POST UTME NOUN 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2019 shows a total equity of ₦5,000,000. The company's profit and loss account for the same period shows a net profit of ₦2,000,000. What is the amount of the company's retained earnings?
A. ₦2,000,000
B. ₦3,000,000
C. ₦4,000,000
D. ₦5,000,000
Question 2
A company has the following cash book transactions: Cash received from customers: ₦1,000,000; Cash paid to suppliers: ₦500,000; and Cash paid to employees: ₦200,000. What is the net cash inflow of the company?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?
A. ₦1,200
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 4
A company's trading account for the year ended 31st December 2019 shows a profit of ₦1,500,000. The company's profit and loss account for the same period shows a net profit of ₦2,000,000. What is the amount of the company's dividend paid to its shareholders?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 5
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance on the profit and loss account at the beginning of the year was ₦500,000. The company's balance sheet at the beginning of the year showed a capital of ₦5,000,000 and a profit and loss account balance of ₦500,000. The company's balance sheet at the end of the year shows a capital of ₦6,500,000 and a profit and loss account balance of ₦2,000,000. Calculate the company's profit for the year ended 31st December 2022.
A. ₦2,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦1,750,000
Question 6
A company issued 5,000 shares of 10% preference shares at a premium of 20% on the face value. The face value of each share is ₦10. Calculate the total premium received.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 7
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities.
B. Decreases assets and increases liabilities.
C. Increases liabilities and decreases equity.
D. Decreases liabilities and increases equity.
Question 8
A company has the following departmental accounts: Sales Department: ₦500,000; Marketing Department: ₦300,000; and Administration Department: ₦200,000. What is the total departmental cost of the company?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 9
A company's cash book shows a debit balance of ₦1,500,000. The company's bank statement for the same period shows a credit balance of ₦2,000,000. What is the amount of the company's bank overdraft?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 10
A company has the following incomplete records: Sales Revenue: ₦500,000; Cost of Goods Sold: ₦300,000; and Accounts Payable: ₦200,000. The company also has a single entry of ₦100,000 for 'Miscellaneous Expenses'. What is the net profit of the company?
A. ₦200,000
B. ₦250,000
C. ₦150,000
D. ₦100,000
Question 11
A company's cash book shows a debit balance of ₦1,500,000. The company's bank statement for the same period shows a credit balance of ₦2,000,000. What is the amount of the company's bank overdraft?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 12
A company uses the single-entry system of accounting. The company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?
A. ₦1,200
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 13
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 1st Jan | Bank | | 10,000 | | 15th Jan | Cash | | 5,000 | | 15th Jan | Bank | 5,000 | | | 31st Dec | Cash | | 15,000 | | 31st Dec | Bank | 15,000 | | The cash book balance is ₦5,000. What is the bank balance?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 14
A company uses the perpetual inventory system. On 1st January 2022, it had 500 units of a product in stock at a cost of ₦100 per unit. During the year, 300 units were sold at ₦200 per unit. On 31st December 2022, there were 200 units left in stock. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 15
A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?
A. ₦1,200
B. ₦1,500
C. ₦2,000
D. ₦2,500

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