POST UTME MOUNTAIN TOP UNIVERSITY 2017 Accounting | Objective

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Question 1
A company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while Product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and operates 5 days a week, how many units of Product A and Product B should the company produce per week to maximize profit, given that the selling price of Product A is ¡ 100 and the selling price of Product B is ¡ 150?
A. Product A: 200 units, Product B: 150 units
B. Product A: 150 units, Product B: 200 units
C. Product A: 250 units, Product B: 100 units
D. Product A: 100 units, Product B: 250 units
Question 2
A company's trial balance showed an error of ₦10,000 in the debit side of the sales account. The correct balance of the sales account is ₦150,000. What is the correct balance of the purchases account?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 3
A partnership between two individuals, A and B, shows the following balance sheet as at 31st December 2022: | Asset | A | B | | --- | --- | --- | | Cash | 1,000 | 500 | | Bank | | 1,000 | | Non-current Asset | 2,000 | 1,000 | What is the total value of the partnership's assets as at 31st December 2022?
A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦7,000
Question 4
A company uses a trial balance to account for its financial transactions. The trial balance has the following accounts: Sales, Purchases, Cost of Goods Sold, and Gross Profit. The company's sales for the period are ₦1,200,000, and its purchases for the period are ₦900,000. The company's cost of goods sold for the period is ₦600,000. What is the company's gross profit for the period?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 5
A company uses the single-entry system of accounting. The company's trial balance as at December 31, 2022, shows the following balances: Cash ¡ 1,500,000, Accounts Receivable ¡ 800,000, Inventory ¡ 2,000,000, Prepaid Rent ¡ 150,000, and Accumulated Depreciation ¡ 300,000. Prepare the company's balance sheet as at December 31, 2022.
A. Assets ¡ 4,450,000, Liabilities ¡ 0, Equity ¡ 4,450,000
B. Assets ¡ 4,550,000, Liabilities ¡ 0, Equity ¡ 4,550,000
C. Assets ¡ 4,450,000, Liabilities ¡ 0, Equity ¡ 4,550,000
D. Assets ¡ 4,550,000, Liabilities ¡ 0, Equity ¡ 4,450,000
Question 6
A company's bank reconciliation statement shows the following discrepancies: NSF checks (₦5,000), outstanding deposits (₦3,000), and bank errors (₦2,000). What is the correct explanation for the discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank statement.
C. The company has a debit balance in its bank statement.
D. The company has a credit balance in its cash book.
Question 7
A company uses the double-entry system of accounting. The company's ledger accounts for the year ended 31st December 2022 are as follows: Bank: Debit: ₦100,000 Credit: ₦100,000 Accrued Expenses: Debit: ₦50,000 Credit: ₦50,000 What is the total amount of the company's assets as at 31st December 2022?
A. ₦150,000
B. ₦250,000
C. ₦350,000
D. ₦450,000
Question 8
A company's ledger account for 'Sales' shows a balance of ₦40,000. The company's trial balance shows a debit balance of ₦30,000 in the account 'Cost of Goods Sold' and a credit balance of ₦10,000 in the account 'Sales'. What is the correct journal entry to correct this discrepancy?
A. ₦10,000 debit to Cost of Goods Sold and ₦10,000 credit to Sales
B. ₦30,000 debit to Cost of Goods Sold and ₦10,000 credit to Sales
C. ₦10,000 debit to Sales and ₦10,000 credit to Cost of Goods Sold
D. ₦30,000 debit to Cost of Goods Sold and ₦30,000 credit to Sales
Question 9
A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset is valued at ₦100,000, what will be its value after 5 years?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 10
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the annual charge for interest on the debentures.
A. ₦50,000
B. ₦50,500
C. ₦51,000
D. ₦51,500
Question 11
A company's trial balance shows a debit balance of ₦5,000 in the account 'Rent Received' and a credit balance of ₦3,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. ₦2,000 debit to Rent Received and ₦2,000 credit to Rent Paid
B. ₦2,000 debit to Rent Paid and ₦2,000 credit to Rent Received
C. ₦1,000 debit to Rent Received and ₦1,000 credit to Rent Paid
D. ₦1,000 debit to Rent Paid and ₦1,000 credit to Rent Received
Question 12
A company uses a cash book to account for its cash transactions. The cash book has the following accounts: Cash, Bank, and Petty Cash. The company's cash balance at the beginning of the period is ₦50,000, and its cash balance at the end of the period is ₦100,000. The company's bank balance at the beginning of the period is ₦200,000, and its bank balance at the end of the period is ₦300,000. What is the company's net cash inflow for the period?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 13
A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦20,000. What is the correct explanation for the discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its cash book.
C. The company has a debit balance in its bank statement.
D. The company has a credit balance in its bank statement.
Question 14
A public sector organization's financial statement shows the following: | Revenue | ₦1,000,000 | | Expenditure | ₦800,000 | | Surplus | ₦200,000 | What is the organization's surplus as a percentage of its revenue?
A. 10%
B. 20%
C. 25%
D. 30%
Question 15
A partnership is formed between two partners, A and B, with a capital of ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be shared by partner A.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

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