POST UTME UNILAG 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements show that its net income is ₦100,000 and its total assets are ₦500,000. What is the company's return on assets (ROA)?
A. 20%
B. 25%
C. 30%
D. 35%
Question 2
A company purchased a machine for ₦120,000. At the end of the first year, the machine's value decreased by 20%. At the end of the second year, the machine's value decreased by a further 15%. What is the machine's value at the end of the second year?
A. ₦84,000
B. ₦90,000
C. ₦96,000
D. ₦108,000
Question 3
A company's balance sheet shows an increase in accounts payable of ₦20,000. What is the effect on the company's net income?
A. Increase net income by ₦20,000
B. Decrease net income by ₦20,000
C. No effect on net income
D. Increase net income by ₦10,000
Question 4
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 5
A company's balance sheet shows an increase in inventory of ₦30,000. What is the effect on the company's net income?
A. Increase net income by ₦30,000
B. Decrease net income by ₦30,000
C. No effect on net income
D. Increase net income by ₦60,000
Question 6
A company has the following accounting equation: Assets 10,000, Liabilities 5,000, Equity 15,000. What is the total amount of assets?
A. 20,000
B. 25,000
C. 30,000
D. 35,000
Question 7
A company has the following financial statements: Income Statement, Balance Sheet. What is the purpose of the income statement?
A. To show the company's profitability
B. To show the company's liquidity
C. To show the company's solvency
D. To show the company's cash flow
Question 8
A company's financial statements show that its net income is ₦300,000 and its total assets are ₦700,000. What is the company's asset turnover ratio?
A. 4:3
B. 5:4
C. 6:5
D. 7:6
Question 9
In a partnership between John, Mary, and David, the profit-sharing ratio is 3:2:1. If the total profit is ₦150,000, how much will John receive?
A. ₦45,000
B. ₦60,000
C. ₦90,000
D. ₦120,000
Question 10
A company has the following departmental accounts: Sales 10,000, Cost of Goods Sold 5,000. What is the gross profit?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 11
A company prepares its financial statements using the accrual basis of accounting. If the company has a credit sale of ₦200,000 and a debit purchase of ₦100,000, what is the net effect on the company's cash balance?
A. ₦100,000
B. ₦0
C. ₦-100,000
D. ₦-200,000
Question 12
A bank's cash book shows a balance of ₦1,500,000. The bank statement shows a balance of ₦1,800,000. The bank's reconciliation statement shows a difference of ₦50,000 due to outstanding checks. Calculate the bank's cash balance.
A. ₦1,750,000
B. ₦1,800,000
C. ₦1,850,000
D. ₦1,900,000
Question 13
A company's financial statements show that its net income is ₦250,000 and its total liabilities are ₦400,000. What is the company's interest coverage ratio?
A. 2:1
B. 3:2
C. 4:3
D. 5:4
Question 14
A company uses the accrual method of accounting. If the company purchases goods on credit for ₦50,000, what is the effect on the company's net income?
A. Increase net income by ₦50,000
B. Decrease net income by ₦50,000
C. No effect on net income
D. Increase net income by ₦25,000
Question 15
A company uses the double-entry system to record its transactions. The following journal entry was made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities

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