POST UTME RHEMA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method to value its inventory. If the inventory is valued at ₦100,000, the cost of goods available for sale is ₦150,000, and the beginning inventory is ₦50,000, what is the cost of goods sold?
A. ₦75,000
B. ₦100,000
C. ₦75,000
D. ₦100,000
Question 2
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | ₦200,000 | | | Cost of Goods Sold | | ₦150,000 | | Net Income | | ₦50,000 | What is the net income of the company?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 3
A government agency uses the accrual basis of accounting. If the agency receives ₦100,000 in revenue and incurs ₦50,000 in expenses, what is the net increase in assets?
A. ₦50,000
B. ₦100,000
C. ₦50,000
D. ₦100,000
Question 4
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000, and Common Stock ₦150,000. What is the total amount of assets?
A. ₦300,000
B. ₦250,000
C. ₦300,000
D. ₦250,000
Question 5
A company has a departmental accounting system. The manufacturing department has a direct labor cost of ₦100,000 and a direct material cost of ₦150,000. The selling department has a direct labor cost of ₦50,000 and a direct material cost of ₦75,000. If the company uses the absorption costing method, calculate the total cost of goods sold.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
A company issues 10,000, 9% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 7
A company issued 10,000 debentures of ₦100 each at a premium of 10%. Calculate the total amount received from the issue of debentures.
A. ₦1,100,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,200,000
Question 8
A company uses the single-entry system of accounting. The journal entry for the purchase of a machine on credit is recorded as follows: Debit Machine 10,000, Credit Accounts Payable 10,000. What is the correct classification of this transaction in the financial statements?
A. Asset
B. Liability
C. Equity
D. Revenue
Question 9
A company uses the weighted average method to value its inventory. If the cost of goods available for sale is ₦1,500,000, the cost of goods sold is ₦1,200,000, and the total value of closing inventory is ₦300,000, calculate the cost of goods sold using the weighted average method.
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 10
A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials have a cost of ₦120,000 and a quantity of 100 units. The work-in-progress has a cost of ₦150,000 and a quantity of 50 units. The finished goods have a cost of ₦180,000 and a quantity of 200 units. If the company uses a weighted average method with a weight of 0.4 for raw materials, 0.3 for work-in-progress, and 0.3 for finished goods, what is the total value of the inventory?
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 11
A company's trial balance shows an error of ¦0,000 due to an omission of a transaction. The error is discovered after the preparation of the final accounts. Prepare the necessary journal entry to rectify the error.
A. Debit Cash ¦0,000, Credit Profit and Loss Account ¦0,000
B. Debit Profit and Loss Account ¦0,000, Credit Cash ¦0,000
C. Debit Profit and Loss Account ¦0,000, Credit Capital ¦0,000
D. Debit Capital ¦0,000, Credit Profit and Loss Account ¦0,000
Question 12
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials: ₦150,000; Direct Labour: ₦120,000; Overheads: ₦180,000. Calculate the total cost of production for the month.
A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000
Question 13
A company has the following manufacturing account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 2022-01-01 | Raw Materials | ₦100,000 | | | 2022-01-05 | Labor | | ₦50,000 | | 2022-01-10 | Factory Overheads | ₦200,000 | | | 2022-01-15 | Work-in-Progress | | ₦150,000 | What is the total cost of goods manufactured?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 14
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦300,000
B. ₦320,000
C. ₦350,000
D. ₦400,000
Question 15
A company's balance sheet shows an asset of ¦10,000,000. However, the company's accountant has forgotten to include a depreciation of ¦0,000,000. Prepare the necessary journal entry to rectify the error.
A. Debit Depreciation ¦0,000,000, Credit Asset ¦0,000,000
B. Debit Asset ¦0,000,000, Credit Depreciation ¦0,000,000
C. Debit Profit and Loss Account ¦0,000,000, Credit Asset ¦0,000,000
D. Debit Asset ¦0,000,000, Credit Profit and Loss Account ¦0,000,000

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