POST UTME SUMMIT UNIVERSITY 2023 Accounting | Objective

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Question 1
A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The cost of raw materials is ₦120,000, work-in-progress is ₦80,000, and finished goods is ₦150,000. The quantity of raw materials is 500 units, work-in-progress is 300 units, and finished goods is 200 units. The company uses a cost flow assumption that the oldest items are sold first. Calculate the cost of goods sold using the weighted average method.
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 2
A company's trial balance shows the following balances:
A. Debit Sales 10,000 and credit Cost of Goods Sold 10,000
B. Debit Cost of Goods Sold 10,000 and credit Sales 10,000
C. Debit Sales 10,000 and credit Accounts Receivable 10,000
D. Debit Accounts Receivable 10,000 and credit Sales 10,000
Question 3
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the total profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 4
A company has the following incomplete records: Opening Balance: ₦100,000; Purchases: ₦500,000; Sales: ₦700,000; Drawings: ₦50,000. Calculate the net profit for the year.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 5
A company has the following trial balance: Debit 10,000, Credit 5,000. What is the effect of this transaction on the accounting equation?
A. Increases Assets and Decreases Liabilities
B. Increases Liabilities and Decreases Assets
C. Increases Equity and Decreases Assets
D. Increases Assets and Decreases Equity
Question 6
A company has the following transactions: Purchased goods on credit for ₦100,000; Sold goods on credit for ₦120,000; Purchased office supplies for ₦5,000 in cash. Prepare a journal entry to record the purchase of office supplies.
A. Office Supplies A/c Dr. ₦5,000
B. Office Supplies A/c Dr. ₦5,000; Cash A/c Cr. ₦5,000
C. Office Supplies A/c Dr. ₦5,000; Purchases A/c Cr. ₦5,000
D. Office Supplies A/c Dr. ₦5,000; Sales A/c Cr. ₦5,000
Question 7
A company has the following transactions: Purchased a new machine for ₦80,000; Sold a machine for ₦40,000; Purchased office supplies for ₦5,000 in cash. Prepare a journal entry to record the sale of the machine.
A. Machine A/c Dr. ₦40,000; Cash A/c Cr. ₦40,000
B. Machine A/c Dr. ₦40,000; Sales A/c Cr. ₦40,000
C. Machine A/c Dr. ₦40,000; Purchases A/c Cr. ₦40,000
D. Machine A/c Dr. ₦40,000; Office Supplies A/c Cr. ₦40,000
Question 8
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 9
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 30,000, and Factory Overheads ₦ 20,000. Credit: Purchases ₦ 80,000, and Wages ₦ 40,000. What is the total amount of the debit entries?
A. ₦ 100,000
B. ₦ 120,000
C. ₦ 140,000
D. ₦ 160,000
Question 10
A manufacturing company produces two products, X and Y. The production costs for X and Y are as follows: X: Raw Materials ₦ 10,000, Labour ₦ 15,000, and Factory Overheads ₦ 20,000. Y: Raw Materials ₦ 15,000, Labour ₦ 20,000, and Factory Overheads ₦ 25,000. If the company produces 100 units of X and 80 units of Y, what is the total production cost?
A. ₦ 5,500,000
B. ₦ 6,000,000
C. ₦ 6,500,000
D. ₦ 7,000,000
Question 11
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 15 Jan | Purchase of goods | | ₦20,000 | | 20 Jan | Sale of goods | | ₦30,000 | | 25 Jan | Cash | | ₦5,000 | What is the bank reconciliation statement?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 12
A company's bank reconciliation statement shows the following information:
A. Debit Bank Fees 100 and credit Bank Statement Balance 100
B. Debit Bank Statement Balance 100 and credit Bank Fees 100
C. Debit Bank Statement Balance 100 and credit Cash 100
D. Debit Cash 100 and credit Bank Statement Balance 100
Question 13
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦500,000?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 14
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦1,000,000 in taxes and pays ₦200,000 as salaries to its employees. Calculate the amount of taxes collected by the agency.
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 15
A company has the following trial balance: Accounts Payable ₦50,000; Accounts Receivable ₦30,000; Common Stock ₦100,000; Dividends ₦10,000; Equipment ₦80,000; Interest Expense ₦5,000; Interest Income ₦2,000; Net Income ₦20,000; Retained Earnings ₦50,000; Salaries Expense ₦15,000; Sales Revenue ₦120,000; Utilities Expense ₦3,000. Prepare a balance sheet.
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000

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