POST UTME UNILORIN 2018 Accounting | Objective

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Question 1
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has a credit balance of ₦10,000 in the 'Rent Received' account. What is the correct treatment of this discrepancy in the company's financial statements?
A. The discrepancy is ignored as it is a minor error.
B. The discrepancy is treated as a gain and is recorded in the income statement.
C. The discrepancy is treated as a loss and is recorded in the income statement.
Correct D. The discrepancy is treated as a balance sheet error and is corrected in the balance sheet.

Correct Answer: D

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Question 2
A manufacturing company uses the process costing method to value its production costs. The company's production costs for the month of January are as follows: direct materials, ₦120,000; direct labor, ₦150,000; and overhead, ₦80,000. If the company produces 10,000 units of product during the month, what is the total production cost per unit?
A. ₦18 per unit
B. ₦20 per unit
Correct C. ₦22 per unit
D. ₦25 per unit

Correct Answer: C

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Question 3
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦250,000, what is the company's quick ratio?
A. 1:1
Correct B. 1.5:1
C. 2:1
D. 3:1

Correct Answer: B

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Question 4
A company's trial balance shows a debit balance of ₦20,000 in the 'Salaries Expense' account. However, the company's accounting records show that it has a credit balance of ₦15,000 in the 'Salaries Payable' account. What is the correct treatment of this discrepancy in the company's financial statements?
A. The discrepancy is ignored as it is a minor error.
B. The discrepancy is treated as a gain and is recorded in the income statement.
C. The discrepancy is treated as a loss and is recorded in the income statement.
Correct D. The discrepancy is treated as a balance sheet error and is corrected in the balance sheet.

Correct Answer: D

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Question 5
A company's balance sheet shows a total assets of ₦1,500,000 and a total liabilities of ₦800,000. What is the company's equity?
Correct A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 6
A company prepares a trial balance at the end of the year. The trial balance shows a debit balance of ₦120,000 in the account 'Rent Received' and a credit balance of ₦150,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. ₦30,000 debit to Rent Received and ₦30,000 credit to Rent Paid
Correct B. ₦30,000 debit to Rent Paid and ₦30,000 credit to Rent Received
C. ₦60,000 debit to Rent Received and ₦60,000 credit to Rent Paid
D. ₦60,000 debit to Rent Paid and ₦60,000 credit to Rent Received

Correct Answer: B

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Question 7
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. What is the reason for the discrepancy?
A. The company has deposited ₦30,000 into the bank
Correct B. The company has withdrawn ₦30,000 from the bank
C. The bank has charged a fee of ₦30,000
D. The company has received a cheque that has not yet been deposited

Correct Answer: B

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Question 8
A government agency is required to prepare a statement of cash flows. What is the purpose of this statement?
Correct A. To show the sources and uses of cash
B. To show the profit or loss of the agency
C. To show the assets and liabilities of the agency
D. To show the revenue and expenses of the agency

Correct Answer: A

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Question 9
A company uses the straight-line method of depreciation. What is the formula for calculating depreciation?
Correct A. Depreciation = (Cost - Residual Value) / Useful Life
B. Depreciation = (Cost - Residual Value) / (Useful Life + Residual Value)
C. Depreciation = (Cost - Residual Value) / (Useful Life - Residual Value)
D. Depreciation = (Cost + Residual Value) / Useful Life

Correct Answer: A

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Question 10
A company's financial statements show a profit of ₦500,000. However, the company's cash balance has decreased by ₦200,000. What is the reason for this discrepancy?
A. The company has invested in a new project
Correct B. The company has paid dividends to shareholders
C. The company has purchased new assets
D. The company has received a loan from a bank

Correct Answer: B

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The company also issued 10,000, 8% preference shares of ₦50 each at a premium of 10%. Calculate the total amount received from the issue of debentures and preference shares.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 12
A partnership is formed between two partners, A and B. A invests ₦50,000 and B invests ₦30,000. The profit is to be shared in the ratio 3:2. If the profit for the year is ₦15,000, how much will A receive?
A. ₦6,750
Correct B. ₦7,500
C. ₦8,250
D. ₦9,000

Correct Answer: B

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Question 13
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | | ₦20,000 | | 4th Jan | Bank | ₦5,000 | | | 5th Jan | Cash | | ₦25,000 | Prepare the bank reconciliation statement as at 31st Dec.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 14
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Bank | | ₦15,000 | | Accounts Payable | ₦5,000 | | | Accounts Receivable | | ₦20,000 | | Sales | | ₦25,000 | Identify the error in the trial balance and correct it.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 15
A company issued 10,000, 5% preference shares of ₦50 each at a premium of 10%. The company also issued 5,000, 8% debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of preference shares and debentures.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 16
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦100 each. During the year, 500 units were sold, and 200 units were purchased at ₦120 each. The company uses the weighted average method to determine cost of goods sold. What is the total cost of goods sold for the year?
A. ₦60,000
Correct B. ₦62,000
C. ₦64,000
D. ₦66,000

