POST UTME SUMMIT UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a cash book balance of ₦150,000 and a bank statement balance of ₦180,000. What is the difference between the two balances?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 2
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received a total of 60,000, what is the amount of the premium received?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 3
A company's trial balance shows an error of ₦15,000 due to an incorrect posting of a transaction. The company's accountant wants to correct this error by making an adjusting entry. What type of account should be credited?
A. ₦15,000
B. ₦30,000
C. ₦45,000
D. ₦60,000
Question 4
A company has the following ledger balances: Debtors ₦50,000, Creditors ₦30,000, Capital ₦100,000. What is the total amount of assets?
A. ₦180,000
B. ₦170,000
C. ₦160,000
D. ₦150,000
Question 5
A company has the following transactions: Purchased goods for ₦80,000 on credit; Sold goods for ₦100,000 on credit; Purchased goods for ₦60,000 cash. What is the total amount of cash paid for purchases?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 6
A company purchases a machine for ₦1,500,000. The machine has an estimated useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦120,000 and the Assembly department has a production cost of ₦180,000. What is the total production cost of the product?
A. ₦300,000
B. ₦240,000
C. ₦180,000
D. ₦120,000
Question 8
A trader purchased goods worth ₦120,000 and sold them at a profit of 25%. Calculate the selling price of the goods.
A. ₦150,000
B. ₦152,000
C. ₦155,000
D. ₦160,000
Question 9
What is the purpose of a control account?
A. To record all transactions affecting a particular account
B. To provide a summary of all transactions affecting a particular account
C. To reconcile the balance of a particular account
D. To verify the accuracy of a particular account
Question 10
In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' module?
A. To ensure compliance with government regulations
B. To facilitate the preparation of financial reports
C. To enable the management to make informed decisions
D. To control and monitor the use of public funds
Question 11
A company has the following trial balance: Debit: Cash ₦ 100,000, Credit: Bank ₦ 50,000. What is the correct journal entry to rectify the error?
A. Debit Bank ₦ 50,000, Credit Cash ₦ 50,000
B. Debit Cash ₦ 50,000, Credit Bank ₦ 50,000
C. Debit Bank ₦ 50,000, Credit Cash ₦ 100,000
D. Debit Cash ₦ 100,000, Credit Bank ₦ 50,000
Question 12
A company has the following debenture details: Face value: ₦100,000, Interest rate: 10%, and Redemption value: ₦120,000. What is the total value of the debenture?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000
Question 13
A company has the following ledger balances: Debtors ₦50,000, Creditors ₦30,000, Capital ₦100,000. What is the total amount of liabilities?
A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000
Question 14
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Purchases: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Cost of Goods Sold: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Gross Profit: ₦10,000,000 ₦20,000,000 ₦30,000,000 ₦40,000,000 ₦50,000,000 Identify the error in the trading account.
A. The sales balance is incorrect.
B. The purchases balance is incorrect.
C. The cost of goods sold balance is incorrect.
D. The gross profit balance is incorrect.
Question 15
In a partnership account, what is the correct method to calculate the capital of a partner who has been absent for the past two years?
A. Capital is calculated based on the average profit of the past three years.
B. Capital is calculated based on the average profit of the past two years.
C. Capital is calculated based on the average profit of the past five years.
D. Capital is calculated based on the current year's profit.

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