POST UTME OAU 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the perpetual inventory system. On January 1, it had 100 units of inventory with a cost of ₦100 each. On January 15, it purchased 50 units at ₦120 each. On January 20, it sold 30 units at ₦150 each. What is the total cost of goods sold for the period?
A. ₦6,500
B. ₦7,500
C. ₦8,500
D. ₦9,500
Question 2
A partnership has two partners, A and B. The partnership agreement states that A receives 60% of the profits and B receives 40%. If the partnership makes a profit of ₦120,000, how much will A receive?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 3
A company's financial statements for the year ended December 31, 2023, show the following: Total assets = ₦500,000, Total liabilities = ₦200,000, and Total equity = ₦300,000. What is the company's return on equity (ROE) for the year?
A. 20%
B. 30%
C. 40%
D. 50%
Question 4
In a partnership account, the capital of one partner is increased by ₦50,000, while the capital of another partner is decreased by ₦30,000. The total capital of the partnership remains unchanged. What is the new total capital of the partnership?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 5
In a public sector organization, the accounting system is designed to provide information for decision-making purposes. Which of the following is a characteristic of a public sector accounting system?
A. It is designed to provide information for internal management purposes only.
B. It is designed to provide information for both internal management and external stakeholders.
C. It is designed to provide information for external stakeholders only.
D. It is designed to provide information for internal management purposes only, but with limited disclosure to external stakeholders.
Question 6
A public sector entity has the following transactions: ¦ 10,000 cash received from customers, ¦ 5,000 cash paid to suppliers, and ¦ 3,000 cash paid to employees. What is the correct journal entry to record these transactions?
A. Debit Cash ¦ 10,000, Credit Accounts Receivable ¦ 10,000
B. Debit Cash ¦ 10,000, Credit Accounts Payable ¦ 5,000
C. Debit Cash ¦ 10,000, Credit Cash ¦ 5,000
D. Debit Cash ¦ 10,000, Credit Cash ¦ 3,000
Question 7
A company has the following ledger accounts:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 8
A company uses the single-entry system of accounting. The following transactions were recorded during the year:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 9
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦150,000. What is the amount of the company's dividend?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 10
A company uses the FIFO method of inventory valuation. On January 1, it had 100 units of inventory with a cost of ₦100 each. On January 15, it purchased 50 units at ₦120 each. On January 20, it sold 30 units at ₦150 each. What is the cost of the units sold?
A. ₦3,000
B. ₦4,000
C. ₦5,000
D. ₦6,000
Question 11
A company's cash book shows the following: Cash: ₦150,000 Bank: ₦200,000 What is the company's total cash?
A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 12
A partnership has two partners, A and B. The capital accounts of A and B at the beginning of the year are ₦500,000 and ₦300,000, respectively. During the year, A withdraws ₦100,000 and B withdraws ₦50,000. The profit for the year is ₦150,000. Prepare the partnership's statement of changes in equity.
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 13
A company has the following balance sheet as at December 31, 2023: Assets: ₦1,500,000 (current assets) ₦800,000 (non-current assets) Liabilities: ₦600,000 (current liabilities) ₦400,000 (non-current liabilities) Equity: ₦500,000 (share capital) ₦200,000 (retained earnings) Calculate the current ratio.
A. 2:1
B. 2.5:1
C. 3:1
D. 3.5:1
Question 14
A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Cash ¦ 5,000, Accounts Payable ¦ 8,000, Common Stock ¦ 20,000, and Retained Earnings ¦ 15,000. If the company's net income for the year is ¦ 12,000, what is the correct journal entry to record the net income?
A. Debit Cash ¦ 12,000, Credit Retained Earnings ¦ 12,000
B. Debit Retained Earnings ¦ 12,000, Credit Common Stock ¦ 12,000
C. Debit Accounts Payable ¦ 12,000, Credit Retained Earnings ¦ 12,000
D. Debit Cash ¦ 12,000, Credit Retained Earnings ¦ 12,000
Question 15
A company uses the LIFO method of inventory valuation. On January 1, it had 100 units of inventory with a cost of ₦100 each. On January 15, it purchased 50 units at ₦120 each. On January 20, it sold 30 units at ₦150 each. What is the cost of the units sold?
A. ₦3,000
B. ₦4,000
C. ₦5,000
D. ₦6,000

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