POST UTME MOUNTAIN TOP UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a capital of ₦2,000,000 and a reserve of ₦1,000,000. Calculate the ratio of capital to reserve.
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 2
A company has the following trial balance: Debitors: ₦100,000; Creditors: ₦80,000; Capital: ₦120,000. What is the total amount of assets?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 3
A partnership consists of three partners, A, B, and C. Their capital accounts are ₦100,000, ₦150,000, and ₦200,000 respectively. If the profit for the year is ₦50,000, and the profit-sharing ratio is 2:3:4, calculate the amount of profit to be distributed to each partner.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 4
A company has the following incomplete records: Cash, Accounts Receivable, and Accounts Payable. If the balance in the Cash account is ₦30,000, and the balance in the Accounts Payable account is ₦15,000, what is the total amount of assets and liabilities in the company?
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 5
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00
Question 6
A company uses the straight-line method of depreciation for its assets. The asset has a cost of ₦50,000 and a useful life of 5 years. The company uses a depreciation rate of 10% per annum. Calculate the annual depreciation charge for the asset
A. ₦5,000
B. ₦10,000
C. ₦12,500
D. ₦15,000
Question 7
A company's trial balance shows a discrepancy of ₦5,000. The accountant suspects an error in the posting of a transaction. The transaction involved the sale of goods for ₦20,000, with a discount of 5%. The error is likely to be in the
A. posting of the sales revenue
B. posting of the discount allowed
C. posting of the sales returns
D. posting of the cash received from customers
Question 8
A company purchases a building for ₦500,000 and depreciates it using the reducing-balance method. If the rate of depreciation is 10% per annum, what is the value of the building after 3 years?
A. ₦300,000
B. ₦320,000
C. ₦340,000
D. ₦360,000
Question 9
A company's financial statements show the following information: Net Income ₦50,000, Dividends ₦20,000, and Retained Earnings ₦30,000. What is the new balance of Retained Earnings?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 10
A company has a profit of ₦500,000 and a tax rate of 25%. Calculate the amount of tax payable.
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 11
Determine the amount of depreciation for a machine with an initial value of ₦250,000, a residual value of ₦50,000, and a useful life of 5 years, assuming a straight-line method of depreciation.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 12
A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding cheque that has not been presented for payment.
B. The company has deposited cash into the bank but has not yet credited the cash book.
C. The company has written a cheque that has not yet been presented for payment.
D. The company has made an error in the cash book.
Question 13
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦80,400
B. ₦84,000
C. ₦88,800
D. ₦92,400
Question 14
In a partnership account, the capital of a partner is increased by ₦50,000. The partner's drawings for the year are ₦20,000. The partner's share of profit is ₦30,000. What is the partner's new capital balance?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 15
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. The company's accountant has identified the following errors: (i) a journal entry of ₦10,000 was posted twice, (ii) a journal entry of ₦8,000 was posted incorrectly as a debit instead of a credit, and (iii) a journal entry of ₦12,000 was posted incorrectly as a credit instead of a debit. What is the correct adjustment to be made to the trial balance?
A. ₦5,000
B. ₦10,000
C. ₦8,000
D. ₦12,000

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