POST UTME ESUT 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method of depreciation. The company purchases a machine for ₦200,000. The machine has a useful life of 10 years and a residual value of ₦20,000. What is the annual depreciation expense?
A. +₦18,000
B. +₦20,000
C. +₦22,000
D. +₦24,000
Question 2
In a self-balancing ledger, the control account is used to record the total of all subsidiary accounts. What is the purpose of the control account?
A. To record the total of all subsidiary accounts
B. To record the total of all control accounts
C. To record the total of all assets
D. To record the total of all liabilities
Question 3
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, what is the total number of units of product X produced?
A. 60
B. 72
C. 80
D. 90
Question 4
A company's manufacturing account for the year ended 31st December 2022 is as follows: Materials consumed: ₦300,000 Labour: ₦200,000 Overheads: ₦150,000 Total cost: ₦650,000 What is the company's profit for the year?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 5
A company's trial balance as at December 31, 2018, showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's income statement for the year ended December 31, 2018.
A. ₦50,000
B. ₦30,000
C. ₦500,000
D. ₦300,000
Question 6
A company uses the double-declining balance method of depreciation. The company purchases a machine for ₦300,000. The machine has a useful life of 8 years and a residual value of ₦30,000. What is the annual depreciation expense?
A. +₦37,500
B. +₦40,000
C. +₦42,500
D. +₦45,000
Question 7
A company has the following ledger balances: Raw Materials ₦150,000, Work-in-Progress ₦120,000, and Finished Goods ₦80,000. If the company uses the LIFO method, what is the value of Cost of Goods Sold?
A. ₦350,000
B. ₦450,000
C. ₦550,000
D. ₦650,000
Question 8
A company uses the accrual basis of accounting. At the end of the year, the company has accounts receivable of ₦100,000 and accounts payable of ₦50,000. What is the net effect on the company's cash balance?
A. +₦50,000
B. +₦100,000
C. -₦50,000
D. -₦100,000
Question 9
A company has a manufacturing department that produces two products, X and Y. The selling price of X is ₦ 10 per unit, and the selling price of Y is ₦ 20 per unit. The company produces 500 units of X and 300 units of Y. Calculate the total revenue from the sale of these products.
A. ₦ 10,000
B. ₦ 12,000
C. ₦ 14,000
D. ₦ 16,000
Question 10
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦1,500,000 Cash ₦2,000,000 Accounts Receivable ₦3,000,000 Inventory ₦1,000,000 Property, Plant and Equipment Liabilities: ₦1,000,000 Accounts Payable ₦2,000,000 Long-term Debt What is the company's current ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 11
A company issued 10,000 shares of ₦10 each on January 1, 2018. The company's profit for the year ended December 31, 2018, was ₦200,000. Calculate the company's dividend per share for the year ended December 31, 2018.
A. ₦2
B. ₦5
C. ₦10
D. ₦20
Question 12
A firm has the following transactions during the year: Debit: Raw Materials ₦ 100,000; Work-in-Progress ₦ 50,000; Finished Goods ₦ 30,000; Sales ₦ 200,000; Drawings ₦ 20,000 Credit: Purchases ₦ 150,000; Wages ₦ 40,000; Rent ₦ 10,000; Capital ₦ 100,000 What is the net profit of the firm?
A. ₦ 30,000
B. ₦ 40,000
C. ₦ 50,000
D. ₦ 60,000
Question 13
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦400,000. If the company uses a perpetual inventory system, what is the cost of the closing inventory?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 14
A company has a departmental account for the manufacturing department. The department incurred expenses of ₦ 50,000 and earned revenue of ₦ 100,000. Calculate the profit or loss of the department.
A. Profit of ₦ 50,000
B. Loss of ₦ 50,000
C. Profit of ₦ 50,000
D. Loss of ₦ 50,000
Question 15
A company has two departments, A and B, which produce two products, X and Y. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, what is the total number of units of product X produced?
A. 60
B. 72
C. 80
D. 90

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