POST UTME UNIOSUN 2018 Accounting | Objective

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Question 1
A company's balance sheet shows a current asset of ₦100,000 and a current liability of ₦80,000. What is the net working capital?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A company's assets include a building with a cost of ₦500,000 and a useful life of 10 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 3
A company's trial balance as at 31st December, 2022 showed the following balances: Purchases ₦120,000, Sales ₦180,000, Returns Inwards ₦10,000, Returns Outwards ₦5,000. Prepare the trading and profit and loss account for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 4
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. ₦12,500
C. ₦15,000
D. ₦17,500
Question 5
A company's balance sheet as at 31st December 2017 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Total | 80,000 | Total | 90,000 | What is the amount of the company's retained earnings?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's financial statements show a profit of ₦200,000. However, the company's cash flow statement shows a net cash outflow of ₦100,000. What is the correct explanation for this discrepancy?
A. The company has a high level of accounts receivable
B. The company has a high level of accounts payable
C. The company has a high level of inventory
D. The company has a high level of depreciation
Question 7
A company's trial balance shows a debit balance of ₦70,000. The balance sheet shows a credit balance of ₦75,000. What is the correct explanation for the difference?
A. The company has an outstanding asset of ₦5,000.
B. The company has an outstanding liability of ₦5,000.
C. The company has an error in its trial balance of ₦5,000.
D. The company has an error in its balance sheet of ₦5,000.
Question 8
A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦10,000. The trial balance shows a credit balance of ₦15,000. What is the correct explanation for the difference?
A. The company has an outstanding invoice of ₦5,000.
B. The company has an outstanding payment of ₦5,000.
C. The company has an error in its ledger of ₦5,000.
D. The company has an error in its trial balance of ₦5,000.
Question 9
A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The reconciliation statement shows a difference of ₦5,000. What is the correct explanation for the difference?
A. The company has an outstanding cheque of ₦5,000.
B. The bank has charged a service fee of ₦5,000.
C. The company has deposited an amount of ₦5,000 into the bank but it has not been credited yet.
D. The company has an overdraft facility of ₦5,000.
Question 10
A company's bank reconciliation statement shows the following: | Date | Debit | Credit | | --- | --- | --- | | 1 | ₦5,000 | | | 2 | | ₦3,000 | | 3 | ₦2,000 | | | 4 | | ₦1,000 | What is the bank balance according to the bank reconciliation statement?
A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦7,000
Question 11
A company's manufacturing overheads for the year ended December 31, 2022, were as follows: Direct Materials: ₦120,000 Direct Labour: ₦150,000 Indirect Labour: ₦80,000 Indirect Materials: ₦60,000 Depreciation: ₦40,000 Rent and Rates: ₦20,000 Insurance: ₦15,000 Power and Fuel: ₦30,000 Total: ₦515,000 Calculate the manufacturing overhead absorption rate per unit of production.
A. ₦10 per unit
B. ₦12 per unit
C. ₦15 per unit
D. ₦18 per unit
Question 12
A company's trial balance shows a debit balance of ₦50,000 in the account 'Accrued Expenses' and a credit balance of ₦60,000 in the account 'Accrued Income'. What is the correct journal entry to rectify this error?
A. ₦10,000 debit to Accrued Expenses and ₦10,000 credit to Accrued Income
B. ₦10,000 debit to Accrued Income and ₦10,000 credit to Accrued Expenses
C. ₦60,000 debit to Accrued Expenses and ₦50,000 credit to Accrued Income
D. ₦50,000 debit to Accrued Income and ₦60,000 credit to Accrued Expenses
Question 13
A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦80,000 in the account 'Purchases' and a credit balance of ₦100,000 in the account 'Sales'. What is the correct treatment of this discrepancy?
A. Debit the Purchases account by ₦20,000
B. Credit the Sales account by ₦20,000
C. Debit the Purchases account by ₦20,000 and credit the Sales account by ₦20,000
D. Debit the Purchases account by ₦20,000 and credit the Sales account by ₦40,000
Question 14
A company's balance sheet as at 31st December, 2022 showed the following balances: Share Capital ₦100,000, Profit and Loss Account ₦50,000, Accumulated Depreciation ₦20,000. Prepare the balance sheet for the year.
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 15
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Sales | | ₦15,000 | | 3 | Purchase | ₦8,000 | | | 4 | Cash | | ₦12,000 | What is the total cash balance at the end of the month?
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000

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