POST UTME UNN 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The following are the financial statements of XYZ Manufacturing Company for the year ended December 31, 2022: Balance Sheet: Assets: Cash: ₦120,000 Accounts Receivable: ₦150,000 Inventory: ₦200,000 Total Assets: ₦470,000 Liabilities: Accounts Payable: ₦100,000 Long-term Debt: ₦200,000 Total Liabilities: ₦300,000 Equity: Common Stock: ₦100,000 Retained Earnings: ₦70,000 Total Equity: ₦170,000 What is the company's current ratio?
A. 2.00
B. 1.50
C. 1.33
D. 1.20
Question 2
A company's bank reconciliation statement as of December 31, 2022, is as follows:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 3
A company issued 10,000 shares of ₦5 each at a premium of ₦2. The shares were sold for ₦7 each. Prepare the journal entries for the issue of shares and the sale of shares.
A. Debit Share Capital ₦100,000, Credit Cash ₦100,000
B. Debit Share Capital ₦50,000, Credit Cash ₦50,000
C. Debit Share Capital ₦200,000, Credit Cash ₦200,000
D. Debit Share Capital ₦150,000, Credit Cash ₦150,000
Question 4
A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset is valued at ₦100,000, calculate the value of the asset after 2 years.
A. ₦81,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 5
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. Calculate the company's net worth.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 6
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a net income of ₦120,000, how much of the net income will Partner A receive?
A. ₦72,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 7
A company's trial balance shows an error of ¦0,000 in the balance of the accounts payable account. The correct balance should be ¦1,000. What is the effect of this error on the company's net income?
A. Increases net income by ¦0,000
B. Decreases net income by ¦0,000
C. Has no effect on net income
D. Increases net income by ¦1,000
Question 8
A company has the following cash transactions for the month of January: Cash received from customers: ₦150,000 Cash paid to suppliers: ₦80,000 Cash paid for rent: ₦20,000 Cash received from bank loan: ₦50,000 What is the company's net cash inflow for the month?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 9
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5,000 ₦100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 10
A company's trial balance shows an error of ¦0,000 in the balance of the accounts payable account. The correct balance should be ¦1,000. What is the effect of this error on the company's net income?
A. Increases net income by ¦0,000
B. Decreases net income by ¦0,000
C. Has no effect on net income
D. Increases net income by ¦1,000
Question 11
A company purchased a building for ₦5,000,000. The company depreciated the building by 10% in the first year. Calculate the book value of the building at the end of the first year.
A. ₦4,500,000
B. ₦4,500,000
C. ₦4,500,000
D. ₦4,500,000
Question 12
A company's balance sheet shows total assets of ¦10,000, total liabilities of ¥0,000, and total equity of ¥10,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 13
A company issued 10,000 debentures of ₦100 each at a discount of 5%. The debentures were issued at a premium of ₦2. Prepare the journal entries for the issue of debentures.
A. Debit Debenture Capital ₦950,000, Credit Cash ₦950,000
B. Debit Debenture Capital ₦1,000,000, Credit Cash ₦1,000,000
C. Debit Debenture Capital ₦1,050,000, Credit Cash ₦1,050,000
D. Debit Debenture Capital ₦1,100,000, Credit Cash ₦1,100,000
Question 14
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance showed the following balances: A's Capital ₦80,000, B's Capital ₦60,000, and Drawing ₦20,000. Prepare a statement of partners' capital.
A. ₦140,000
B. ₦160,000
C. ₦180,000
D. ₦200,000
Question 15
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 10 years and a cost of ₦200,000, what is the annual depreciation expense?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

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