POST UTME MOUNTAIN TOP UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of 10 par value common stock at 15 per share. What is the amount of cash received from the sale of the shares?
A. ₦15,000
B. ₦10,000
C. ₦1,000
D. ₦15,000,000
Question 2
A company's trial balance as at 31 Dec shows the following: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Purchases | | ₦120,000 | | Wages | ₦20,000 | | | Rent | | ₦30,000 | | Capital | | ₦150,000 | Identify the error in the trial balance and state the correct balance.
A. Sales = ₦80,000
B. Purchases = ₦100,000
C. Wages = ₦30,000
D. Rent = ₦20,000
Question 3
A company's cash book shows the following transactions: Cash received from customers ₦20,000, Cash paid to suppliers ₦10,000, Cash received from bank ₦5,000. What is the correct journal entry to record these transactions?
A. Debit Cash A/c ₦25,000, Credit Bank A/c ₦5,000
B. Debit Cash A/c ₦20,000, Credit Suppliers A/c ₦10,000
C. Debit Cash A/c ₦25,000, Credit Customers A/c ₦20,000
D. Debit Bank A/c ₦5,000, Credit Cash A/c ₦5,000
Question 4
A government agency uses the cash basis of accounting. The agency receives ₦100,000 in cash and spends ₦80,000 on expenses. What is the net increase in cash?
A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 5
A company uses the single-entry system of accounting. The cash book shows a balance of ₦80,000. However, the ledger shows a balance of ₦120,000. What is the likely reason for the discrepancy?
A. The company has not recorded a bank loan.
B. The company has not recorded a bank overdraft.
C. The company has not recorded a bank deposit.
D. The company has not recorded a bank withdrawal.
Question 6
A company has the following transactions: Sale of goods for ₦150,000 Purchase of goods for ₦120,000 Payment of salaries for ₦30,000 What is the total amount of revenue for the year?
A. ₦180,000
B. ₦150,000
C. ₦120,000
D. ₦180,000
Question 7
A manufacturing 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 1 hour of direct labor and 2 hours of indirect labor. If the company produces 100 units of Product A and 50 units of Product B, what is the total direct labor cost?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 8
A company maintains a cash book and a general ledger. The cash book shows a debit balance of ₦10,000, while the general ledger shows a credit balance of ₦5,000. What is the correct journal entry to reconcile the two accounts?
A. Debit Cash A/c ₦15,000, Credit Bank A/c ₦5,000
B. Debit Cash A/c ₦15,000, Credit Bank A/c ₦10,000
C. Debit Cash A/c ₦10,000, Credit Bank A/c ₦5,000
D. Debit Cash A/c ₦5,000, Credit Bank A/c ₦10,000
Question 9
A company's departmental accounts for the year ended 31 December 2023 are as follows: Sales: ₠ 500,000 Purchases: ₠ 350,000 Calculate the gross profit.
A. ₠ 150,000
B. ₠ 170,000
C. ₠ 190,000
D. ₠ 210,000
Question 10
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 11
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000; Accounts Payable ₦50,000; and Common Stock ₦200,000. What is the total equity of the company?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 12
A company's trading account for the year ended 31 December 2023 is as follows: Debtors: ₠ 50,000 Creditors: ₠ 30,000 Sales: ₠ 500,000 Purchases: ₠ 350,000 Calculate the net profit for the year.
A. ₠ 120,000
B. ₠ 140,000
C. ₠ 160,000
D. ₠ 180,000
Question 13
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the likely reason for the discrepancy?
A. The company has not recorded a bank loan.
B. The company has not recorded a bank overdraft.
C. The company has not recorded a bank deposit.
D. The company has not recorded a bank withdrawal.
Question 14
A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies'. However, the company's accounting records show that the office supplies were valued at ₦20,000 at the end of the year. What is the correct journal entry to record the correction?
A. ₦15,000 debit to Office Supplies and ₦20,000 credit to Office Supplies
B. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Supplies
C. ₦20,000 debit to Office Supplies and ₦15,000 credit to Office Supplies
D. ₦15,000 credit to Office Supplies and ₦20,000 debit to Office Supplies
Question 15
A company purchases a machine for ₦50,000 and depreciates it using the straight-line method over a 5-year useful life. What is the annual depreciation expense?
A. ₦10,000
B. ₦5,000
C. ₦20,000
D. ₦15,000

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