POST UTME REDEEMERS UNIVERSITY 2018 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company uses the FIFO method of inventory valuation. If the company purchases 100 units of an item at ₦50 each and 50 units at ₦60 each, and sells 120 units at ₦70 each, calculate the cost of goods sold.
Question 2
A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦70,000. What is the amount of the company's non-trading income?
Question 3
A company's balance sheet as at 31st December 2018 is as follows: Equity: ₦1,500,000; Liabilities: ₦1,200,000. Calculate the company's net worth.
Question 4
A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦1,500,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.
Question 5
A company's financial statements show the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, and Net Income ₦100,000. Calculate the company's return on equity.
Question 6
A company issued 10,000 debentures of ₡00 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
Question 7
A company's single entry system for the year ended 31st December 2018 is as follows: Cash Received: ₦1,500,000; Cash Paid: ₦1,200,000. Calculate the company's net cash flow.
Question 8
In a partnership, the capital accounts of the partners are initially credited with their respective contributions. What is the primary purpose of this initial credit?
Question 9
In a single-entry system, a business records its transactions by debiting or crediting a single account. What is the primary advantage of this system?
Question 10
A company uses the control account system. What is the primary purpose of the control account?
Question 11
A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦1,500,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.
Question 12
A company uses the FIFO method of inventory valuation. If the company purchases 100 units of an item at ₦50 each and 50 units at ₦60 each, and sells 120 units at ₦70 each, calculate the cost of goods sold.
Question 13
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦20,000. What is the bank statement balance?
Question 14
A company's balance sheet at the beginning of the year showed assets of ₦1,500,000 and liabilities of ₦800,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.
Question 15
A company uses the self-balancing ledger system. What is the primary advantage of this system?
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