POST UTME LAUTECH 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method of depreciation for its assets. If the asset cost ₦120,000 and has a residual value of ₦20,000, what is the annual depreciation charge if the asset is used for 5 years?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 2
The following is an extract from the financial statement of a public sector organization. Explain the nature and principles of accounting.
A. Financial accounting
B. Management accounting
C. Cost accounting
D. Tax accounting
Question 3
The following is an extract from the financial statement of a company. Identify the error in the statement and correct it.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A company's profit and loss account for the year ended 31st December 2019 is as follows: ₦ Turnover: ₦500,000 Cost of Goods Sold: ₦300,000 Gross Profit: ₦200,000 Operating Expenses: ₦100,000 Profit Before Tax: ₦100,000 Tax: ₦20,000 Profit After Tax: ₦80,000 What is the company's gross profit percentage?
A. 20%
B. 25%
C. 30%
D. 40%
Question 5
A public sector organization has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,500,000 Cash paid to suppliers: ₦800,000 Cash paid to employees: ₦600,000 Cash received from government grant: ₦200,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 What is the total cash outflow for the year?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 6
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 7
The following is a trial balance of a company as at 31st December 2018. Prepare a balance sheet as at that date.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 8
A company purchased a machine for ₦150,000. It is expected to have a useful life of 5 years and a residual value of ₦30,000. Calculate the annual depreciation using the straight-line method.
A. ₦24,000
B. ₦26,000
C. ₦28,000
D. ₦30,000
Question 9
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. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00
Question 10
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 11
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 12
A company purchased a machine for ₦120,000. It is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 13
A government agency has the following transactions for the month of January: - January 1: Cash received from sale of goods ₦50,000 - January 5: Cash paid for office supplies ₦20,000 - January 10: Cash received from sale of services ₦30,000 - January 15: Cash paid for rent ₦15,000 What is the total cash received by the agency in January?
A. ₦50,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 14
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 15
A sole proprietorship has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,200,000 Cash paid to suppliers: ₦800,000 Cash paid to employees: ₦600,000 Cash received from government grant: ₦200,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 What is the total cash inflow for the year?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

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