POST UTME LEAD CITY UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance as of December 31, 2022, is as follows: Accounts Receivable ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦50,000. What is the company's total equity?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 2
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦120 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦150 each and 300 units at ₦180 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 3
A company uses the weighted average method to value its inventory. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were purchased at ₦60 each. What is the total cost of goods available for sale for the year?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 4
A partnership is formed by three individuals, A, B, and C, who contribute ₦200,000, ₦300,000, and ₦400,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3:4. If the total profit for the year is ₦1,200,000, calculate the amount of profit that will be shared by A.
A. ₦240,000
B. ₦360,000
C. ₦480,000
D. ₦600,000
Question 5
A company has the following transactions related to its cash account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | | ₦100,000 | | 1/2 | Purchase of Goods | ₦150,000 | | | 1/3 | Payment to Supplier | | ₦50,000 | What is the net amount of cash at the end of the period?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 6
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦120 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦150 each and 300 units at ₦180 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 7
A government agency has the following transactions: Cash received from taxpayers ₦500,000, Cash paid to suppliers ₦200,000, Cash paid to employees ₦150,000. What is the net increase in cash for the period?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 8
A company uses the perpetual inventory system. On January 1, 2018, it had 1,000 units of a product in stock, costing ₦100 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 700 units at ₦120 each and 300 units at ₦150 each. The company uses the weighted average method to value inventory. What is the total cost of goods sold for the year?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 9
A company uses the double entry system of accounting. If a customer pays ₦10,000 for goods sold, what is the effect on the accounting equation?
A. Assets increase by ₦10,000 and liabilities decrease by ₦10,000
B. Assets decrease by ₦10,000 and liabilities increase by ₦10,000
C. Assets increase by ₦10,000 and equity increases by ₦10,000
D. Assets decrease by ₦10,000 and equity decreases by ₦10,000
Question 10
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were purchased at ₦60 each. The company uses the weighted average method to value its inventory. What is the total cost of goods sold for the year?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦400,000
B. ₦450,000
C. ₦500,000
D. ₦550,000
Question 12
A company's income statement shows the following information: Sales Revenue ₦1,500,000, Cost of Goods Sold ₦900,000, Gross Profit ₦600,000, Operating Expenses ₦150,000, Net Income ₦450,000. What is the company's gross profit margin?
A. 40%
B. 50%
C. 60%
D. 70%
Question 13
A company uses a self-balancing ledger system. The ledger contains the following accounts: Cash, Accounts Receivable, Inventory, and Equipment. If the company's balance sheet shows a total asset value of ₦1,500,000, and the Cash account has a balance of ₦200,000, what is the total value of the Accounts Receivable and Inventory accounts?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 14
A company has the following data for the year ended December 31, 2022:
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,500,000
Question 15
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
A. ₦90,000
B. ₦60,000
C. ₦72,000
D. ₦48,000

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