POST UTME OAU 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership has two partners, A and B. The partnership agreement states that profits and losses are to be shared in the ratio 3:2. If the partnership makes a profit of ₦120,000, how much will each partner receive?
A. ₦60,000 and ₦40,000
B. ₦90,000 and ₦30,000
C. ₦72,000 and ₦48,000
D. ₦80,000 and ₦40,000
Question 2
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,800,000; Capital: ₦700,000. Calculate the ratio of capital to liabilities.
A. 1:1
B. 2:3
C. 3:5
D. 5:8
Question 3
A company's cash book shows a credit balance of ₦10,000 in the 'Cash' account. However, the company's bank statement shows a debit balance of ₦5,000. What is the most likely explanation for this discrepancy?
A. The company has deposited cash into its bank account.
B. The company has withdrawn cash from its bank account.
C. The company has made a bank error.
D. The company has not recorded a bank transaction.
Question 4
A company has the following transactions in its bank reconciliation statement: Debit: - Bank 1,000 - Cash 500 Credit: - Bank 1,500 What is the net effect of these transactions on the bank balance?
A. 1,000
B. 500
C. 1,500
D. 0
Question 5
A company's cash book for the year ended 31st December 2022 is as follows: Cash at Bank: ₦500,000; Cash in Hand: ₦200,000; Bank Overdraft: ₦300,000. Calculate the total cash and bank balance.
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 6
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦30,000. What is the company's net cash inflow?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 7
A company uses the job order costing method. The following information is available for the month of January: Direct Materials: - January 1: 10,000 - January 31: 15,000 Direct Labor: - January 1: 8,000 - January 31: 12,000 Manufacturing Overhead: - January 1: 6,000 - January 31: 9,000 What is the total cost of direct materials, direct labor, and manufacturing overhead for January?
A. 40,000
B. 50,000
C. 60,000
D. 70,000
Question 8
A company's balance sheet shows the following accounts: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's liquidity ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 9
A company's accounting records showed a debit balance of ₦30,000 in the account 'Purchases Returns'. The company's accounting policy requires that purchases returns be treated as a deduction from purchases. What is the correct journal entry to correct the error?
A. Debit Purchases Returns, Credit Purchases
B. Debit Purchases, Credit Purchases Returns
C. Debit Purchases, Credit Purchases Returns and Cost of Goods Sold
D. Debit Purchases Returns, Credit Cost of Goods Sold
Question 10
A company has the following transactions in its public sector accounting system: Debit: - Cash 1,000 - Bank 500 Credit: - Bank 1,500 What is the net effect of these transactions on the bank balance?
A. 1,000
B. 500
C. 1,500
D. 0
Question 11
A company's trial balance showed a debit balance of ₦50,000 in the account 'Sales Returns'. The company's accounting policy requires that sales returns be treated as a deduction from sales revenue. What is the correct journal entry to correct the error?
A. Debit Sales Returns, Credit Sales
B. Debit Sales, Credit Sales Returns
C. Debit Sales, Credit Sales Returns and Profit
D. Debit Sales Returns, Credit Profit
Question 12
A manufacturing company uses a job costing system. The following information is available for Job No. 123: Materials: ₦120,000; Labour: ₦80,000; Overheads: ₦60,000. Calculate the total cost of the job.
A. ₦260,000
B. ₦270,000
C. ₦280,000
D. ₦290,000
Question 13
A company's balance sheet shows a current ratio of 2:1. What does this indicate?
A. The company is liquid
B. The company is insolvent
C. The company has a high level of debt
D. The company has a low level of assets
Question 14
A trader purchases goods worth ₦100,000 and sells them for ₦120,000. What is the gross profit?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: