Practice post utme rsu accounting 2019 Past Questions

Question 1

A company issued 5,000 shares of 10 par value at a premium of 5 per share. The company also issued 2,000 debentures of 100 each. Calculate the total amount of share capital and debenture capital.

A. ₦250,000

Correct B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: B

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Question 2

A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare the company's income statement.

A. ₦50,000

B. ₦100,000

C. ₦150,000

Correct D. ₦200,000

Correct Answer: D

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Question 3

A company uses the straight-line method of depreciation. The company's asset has a cost of ₦100,000, a residual value of ₦20,000, and an estimated useful life of 5 years. Calculate the annual depreciation expense.

A. ₦15,000

B. ₦18,000

Correct C. ₦20,000

D. ₦22,000

Correct Answer: C

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Question 4

A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. The partnership's net income is ₦100,000. Calculate Partner A's share of the net income.

Correct A. ₦60,000

B. ₦70,000

C. ₦80,000

D. ₦90,000

Correct Answer: A

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Question 5

A company's balance sheet showed the following balances: Cash ₦50,000, Accounts Receivable ₦100,000, Inventory ₦150,000, and Equipment ₦200,000. Prepare the company's statement of cash flows.

A. ₦50,000

B. ₦100,000

C. ₦150,000

Correct D. ₦200,000

Correct Answer: D

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Question 6

A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?

Correct A. ₦24,000

B. ₦20,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

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Question 7

A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the difference?

A. Bank charges

B. Interest earned

Correct C. Cheques deposited but not yet credited

D. Cheques issued but not yet debited

Correct Answer: C

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Question 8

A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦50,000. What is the reason for the difference?

A. Depreciation

Correct B. Bad debts

C. Interest on loans

D. Dividends paid

Correct Answer: B

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Question 9

A company's balance sheet shows a current ratio of 2:1. What does this indicate?

Correct A. The company has sufficient liquidity

B. The company has insufficient liquidity

C. The company has a high level of gearing

D. The company has a low level of gearing

Correct Answer: A

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Question 10

A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the difference?

A. Bank charges

B. Interest earned

Correct C. Cheques deposited but not yet credited

D. Cheques issued but not yet debited

Correct Answer: C

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Question 11

In a partnership account, the capital of each partner is shown on the debit side of the capital account. Which of the following is true about the capital account?

A. The capital account is a nominal account.

Correct B. The capital account is a real account.

C. The capital account is a temporary account.

D. The capital account is a permanent account.

Correct Answer: B

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Question 12

A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge?

A. ₦50,000

B. ₦60,000

Correct C. ₦80,000

D. ₦90,000

Correct Answer: C

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Question 13

A bank reconciliation statement shows a difference of ₦15,000 between the bank statement balance and the cash book balance. The bank statement balance is higher. What is the reason for the difference?

A. The bank has charged a fee.

B. The bank has credited an interest.

Correct C. The bank has debited an NSF cheque.

D. The bank has credited a deposit.

Correct Answer: C

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Question 14

A company uses the double-entry system of accounting. If a customer pays ₦10,000 cash for goods sold, what is the effect on the accounting equation?

A. Assets increase by ₦10,000 and liabilities decrease by ₦10,000.

B. Assets decrease by ₦10,000 and liabilities increase by ₦10,000.

Correct C. Assets increase by ₦10,000 and equity increases by ₦10,000.

D. Assets decrease by ₦10,000 and equity decreases by ₦10,000.

Correct Answer: C

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Question 15

A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. What is the reason for the difference?

A. The bank has credited an interest.

B. The bank has debited an NSF cheque.

C. The bank has charged a fee.

Correct D. The bank has credited a deposit.

Correct Answer: D

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Question 16

A company uses the double-entry system to record its transactions. Which of the following journal entries would be used to record the purchase of office supplies on credit?

Correct A. Debit Office Supplies 1,000, Credit Accounts Payable 1,000

B. Debit Cash 1,000, Credit Office Supplies 1,000

C. Debit Office Supplies 1,000, Credit Cash 1,000

D. Debit Accounts Payable 1,000, Credit Office Supplies 1,000

Correct Answer: A

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Question 17

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of assets at the end of January?

Correct A. 16,000

B. 15,000

C. 14,000

D. 13,000

Correct Answer: A

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Question 18

A company has the following balance sheet at the end of the year: Assets 100,000, Liabilities 50,000, and Equity 50,000. What is the company's current ratio?

Correct A. 2:1

B. 1:1

C. 1:2

D. 3:1

Correct Answer: A

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Question 19

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of expenses at the end of January?

Correct A. 6,000

B. 5,000

C. 4,000

D. 3,000

Correct Answer: A

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Question 20

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of revenue at the end of January?

Correct A. 6,000

B. 5,000

C. 4,000

D. 3,000

Correct Answer: A

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Question 21

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of liabilities at the end of January?

Correct A. 11,000

B. 10,000

C. 9,000

D. 8,000

Correct Answer: A

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Question 22

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of equity at the end of January?

Correct A. 6,000

B. 5,000

C. 4,000

D. 3,000

Correct Answer: A

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Question 23

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of assets at the end of January?

Correct A. 16,000

B. 15,000

C. 14,000

D. 13,000

Correct Answer: A

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Question 24

A company has the following transactions for the month of January: Purchased office supplies for 1,000 on credit, Sold goods for 5,000 cash, and Purchased equipment for 10,000 cash. What is the total amount of expenses at the end of January?

Correct A. 6,000

B. 5,000

C. 4,000

D. 3,000

Correct Answer: A

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Question 25

A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.

A. ₦500,000

B. ₦1,000,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

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