POST UTME NILE UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 shares of its common stock at a par value of ₦10 per share. If the company also issued 2,000 shares of its preferred stock at a par value of ₦20 per share, what is the total par value of the company's issued stock?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 2
A company uses the accrual basis of accounting. The company has a revenue of ₦500,000 and an expense of ₦200,000. If the company also has a prepaid expense of ₦50,000, what is the net income?
A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 3
A company's trial balance shows a debit balance of ₦20,000 in the account 'Office Equipment'. However, the company's accountant has confirmed that the correct balance should be a credit of ₦10,000. What is the correct journal entry to rectify this error?
A. ₦20,000 debit to Office Equipment, ₦10,000 credit to Office Equipment
B. ₦30,000 debit to Office Equipment, ₦20,000 credit to Office Equipment
C. ₦10,000 debit to Office Equipment, ₦20,000 credit to Office Equipment
D. ₦20,000 credit to Office Equipment, ₦10,000 debit to Office Equipment
Question 4
A company uses the double-entry system to record transactions. The company's journal entry for the sale of merchandise on January 25, 2023, is as follows: Debit Sales 10,000 and Credit Accounts Receivable 10,000. What is the effect of this transaction on the company's balance sheet?
A. ₦10,000 increase in assets and ₦10,000 increase in liabilities
B. ₦10,000 increase in assets and ₦10,000 decrease in liabilities
C. ₦10,000 decrease in assets and ₦10,000 decrease in liabilities
D. ₦10,000 increase in liabilities and ₦10,000 decrease in assets
Question 5
A manufacturing company uses a job costing system. The company has two departments, A and B. Department A produces raw materials for Department B. The raw materials produced by Department A cost ₦100,000 and are transferred to Department B. If Department B incurs a direct labor cost of ₦150,000 and an overhead cost of ₦50,000, what is the total cost of the product?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 6
A partnership is formed between three partners, A, B, and C, who contribute £ 15,000, £ 12,000, and £ 9,000 respectively. The profit-sharing ratio is 4:3:2. Calculate the amount of profit to be shared by partner A.
A. £ 6,000
B. £ 6,500
C. £ 7,000
D. £ 7,500
Question 7
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the profit for the year is ₦120,000, how much will A receive?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 8
A company uses the double-entry system to record transactions. The company's journal entry for the purchase of equipment on January 1, 2023, is as follows: Debit Equipment 10,000 and Credit Cash 10,000. What is the effect of this transaction on the company's balance sheet?
A. ₦10,000 increase in assets and ₦10,000 decrease in liabilities
B. ₦10,000 increase in assets and ₦10,000 increase in liabilities
C. ₦10,000 decrease in assets and ₦10,000 decrease in liabilities
D. ₦10,000 increase in liabilities and ₦10,000 decrease in assets
Question 9
A company uses the double-entry system to record transactions. The company's trial balance shows the following balances: Accounts Payable 10,000, Accounts Receivable 8,000, Common Stock 50,000, and Retained Earnings 20,000. What is the total amount of assets on the balance sheet?
A. ₦18,000
B. ₦28,000
C. ₦38,000
D. ₦48,000
Question 10
A partnership is formed between two individuals, A and B, with a capital of ₦1,000,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦500,000, how much will A receive?
A. ₦450,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 11
A company uses the self-balancing ledger system. The ledger has two accounts, A and B. Account A has a debit balance of ₦100,000 and account B has a credit balance of ₦50,000. If a transaction is posted that increases account A by ₦20,000 and decreases account B by ₦10,000, what is the new balance of account A?
A. ₦120,000
B. ₦110,000
C. ₦100,000
D. ₦90,000
Question 12
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1000 | | | Bank | | 500 | | Sales | | 2000 | | Purchases | 1500 | | | Capital | | 3000 | Prepare the ledger accounts for the above transactions.
A. Cash: 1000, Bank: 500, Sales: 2000, Purchases: 1500, Capital: 3000
B. Cash: 500, Bank: 1000, Sales: 1500, Purchases: 2000, Capital: 3000
C. Cash: 1000, Bank: 500, Sales: 1500, Purchases: 2000, Capital: 3000
D. Cash: 500, Bank: 1000, Sales: 2000, Purchases: 1500, Capital: 3000
Question 13
A company issued 10,000 shares of its common stock at a par value of ₦5 per share. If the company also issued 5,000 shares of its preferred stock at a par value of ₦10 per share, what is the total par value of the company's issued stock?
A. ₦75,000
B. ₦100,000
C. ₦125,000
D. ₦150,000
Question 14
A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Equipment'. However, the company's accountant has confirmed that the correct balance should be a credit of ₦5,000. What is the correct journal entry to rectify this error?
A. ₦15,000 debit to Office Equipment, ₦5,000 credit to Office Equipment
B. ₦20,000 debit to Office Equipment, ₦15,000 credit to Office Equipment
C. ₦5,000 debit to Office Equipment, ₦15,000 credit to Office Equipment
D. ₦15,000 credit to Office Equipment, ₦5,000 debit to Office Equipment
Question 15
A company uses the double-entry system to record transactions. The company's journal entry for the sale of merchandise on January 15, 2023, is as follows: Debit Sales 5,000 and Credit Accounts Receivable 5,000. What is the effect of this transaction on the company's balance sheet?
A. ₦5,000 increase in assets and ₦5,000 increase in liabilities
B. ₦5,000 increase in assets and ₦5,000 decrease in liabilities
C. ₦5,000 decrease in assets and ₦5,000 decrease in liabilities
D. ₦5,000 increase in liabilities and ₦5,000 decrease in assets

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