D. ₦20,000 debit to Salaries Payable and ₦20,000 credit to Salaries Expense
Question 11
A company's balance sheet shows a current asset of ₦200,000 in the account 'Accounts Receivable' and a current liability of ₦150,000 in the account 'Accounts Payable'. What is the net working capital of the company?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 12
A company has a trial balance that includes the following accounts: Cash, Accounts Receivable, Inventory, and Equipment. The trial balance shows a debit balance of ₦1,500,000 for Cash and a credit balance of ₦2,000,000 for Accounts Receivable. What is the net effect on the accounting equation?
A. Increase in assets and decrease in liabilities
B. Decrease in assets and increase in liabilities
C. Increase in assets and increase in liabilities
D. Decrease in assets and decrease in liabilities
Question 13
A company issued 5,000 debentures of ₦100 each at a discount of 5%. The total amount received from the issue of debentures is ₦450,000. Calculate the amount of debenture capital and the amount of debenture discount.
A. ₦450,000
B. ₦400,000
C. ₦350,000
D. ₦300,000
Question 14
A company issues 500 shares of ₦20 each at a premium of ₦10 per share. Calculate the total amount received from the issue of shares.
A. ₦15,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 15
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. If the machine is expected to last for 5 years, what is the annual depreciation charge?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

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