POST UTME OSUSTECH 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2022 is as follows: ₦ 000 Assets ₦ 000 Cash and Bank Balances 500 Debtors 800 Stock 900 Prepaid Expenses 200 Total Assets 2500 Liabilities ₦ 000 Share Capital 1000 Reserves 500 Long-Term Loans 1000 Total Liabilities 2500 What is the company's current ratio?
A. 1.5
B. 2.0
C. 1.0
D. 0.5
Question 2
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. Debit Rent Paid ₦5,000, Credit Rent Received ₦5,000
B. Debit Rent Paid ₦5,000, Credit Rent Received ₦5,000 and Journal Entry: Debit Rent Received ₦15,000, Credit Rent Paid ₦20,000
C. Debit Rent Paid ₦5,000, Credit Rent Received ₦5,000 and Journal Entry: Debit Rent Paid ₦15,000, Credit Rent Received ₦20,000
D. Debit Rent Received ₦5,000, Credit Rent Paid ₦5,000
Question 3
A company has the following transactions: Purchase of land for ₦1,200,000, purchase of machinery for ₦400,000, and sale of goods for ₦1,000,000. Calculate the total assets of the company.
A. ₦2,600,000
B. ₦2,700,000
C. ₦2,800,000
D. ₦2,900,000
Question 4
A company has the following bank reconciliation statement: Opening balance ₦100,000, deposits ₦50,000, and cheques returned ₦20,000. What is the new bank balance?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 5
A company has the following assets: Building ₦500,000, machinery ₦200,000, and furniture ₦100,000. If the company uses the straight-line method of depreciation, what is the annual depreciation charge?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 6
A company has the following transactions: Purchase of office equipment for ₦150,000, purchase of furniture for ₦200,000, and sale of goods for ₦600,000. Prepare the balance sheet for the company.
A. ₦950,000
B. ₦1,050,000
C. ₦1,150,000
D. ₦1,250,000
Question 7
A single entry system is used by a small business. The following transactions are recorded: Purchased goods on credit for ₦30,000, sold goods on credit for ₦40,000, and paid cash for office expenses of ₦5,000. What is the total amount of assets recorded in the ledger?
A. +₦35,000
B. +₦40,000
C. +₦45,000
D. +₦50,000
Question 8
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000 and the Sales department has a budget of ₦2,000,000. If the company's total budget is ₦4,000,000, what is the ratio of the Manufacturing department's budget to the Sales department's budget?
A. 1:2
B. 2:3
C. 3:4
D. 4:5
Question 9
A company's financial statements show the following information: Net Sales ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000, Operating Expenses ₦20,000, Net Income ₦20,000. What is the company's operating profit margin?
A. 20%
B. 30%
C. 40%
D. 50%
Question 10
A company has the following transactions: Purchase of land for ₦800,000, purchase of machinery for ₦300,000, and sale of goods for ₦900,000. Calculate the total assets of the company.
A. ₦2,000,000
B. ₦2,300,000
C. ₦2,600,000
D. ₦2,900,000
Question 11
A company has a cash book balance of ₦500,000 and a bank statement balance of ₦600,000. If the bank reconciliation statement shows a difference of ₦50,000, what is the amount of the difference that is due to a bank error?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 12
A company uses the 'Job Costing' method to account for its manufacturing activities. What is the primary advantage of this method?
A. It provides accurate cost information for each product
B. It facilitates the preparation of financial statements
C. It enables the company to identify and control costs
D. It simplifies the accounting process
Question 13
A company prepares a trial balance and identifies a discrepancy of ₦2,000. What is the likely cause of this discrepancy?
A. The company has made an error in recording the transaction
B. The company has not yet recorded the transaction
C. The company has not yet posted the transaction
D. The company has not yet reconciled the transaction
Question 14
The following are the financial statements of a company for the year ended 31st December 2022: Balance Sheet: ₦ 000 Assets ₦ 000 Cash and Bank Balances 500 Debtors 800 Stock 900 Prepaid Expenses 200 Total Assets 2500 Liabilities ₦ 000 Share Capital 1000 Reserves 500 Long-Term Loans 1000 Total Liabilities 2500 What is the company's current ratio?
A. 1.5
B. 2.0
C. 1.0
D. 0.5
Question 15
In a public sector organization, the accounting system is designed to provide a comprehensive picture of the entity's financial position and performance. Which of the following is a key principle of public sector accounting?
A. Accrual accounting
B. Cash basis accounting
C. Materiality principle
D. Going concern principle

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