POST UTME GREENFIELD UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Issued 10,000 shares at ₦10 per share; Purchased goods for ₦50,000 on credit; and Paid salaries of ₦20,000. What is the net effect on the company's equity?
A. +₦100,000
B. +₦50,000
C. +₦20,000
D. -₦20,000
Question 2
A company's trial balance shows a debit balance of ₦15,000 in the 'Accrued Expenses' account. However, the company's accounting records show that the actual expense incurred was ₦20,000. What is the correct journal entry to rectify this discrepancy?
A. Debit Accrued Expenses ₦5,000, Credit Profit and Loss Account ₦5,000
B. Debit Accrued Expenses ₦5,000, Credit Cash ₦5,000
C. Debit Profit and Loss Account ₦5,000, Credit Accrued Expenses ₦5,000
D. Debit Accrued Expenses ₦5,000, Credit Bank ₦5,000
Question 3
A company issued 10,000 shares of 1 par value at a premium of 50%.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 4
A company's balance sheet as at 31st December, 2022 is as follows: Assets ₠ 100,000 Liabilities ₠ 80,000 What is the correct balance of the balance sheet?
A. ₠ 20,000
B. ₠ 30,000
C. ₠ 40,000
D. ₠ 50,000
Question 5
A company's debt-to-equity ratio is 1.5.
A. Debt = ₦150,000
B. Debt = ₦200,000
C. Debt = ₦250,000
D. Debt = ₦300,000
Question 6
A company uses the double-entry system of accounting. The company's journal entries for the year ended December 31, 2022, include the following: Debit Cash ₥ 100,000 and Credit Accounts Payable ₥ 100,000. What is the effect of this journal entry on the company's financial statements?
A. Increases both Assets and Liabilities
B. Increases Assets and Decreases Liabilities
C. Decreases Assets and Increases Liabilities
D. Decreases both Assets and Liabilities
Question 7
A company has the following data for the year ended 31st December 2022: Sales: ₦10,000,000 Returns: ₦1,000,000 Cost of Goods Sold: ₦6,000,000 Gross Profit: ₦4,000,000 Operating Expenses: ₦2,000,000 Net Income: ₦2,000,000 What is the company's return on sales?
A. 20%
B. 25%
C. 30%
D. 35%
Question 8
A public sector organization has the following transactions for the month of February:
A. Debit Government Account ₦20,000, Credit Revenue Account ₦20,000
B. Debit Revenue Account ₦20,000, Credit Government Account ₦20,000
C. Debit Government Account ₦20,000, Credit Asset Account ₦20,000
D. Debit Liability Account ₦20,000, Credit Government Account ₦20,000
Question 9
A company's bank reconciliation statement shows the following discrepancies: Bank balance ₦50,000, Cash balance ₦40,000, and Outstanding checks ₦10,000. What is the correct bank balance?
A. ₦60,000
B. ₦50,000
C. ₦40,000
D. ₦30,000
Question 10
A partnership has two partners, A and B. The capital accounts of the partners are as follows: Partner A: ₦100,000 Partner B: ₦200,000 The partnership has a profit of ₦50,000. How much will each partner receive as their share of the profit?
A. ₦25,000 and ₦25,000
B. ₦20,000 and ₦30,000
C. ₦30,000 and ₦20,000
D. ₦35,000 and ₦15,000
Question 11
A company issued 5,000 ₠ 1 shares at a premium of ₠ 2 per share. The issue expenses were ₠ 3,000. Calculate the amount received from the issue of shares.
A. ₠ 15,000
B. ₠ 20,000
C. ₠ 25,000
D. ₠ 30,000
Question 12
A company purchases a machine for ₦500,000. The machine is expected to have a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge using the straight-line method?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 13
A company uses the double-entry system of accounting. The company's journal entries for the year ended December 31, 2022, include the following: Debit Accounts Payable ₥ 100,000 and Credit Cash ₥ 100,000. What is the effect of this journal entry on the company's financial statements?
A. Increases both Assets and Liabilities
B. Increases Assets and Decreases Liabilities
C. Decreases Assets and Increases Liabilities
D. Decreases both Assets and Liabilities
Question 14
A company's capital structure consists of 60% debt and 40% equity.
A. Debt-to-Equity Ratio = 1.5
B. Debt-to-Equity Ratio = 1.0
C. Debt-to-Equity Ratio = 0.75
D. Debt-to-Equity Ratio = 0.5
Question 15
A company uses the double-entry system of accounting. The following transactions were recorded during the month of January:
A. Debit Cash ₦10,000, Credit Bank Loan ₦10,000
B. Debit Bank Loan ₦10,000, Credit Cash ₦10,000
C. Debit Cash ₦10,000, Credit Asset Account ₦10,000
D. Debit Liability Account ₦10,000, Credit Cash ₦10,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: