POST UTME ESUT 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current liability of ₦200,000. If the company's current assets are ₦300,000, what is the company's working capital?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 2
A company has the following trial balance: Debitors ₦ 100,000, Creditors ₦ 80,000, Capital ₦ 150,000. Prepare the balance sheet.
A. ₦ 100,000
B. ₦ 150,000
C. ₦ 180,000
D. ₦ 200,000
Question 3
A company's bank statement shows a debit balance of ₦20,000. However, the company's cash book shows a credit balance of ₦15,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding cheque that has not been presented to the bank.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has an error in its cash book.
Question 4
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit is ₦ 120,000, calculate the share of profit of partner A.
A. ₦ 90,000
B. ₦ 100,000
C. ₦ 110,000
D. ₦ 120,000
Question 5
A company's journal entry for the purchase of equipment on January 1, 2022, is as follows: Debit 24,000 and Credit 24,000. What is the correct accounting treatment for this transaction?
A. Accumulated Depreciation 24,000
B. Equipment 24,000
C. Depreciation Expense 24,000
D. Salvage Value 24,000
Question 6
A company uses the self-balancing ledger system. The following transactions are recorded: Debit: ₦100,000 to Cash, ₦50,000 to Accounts Payable, and Credit: ₦150,000 to Sales. What is the net effect on the company's cash balance?
A. ₦50,000 increase
B. ₦50,000 decrease
C. ₦100,000 increase
D. ₦100,000 decrease
Question 7
A company's balance sheet shows an increase in its fixed assets by ₦200,000 and a decrease in its long-term liabilities by ₦150,000. Calculate the net increase in shareholders' funds.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 8
A company produces two products, A and B, using two machines, M1 and M2. The production process for product A requires 2 hours on M1 and 3 hours on M2, while product B requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours and M1 is available for 22 hours, what is the maximum number of units of product A that can be produced?
A. 12
B. 16
C. 20
D. 24
Question 9
A company uses the double-entry system to record its transactions. If the company purchases office supplies for ₦10,000 and pays cash, what is the journal entry to record this transaction?
A. Debit: Office Supplies ₦10,000, Credit: Cash ₦10,000
B. Debit: Cash ₦10,000, Credit: Office Supplies ₦10,000
C. Debit: Office Supplies ₦10,000, Credit: Bank ₦10,000
D. Debit: Bank ₦10,000, Credit: Office Supplies ₦10,000
Question 10
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 11
A company issues 500 shares of ₦20 each at a premium of ₦10 per share. What is the total amount received from the issue of shares?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 12
A public sector organization's final accounts show the following: Trading Profit ₦500,000, Profit Before Tax ₦700,000, Tax Expense ₦200,000. What is the correct calculation of the Net Profit?
A. ₦500,000.
B. ₦700,000.
C. ₦900,000.
D. ₦1,000,000.
Question 13
A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product A and product B should the company produce to maximize profit?
A. Product A: 30 units, Product B: 20 units
B. Product A: 20 units, Product B: 30 units
C. Product A: 40 units, Product B: 10 units
D. Product A: 10 units, Product B: 40 units
Question 14
A company issues 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company's trial balance shows the following accounts: Debitors ₦100,000, Creditors ₦80,000. What is the correct journal entry to record the payment of the creditors?
A. Debit Creditors ₦80,000, Credit Cash ₦80,000.
B. Debit Cash ₦80,000, Credit Creditors ₦80,000.
C. Debit Debitors ₦80,000, Credit Creditors ₦80,000.
D. Debit Creditors ₦80,000, Debit Cash ₦80,000.

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