POST UTME REDEEMERS UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's income statement shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 2
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, with a residual value of ₦50,000. The machine is depreciated using the straight-line method.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 3
A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash ₹50,000 Debtors ₹20,000 Stock ₹30,000 Equipment ₹40,000 Total Assets ₹1,40,000 Liabilities: Creditors ₹30,000 Capital ₹1,10,000 Total Liabilities ₹1,40,000 Prepare the trial balance.
A. ₹1,40,000
B. ₹1,50,000
C. ₹1,60,000
D. ₹1,70,000
Question 4
A company issues 5,000 shares of ₦10 each at a premium of ₦5 per share. Determine the total amount received from the issue of shares.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 5
A company purchased a machine for ₦2,000,000. The machine has a useful life of 5 years and a residual value of ₦200,000. Calculate the annual depreciation using the straight-line method.
A. ₦320,000
B. ₦320,000
C. ₦320,000
D. ₦320,000
Question 6
A company's control account shows a balance of ₦50,000 in the account 'Sales' and a balance of ₦40,000 in the account 'Purchases'. What is the correct journal entry to correct this error?
A. ₦10,000 debit to Sales and ₦10,000 credit to Purchases
B. ₦10,000 credit to Sales and ₦10,000 debit to Purchases
C. ₦50,000 debit to Sales and ₦40,000 credit to Purchases
D. ₦40,000 debit to Sales and ₦50,000 credit to Purchases
Question 7
A company's manufacturing account shows a cost of ₦100,000 for direct materials and ₦80,000 for direct labor. The total cost of goods manufactured is ₦180,000. What is the correct calculation for the cost of goods sold?
A. ₦180,000
B. ₦160,000
C. ₦140,000
D. ₦120,000
Question 8
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. Determine the amount of bank overdraft.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 9
A company uses the accrual method of accounting. If the company purchases goods on credit for ₦100,000 and pays ₦80,000 in cash, what is the amount of accounts payable?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
A company purchased a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦270,000
B. ₦270,000
C. ₦270,000
D. ₦270,000
Question 11
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.
A. ₦350,000
B. ₦350,000
C. ₦350,000
D. ₦350,000
Question 12
A company issued 10,000 9% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦1,000,000
B. ₦1,090,000
C. ₦1,100,000
D. ₦1,190,000
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 14
A company's balance sheet as at 31st December 2018 shows a total of ₦300,000 in the non-current assets section. The company's profit and loss account for the same period shows a net loss of ₦100,000. What is the amount of the company's provision for doubtful debts?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, with a residual value of ₦20,000. The machine is depreciated using the straight-line method.
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000

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