POST UTME LAUTECH 2017 Accounting | Objective

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Question 1
A company uses the single entry system to record its financial transactions. The company's assets are ₦220,000, liabilities are ₦60,000, and equity is ₦160,000. What is the company's net worth?
A. ₦160,000
B. ₦220,000
C. ₦280,000
D. ₦320,000
Question 2
A company's balance sheet shows an increase in accounts payable of ₦20,000. Prepare the necessary journal entry to record this increase.
A. Debit Accounts Payable ₦20,000, Credit Purchases ₦20,000
B. Debit Purchases ₦20,000, Credit Accounts Payable ₦20,000
C. Debit Accounts Payable ₦20,000, Credit Sales ₦20,000
D. Debit Sales ₦20,000, Credit Accounts Payable ₦20,000
Question 3
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit: Cash 10,000, Accounts Payable 20,000 Credit: Equipment 30,000, Common Stock 10,000 What is the correct entry in the general ledger for the Accounts Payable account?
A. Debit 20,000, Credit 0
B. Debit 0, Credit 20,000
C. Debit 20,000, Credit 20,000
D. Debit 0, Credit 0
Question 4
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,500 | | | 2nd Jan | Bank | | ₦1,000 | | 3rd Jan | Cash | | ₦500 | Calculate the balance of the cash book.
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 5
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Profit ₦200,000. What is the correct amount of Gross Profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 6
A company uses the self-balancing ledger system. The company's ledger accounts for the month of January 2018 are as follows: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦20,000, Equipment ₦150,000, Gain on Sale of Equipment ₦30,000, Loss on Sale of Equipment ₦10,000, Net Income ₦120,000, Retained Earnings ₦200,000, Salaries Expense ₦80,000, Sales Revenue ₦500,000, Selling Expense ₦60,000, Taxes Payable ₦40,000, and Utilities Expense ₦20,000. Prepare the company's trial balance as at 31st January 2018.
A. ₦1,030,000
B. ₦1,040,000
C. ₦1,050,000
D. ₦1,060,000
Question 7
A company uses the single entry system to record its financial transactions. The company's assets are ₦150,000, liabilities are ₦50,000, and equity is ₦100,000. What is the company's net worth?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 8
A company uses the cash basis of accounting. The following transactions are recorded in the cash book: Debit: Cash 10,000, Accounts Payable 20,000 Credit: Equipment 30,000, Common Stock 10,000 What is the correct entry in the general ledger for the Equipment account?
A. Debit 30,000, Credit 0
B. Debit 0, Credit 30,000
C. Debit 30,000, Credit 30,000
D. Debit 0, Credit 0
Question 9
A company's trial balance shows an error of ₦10,000 in the accounts payable account. Prepare the necessary journal entry to correct this error.
A. Debit Accounts Payable ₦10,000, Credit Cash ₦10,000
B. Debit Cash ₦10,000, Credit Accounts Payable ₦10,000
C. Debit Accounts Payable ₦10,000, Credit Accounts Receivable ₦10,000
D. Debit Cash ₦10,000, Credit Accounts Receivable ₦10,000
Question 10
A company's cash book shows the following transactions: Cash Sale ₦100,000, Cash Purchase ₦50,000, and Bank Deposit ₦20,000. What is the correct balance in the cash book?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 11
A company's profit and loss account for the year ended 31st December, 2022, showed the following: Sales ₦3,000,000, Cost of Goods Sold ₦2,000,000, Gross Profit ₦1,000,000, Operating Expenses ₦500,000, Net Profit ₦500,000. Prepare the company's balance sheet as at 31st December, 2022.
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 12
A company's trial balance shows the following accounts: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦500,000, and Profit ₦500,000. What is the correct amount of Gross Profit?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 13
A company's balance sheet shows an increase in inventory of ₦50,000. Prepare the necessary journal entry to record this increase.
A. Debit Inventory ₦50,000, Credit Purchases ₦50,000
B. Debit Purchases ₦50,000, Credit Inventory ₦50,000
C. Debit Inventory ₦50,000, Credit Sales ₦50,000
D. Debit Sales ₦50,000, Credit Inventory ₦50,000
Question 14
A company uses the double-entry system of accounting. The company's journal entries for the month of January 2018 are as follows: Debit Accounts Payable ₦50,000, Debit Salaries Expense ₦30,000, Credit Cash ₦80,000, and Credit Sales Revenue ₦100,000. Prepare the company's ledger accounts for the month of January 2018.
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 15
A company uses the double entry system to record its financial transactions. The company's assets are ₦200,000, liabilities are ₦80,000, and equity is ₦120,000. What is the company's net worth?
A. ₦120,000
B. ₦180,000
C. ₦220,000
D. ₦280,000

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