POST UTME IMS U 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current ratio of 2:1 and a quick ratio of 1:1. What is the company's acid-test ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 2
A company uses the FIFO method to value its inventory. The company has the following data for the year ended December 31, 2022:
A. ₦180,000
B. ₦190,000
C. ₦200,000
D. ₦210,000
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment'. The company's accounting policy requires that office supplies be valued at cost and office equipment be valued at cost less depreciation. What is the correct journal entry to record the correction of the error?
A. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Equipment
B. ₦10,000 debit to Office Supplies and ₦10,000 credit to Office Equipment
C. ₦5,000 debit to Office Equipment and ₦5,000 credit to Office Supplies
D. ₦10,000 debit to Office Equipment and ₦10,000 credit to Office Supplies
Question 4
A company uses the straight-line method to depreciate its assets. The cost of the asset is ₦100,000, and it has a useful life of 10 years. If the asset is sold after 5 years, what is the amount of depreciation that should be recorded?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A company uses the perpetual inventory system. The company's inventory account shows a balance of ₦150,000. The company's cost of goods sold is ₦200,000. What is the company's gross profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 6
A company has the following ledger balances:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 7
A manufacturing company uses the weighted average method to value its inventory. The company has the following data for the year ended December 31, 2022:
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 8
A company uses the double-declaration method to value its assets. The company's accountant has prepared the following trial balance as of December 31, 2022:
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 9
A public sector organization has the following transactions for the year: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 15 Jan | Office Supplies | | ₦5,000 | | 20 Jan | Rent | ₦8,000 | | | 25 Jan | Utilities | | ₦3,000 | | 31 Jan | Salaries | ₦15,000 | | What is the total amount of cash outflows for the year?
A. ₦31,000
B. ₦32,000
C. ₦33,000
D. ₦34,000
Question 10
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a credit balance of ₦10,000 in the 'Drawings' account. What is the amount of profit to be distributed to each partner?
A. ₦6,000 to A and ₦4,000 to B
B. ₦8,000 to A and ₦2,000 to B
C. ₦10,000 to A and ₦0 to B
D. ₦0 to A and ₦10,000 to B
Question 11
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 each machine operates for a total of 16 hours, how many units of product A and product B should the company produce to maximize profit?
A. 10 units of A and 10 units of B
B. 15 units of A and 9 units of B
C. 20 units of A and 8 units of B
D. 25 units of A and 7 units of B
Question 12
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation expense if the asset is used for 5 years?
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000
Question 13
A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦50,000, calculate the annual depreciation charge for an asset costing ₦250,000.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 14
The following transactions were recorded by a company in a given period:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 15
A company's balance sheet contains the following accounts: Cash 20,000, Accounts Payable 10,000, Common Stock 50,000, and Retained Earnings 30,000. What is the total amount of liabilities and equity?
A. 110,000
B. 120,000
C. 130,000
D. 140,000

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