POST UTME OSUSTECH 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current asset of ₦50,000 and a current liability of ₦30,000. What is the company's working capital?
A. ₦20,000
B. ₦10,000
C. ₦30,000
D. ₦40,000
Question 2
A company's trial balance shows the following accounts: Land (₦50,000), Buildings (₦200,000), Equipment (₦150,000), Accumulated Depreciation (₦30,000). Calculate the net book value of the company's assets.
A. ₦370,000
B. ₦420,000
C. ₦470,000
D. ₦520,000
Question 3
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, calculate the annual depreciation charge if the asset's cost is ₦1,500,000.
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 4
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2021 showed a capital of ₦2,000,000. The company issued 20,000 shares of ₦10 each on 1st January 2022. Calculate the company's retained earnings as at 31st December 2022.
A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 5
A company's income statement for the year ended December 31, 2022, shows the following: Revenue ₦2,500,000, Cost of Goods Sold ₦1,800,000, Operating Expenses ₦500,000. Calculate the company's net income for the year.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 6
A company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 8,000 units with a cost of ₦40,000. During the period, the Assembly department incurred direct materials of ₦100,000 and direct labor of ₦60,000. The company uses a predetermined overhead rate of 150% of direct labor costs. What is the total cost of goods manufactured for the period?
A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000
Question 7
A company uses the accrual method of accounting. If the company's accounts payable balance at the beginning of the year is ₦200,000 and the company pays ₦300,000 in accounts payable during the year, what is the company's accounts payable balance at the end of the year?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 8
A company uses the perpetual inventory system. The company's beginning inventory is 500 units at a cost of ₦100 per unit. During the period, the company purchases 1,000 units at ₦120 per unit and sells 600 units at ₦150 per unit. The company uses the FIFO method to value its inventory. What is the cost of goods sold for the period?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 9
A company's financial statements show the following information: Revenue (₦500,000), Cost of Goods Sold (₦300,000), Gross Profit (₦200,000), Operating Expenses (₦150,000), Net Income (₦50,000). Calculate the company's operating profit.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 10
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 error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 11
A company issued 5,000 debentures of 100 each at a premium of 10%. The total amount received from the issue of debentures is 525,000. Calculate the amount received from the issue of debentures in excess of the face value.
A. ₦25,500
B. ₦26,000
C. ₦26,500
D. ₦27,000
Question 12
A company's balance sheet shows the following: Cash ₦500,000, Accounts Receivable ₦200,000, Inventory ₦300,000, Property, Plant, and Equipment ₦1,000,000. What is the company's total assets?
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 13
A company uses the percentage of completion method to value its construction contracts. At the end of the current year, the company has completed 75% of the contract. The total contract price is ₦120,000,000. The company has incurred costs of ₦90,000,000. Calculate the profit recognized for the year.
A. ₦60,000,000
B. ₦75,000,000
C. ₦90,000,000
D. ₦105,000,000
Question 14
A company purchased a machine for 10,000. The machine has a useful life of 5 years and a residual value of 2,000. Calculate the annual depreciation using the straight-line method.
A. 1,600
B. 1,800
C. 1,900
D. 2,000
Question 15
A company's trial balance shows the following balances: Accounts Payable ₦500,000, Accounts Receivable ₦200,000, Common Stock ₦1,000,000, Retained Earnings ₦300,000. Prepare a balance sheet for the company.
A. ₦1,500,000
B. ₦1,700,000
C. ₦1,800,000
D. ₦2,000,000

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