POST UTME KSU 2021 Accounting | Objective

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Question 1
The following trial balance of a company is given. Prepare the trading and profit and loss account for the year ended 31st December 2020.
Correct A. Trading Account: Debit: Cost of Goods Sold = ₦1,500,000, Credit: Opening Inventory = ₦200,000, Credit: Purchases = ₦2,000,000, Credit: Closing Inventory = ₦300,000 Profit and Loss Account: Debit: Opening Inventory = ₦200,000, Debit: Purchases = ₦2,000,000, Debit: Cost of Goods Sold = ₦1,500,000, Credit: Sales = ₦3,500,000
B. Trading Account: Debit: Cost of Goods Sold = ₦1,500,000, Credit: Purchases = ₦2,000,000, Credit: Closing Inventory = ₦300,000, Credit: Opening Inventory = ₦200,000 Profit and Loss Account: Debit: Purchases = ₦2,000,000, Debit: Cost of Goods Sold = ₦1,500,000, Debit: Opening Inventory = ₦200,000, Credit: Sales = ₦3,500,000
C. Trading Account: Debit: Purchases = ₦2,000,000, Credit: Cost of Goods Sold = ₦1,500,000, Credit: Closing Inventory = ₦300,000, Credit: Opening Inventory = ₦200,000 Profit and Loss Account: Debit: Purchases = ₦2,000,000, Debit: Cost of Goods Sold = ₦1,500,000, Debit: Opening Inventory = ₦200,000, Credit: Sales = ₦3,500,000
D. Trading Account: Debit: Cost of Goods Sold = ₦1,500,000, Credit: Purchases = ₦2,000,000, Credit: Opening Inventory = ₦200,000, Credit: Closing Inventory = ₦300,000 Profit and Loss Account: Debit: Purchases = ₦2,000,000, Debit: Cost of Goods Sold = ₦1,500,000, Debit: Closing Inventory = ₦300,000, Credit: Sales = ₦3,500,000

Correct Answer: A

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Question 2
The following is a trial balance of a company. Prepare the balance sheet as at 31st December 2020.
A. ₦1,500,000
Correct B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: B

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Question 3
The following is a trial balance of a company. Prepare the balance sheet as at 31st December 2020.
A. ₦1,500,000
Correct B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: B

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Question 4
The following is a trial balance of a company. Prepare the balance sheet as at 31st December 2020.
A. ₦1,500,000
Correct B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: B

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Question 5
The following is a trial balance of a company. Prepare the balance sheet as at 31st December 2020.
A. ₦1,500,000
Correct B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: B

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation expense if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦25,000
Correct C. ₦26,000
D. ₦27,000

Correct Answer: C

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Question 7
A company's trial balance shows the following accounts: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 8
A company uses the double-entry system. If the company purchases office supplies for ₦10,000 and pays cash, what is the journal entry?
A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
Correct B. Debit Cash ₦10,000, Credit Office Supplies ₦10,000
C. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000
D. Debit Accounts Payable ₦10,000, Credit Office Supplies ₦10,000

Correct Answer: B

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Question 9
A company's balance sheet shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. What is the company's total liabilities?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 10
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the asset's book value after 3 years if the asset's cost is ₦120,000?
A. ₦72,000
B. ₦80,000
Correct C. ₦88,000
D. ₦96,000

Correct Answer: C

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Question 11
A company's trial balance shows an error of ¦1,500 in the debit side of the accounts payable account. The correct balance is ¦2,500. What is the correct balance of the accounts receivable account?
A. ¦1,000
B. ¦1,500
C. ¦2,000
Correct D. ¦2,500

Correct Answer: D

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Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ¦10,000 and ¦15,000 respectively. The profit-sharing ratio is 3:2. What is the share of profit of partner A?
Correct A. ¦3,000
B. ¦4,500
C. ¦6,000
D. ¦7,500

Correct Answer: A

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Question 13
A company's cash book shows a balance of ¦5,000. The bank reconciliation statement shows a difference of ¦1,000. What is the correct balance of the cash book?
A. ¦4,000
Correct B. ¦5,000
C. ¦6,000
D. ¦7,000

Correct Answer: B

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Question 14
A company's trial balance shows an error of ¦2,000 in the debit side of the accounts payable account. The correct balance is ¦3,000. What is the correct balance of the accounts receivable account?
A. ¦1,000
B. ¦1,500
C. ¦2,000
Correct D. ¦2,500

