POST UTME RHEMA UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦12,000
Question 2
The following is the Balance Sheet of XYZ Ltd. as at 31st December 2017.
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦1,600,000
Question 3
A company's self-balancing ledger as at December 31, 2022, is as follows: Cash: ₦500,000 Bank: ₦200,000 Debtors: ₦300,000 Creditors: ₦100,000 What is the total amount of assets?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 4
A company issued 10,000, 10% debentures of ₦100 each at a premium of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of premium on the debentures.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 5
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦1,500,000
B. ₦1,750,000
C. ₦2,000,000
D. ₦2,250,000
Question 6
A public sector organization has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,500,000 Cash paid to suppliers: ₦800,000 Cash received from government grant: ₦200,000 Cash paid to employees: ₦600,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 Cash paid for insurance: ₦100,000 Cash paid for maintenance: ₦75,000 Cash paid for repairs: ₦25,000 Cash paid for travel: ₦50,000 Cash paid for training: ₦25,000 Cash paid for entertainment: ₦10,000 Cash paid for miscellaneous: ₦5,000 What is the total cash outflow for the year?
A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 7
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 rectify this discrepancy?
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 8
A trader purchases goods on credit for ₦150,000. He sells the goods for ₦200,000 and incurs a bank charge of ₦5,000. What is the profit made by the trader?
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 9
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. What is the correct procedure to reconcile this difference?
A. Prepare a bank reconciliation statement
B. Prepare a cash book reconciliation statement
C. Reconcile the cash book with the bank statement
D. Reconcile the bank statement with the cash book
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 rectify this discrepancy?
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 has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | 1/1/2022 | Purchased goods from XYZ Ltd | ₦50,000 | | 15/1/2022 | Paid cash to XYZ Ltd | ₦30,000 | | 20/1/2022 | Purchased goods from ABC Ltd | ₦70,000 | | 25/1/2022 | Paid cash to ABC Ltd | ₦50,000 | What is the total amount outstanding in the accounts payable at the end of January 2022?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 12
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 13
A company's cash book shows the following transactions:
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 14
A company's depreciation policy is to charge 10% on the original cost of assets. If the original cost of an asset is ₦100,000, what is the depreciation charge for the year?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company's profit and loss account shows the following: | Particulars | ₦ | Particulars | ₦ | | --- | --- | --- | --- | | Sales | 100,000 | Cost of Goods Sold | 60,000 | | Gross Profit | 40,000 | Operating Expenses | 20,000 | | Net Profit | 20,000 | | | What is the gross profit percentage?
A. 40%
B. 50%
C. 60%
D. 70%

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