POST UTME MOUNTAIN TOP UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's assets are valued at ₦ 500,000. The company's liabilities are ₦ 200,000. What is the company's net worth?
A. ₦ 300,000
B. ₦ 400,000
C. ₦ 500,000
D. ₦ 600,000
Question 2
A public sector organization has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | ₦100,000 | | | 1 Jan | Cash paid to suppliers | | ₦80,000 | | 1 Jan | Cash paid to employees | | ₦20,000 | | 1 Jan | Cash received from government grant | ₦50,000 | | What is the total cash balance at the end of the first day?
A. ₦50,000
B. ₦70,000
C. ₦90,000
D. ₦110,000
Question 3
The following is a balance sheet:
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 4
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to record the payment?
A. ₦20,000 debit to Rent Expense, ₦20,000 credit to Cash
B. ₦20,000 debit to Cash, ₦20,000 credit to Rent Expense
C. ₦15,000 debit to Rent Expense, ₦20,000 credit to Cash
D. ₦20,000 debit to Rent Expense, ₦15,000 credit to Cash
Question 5
A company's cash book showed the following transactions:
A. Debit Cash ₦ 10,000, Credit Bank ₦ 10,000
B. Debit Bank ₦ 10,000, Credit Cash ₦ 10,000
C. Debit Cash ₦ 10,000, Credit Accounts Payable ₦ 10,000
D. Debit Accounts Payable ₦ 10,000, Credit Cash ₦ 10,000
Question 6
A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦15,000 in the account 'Purchases' and a credit balance of ₦10,000 in the account 'Sales'. What is the correct journal entry to record the transaction?
A. ₦15,000 debit to Sales and ₦10,000 credit to Purchases
B. ₦15,000 credit to Sales and ₦10,000 debit to Purchases
C. ₦15,000 debit to Purchases and ₦10,000 credit to Sales
D. ₦15,000 credit to Purchases and ₦10,000 debit to Sales
Question 7
A company's bank reconciliation statement showed a discrepancy of ₦ 1,000. The company's accountant suspected that the discrepancy was due to an error in the bank statement. The accountant prepared the following schedule to investigate the error:
A. The error is due to an error in the bank statement.
B. The error is due to an error in the bank reconciliation statement.
C. The error is due to an error in the accounting records.
D. The error is due to an error in the company's accounting system.
Question 8
A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accounting records show that it has declared a dividend of ₦15,000. What is the correct journal entry to record the dividend?
A. ₦15,000 debit to Dividends, ₦15,000 credit to Retained Earnings
B. ₦15,000 debit to Retained Earnings, ₦15,000 credit to Dividends
C. ₦20,000 debit to Dividends, ₦20,000 credit to Retained Earnings
D. ₦20,000 debit to Retained Earnings, ₦20,000 credit to Dividends
Question 9
A company's trial balance shows a debit balance of ₦120,000 in the account 'Accrued Expenses' and a credit balance of ₦80,000 in the account 'Accrued Income'. What is the correct journal entry to eliminate the discrepancy?
A. ₦40,000 debit to Accrued Expenses and ₦40,000 credit to Accrued Income
B. ₦20,000 debit to Accrued Expenses and ₦20,000 credit to Accrued Income
C. ₦80,000 debit to Accrued Expenses and ₦120,000 credit to Accrued Income
D. ₦120,000 debit to Accrued Expenses and ₦80,000 credit to Accrued Income
Question 10
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the company receives a cash payment of ₦10,000 for the issue of shares, what is the amount of share capital?
A. ₦10,000
B. ₦10,500
C. ₦11,000
D. ₦11,500
Question 11
A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦30,000 in the account 'Purchases' and a credit balance of ₦25,000 in the account 'Sales'. What is the correct journal entry to record the transaction?
A. ₦30,000 debit to Sales and ₦25,000 credit to Purchases
B. ₦30,000 credit to Sales and ₦25,000 debit to Purchases
C. ₦30,000 debit to Purchases and ₦25,000 credit to Sales
D. ₦30,000 credit to Purchases and ₦25,000 debit to Sales
Question 12
The trial balance of XYZ Ltd. shows the following balances:
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 13
A company's cash book shows the following transactions:
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 14
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over a period of 5 years. If the machine is expected to have a residual value of ₦50,000 at the end of the 5-year period, what is the annual depreciation charge?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 15
A firm has a cash book balance of ₦50,000. The bank statement shows a balance of ₦60,000. The firm's cash book shows a debit balance of ₦5,000. The bank statement shows a credit balance of ₦2,000. Calculate the correct cash balance.
A. ₦57,000
B. ₦58,000
C. ₦59,000
D. ₦55,000

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