Correct Answer: D

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Question 15
A partnership has three partners, A, B, and C. The capital accounts of A, B, and C are ¦8,000, ¦12,000, and ¦10,000 respectively. The profit-sharing ratio is 2:3:1. What is the share of profit of partner B?
A. ¦3,000
Correct B. ¦4,500
C. ¦6,000
D. ¦7,500

Correct Answer: B

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Question 16
A company uses the single-entry system of accounting. The company's trial balance as at 31st December, 2020, shows the following balances: Cash ₦1,500,000, Accounts Payable ₦0,000,000, Common Stock ₦1,000,000, and Retained Earnings ₦0,500,000. What is the company's total assets as at 31st December, 2020?
A. ₦1,500,000
B. ₦1,500,000 + ₦0,000,000
C. ₦1,000,000 + ₦0,500,000
Correct D. ₦1,500,000 + ₦1,000,000 + ₦0,500,000

Correct Answer: D

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Question 17
A partnership has two partners, A and B. The partnership's capital account balance as at 31st December, 2020, is ₦1,000,000. Partner A's capital account balance is ₦0,500,000, and Partner B's capital account balance is ₥0,500,000. What is the ratio of Partner A's capital to Partner B's capital?
A. 1:1
Correct B. 2:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 18
A company uses the double-entry system of accounting. The company's journal entry for the purchase of equipment on 1st January, 2020, is as follows: Debit Equipment ₦1,000,000 and Credit Cash ₦1,000,000. What is the effect of this journal entry on the company's assets?
A. Increase in Cash and decrease in Equipment
Correct B. Increase in Equipment and decrease in Cash
C. No effect on Cash and increase in Equipment
D. Decrease in Cash and increase in Equipment

Correct Answer: B

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Question 19
A company uses the self-balancing ledger system of accounting. The company's ledger account for the year ended 31st December, 2020, shows the following balances: Sales ₦1,000,000, Cost of Goods Sold ₦0,500,000, and Net Income ₥0,500,000. What is the company's gross profit for the year ended 31st December, 2020?
A. ₥0,500,000
Correct B. ₦0,500,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 20
A company uses the manufacturing accounts system of accounting. The company's work-in-progress account as at 31st December, 2020, shows the following balances: Direct Materials ₦0,500,000, Direct Labor ₥0,500,000, and Manufacturing Overhead ₤0,500,000. What is the company's total manufacturing cost for the year ended 31st December, 2020?
A. ₡0,500,000
B. ₡1,000,000
C. ₡1,500,000
Correct D. ₡2,000,000

Correct Answer: D

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Question 21
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of inventory with a cost of ₦50 per unit. During the year, 500 units were sold at ₦100 per unit. On December 31, 2022, 200 units of inventory were on hand. What is the total cost of goods sold for the year?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 22
A company's balance sheet as of December 31, 2022, is as follows: Assets: Cash: ₦50,000 Accounts Receivable: ₦20,000 Inventory: ₦30,000 Total Assets: ₦100,000 Liabilities: Accounts Payable: ₦15,000 Long-term Debt: ₦25,000 Total Liabilities: ₦40,000 What is the company's net worth?
Correct A. ₦60,000
B. ₦60,000
C. ₦60,000
D. ₦60,000

Correct Answer: A

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Question 23
A company uses the accrual method of accounting. On December 31, 2022, it had the following accounts: Accounts Receivable: ₦20,000 Accounts Payable: ₦15,000 Salaries Payable: ₦5,000 What is the company's net working capital?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 24
A company's income statement for the year ended December 31, 2022, is as follows: Revenue: ₦100,000 Cost of Goods Sold: ₦60,000 Gross Profit: ₦40,000 Operating Expenses: ₦10,000 Net Income: ₦30,000 What is the company's gross profit margin?
Correct A. 40%
B. 50%
C. 60%
D. 70%

Correct Answer: A

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Question 25
A company's balance sheet as of December 31, 2022, is as follows: Assets: Cash: ₦50,000 Accounts Receivable: ₦20,000 Inventory: ₦30,000 Total Assets: ₦100,000 Liabilities: Accounts Payable: ₦15,000 Long-term Debt: ₦25,000 Total Liabilities: ₦40,000 What is the company's current ratio?
Correct A. 2.5
B. 2.5
C. 2.5
D. 2.5

Correct Answer: A

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