POST UTME RSU 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Purchased raw materials worth ₦100,000 on credit. Sold goods worth ₦150,000 for cash. Purchased machinery worth ₦50,000 on credit. Sold goods worth ₦100,000 on credit. The company's accounting year-end is December 31st. What is the total amount of the company's liabilities at the end of the year?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 2
A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has not recorded all its financial transactions.
B. The bank has made an error in its statement.
C. The company has not reconciled its cash book with the bank statement.
D. The company has not updated its cash book.
Question 3
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 4
A company has the following ledger balances: Debtors: ₦80,000 Creditors: ₦40,000 Capital: ₦120,000 What is the company's net worth?
A. ₦100,000
B. ₦120,000
C. ₦140,000
D. ₦160,000
Question 5
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 6
A company issued 5,000, 10% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 7
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦30,000 Capital: ₦100,000 What is the company's net worth?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦120,000
Question 8
A company's share capital consists of 10,000 ordinary shares of ₦10 each. The company also has a 5% debenture stock of ₦100,000. The company's profit for the year ended December 31, 2022, is ₦250,000.
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 9
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Equipment ₦ 20,000, Interest Expense ₦ 5,000, Interest Income ₦ 3,000, Net Income ₦ 25,000, Retained Earnings ₦ 40,000, Salaries Expense ₦ 15,000, Sales Revenue ₦ 150,000, Taxes Payable ₦ 8,000, Utilities Expense ₦ 2,000. Prepare a balance sheet for the company.
A. ₦ 150,000
B. ₦ 180,000
C. ₦ 200,000
D. ₦ 220,000
Question 10
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a debit balance of ₦50,000 in the 'Drawings' account. What is the correct treatment of the 'Drawings' account in the partnership's financial statements?
A. ₦50,000 is transferred to the partners' capital accounts in the ratio 3:2
B. ₦50,000 is transferred to the partners' capital accounts in the ratio 2:3
C. ₦50,000 is transferred to the partners' capital accounts in equal proportions
D. ₦50,000 is ignored in the financial statements
Question 11
In a manufacturing company, the following transactions occurred during the year: Purchased raw materials worth ₦150,000 on credit. Sold goods worth ₦200,000 for cash. Purchased machinery worth ₦100,000 on credit. Sold goods worth ₦150,000 on credit. The company's accounting year-end is December 31st. What is the total amount of the company's assets at the end of the year?
A. ₦350,000
B. ₦450,000
C. ₦550,000
D. ₦650,000
Question 12
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Equipment ₦ 20,000, Interest Expense ₦ 5,000, Interest Income ₦ 3,000, Net Income ₦ 25,000, Retained Earnings ₦ 40,000, Salaries Expense ₦ 15,000, Sales Revenue ₦ 150,000, Taxes Payable ₦ 8,000, Utilities Expense ₦ 2,000. Prepare a balance sheet for the company.
A. ₦ 150,000
B. ₦ 180,000
C. ₦ 200,000
D. ₦ 220,000
Question 13
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. If the profit for the year is ₦50,000, and A's share of profit is 60%, calculate B's share of profit.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 14
A company's balance sheet as at December 31, 2022, is as follows:
A. ₦1,500,000
B. ₦1,750,000
C. ₦2,000,000
D. ₦2,250,000
Question 15
A public sector organization uses the control account system to record its financial transactions. The organization has a control account for its cash. The journal entry for the receipt of cash is as follows: Debit: Cash ₦100,000, Credit: Cash Control Account ₦100,000. What is the effect of this transaction on the organization's financial position?
A. The organization's assets increase by ₦100,000.
B. The organization's liabilities increase by ₦100,000.
C. The organization's equity increases by ₦100,000.
D. The organization's financial position remains unchanged.

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