POST UTME LASU 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government agency uses the public sector accounting system to record transactions. If a grant of ₦1,000,000 is received from the government, what is the effect on the accounting equation?
A. Assets increase by ₦1,000,000, Liabilities decrease by ₦1,000,000
B. Assets increase by ₦1,000,000, Equity increases by ₦1,000,000
C. Assets decrease by ₦1,000,000, Liabilities increase by ₦1,000,000
D. Assets increase by ₦1,000,000, Liabilities increase by ₦1,000,000
Question 2
A company uses a self-balancing ledger to record transactions. If a customer pays ₦500 for goods worth ₦600, what is the effect on the accounting equation?
A. Assets increase by ₦500, Liabilities decrease by ₦500
B. Assets increase by ₦600, Liabilities decrease by ₦600
C. Assets increase by ₦500, Equity increases by ₦500
D. Assets decrease by ₦500, Liabilities increase by ₦500
Question 3
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's net worth?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 4
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦15,000 and a deposit in transit of ₦20,000. What is the correct balance in the company's cash book?
A. ₦125,000
B. ₦130,000
C. ₦135,000
D. ₦140,000
Question 5
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's profit is ₦100,000, how much will partner A receive?
A. ₦60,000
B. ₦40,000
C. ₦50,000
D. ₦70,000
Question 6
A company has the following balance sheet: Assets: Cash: ₦10,000 Accounts Receivable: ₦20,000 Inventory: ₦30,000 Total Assets: ₦60,000 Liabilities: Accounts Payable: ₦15,000 Long-term Debt: ₦25,000 Total Liabilities: ₦40,000 Equity: Common Stock: ₦20,000 Retained Earnings: ₦5,000 Total Equity: ₦25,000 What is the company's current ratio?
A. 1.5
B. 2
C. 1.2
D. 1.5
Question 7
A company prepares a balance sheet. If the total assets are ₦1,000,000 and the total liabilities are ₦500,000, what is the effect on the accounting equation?
A. Assets increase by ₦500,000, Liabilities increase by ₦500,000
B. Assets increase by ₦500,000, Equity increases by ₦500,000
C. Assets decrease by ₦500,000, Liabilities decrease by ₦500,000
D. Assets decrease by ₦500,000, Liabilities increase by ₦500,000
Question 8
A partnership has the following capital accounts: | Partner | Capital | Drawing | Balance | | --- | --- | --- | --- | | A | 10,000 | 2,000 | 8,000 | | B | 15,000 | 3,000 | 12,000 | | C | 20,000 | 4,000 | 16,000 | What is the total capital of the partnership?
A. 45,000
B. 50,000
C. 55,000
D. 60,000
Question 9
A company's trial balance shows a credit balance of ₦5,000 in the 'Rent Received' account. However, the company's accounting records indicate that it has not received any rent from its tenants. What is the correct treatment of this discrepancy?
A. Debit the 'Rent Received' account by ₦5,000
B. Credit the 'Rent Received' account by ₦5,000
C. Debit the 'Rent Received' account by ₦5,000 and credit the 'Rent Paid' account by ₦5,000
D. Do nothing, as the trial balance is correct
Question 10
A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦150,000. What is the correct balance in the company's trading account?
A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 11
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 12
A company's trial balance shows the following balances: Purchases = ₦120,000, Sales = ₦150,000, Cost of Goods Sold = ₦80,000, and Gross Profit = ₦30,000. What is the correct journal entry to record the purchase of goods?
A. Debit Purchases, Credit Cost of Goods Sold
B. Debit Cost of Goods Sold, Credit Purchases
C. Debit Purchases, Credit Sales
D. Debit Sales, Credit Purchases
Question 13
A bank statement shows a balance of ₦20,000, but the company's cash book shows a balance of ₦25,000. What is the correct explanation for this discrepancy?
A. The bank statement is correct, and the cash book is incorrect
B. The cash book is correct, and the bank statement is incorrect
C. The bank statement is correct, but the cash book has an error
D. The cash book is correct, but the bank statement has an error
Question 14
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 15
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦10,000, what is the annual depreciation charge if the asset's cost is ₦50,000?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦15,000

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