POST UTME SKYLINE UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance as at 31st December, 2022, showed the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦10,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦1,200,000, Taxes Expense ₦30,000, Utilities Expense ₦20,000. Prepare a classified balance sheet as at 31st December, 2022.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 2
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
D. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Question 3
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦50,000, the cost of inventory B is ₦60,000, and the cost of inventory C is ₦70,000. The quantity of inventory A is 100 units, the quantity of inventory B is 150 units, and the quantity of inventory C is 200 units. What is the total value of the inventory?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,500,000
Question 4
A company's balance sheet as at 31st December, 2022, showed the following: Cash ₦100,000, Accounts Payable ₦150,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦10,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦1,200,000, Taxes Expense ₦30,000, Utilities Expense ₦20,000. Prepare a statement of stockholders' equity for the year ended 31st December, 2022.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 5
A company's trial balance shows a debit balance of ₦50,000 in the 'Accrued Income' account. However, the company's accounting records indicate that the actual amount of accrued income is ₦30,000. What is the correct journal entry to record the correction?
A. Debit Accrued Income ₦20,000, Credit Profit and Loss Account ₦20,000
B. Debit Profit and Loss Account ₦20,000, Credit Accrued Income ₦20,000
C. Debit Accrued Income ₦20,000, Credit Cash ₦20,000
D. Debit Cash ₦20,000, Credit Accrued Income ₦20,000
Question 6
A company uses the straight-line method of depreciation to depreciate its assets. If the asset has a useful life of 5 years and a cost of ₦100,000, what is the annual depreciation charge?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 7
A company issued 5,000 shares of 10 par value at a premium of 5 per share. Calculate the total amount received from the issue of shares.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 8
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000
B. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000
C. Debit Rent Paid by ₦20,000 and Credit Rent Received by ₦20,000
D. Debit Rent Received by ₦20,000 and Credit Rent Paid by ₦20,000
Question 9
A company's manufacturing account for the year ended 31st December 2022, shows the following balances: Cost of Goods Sold ₦500,000, Work-in-Progress ₦100,000, and Finished Goods ₦200,000. What is the total cost of goods available for sale?
A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦500,000
Question 10
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
D. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Question 11
A company's financial statements for the year ended 31st December, 2022, showed the following: Revenue ₦1,500,000, Cost of Goods Sold ₦900,000, Gross Profit ₦600,000, Operating Expenses ₦150,000, Net Income ₦450,000. Prepare a statement of cash flows for the year ended 31st December, 2022.
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,400,000
D. ₦1,600,000
Question 12
A company's trial balance shows a debit balance of ₦20,000 in the account 'Accrued Expenses' and a credit balance of ₦15,000 in the account 'Accrued Income'. What is the correct journal entry to correct this discrepancy?
A. Debit Accrued Income by ₦5,000 and Credit Accrued Expenses by ₦5,000
B. Debit Accrued Expenses by ₦5,000 and Credit Accrued Income by ₦5,000
C. Debit Accrued Income by ₦20,000 and Credit Accrued Expenses by ₦20,000
D. Debit Accrued Expenses by ₦20,000 and Credit Accrued Income by ₦20,000
Question 13
A company issued 5,000 shares of ₦10 par value at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 14
A company uses the double-entry system of accounting. What is the effect on its accounting equation when it purchases an asset of ₦50,000?
A. ₦50,000 increase in assets and ₦50,000 increase in liabilities
B. ₦50,000 increase in assets and ₦50,000 decrease in equity
C. ₦50,000 increase in liabilities and ₦50,000 decrease in equity
D. ₦50,000 decrease in assets and ₦50,000 decrease in liabilities
Question 15
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures and the amount of interest that will be paid at the end of 5 years.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: