POST UTME LEAD CITY UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following ledger accounts: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 2
A company issued 5,000 10% debentures of ₦100 each at a premium of ₦10. Calculate the total amount received from the issue of debentures.
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 3
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge?
A. ₦50,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 4
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 5
A company's balance sheet at 31st December 2022 is as follows: Share Capital: ₦200,000 Reserves: ₦150,000 Debtors: ₦120,000 Cash at Bank: ₦150,000 What is the company's total equity?
A. ₦450,000
B. ₦470,000
C. ₦490,000
D. ₦510,000
Question 6
A company has the following trial balance: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 7
A company's public sector accounting records show a revenue of ₦1,200,000 and an expenditure of ₦900,000. Calculate the company's net cash inflow from operating activities.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A company's bank reconciliation statement shows the following: Bank Balance ₦150,000, Outstanding Checks ₦20,000, and Deposits in Transit ₦30,000. What is the company's adjusted bank balance?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 9
A company's departmental account for the year ended 31st December 2022 is as follows: Selling Department: ₦100,000 Administrative Department: ₦80,000 What is the company's total departmental expenses?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 10
A company's manufacturing account for the year ended 31st December 2022 is as follows: Direct Materials: ₦150,000 Direct Labour: ₦100,000 Prime Cost: ₦250,000 Overheads: ₦50,000 What is the company's total cost of production?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 11
A company's profit for the year ended 31st December 2020 was ₦1,200,000. Its capital consisted of ₦500,000 in 10% preference shares and ₦700,000 in ordinary shares. The company paid a dividend of 10% on the preference shares. Calculate the dividend paid on the ordinary shares.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 12
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 13
A business uses the double-entry system of accounting. The company's ledger shows a debit of ₦80,000 to the asset account 'Machinery' and a credit of ₦80,000 to the expense account 'Depreciation'. What is the effect of this transaction on the company's net income?
A. Increase net income by ₦80,000
B. Decrease net income by ₦80,000
C. No effect on net income
D. Increase net income by ₦40,000
Question 14
A business uses the nature and principles of accounting. The company's accounting records show a revenue of ₦1,500,000 and an expense of ₦900,000. Calculate the company's net income.
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 15
A company has the following ledger accounts: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000

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