POST UTME VERITAS UNIVERSITY 2024 Accounting | Objective

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Question 1
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation expense if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 3
A manufacturing company produces 1,000 units of a product that sells for ₦100 per unit. The company's direct materials cost is ₦50 per unit, and its direct labor cost is ₦20 per unit. If the company's overhead cost is ₦30,000, what is the company's total cost of goods sold?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 4
A company's balance sheet shows the following balances: Cash ₦50,000, Accounts Receivable ₦20,000, Inventory ₦30,000, and Common Stock ₦100,000. What is the company's total assets?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 5
A company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs: Type A (100 units, ₦50 per unit), Type B (200 units, ₦75 per unit), and Type C (300 units, ₦100 per unit), what is the company's total inventory value?
A. ₦75,000
B. ₦90,000
Correct C. ₦120,000
D. ₦150,000

Correct Answer: C

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Question 6
A company uses the single entry system to record its transactions. The following transactions were recorded during the year: Debit: ₦10,000 to 'Office Equipment' Credit: ₦8,000 to 'Office Supplies' Debit: ₦12,000 to 'Rent' Credit: ₦15,000 to 'Salaries' What is the net effect of these transactions on the company's equity?
A. ₦2,000 increase in equity
Correct B. ₦2,000 decrease in equity
C. ₦10,000 increase in equity
D. ₦10,000 decrease in equity

Correct Answer: B

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Question 7
A company has the following trial balance: Debit: ₦50,000 - Office Equipment ₦20,000 - Rent ₦30,000 - Salaries Credit: ₦40,000 - Office Supplies ₦60,000 - Utilities What is the correct journal entry to record the following transaction: Debit: ₦10,000 to 'Office Equipment' Credit: ₦8,000 to 'Office Supplies'
Correct A. Debit: ₦10,000 to 'Office Equipment' Credit: ₦8,000 to 'Office Supplies'
B. Debit: ₦10,000 to 'Office Supplies' Credit: ₦8,000 to 'Office Equipment'
C. Debit: ₦10,000 to 'Rent' Credit: ₦8,000 to 'Utilities'
D. Debit: ₦10,000 to 'Salaries' Credit: ₦8,000 to 'Office Supplies'

Correct Answer: A

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Question 8
A company has the following manufacturing account: Debit: ₦100,000 - Direct Materials ₦50,000 - Direct Labour Credit: ₦150,000 - Cost of Goods Sold What is the gross profit of the company?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 9
A company has two partners, A and B. The capital accounts of the partners are as follows: A: ₦100,000 B: ₦150,000 The company makes a profit of ₦20,000. How much will each partner receive as their share of the profit?
A. A: ₦10,000, B: ₦10,000
Correct B. A: ₦12,000, B: ₦8,000
C. A: ₦15,000, B: ₦5,000
D. A: ₦18,000, B: ₦2,000

Correct Answer: B

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Question 10
A company has the following bank reconciliation statement: Bank Balance: ₦50,000 Cheques Outstanding: ₦20,000 Deposits in Transit: ₦15,000 What is the correct bank balance?
A. ₦45,000
B. ₦50,000
Correct C. ₦55,000
D. ₦60,000

Correct Answer: C

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Question 11
A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦150,000. The company's bank statement shows a balance of ₦120,000. What is the amount of the bank overdraft?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 12
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000. What is the company's net profit?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 13
A government agency uses the accrual basis of accounting. The agency's financial statements show the following: Current Assets ₦1,000,000, Current Liabilities ₦500,000, Non-Current Assets ₦2,000,000, Non-Current Liabilities ₦1,500,000. What is the agency's net worth?
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 14
A company's cash book shows the following transactions: Cash Sale ₦100,000, Cash Purchase ₦50,000, Bank Deposit ₦20,000. What is the company's net cash flow?
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 15
A government agency uses the accrual basis of accounting. The agency's financial statements show the following: Current Assets ₦1,500,000, Current Liabilities ₦1,000,000, Non-Current Assets ₦3,000,000, Non-Current Liabilities ₦2,500,000. What is the agency's net worth?
A. ₦1,500,000
B. ₦2,000,000
Correct C. ₦2,500,000
D. ₦3,000,000

Correct Answer: C

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Question 16
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, valued at ₦1,000 each. On January 15, 2024, 200 units were sold for ₦2,000 each. On February 1, 2024, 300 units were purchased for ₦1,500 each. On March 1, 2024, 100 units were sold for ₦2,500 each. What is the cost of goods sold for the year?
A. ₦350,000
B. ₦375,000
Correct C. ₦400,000
D. ₦425,000

Correct Answer: C

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Question 17
A company's trial balance as of December 31, 2023, is as follows: Accounts Receivable ₦50,000, Accounts Payable ₦30,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Salaries Expense ₦100,000, Rent Expense ₦20,000. What is the net income for the year?
A. ₦150,000
Correct B. ₦170,000
C. ₦190,000
D. ₦210,000

Correct Answer: B

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Question 18
A company uses the cash basis of accounting. On January 1, 2024, it had a cash balance of ₦50,000. During the year, it received ₦200,000 in cash from customers and paid ₦150,000 in cash to suppliers. What is the net increase in cash for the year?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 19
A company produces a product that requires 2 hours of direct labor and 1 hour of indirect labor to produce 1 unit. During the year, it produced 10,000 units. If the direct labor cost is ₦50 per hour and the indirect labor cost is ₦30 per hour, what is the total labor cost for the year?
A. ₦1,000,000
B. ₦1,050,000
Correct C. ₦1,100,000
D. ₦1,150,000

Correct Answer: C

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Question 20
A company's bank statement as of December 31, 2023, is as follows: Balance per bank statement ₦50,000, Deposits ₦20,000, Checks ₦30,000. What is the corrected balance per the company's records?
A. ₦40,000
B. ₦50,000
Correct C. ₦60,000
D. ₦70,000

Correct Answer: C

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Question 21
A company uses the job order costing system. On January 1, 2024, it had a work-in-progress balance of ₦50,000. During the year, it incurred ₦100,000 in direct labor costs and ₦50,000 in direct materials costs. What is the total cost of goods manufactured for the year?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 22
A company's trial balance as of December 31, 2023, is as follows: Accounts Receivable ₦50,000, Accounts Payable ₦30,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Salaries Expense ₦100,000, Rent Expense ₦20,000. What is the net income for the year?
A. ₦150,000
Correct B. ₦170,000
C. ₦190,000
D. ₦210,000

Correct Answer: B

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Question 23
A company uses the cash basis of accounting. On January 1, 2024, it had a cash balance of ₦50,000. During the year, it received ₦200,000 in cash from customers and paid ₦150,000 in cash to suppliers. What is the net increase in cash for the year?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 24
A company manufactures two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor to produce, while product Y requires 3 hours of direct labor and 2 hours of indirect labor to produce. If the company has 120 hours of direct labor and 180 hours of indirect labor available, how many units of product X and product Y can be produced?
A. 40 units of X and 60 units of Y
Correct B. 60 units of X and 40 units of Y
C. 80 units of X and 20 units of Y
D. 100 units of X and 0 units of Y

Correct Answer: B

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Question 25
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Equipment | | 10,000 | | 3 Jan | Rent Expense | | 1,000 | | 4 Jan | Utilities Expense | | 500 | | 5 Jan | Salaries Expense | | 2,000 | What is the total amount of expenses for the month of January?
Correct A. ₦4,500
B. ₦4,000
C. ₦3,500
D. ₦3,000

Correct Answer: A

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