POST UTME SUMMIT UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method of inventory valuation. If the cost of the inventory is ₦100,000, the retail price is ₦120,000, and the number of units sold is 500, determine the cost of goods sold.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | Prepare the cash book and bank reconciliation statement.
A. Cash book balance: £ 1,800; Bank balance: £ 1,300
B. Cash book balance: £ 1,300; Bank balance: £ 1,800
C. Cash book balance: £ 1,800; Bank balance: £ 1,800
D. Cash book balance: £ 1,300; Bank balance: £ 1,300
Question 3
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, and Purchased equipment for ₦20,000. Prepare a journal entry for the transactions.
A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Office Supplies ₦10,000, Credit Equipment ₦10,000
C. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
D. Debit Office Supplies ₦10,000, Credit Equipment ₦10,000
Question 4
A company's bank reconciliation statement shows a difference of ₦10,000 between the company's cash book balance and the bank statement balance. The company's accountant has informed you that the company has not made any errors in recording its cash transactions. What is the most likely explanation for the difference?
A. The bank has made an error in recording the company's transactions.
B. The company has not recorded a deposit made by a customer.
C. The company has not recorded a cheque that has been deposited by the bank.
D. The bank has charged a fee for a service provided to the company.
Question 5
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦250,000, what is the amount received from the issue of shares?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 6
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦30,000 is due to a dishonored cheque of ₦15,000 and an outstanding deposit of ₦15,000. What is the correct balance in the cash book?
A. ₦120,000
B. ₦135,000
C. ₦150,000
D. ₦165,000
Question 7
A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and purchased office equipment for ₦50,000 in cash. Prepare the journal entries for these transactions.
A. Debit Purchases ₦100,000, Credit Accounts Payable ₦100,000
B. Debit Sales ₦120,000, Credit Accounts Receivable ₦120,000
C. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
D. Debit Purchases ₦100,000, Credit Cash ₦100,000
Question 8
A government agency is required to prepare a budget for the upcoming fiscal year. The budget must include the following accounts: Revenue, Expenditure, and Surplus. What is the correct order of these accounts in the budget?
A. Revenue, Expenditure, Surplus
B. Expenditure, Revenue, Surplus
C. Surplus, Revenue, Expenditure
D. Expenditure, Surplus, Revenue
Question 9
A company has the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000, and Cost of Goods Sold ₦50,000. Prepare a balance sheet for the company.
A. ₦150,000
B. ₦200,000
C. ₦150,000
D. ₦200,000
Question 10
A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accountant has informed you that the company has not declared any dividends during the year. What is the most likely explanation for the credit balance?
A. The company has recorded a gain on the sale of an asset.
B. The company has not recorded the depreciation of its assets during the year.
C. The company has not recorded the expenses incurred during the year.
D. The company has recorded a dividend received from another company.
Question 11
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
B. £ 15,000
C. £ 20,000
D. £ 25,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accountant has informed you that the company has not purchased any new office equipment during the year. What is the most likely explanation for the debit balance?
A. The company has sold some of its office equipment during the year.
B. The company has not recorded the depreciation of its office equipment during the year.
C. The company has not recorded the purchase of new office equipment during the year.
D. The company has not recorded the sale of some of its office equipment during the year.
Question 13
A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales Revenue | ₦0 | ₦100,000 | | Cost of Goods Sold | ₦80,000 | ₦0 | | Net Income | ₦20,000 | ₦0 | What is the amount of net income?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
A company's balance sheet as at 31 December 2020 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 20,000 | | Total | 80,000 | Total | 100,000 | If the company issues 10,000 ordinary shares of ₦5 each at a premium of ₦2, what will be the new balance sheet?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A company has the following trial balance: Debit ₦100,000, Credit ₦120,000. Determine the correct balance.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

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