POST UTME NOUN 2021 Accounting | Objective

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Question 1
A company's depreciation policy is as follows: Straight-line method, 10% per annum. A machine was purchased for ₦100,000 and has a useful life of 5 years. Calculate the annual depreciation for the first year.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 2
A company uses the straight-line method of depreciation. A machine was purchased on 1st January 2020 for ₦100,000 and has a residual value of ₦20,000. Calculate the annual depreciation for the year.
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 3
A company's balance sheet as at 31st December 2020 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦300,000; Debtors: ₦150,000; Creditors: ₦100,000. Calculate the company's net worth.
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 4
A company keeps incomplete records and wants to prepare its financial statements. What is the correct procedure to follow?
A. Prepare a single entry system to record the transactions.
B. Use the cash book to prepare the financial statements.
C. Reconcile the cash book with the bank statement.
D. Contact the auditor to rectify the error.
Question 5
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦25,000
C. ₦26,000
D. ₦28,000
Question 6
A company's bank reconciliation statement for the year ended 31st December 2020 is as follows: Bank balance: ₦500,000; Cash in hand: ₦200,000. What is the company's cash balance at the end of the year?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 7
A company uses the cash book to record all its financial transactions. Which of the following is an example of a cash transaction?
A. Sale of goods on credit
B. Payment of salaries to employees
C. Purchase of office equipment on credit
D. Collection of cash from customers
Question 8
A company prepares its trial balance and discovers an error in the accounts. The error is due to a mistake in the recording of a transaction. What is the correct procedure to follow?
A. Prepare a revised trial balance to reflect the correct transaction.
B. Reconcile the trial balance with the ledger accounts.
C. Ignore the error and use the original trial balance.
D. Contact the auditor to rectify the error.
Question 9
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000, Debtors ₦200,000, Creditors ₦50,000. What is the company's net current assets?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 10
A company purchases a machine for ₦100,000. The machine has a useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation charge?
A. ₦15,000
B. ₦18,000
C. ₦20,000
D. ₦22,000
Question 11
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to outstanding checks totaling ₦20,000. What is the correct balance in the cash book?
A. ₦140,000
B. ₦160,000
C. ₦180,000
D. ₦200,000
Question 12
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Profit ₦150,000. What is the correct amount of Gross Profit?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 13
A company's cash book shows a balance of ₦300,000. The company's bank statement shows a balance of ₦320,000. What is the reason for the difference?
A. The company has a loan from a bank.
B. The company has made a deposit into a bank.
C. The company has written a cheque that has not yet been presented for payment.
D. The company has a credit card account with a bank.
Question 14
A company's balance sheet shows the following information: Total Assets ₦500,000, Total Liabilities ₦200,000, and Total Equity ₦300,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 15
A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦500,000; Liabilities: ₦800,000. What is the company's gearing ratio?
A. 1:2
B. 1:3
C. 1:4
D. 1:5

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