POST UTME RHEMA UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the following formula to calculate its manufacturing overheads: Manufacturing Overheads = (Direct Labour Hours x Factory Wage Rate) + (Machine Hours x Machine Rate). If the company's direct labour hours are 1000, factory wage rate is ₦120 per hour, machine hours are 800, and machine rate is ₦80 per hour, calculate the manufacturing overheads.
A. ₦144,000
B. ₦160,000
C. ₦176,000
D. ₦192,000
Question 2
A company uses the double entry system to record its transactions. The company's trial balance shows the following balances: Depreciation Expense ₦50,000, Accumulated Depreciation ₦20,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦150,000
B. ₦250,000
C. ₦100,000
D. ₦200,000
Question 3
The following are the Balance Sheet of DEF Ltd. as at 31st December 2020. Prepare the Balance Sheet as at 31st December 2020.
A. ₦10,000,000
B. ₦15,000,000
C. ₦20,000,000
D. ₦25,000,000
Question 4
A company uses the single-entry system of accounting. The following transactions occur: Purchases office equipment for ₦150,000 cash. Pays ₦20,000 to a supplier for goods received in the previous month. Pays ₦30,000 to an employee as salary. What is the total amount of assets acquired by the company?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 5
A company's trial balance shows a credit balance of ₦10,000 in the 'Rent Paid' account. Prepare the necessary journal entry to correct this error.
A. ₦10,000 debit to 'Rent Paid' and ₦10,000 credit to 'Rent Received'
B. ₦10,000 debit to 'Rent Received' and ₦10,000 credit to 'Rent Paid'
C. ₦10,000 debit to 'Rent Paid' and ₦10,000 credit to 'Accrued Expenses'
D. ₦10,000 debit to 'Accrued Expenses' and ₦10,000 credit to 'Rent Paid'
Question 6
A company uses a process costing system. The following data are available for the month: Beginning Work-in-Process Inventory: ₦50,000; Direct Materials: ₦120,000; Direct Labor: ₦80,000; Overhead: ₦60,000. What is the total cost of goods manufactured for the month?
A. ₦310,000
B. ₦320,000
C. ₦330,000
D. ₦340,000
Question 7
A company's balance sheet showed a total assets of ₡0,000,000 and total liabilities of ₥,000,000. Calculate the company's net worth.
A. ₥,000,000
B. ₦,000,000
C. ₧,000,000
D. ₨,000,000
Question 8
A company manufactures two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 200 units of product X and 150 units of product Y, what is the total labor cost for the day?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 9
A partnership has the following capital accounts: Partners A and B each contribute ₦50,000 to the partnership. Partners C and D each contribute ₦30,000 to the partnership. The partnership has a profit of ₦20,000. What is the total amount of profit to be distributed to the partners?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 10
A government agency's accounting records show the following transactions for the month of January:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A company uses the following formula to calculate its manufacturing overheads: Manufacturing Overheads = (Direct Labour Hours x Factory Wage Rate) + (Machine Hours x Machine Rate). If the company's direct labour hours are 1000, factory wage rate is ₦120 per hour, machine hours are 800, and machine rate is ₦80 per hour, calculate the manufacturing overheads.
A. ₦144,000
B. ₦160,000
C. ₦176,000
D. ₦192,000
Question 12
The following trial balance of XYZ Ltd. was prepared at 31st December 2020. Prepare the Balance Sheet as at 31st December 2020.
A. ₦10,000,000
B. ₦15,000,000
C. ₦20,000,000
D. ₦25,000,000
Question 13
A government agency's accounting records show the following transactions for the month of January:
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,500,000; Capital: ₦1,000,000. Calculate the ratio of capital to liabilities.
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 15
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000

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