POST UTME UNN 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions related to its sales department: Sales revenue: ₦100,000 Cost of goods sold: ₦60,000 Gross profit: ₦40,000 What is the gross profit margin?
A. 40%
B. 50%
C. 60%
D. 70%
Question 2
A company's bank statement showed a balance of ₦ 5,000, while the company's cash book showed a balance of ₦ 3,000. The difference of ₦ 2,000 was due to outstanding checks. What is the correct balance of the company's cash?
A. ₦ 3,000
B. ₦ 5,000
C. ₦ 2,000
D. ₦ 7,000
Question 3
A company has the following transactions for the year ended December 31, 2022: Purchased goods for ₦200,000 Sold goods for ₦300,000 What is the profit made by the company?
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦300,000
Question 4
A company has the following transactions affecting its cash account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | 10,000 | 0 | | 2 Jan | Cash paid to suppliers | 0 | 5,000 | | 3 Jan | Cash received from sales | 8,000 | 0 | | 4 Jan | Cash paid to employees | 0 | 3,000 | What is the balance of the cash account on 4 Jan?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 5
A company has the following trial balance: Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000. Prepare the balance sheet.
A. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
B. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
C. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
D. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
Question 6
The following transactions were recorded by a government agency in a single day: (i) Cash received from the public for the purchase of a bond, ₦1,000,000; (ii) Cash paid to a contractor for the construction of a road, ₦500,000; (iii) Cash received from the sale of a vehicle, ₦200,000; (iv) Cash paid to an employee as salary, ₦300,000; (v) Cash received from the sale of a plot of land, ₦800,000. Determine the net increase in cash for the day.
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦200,000
Question 7
A company uses the straight-line method to depreciate its assets. The company purchased a machine for ₦100,000 on January 1, 2023, and it is expected to have a residual value of ₦20,000 at the end of its useful life. The machine is expected to last for 5 years. What is the annual depreciation expense for the machine?
A. ₦16,000
B. ₦17,000
C. ₦18,000
D. ₦19,000
Question 8
A company has the following transactions related to its manufacturing department: Raw materials purchased: ₦50,000 Direct labor: ₦30,000 Overhead: ₦20,000 What is the total cost of the manufacturing department?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 9
A company's cash book showed the following transactions: (i) Cash received from the public for the purchase of a bond, ₦1,000,000; (ii) Cash paid to a contractor for the construction of a road, ₦500,000; (iii) Cash received from the sale of a vehicle, ₦200,000; (iv) Cash paid to an employee as salary, ₦300,000; (v) Cash received from the sale of a plot of land, ₦800,000. Determine the net increase in cash for the day.
A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦200,000
Question 10
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 15,000. Prepare the journal entry for the issue of shares.
A. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 15,000
B. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 15,000
C. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 10,000, Credit Issue Expenses ₦ 15,000
D. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 10,000, Credit Issue Expenses ₦ 15,000
Question 11
A company's trial balance showed an error of ₦ 1,000 due to an omission of a transaction. The error was discovered and corrected by passing a correcting entry. What is the effect of this correcting entry on the company's retained earnings?
A. Increases Retained Earnings by ₦ 1,000
B. Decreases Retained Earnings by ₦ 1,000
C. Has no effect on Retained Earnings
D. Increases Retained Earnings by ₦ 2,000
Question 12
A company has the following transactions: Purchased goods for ₦100,000 on credit; Sold goods for ₦150,000 on credit; Purchased goods for ₦50,000 for cash. Prepare the journal entries for the transactions.
A. Debit Purchases = ₦100,000, Credit Accounts Payable = ₦100,000; Debit Sales = ₦150,000, Credit Accounts Receivable = ₦150,000; Debit Purchases = ₦50,000, Credit Cash = ₦50,000
B. Debit Purchases = ₦100,000, Credit Accounts Payable = ₦100,000; Debit Sales = ₦150,000, Credit Accounts Receivable = ₦150,000; Debit Purchases = ₦50,000, Credit Cash = ₦50,000
C. Debit Purchases = ₦100,000, Credit Accounts Payable = ₦100,000; Debit Sales = ₦150,000, Credit Accounts Receivable = ₦150,000; Debit Purchases = ₦50,000, Credit Cash = ₦50,000
D. Debit Purchases = ₦100,000, Credit Accounts Payable = ₦100,000; Debit Sales = ₦150,000, Credit Accounts Receivable = ₦150,000; Debit Purchases = ₦50,000, Credit Cash = ₦50,000
Question 13
A company has the following trial balance: Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000. Prepare the balance sheet.
A. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
B. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
C. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
D. Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000
Question 14
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦8,000 | | 3rd Jan | Cash | | ₦12,000 | What is the correct bank reconciliation statement?
A. Bank Balance ₦8,000, Cash Balance ₦22,000
B. Bank Balance ₦16,000, Cash Balance ₦10,000
C. Bank Balance ₦8,000, Cash Balance ₦10,000
D. Bank Balance ₦16,000, Cash Balance ₦22,000
Question 15
A company has the following trial balance: Debtors: ₦150,000 Creditors: ₦100,000 Capital: ₦500,000 What is the total amount of assets?
A. ₦650,000
B. ₦750,000
C. ₦850,000
D. ₦950,000

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