Correct Answer: B

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Question 17
A company's trial balance as at December 31, 2022, is as follows: Debit ₦ 1,000,000 Cash ₦ 500,000 Accounts Payable ₦ 200,000 Equipment ₦ 300,000 Salaries Payable ₦ 100,000 Credit ₦ 1,000,000 Accounts Receivable ₦ 500,000 Common Stock ₦ 200,000 Land ₦ 300,000 Rent Expense ₦ 100,000 What is the total amount of assets and liabilities?
A. ₦2,000,000
Correct B. ₦2,100,000
C. ₦2,200,000
D. ₦2,300,000

Correct Answer: B

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Question 18
A company has the following transactions during the year: January 1: Purchased equipment for ₦300,000. January 15: Sold merchandise for ₦100,000. February 10: Purchased merchandise for ₦50,000. March 20: Sold merchandise for ₦75,000. April 1: Purchased equipment for ₦200,000. May 15: Sold merchandise for ₦125,000. June 10: Purchased merchandise for ₦75,000. July 20: Sold merchandise for ₦100,000. August 1: Purchased equipment for ₦250,000. September 15: Sold merchandise for ₦150,000. October 10: Purchased merchandise for ₦100,000. November 20: Sold merchandise for ₦125,000. December 1: Purchased equipment for ₦300,000. December 15: Sold merchandise for ₦175,000. What is the total amount of purchases for the year?
A. ₦1,200,000
B. ₦1,250,000
Correct C. ₦1,300,000
D. ₦1,350,000

Correct Answer: C

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Question 19
A company has the following transactions during the year: January 1: Purchased equipment for ₦300,000. January 15: Sold merchandise for ₦100,000. February 10: Purchased merchandise for ₦50,000. March 20: Sold merchandise for ₦75,000. April 1: Purchased equipment for ₦200,000. May 15: Sold merchandise for ₦125,000. June 10: Purchased merchandise for ₦75,000. July 20: Sold merchandise for ₦100,000. August 1: Purchased equipment for ₦250,000. September 15: Sold merchandise for ₦150,000. October 10: Purchased merchandise for ₦100,000. November 20: Sold merchandise for ₦125,000. December 1: Purchased equipment for ₦300,000. December 15: Sold merchandise for ₦175,000. What is the total amount of sales for the year?
A. ₦1,200,000
B. ₦1,250,000
Correct C. ₦1,300,000
D. ₦1,350,000

Correct Answer: C

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Question 20
A company has the following transactions during the year: January 1: Purchased equipment for ₦300,000. January 15: Sold merchandise for ₦100,000. February 10: Purchased merchandise for ₦50,000. March 20: Sold merchandise for ₦75,000. April 1: Purchased equipment for ₦200,000. May 15: Sold merchandise for ₦125,000. June 10: Purchased merchandise for ₦75,000. July 20: Sold merchandise for ₦100,000. August 1: Purchased equipment for ₦250,000. September 15: Sold merchandise for ₦150,000. October 10: Purchased merchandise for ₦100,000. November 20: Sold merchandise for ₦125,000. December 1: Purchased equipment for ₦300,000. December 15: Sold merchandise for ₦175,000. What is the total amount of cost of goods sold for the year?
A. ₦1,200,000
B. ₦1,250,000
Correct C. ₦1,300,000
D. ₦1,350,000

Correct Answer: C

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 22
A company's share capital consists of 10,000 ordinary shares of ₦10 each and 5,000 preference shares of ₦5 each. Calculate the ratio of ordinary shares to preference shares.
A. 1:1
Correct B. 2:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 23
A company's assets consist of a building worth ₦1,000,000, a machine worth ₦500,000, and a cash balance of ₦200,000. Calculate the total value of the company's assets.
A. ₦1,700,000
B. ₦1,800,000
C. ₦1,900,000
Correct D. ₦2,000,000

Correct Answer: D

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Question 24
A company's liabilities consist of a loan of ₦500,000 and a bank overdraft of ₦200,000. Calculate the total value of the company's liabilities.
A. ₦600,000
B. ₦700,000
C. ₦800,000
Correct D. ₦900,000

Correct Answer: D

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Question 25
A company's equity consists of a share capital of ₦1,000,000 and a retained profit of ₦500,000. Calculate the total value of the company's equity.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
Correct D. ₦1,800,000

Correct Answer: D

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