POST UTME IGBINEDION UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's income statement showed the following balances: Cost of Goods Sold ₦100,000, Sales Revenue ₦200,000, and Net Income ₦50,000. Prepare the company's balance sheet.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A company's cash book showed a balance of ₦ 10,000. The company's bank statement showed a balance of ₦ 15,000. Prepare the company's bank reconciliation statement.
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 3
A firm's assets are valued as follows: | Asset | Cost | Accumulated Depreciation | Net Book Value | | --- | --- | --- | --- | | Machinery | 50,000 | 10,000 | 40,000 | | Furniture | 20,000 | 5,000 | 15,000 | | Vehicles | 30,000 | 8,000 | 22,000 | Calculate the total net book value of the assets.
A. ₦77,000
B. ₦82,000
C. ₦87,000
D. ₦92,000
Question 4
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦800,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦2,000,000
Question 5
A company's balance sheet as at 31st December 20X9 showed a total equity of ₦ 500,000. The company's profit and loss account for the year ended 31st December 20X9 showed a profit of ₦ 150,000. Prepare the company's statement of changes in equity.
A. ₦ 650,000
B. ₦ 700,000
C. ₦ 750,000
D. ₦ 800,000
Question 6
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount on the debentures.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 7
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | ₦200,000 | | | Cost of Goods Sold | | ₦150,000 | | Net Income | | ₦50,000 | Identify the error in the trial balance.
A. Sales Revenue is debited instead of credited
B. Cost of Goods Sold is credited instead of debited
C. Net Income is credited instead of debited
D. Accounts Payable is debited instead of credited
Question 8
A company's cash book shows a debit balance of ₦10,000. The bank statement shows a credit balance of ₦12,000. What is the correct balance in the company's cash book?
A. ₦2,000
B. ₦10,000
C. ₦12,000
D. ₦18,000
Question 9
A company's bank reconciliation statement showed the following balances: Bank balance ₦100,000, Cash balance ₦50,000, and Outstanding checks ₦20,000. Prepare the company's bank reconciliation statement.
A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000
Question 10
A company uses a job costing system to account for its manufacturing activities. The company has two departments: Cutting and Assembly. The Cutting Department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the beginning of the year. During the year, the department incurs expenses of ₦150,000 and earns revenue of ₦180,000. The Assembly Department has a balance of ₦80,000 in its WIP account at the beginning of the year. During the year, the department incurs expenses of ₦100,000 and earns revenue of ₦120,000. The company's total WIP balance at the end of the year is ₦200,000. What is the balance in the Assembly Department's WIP account at the end of the year?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A trader purchased goods on credit for ₦120,000. He sold the goods for ₦180,000. Calculate the profit made by the trader.
A. ₦30,000
B. ₦60,000
C. ₦80,000
D. ₦120,000
Question 12
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a net income of ₦1,200,000, how much will Partner A receive as their share of the net income?
A. ₦720,000
B. ₦600,000
C. ₦800,000
D. ₦900,000
Question 13
A company's cash book showed the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash received from bank ₦20,000. Prepare the company's cash book.
A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000
Question 14
A company issued 5,000, 10% shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders and the amount of premium on the shares.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 15
A company uses the double-entry system to record its transactions. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Credit Accounts Payable ₦50,000; Debit Accounts Receivable ₦150,000, Credit Sales Revenue ₦200,000; Debit Equipment ₦300,000, Credit Common Stock ₦400,000. What is the net effect of these journal entries on the company's equity?
A. ₦50,000 increase
B. ₦50,000 decrease
C. ₦100,000 increase
D. ₦100,000 decrease

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