POST UTME VERITAS UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the accrual method of accounting. On December 31, 2022, it had the following accounts: Accounts Receivable ₦100,000, Accounts Payable ₦50,000, and Salaries Expense ₦20,000. What is the total amount of cash received from customers during the year?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 2
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 value its inventory. What is the total cost of goods sold for the year?
A. ₦60,000
B. ₦62,000
C. ₦64,000
D. ₦66,000
Question 3
A company has a bank statement that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Bank deposit | ₦100,000 | | | 02/01 | Bank withdrawal | | ₦50,000 | | 03/01 | Bank deposit | ₦150,000 | | | 04/01 | Bank withdrawal | | ₦75,000 | What is the total bank balance at the end of the month?
A. ₦175,000
B. ₦225,000
C. ₦275,000
D. ₦325,000
Question 4
A company prepares its financial statements for the year. The trading account shows a profit of ₦50,000, and the profit and loss account shows a profit of ₦30,000. What is the net result of these two accounts?
A. ₦80,000 profit
B. ₦80,000 loss
C. ₦50,000 profit
D. ₦50,000 loss
Question 5
A company's statement of financial position as at December 31, 2020, is presented below. Prepare the statement of cash flows for the year.
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 6
A company has two departments, A and B. Department A has 5 employees, each earning ₦150,000 per month, while department B has 3 employees, each earning ₦200,000 per month. If the company pays a total of ₦1,500,000 in salaries for the month, how much is spent on department B?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 7
A company's bank statement showed a balance of ₠ 10,000. However, the company's cash book showed a balance of ₠ 12,000. What is the reason for the difference?
A. Bank charges
B. Interest on overdraft
C. Cheques issued but not yet presented
D. Cheques deposited but not yet credited
Question 8
A company uses the straight-line method of depreciation. If the cost of the asset is ₦1,000,000 and its residual value is ₦200,000, calculate the annual depreciation charge for the first year.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 9
A company's balance sheet shows a current ratio of 2:3. If the current assets are ₦120,000 and the current liabilities are ₦60,000, what is the amount of the company's long-term liabilities?
A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦120,000
Question 10
A partnership agreement between John, Mary, and David states that the profits and losses will be shared in the ratio 3:2:1. If the profit for the year ended December 31, 2020, is ₦1,500,000, calculate the amount of profit that will be shared by David.
A. ₦300,000
B. ₦450,000
C. ₦600,000
D. ₦750,000
Question 11
A company issued 5,000 debentures of ₦1,000 each at a premium of ₦50 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦5,250,000
B. ₦5,300,000
C. ₦5,350,000
D. ₦5,400,000
Question 12
A company's trial balance as of December 31, 2022, shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the net income for the year?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 13
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method.
A. ₦50,000
B. ₦62,500
C. ₦75,000
D. ₦87,500
Question 14
A manufacturing company has the following cost of production: ₦100,000 for direct materials, ₦50,000 for direct labor, and ₦20,000 for indirect expenses. Calculate the total cost of production.
A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000
Question 15
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 12 hours and machine B operates for 15 hours, what is the total number of units of product X produced?
A. 40
B. 50
C. 60
D. 70

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