POST UTME RHEMA UNIVERSITY 2024 Accounting | Objective

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Question 1
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Sales | | ₦15,000 | | 3 Jan | Purchase | ₦8,000 | | | 4 Jan | Cash | | ₦12,000 | What is the balance on the cash account?
A. ₦2,000
B. ₦4,000
C. ₦6,000
D. ₦8,000
Question 2
A company's profit and loss account for the year ended 31st December 2023 showed a gross profit of ₦2,500,000. The company's operating expenses were ₦1,200,000. What was the company's net profit for the year?
A. ₦1,300,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct the error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Cash ₦20,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
Question 4
A company manufactures a product that requires 2 kg of raw material A and 3 kg of raw material B to produce 10 units of the product. The company uses 100 kg of raw material A and 150 kg of raw material B to produce 500 units of the product. What is the cost of raw materials used in the production of 500 units of the product?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 5
A company has the following ledger accounts: Cash ₦50,000, Accounts Receivable ₦20,000, Accounts Payable ₦15,000. What is the company's total current assets?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 6
A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Credit Accounts Payable ₦50,000, and Debit Common Stock ₦200,000. Prepare the company's trial balance.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct the error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Cash ₦20,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
Question 8
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's profit is ₦240,000, how much will partner A receive?
A. ₦144,000
B. ₦120,000
C. ₦96,000
D. ₦80,000
Question 9
A company has the following transactions: Purchase of land for ₦500,000, Purchase of building for ₦300,000, and Sale of equipment for ₦200,000. If the company uses the cash method of accounting, what is the total revenue?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,200,000
Question 10
A company has the following transactions: Purchase of land for ₦500,000, Purchase of building for ₦300,000, and Sale of equipment for ₦200,000. If the company uses the accrual method of accounting, what is the total expense?
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,200,000
Question 11
A partnership has two partners, A and B, who share profits in the ratio 2:3. The partnership's profit for the year is ₦900,000. Calculate the amount of profit that will be distributed to partner B.
A. ₦360,000
B. ₦540,000
C. ₦720,000
D. ₦900,000
Question 12
A company's balance sheet shows a current asset of ₦100,000 in the 'Accounts Receivable' account. However, the company's accounting records show that it has written off ₦20,000 of the accounts receivable as uncollectible. What is the correct journal entry to record the write-off?
A. Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000
B. Debit Bad Debt Expense ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
C. Debit Allowance for Doubtful Accounts ₦20,000, Credit Bad Debt Expense ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
Question 13
A government agency is required to prepare a statement of cash flows using the indirect method. The agency's net income for the year is ₦500,000, and its net cash flows from operating activities are ₦750,000. Calculate the agency's net increase in cash and cash equivalents.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 14
A company's balance sheet shows a current asset of ₦100,000 in the 'Accounts Receivable' account. However, the company's accounting records show that it has written off ₦20,000 of the accounts receivable as uncollectible. What is the correct journal entry to record the write-off?
A. Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000
B. Debit Bad Debt Expense ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
C. Debit Allowance for Doubtful Accounts ₦20,000, Credit Bad Debt Expense ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
Question 15
A company uses a self-balancing ledger to record its transactions. What is the advantage of using a self-balancing ledger?
A. It provides a permanent record of all transactions
B. It helps to identify errors and discrepancies
C. It simplifies the preparation of financial statements
D. It reduces the risk of errors and discrepancies

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