POST UTME OAU 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows an error of ₦15,000 in the debit side of the account 'Office Equipment'. If the correct balance is ₦45,000, what is the correct balance in the credit side of the account 'Office Equipment'?
A. ₦60,000
B. ₦45,000
C. ₦30,000
D. ₦60,000
Question 2
A company has the following trial balance: Assets ₦100,000, Liabilities ₦80,000, Capital ₦20,000. What is the amount of the company's equity?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 3
A manufacturing company uses the process costing method. The following data are given: Opening work-in-progress (WIP) inventory: ₦150,000; Direct materials: ₦300,000; Direct labor: ₦250,000; Factory overhead: ₦200,000. Calculate the total cost of production.
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 4
A company has the following ledger accounts: Cash 10,000; Accounts Payable 5,000; Common Stock 20,000. What is the total amount of equity?
A. 25,000
B. 30,000
C. 35,000
D. 40,000
Question 5
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Collected cash from customers of ₦30,000. What is the net effect on the company's cash balance?
A. ₦10,000 increase
B. ₦20,000 increase
C. ₦30,000 decrease
D. ₦40,000 decrease
Question 6
A company's balance sheet shows the following items: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the total amount of liabilities?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 7
A company's trial balance shows the following accounts: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, and Common Stock ₦100,000. What is the total amount of assets?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 8
A government agency is required to prepare a statement of cash flows. The following transactions were recorded in the cash book: ₦10,000 received from customers, ₦5,000 paid to suppliers, ₦3,000 paid to employees, ₦2,000 received from investors, ₦1,000 paid to the bank. What is the net increase in cash for the period?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 9
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records indicate that the actual rent paid for the year was ₦20,000. What is the correct journal entry to record the adjustment?
A. ₦5,000 debit to 'Rent and Rates' and ₦5,000 credit to 'Profit or Loss'
B. ₦5,000 debit to 'Profit or Loss' and ₦5,000 credit to 'Rent and Rates'
C. ₦20,000 debit to 'Rent and Rates' and ₦20,000 credit to 'Profit or Loss'
D. ₦15,000 debit to 'Rent and Rates' and ₦15,000 credit to 'Profit or Loss'
Question 10
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. If the machine is depreciated over a period of 5 years, what is the annual depreciation charge?
A. ₦90,000
B. ₦95,000
C. ₦100,000
D. ₦105,000
Question 11
A company's balance sheet shows an increase in its current assets of ₦500,000 and a decrease in its current liabilities of ₦200,000. What is the net increase in the company's working capital?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 12
In a public sector accounting system, what is the primary purpose of the 'Chart of Accounts'?
A. To provide a detailed description of the organization's financial activities
B. To facilitate the preparation of financial statements
C. To enable the identification of assets, liabilities, and equity
D. To provide a framework for budgeting and financial planning
Question 13
A company issues 1,000 shares of 10 par value at a premium of 5 per share. What is the total amount received from the sale of these shares?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 14
A partnership has two partners, A and B. A invested ₦0,000 and B invested ₣0,000. The profit-sharing ratio is 3:2. Calculate the profit share of A.
A. ₡2,000
B. ₡5,000
C. ₡8,000
D. ₢1,000
Question 15
A company's trading account shows the following: Sales ₦100,000, Cost of Goods Sold ₦80,000, Gross Profit ₦20,000. What is the company's gross profit percentage?
A. 20%
B. 25%
C. 30%
D. 35%

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