POST UTME MOUNTAIN TOP UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following balance sheet: Assets 100,000, Liabilities 50,000, and Equity 50,000. Calculate the current ratio.
A. 2:1
B. 1:1
C. 1:2
D. 3:1
Question 2
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2. The shares were issued for ₦8 each. Calculate the amount received from the issue of shares.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 3
A company has the following balance sheet: Assets: ₦1,500,000; Liabilities: ₦500,000; Equity: ₦1,000,000. Calculate the current ratio.
A. 3:1
B. 2:1
C. 1:1
D. 1:2
Question 4
A company's trading account for the year ended December 31, 2022, shows a profit of ₦1,500,000. The balance sheet as at December 31, 2022, shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. The company's equity as at December 31, 2022, is ₦6,500,000. What is the amount of the company's current asset?
A. ₦1,000,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 5
A manufacturing company uses a job costing system. The company incurred the following costs in producing a batch of goods: direct materials 10,000, direct labor 15,000, and overhead 20,000. The company sold the goods for 60,000. Calculate the gross profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company has the following transactions: Purchased office equipment for ₦50,000, paid salaries ₦30,000, and received cash from customers ₦20,000. Prepare the cash book for these transactions.
A. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Salaries ₦30,000, Credit Cash ₦30,000
C. Debit Cash ₦20,000, Credit Customers ₦20,000
D. Debit Office Equipment ₦50,000, Credit Salaries ₦30,000
Question 7
A company's balance sheet showed a decrease in assets and an increase in liabilities. What is the effect of this on the company's equity?
A. Increase in equity
B. Decrease in equity
C. No effect on equity
D. Increase in liabilities and decrease in equity
Question 8
A company's cash book showed a balance of ₦50,000. However, the bank statement showed a balance of ₦60,000. What is the reason for this discrepancy?
A. Bank charges
B. Interest on overdraft
C. Cheques deposited but not yet credited
D. Cheques issued but not yet debited
Question 9
A company's balance sheet showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. Prepare a statement of cash flows for the company.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 10
A company purchased a machine for ₦120,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 11
A company's balance sheet as at December 31, 2022, shows a non-current liability of ₦5,000,000 and a non-current asset of ₦3,000,000. What is the amount of the company's net current asset?
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦5,000,000
Question 12
A partnership has the following capital accounts: Partner A: ₦500,000; Partner B: ₦300,000; Partner C: ₦200,000. If Partner A withdraws ₦50,000 and Partner B invests an additional ₦20,000, what is the new capital balance for each partner?
A. Partner A: ₦450,000; Partner B: ₦320,000; Partner C: ₦200,000
B. Partner A: ₦450,000; Partner B: ₦320,000; Partner C: ₦220,000
C. Partner A: ₦450,000; Partner B: ₦320,000; Partner C: ₦200,000
D. Partner A: ₦450,000; Partner B: ₦340,000; Partner C: ₦220,000
Question 13
A company has the following trading account: Sales: ₦2,000,000; Cost of goods sold: ₦1,500,000. Calculate the gross profit.
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 14
A company has the following trial balance: Sales 100,000, Cost of Goods Sold 60,000, and Net Income 40,000. Calculate the gross profit.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company has the following ledger balances: Cash ₦50,000, Office Equipment ₦30,000, and Salaries ₦20,000. Prepare the trial balance.
A. Cash ₦50,000, Office Equipment ₦30,000, Salaries ₦20,000
B. Cash ₦50,000, Office Equipment ₦20,000, Salaries ₦30,000
C. Cash ₦30,000, Office Equipment ₦50,000, Salaries ₦20,000
D. Cash ₦50,000, Office Equipment ₦30,000, Salaries ₦30,000

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