POST UTME SKYLINE UNIVERSITY 2018 Accounting | Objective

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Question 1
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦200,000; Long-term Loans: ₦300,000. Calculate the total equity of the company.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 2
A company's balance sheet shows a current liability of ₦200,000. If the company's profit and loss account shows a net profit of ₦150,000, what is the amount available for dividend?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 3
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 4
A company issues 10,000 shares of ₦1 each at a premium of ₦2 per share. If the company receives ₦20,000 cash from the issue, what is the amount credited to the share capital account?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 5
A company issues 5,000 debentures of ₦100 each at a premium of ₦5 per debenture. If the company receives ₦500,000 cash from the issue, what is the amount credited to the debenture account?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 6
A company uses the double-entry system to record its transactions. The following journal entry is made: Debit: Depreciation Expense 1,000, Credit: Accumulated Depreciation 1,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation
Question 7
A company has a trading account balance of ₦50,000 and a profit of ₦20,000. Calculate the total assets of the company.
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 8
A company has the following bank reconciliation statement: Opening balance ₦50,000, Deposits ₦20,000, Withdrawals ₦10,000, Bank errors ₦5,000. What is the corrected bank balance?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 9
A company has the following bank reconciliation statement: Bank balance = ₦100,000; Cash in hand = ₦20,000; Outstanding checks = ₦30,000; Deposits in transit = ₦40,000. Calculate the adjusted bank balance.
A. ₦140,000
B. ₦150,000
C. ₦160,000
D. ₦170,000
Question 10
A company's balance sheet shows the following balances: Assets 100,000, Liabilities 50,000, Equity 50,000. What is the company's net income for the year?
A. 20,000
B. 30,000
C. 40,000
D. 50,000
Question 11
A company's balance sheet as at 31st December 2022 shows an increase in the value of its non-current assets by ₦1,200,000. If the company's total liabilities increased by ₦800,000, what is the increase in shareholders' equity?
A. ₦400,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,800,000
Question 12
In a partnership account, the capital of each partner is usually recorded at the beginning of the year as a _______.
A. Drawings Account
B. Capital Account
C. Profit and Loss Account
D. Current Account
Question 13
A company purchases a machine for ₦120,000 and sells it after one year for ₦150,000. Calculate the profit made from the sale of the machine.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 14
A company uses the cash book to record its transactions. The cash book shows the following entries: Debit: Cash ₦10,000, Credit: Sales ₦15,000. What is the net effect on the cash balance?
A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 15
A company uses the single-entry system to record its transactions. The following entry is made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation

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