POST UTME LEAD CITY UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions in its bank reconciliation statement:
A. The company has a credit balance in its bank account.
B. The company has a debit balance in its bank account.
C. The company has a zero balance in its bank account.
D. The company has a balance of ₦10,000 in its bank account.
Question 2
A company has a self-balancing ledger with the following accounts: Cash, Bank, Accounts Payable, and Common Stock. If the Cash account has a debit balance of ₦50,000 and the Bank account has a credit balance of ₦30,000, what is the net effect on the ledger?
A. The ledger will be in balance
B. The ledger will have a debit balance of ₦20,000
C. The ledger will have a credit balance of ₦20,000
D. The ledger will have a debit balance of ₦20,000
Question 3
A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labour and 1 hour of indirect labour, while product Y requires 1 hour of direct labour and 2 hours of indirect labour. If the company works 160 hours of direct labour and 240 hours of indirect labour, how many units of product X and product Y should the company produce?
A. 10 units of X and 20 units of Y
B. 20 units of X and 10 units of Y
C. 15 units of X and 25 units of Y
D. 25 units of X and 15 units of Y
Question 4
A company has the following transactions: purchase of goods (₦500,000), sale of goods (₦700,000), and purchase of equipment (₦300,000). What is the net profit of the company?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 5
A government agency has the following transactions: Revenue ₦500,000, Expenditure ₦400,000, and a transfer of ₦100,000 to a special fund. What is the agency's net surplus?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 6
A company uses the single-entry system. The following transactions were recorded: Cash received from customers ₦1,000,000, Cash paid to suppliers ₦800,000, and Cash paid to employees ₦600,000. What is the net cash inflow for the period?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 7
A company uses the double-declining balance method of depreciation for its assets. If the asset's cost is ₦100,000 and its useful life is 5 years, what is the annual depreciation expense?
A. ₦20,000
B. ₦15,000
C. ₦10,000
D. ₦5,000
Question 8
A partnership is dissolved when a partner withdraws from the business. What is the accounting treatment for the withdrawing partner's share of the profits?
A. ₦1250
B. ₦2500
C. ₦5000
D. ₦10000
Question 9
A company has the following balance sheet: assets (₦1,000,000), liabilities (₦500,000), and equity (₦500,000). What is the ratio of the equity to the total assets?
A. 1:2
B. 1:3
C. 1:4
D. 1:5
Question 10
In a public sector accounting system, what is the primary purpose of the 'Chart of Accounts'?
A. To record and classify all financial transactions
B. To prepare the annual budget
C. To monitor and control government expenditures
D. To prepare financial statements
Question 11
A company has a cash book balance of ₦250,000 and a bank statement balance of ₦300,000. The bank statement shows a credit balance of ₦20,000 for an outstanding cheque. The cash book shows a debit balance of ₦10,000 for an uncleared cheque. What is the correct balance of the company's cash account?
A. ₦270,000
B. ₦280,000
C. ₦290,000
D. ₦300,000
Question 12
A public sector organization has a cash book balance of ₦1,500,000 and a bank statement balance of ₦1,800,000. The bank statement includes a credit of ₦200,000 for a loan received from the government. The cash book, however, shows a debit of ₦150,000 for a loan repaid to the government. What is the correct balance of the cash book after reconciliation?
A. ₦1,350,000
B. ₦1,450,000
C. ₦1,550,000
D. ₦1,650,000
Question 13
A public sector organization has a budget of ₦1,500,000 for the year. The organization has the following expenses: salaries (₦800,000), rent (₦200,000), utilities (₦150,000), and miscellaneous (₦100,000). What is the percentage of the budget spent on salaries?
A. 50%
B. 60%
C. 40%
D. 30%
Question 14
A manufacturing company has the following data: direct materials used ₦1,000,000, direct labor cost ₦800,000, and overheads ₦600,000. What is the total cost of production?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
D. ₦3,000,000
Question 15
A company's trial balance shows an error of ₦5,000 in the accounts payable account. The correct amount is ₦15,000. What is the correct amount of accounts payable on the balance sheet?
A. ₦20,000
B. ₦15,000
C. ₦10,000
D. ₦5,000

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