POST UTME KSU 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 5,000 debentures of ₦ 100 each at a premium of ₦ 10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦ 500,000
B. ₦ 550,000
C. ₦ 600,000
D. ₦ 650,000
Question 2
A company has a profit of ₦ 150,000 and a tax rate of 25%. Calculate the amount of tax payable.
A. ₦ 37,500
B. ₦ 40,000
C. ₦ 42,500
D. ₦ 45,000
Question 3
A company's balance sheet shows a current ratio of 2:1. What does this indicate about the company's liquidity?
A. The company has a high level of liquidity.
B. The company has a low level of liquidity.
C. The company has a moderate level of liquidity.
D. The company has a high level of illiquidity.
Question 4
A company's manufacturing overheads for the year ended December 31, 2022, were as follows: Direct Labour ¡ 1,500,000; Supervision ¡ 800,000; Depreciation ¡ 1,200,000; Insurance ¡ 300,000; Rent ¡ 400,000; Miscellaneous ¡ 200,000. Calculate the total manufacturing overheads for the year.
A. ¡ 4,500,000
B. ¡ 4,200,000
C. ¡ 4,000,000
D. ¡ 3,800,000
Question 5
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦100,000 and the Assembly department has a total cost of ₦150,000. What is the total cost of the product?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 6
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 7
A company purchased a machine for ₦ 50,000. The machine has a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
A. ₦ 9,500
B. ₦ 10,000
C. ₦ 9,000
D. ₦ 8,500
Question 8
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 9
A company's trial balance showed a debit balance of ₦ 10,000 in the account 'Sales Returns'. The correct balance should be a credit balance of ₦ 5,000. What is the correct journal entry to correct this error?
A. Debit Sales Returns ₦ 10,000, Credit Sales ₦ 5,000
B. Debit Sales ₦ 5,000, Credit Sales Returns ₦ 10,000
C. Debit Sales Returns ₦ 5,000, Credit Sales ₦ 10,000
D. Debit Sales ₦ 10,000, Credit Sales Returns ₦ 5,000
Question 10
A company purchases a machine for ₦ 50,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦ 30,000
B. ₦ 35,000
C. ₦ 40,000
D. ₦ 45,000
Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were sold for ₦ 1.50 each. Calculate the amount received from the sale of shares.
A. ₦ 10,000
B. ₦ 20,000
C. ₦ 30,000
D. ₦ 40,000
Question 12
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 13
A company's balance sheet as at 31st December 2016 is as follows: | Assets | | Liabilities | | Equity | | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 50,000 | | Debtors | 30,000 | Creditors | 15,000 | Profit & Loss | 25,000 | | Prepaid Rent | 5,000 | | | | | | | | | | | | What is the total amount of equity?
A. ₦75,000
B. ₦80,000
C. ₦85,000
D. ₦90,000
Question 14
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦70,000. What is the difference between the two balances?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company issues 10,000, 9% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000

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: