POST UTME NILE UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet showed the following balances: Assets ₦200,000, Liabilities ₦100,000, Capital ₦100,000. What is the company's net worth?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 2
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease
Question 3
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit for the year is ₦20,000. Prepare the profit and loss account for the partnership.
A. Profit: ₦20,000; Loss: ₦0
B. Profit: ₦30,000; Loss: ₦0
C. Profit: ₦20,000; Loss: ₦10,000
D. Profit: ₦0; Loss: ₦20,000
Question 4
A company has an asset valued at ₦100,000. If the asset is depreciated by 20% per annum using the straight-line method, calculate the amount of depreciation for the first year.
A. ₦20,000
B. ₦15,000
C. ₦10,000
D. ₦5,000
Question 5
A company's ledger accounts show the following balances:
A. Debit 10,000 and Credit 10,000
B. Credit 10,000 and Debit 10,000
C. Debit 5,000 and Credit 5,000
D. Credit 5,000 and Debit 5,000
Question 6
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders and the amount of discount.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000
Question 7
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease
Question 8
A company uses the double-entry system of accounting. The following transactions were recorded during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000
Question 9
A company issues 5,000 8% preference shares of ₦50 each at a premium of ₦10 per share. Calculate the amount received from the issue of preference shares.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 10
A company's manufacturing costs for the year are as follows:
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 11
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease
Question 12
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000
Question 13
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum using the straight-line method. Calculate the amount of depreciation for the first year.
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000
Question 14
A company prepares its final accounts for the year ended 31st December 2020. The trading account shows a profit of ₦200,000. The profit and loss account shows a profit of ₦250,000. What is the correct explanation for the difference?
A. The company has made an error in its trading account.
B. The company has made an error in its profit and loss account.
C. The company has made an error in its balance sheet.
D. The company has made an error in its cash flow statement.
Question 15
A company's self-balancing ledger shows the following balances:
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

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