POST UTME MOUNTAIN TOP UNIVERSITY 2017 Accounting | Objective

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Question 1
A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account, and the Assembly department has a balance of ₦80,000 in its WIP account. The company's total manufacturing cost for the period is ₦500,000. What is the total cost of goods manufactured (COGM) for the period?
A. ₦520,000
B. ₦540,000
Correct C. ₦560,000
D. ₦580,000

Correct Answer: C

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Question 2
A company uses a self-balancing ledger to account for its sales and purchases. The ledger 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
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 3
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
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 4
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
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 5
A company uses a double-entry system to account for its financial transactions. The company's journal 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
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 6
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.
Correct D. The company has a credit balance in its bank statement.

Correct Answer: D

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Question 7
A manufacturing company has the following ledger balances: Work-in-Progress (₦50,000), Finished Goods (₦30,000), and Cost of Goods Sold (₦20,000). What is the value of the company's inventory?
Correct A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000

Correct Answer: A

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Question 8
A company's trial balance shows the following balances: Accounts Payable (₦10,000), Accounts Receivable (₦5,000), and Sales Revenue (₦20,000). What is the correct journal entry to record the sale of goods on credit?
A. Debit Accounts Payable, Credit Sales Revenue
B. Debit Accounts Receivable, Credit Sales Revenue
C. Debit Sales Revenue, Credit Accounts Payable
Correct D. Debit Sales Revenue, Credit Accounts Receivable

Correct Answer: D

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Question 9
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.
Correct C. The company has a debit balance in its bank statement.
D. The company has a credit balance in its cash book.

Correct Answer: C

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Question 10
A company's financial statements show the following balances: Trading Profit (₦30,000), Non-Trading Income (₦10,000), and Total Assets (₦50,000). What is the correct explanation for the company's financial position?
Correct A. The company has a strong financial position.
B. The company has a weak financial position.
C. The company has a stable financial position.
D. The company has a declining financial position.

Correct Answer: A

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 12
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
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

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Question 13
A company's manufacturing account showed an abnormal loss of ₦20,000. The company's cost of goods sold is ₦500,000. What is the abnormal gain or loss?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 14
A company's single entry system showed an increase in the cash account of ₦15,000 and a decrease in the accounts payable account of ₦10,000. What is the net increase in the company's assets?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 15
A company's control account showed a balance of ₦50,000. The company's ledger account showed a balance of ₦60,000. What is the difference between the two balances?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 16
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Debtors: ₦150,000 Stock: ₦200,000 Bills Receivable: ₦50,000 Bills Payable: ₦30,000 Accrued Expenses: ₦20,000 Bank: ₦100,000 What is the total amount of the company's assets as at 31st December 2022?
Correct A. ₦520,000
B. ₦620,000
C. ₦720,000
D. ₦820,000

Correct Answer: A

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Question 17
A company uses the double-entry system of accounting. The company's journal entries for the year ended 31st December 2022 are as follows: Debit: ₦100,000 (Purchase of Equipment) Credit: ₦100,000 (Bank) Debit: ₦50,000 (Wages) Credit: ₦50,000 (Accrued Expenses) What is the total amount of the company's assets as at 31st December 2022?
A. ₦150,000
Correct B. ₦250,000
C. ₦350,000
D. ₦450,000

Correct Answer: B

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Question 18
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
Correct B. ₦250,000
C. ₦350,000
D. ₦450,000

Correct Answer: B

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Question 19
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
Correct B. ₦250,000
C. ₦350,000
D. ₦450,000

Correct Answer: B

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Question 20
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
Correct B. ₦250,000
C. ₦350,000
D. ₦450,000

Correct Answer: B

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Question 21
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. What is the company's total assets as at 31st December 2022?
Correct A. ₦5,500,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦6,500,000

Correct Answer: A

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Question 22
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 1,000 | What is the company's cash balance as at 31st December 2022?
A. ₦1,000
B. ₦500
Correct C. ₦0
D. ₦1,500

Correct Answer: C

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Question 23
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
Correct D. ₦7,000

Correct Answer: D

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Question 24
A company's double entry system shows the following ledger accounts: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1,000 | | | Bank | | 500 | | Non-current Asset | 2,000 | | What is the total value of the company's assets as at 31st December 2022?
A. ₦4,000
B. ₦5,000
C. ₦6,000
Correct D. ₦7,000

Correct Answer: D

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Question 25
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%
Correct B. 20%
C. 25%
D. 30%

Correct Answer: B

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