POST UTME RSU 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Receivable, Sales, and Cost of Goods Sold. What is the purpose of the self-balancing ledger?
A. To record transactions in a chronological order
B. To ensure that the ledger is always in balance
C. To simplify the recording process
D. To reduce the number of accounts
Question 2
A partnership has two partners, A and B. A invested ₦50,000 and B invested ₦30,000. The profit is to be divided in the ratio 2:1. What is the share of profit of A?
A. ₦80,000
B. ₦60,000
C. ₦40,000
D. ₦20,000
Question 3
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 2,000 shares at a premium of ₦20 per share, what is the amount of premium received?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 4
A company has the following trial balance: Debit: ₦100,000; Credit: ₦120,000. What is the error in the trial balance?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount of interest payable annually.
A. ₦50,000
B. ₦25,000
C. ₦12,500
D. ₦62,500
Question 6
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 7
A company prepares a trial balance on December 31, 2022. The trial balance shows a debit balance of ₦20,000 in the 'Office Supplies' account. However, the company's accountant realizes that the office supplies on hand at the end of the year are ₦12,000. What is the correct journal entry to correct the error?
A. Debit Office Supplies ₦20,000, Credit Office Supplies Expense ₦20,000
B. Debit Office Supplies ₦12,000, Credit Office Supplies Expense ₦12,000
C. Debit Office Supplies ₦20,000, Credit Office Supplies Expense ₦12,000
D. Debit Office Supplies Expense ₦12,000, Credit Office Supplies ₦12,000
Question 8
A company's income statement shows the following: Sales ₦ 100,000, Cost of Goods Sold ₦ 60,000, and Net Income ₦ 20,000. Calculate the company's gross profit margin.
A. 20%
B. 25%
C. 30%
D. 35%
Question 9
A company prepares a trial balance on December 31, 2022. The trial balance shows a debit balance of ₦25,000 in the 'Office Supplies' account. However, the company's accountant realizes that the office supplies on hand at the end of the year are ₦18,000. What is the correct journal entry to correct the error?
A. Debit Office Supplies ₦25,000, Credit Office Supplies Expense ₦25,000
B. Debit Office Supplies ₦18,000, Credit Office Supplies Expense ₦18,000
C. Debit Office Supplies ₦25,000, Credit Office Supplies Expense ₦18,000
D. Debit Office Supplies Expense ₦18,000, Credit Office Supplies ₦18,000
Question 10
In a public sector accounting system, what is the primary objective of the accounting process?
A. To provide financial information for decision-making
B. To ensure compliance with government regulations
C. To facilitate the preparation of the national budget
D. To promote transparency and accountability
Question 11
A company prepares a trial balance on December 31, 2022. The trial balance shows a debit balance of ₦15,000 in the 'Office Supplies' account. However, the company's accountant realizes that the office supplies on hand at the end of the year are ₦8,000. What is the correct journal entry to correct the error?
A. Debit Office Supplies ₦15,000, Credit Office Supplies Expense ₦15,000
B. Debit Office Supplies ₦8,000, Credit Office Supplies Expense ₦8,000
C. Debit Office Supplies ₦15,000, Credit Office Supplies Expense ₦8,000
D. Debit Office Supplies Expense ₦8,000, Credit Office Supplies ₦8,000
Question 12
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership's net income for the year is ₦120,000, how much of the net income will partner A receive?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 13
A company uses the single-entry system of accounting. The company's accounting records show the following transactions for the year:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company issued 10,000 shares of ₦5 each at a premium of ₦3 per share. The issue expenses were ₦20,000. Prepare the journal entry for the issue of shares.
A. Debit Share Capital ₦50,000, Credit Share Premium ₦30,000, Credit Issue Expenses ₦20,000
B. Debit Share Capital ₦50,000, Credit Share Premium ₦30,000
C. Debit Share Capital ₦50,000, Credit Issue Expenses ₦20,000
D. Debit Share Capital ₦50,000, Credit Share Premium ₦30,000, Debit Issue Expenses ₦20,000
Question 15
A company prepares a trial balance to ensure that the debits equal the credits. What is the primary purpose of this process?
A. To identify and correct errors in the accounting records
B. To prepare financial statements
C. To determine the company's net income
D. To calculate the company's cash flows

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