POST UTME ELIZADE UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. The bank's total deposits are ₦1,000,000. What is the bank's required reserve?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 2
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 15
Question 3
A company's financial statements are audited by an independent auditor. What is the primary purpose of the auditor's report?
A. To express an opinion on the company's financial position
B. To provide assurance on the accuracy of the financial statements
C. To identify material weaknesses in internal control
D. To recommend changes to the company's accounting policies
Question 4
A company's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
A. To provide a framework for financial reporting
B. To ensure consistency in financial reporting
C. To provide a basis for financial analysis
D. To reduce the risk of financial errors
Question 5
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. The company's current liabilities are ₦800,000. What is the company's net current liability?
A. ₦100,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 6
A company is considering using a new transportation method to deliver its products. The new method has a higher cost than the current method, but it also has a faster delivery time. What is the primary factor that the company should consider when making its decision?
A. Cost of the new method
B. Delivery time of the new method
C. Reliability of the new method
D. All of the above
Question 7
A company is considering using a new insurance policy to protect its business. The policy has a higher premium than the current policy, but it also provides a higher level of coverage. What is the primary factor that the company should consider when making its decision?
A. Cost of the new policy
B. Level of coverage provided by the new policy
C. Reliability of the new policy
D. All of the above
Question 8
A sole trader's business is affected by the following factors: market conditions, competition, and government regulations. Which of the following is NOT a factor that affects a sole trader's business?
A. Market conditions
B. Competition
C. Government regulations
D. Personal relationships
Question 9
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Question 10
A sole trader is considering expanding its business by taking on a partner. What are the potential advantages of this decision?
A. Increased financial resources
B. Improved decision-making
C. Enhanced reputation
D. All of the above
Question 11
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is NOT a financial statement?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Statement of changes in equity
Question 12
A sole trader is a type of business ownership where one person owns and operates the business. What are the advantages of being a sole trader?
A. Easy to set up and operate
B. Limited liability for the owner
C. Flexibility in decision-making
D. All of the above
Question 13
A company produces two products, X and Y, using two machines, A and B. The production process for product X requires 2 hours on machine A and 3 hours on machine B, while the production process for product Y requires 3 hours on machine A and 2 hours on machine B. If machine A is available for 6 hours and machine B is available for 6 hours, how many units of product X and product Y can be produced?
A. (10, 8)
B. (8, 10)
C. (12, 6)
D. (6, 12)
Question 14
A company's warehouse is stocked with 500 units of product A and 300 units of product B. The company uses a first-in-first-out (FIFO) inventory system. If 200 units of product A are sold, what is the new quantity of product A in the warehouse?
A. 300
B. 400
C. 500
D. 600
Question 15
A sole trader has a business income of ₦1,000,000 and personal income of ₦500,000. The sole trader's business expenses are ₦200,000. What is the sole trader's profit?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000

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