POST UTME NILE UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchases a machine for ₦150,000. The machine has an estimated useful life of 4 years and a residual value of ₦15,000. Calculate the annual depreciation using the straight-line method.
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 2
A company's profit and loss account for the year ended 31st December 2022 is as follows: Trading Profit: ₦500,000 Interest: ₦100,000 Dividend: ₦50,000 Total Profit: ₦650,000 What is the company's net profit?
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 3
A company uses the self-balancing ledger system. The ledger shows a balance of ₦100,000 on December 31. However, the trial balance shows a balance of ₦120,000 on the same date. What is the reason for the difference?
A. The company has a loan from a shareholder.
B. The company has a deposit in a bank.
C. The company has a credit card balance.
D. The company has a debit card balance.
Question 4
A company's trading account for the year ended 31st December 20X7 is as follows: Sales: ₦ 500,000 Returns outwards: ₦ 20,000 Returns inwards: ₦ 10,000 Cost of goods sold: ₦ 300,000 Opening stock: ₦ 50,000 Closing stock: ₦ 70,000 Calculate the gross profit for the year.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000
Question 5
A company issues 5,000 shares of ₦10 each at a premium of ₦3 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 6
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 7
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, and Paid rent for ₦20,000. What is the total amount of cash outflows for the company?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 8
A company uses the self-balancing ledger system. What is the advantage of this system?
A. It reduces the risk of errors in recording transactions.
B. It increases the risk of errors in recording transactions.
C. It reduces the time taken to prepare the trial balance.
D. It increases the time taken to prepare the trial balance.
Question 9
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit-sharing ratio of the partnership?
A. 3:2
B. 5:3
C. 3:5
D. 2:3
Question 10
A company has the following bank reconciliation statement: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from sale of goods | 10,000 | | | 2 Jan | Purchase of office supplies | | 2,000 | | 3 Jan | Cash paid to employees | | 8,000 | What is the total amount of cash paid to employees?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 11
A company has the following trial balance: Debit: ₦50,000, Credit: ₦60,000. What is the correct balance sheet equation?
A. Assets = Liabilities + Capital
B. Assets = Liabilities - Capital
C. Assets - Liabilities = Capital
D. Assets + Liabilities = Capital
Question 12
A company's control account shows a balance of ₦200,000. However, the ledger account shows a balance of ₦250,000. What is the reason for the difference?
A. The company has made a mistake in recording the transactions.
B. The ledger account has been incorrectly balanced.
C. The control account has been incorrectly balanced.
D. The company has made a mistake in preparing the trial balance.
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 reason for the difference?
A. The company has made a mistake in recording the cash transactions.
B. The bank has made a mistake in recording the cash transactions.
C. The company has deposited cash into the bank but has not recorded it.
D. The company has withdrawn cash from the bank but has not recorded it.
Question 14
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were issued at ₦ 3 each. Calculate the amount received from the issue of shares.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 15
A company has the following transactions: Purchased goods for ₦20,000 on credit, Sold goods for ₦30,000 on credit, and Paid cash of ₦10,000 to a creditor. What is the total amount of cash paid to creditors?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

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