POST UTME KSU 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a cash book balance of ₦20,000. The bank statement shows a balance of ₦25,000. The company has an outstanding cheque of ₦2,000 and the bank charges a service fee of ₦300. Calculate the correct balance in the cash book.
A. ₦17,700
B. ₦18,700
C. ₦19,700
D. ₦20,700
Question 2
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
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 3
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?
A. ₦60,000
B. ₦60,000
C. ₦60,000
D. ₦60,000
Question 4
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
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 5
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
C. ₦26,000
D. ₦27,000
Question 6
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
B. 2:1
C. 1:2
D. 3:1
Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Cash | 500 | | | 3 | Cash | | 1,500 | | 4 | Cash | | 2,000 | What is the balance of the cash account?
A. ₦1,500
B. ₦2,000
C. ₦3,500
D. ₦4,000
Question 8
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
D. ¦2,500
Question 9
The following is a trial balance of a company. Prepare the balance sheet as at 31st December 2020.
A. ₦1,500,000
B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 10
The following is a trial balance of a company. Prepare the balance sheet as at 31st December 2020.
A. ₦1,500,000
B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 11
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?
A. ¦3,000
B. ¦4,500
C. ¦6,000
D. ¦7,500
Question 12
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
B. ₦0,500,000
C. ₦1,000,000
D. ₦1,500,000
Question 13
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?
A. 2.5
B. 2.5
C. 2.5
D. 2.5
Question 14
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
B. ¦5,000
C. ¦6,000
D. ¦7,000
Question 15
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
D. ₦1,500,000 + ₦1,000,000 + ₦0,500,000

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