POST UTME WELLSPRING UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their existing capitals. If the capital of the leaving partner is ₦ 50,000 and the existing capitals of the remaining partners are ₦ 30,000 and ₦ 40,000 respectively, what is the amount of capital to be transferred to the partner with ₦ 40,000 capital?
A. ₦ 10,000
B. ₦ 20,000
C. ₦ 30,000
D. ₦ 40,000
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. Prepare a statement of profit or loss for the year.
A. Profit for the year ₦50,000
B. Loss for the year ₦50,000
C. Profit for the year ₦100,000
D. Loss for the year ₦100,000
Question 3
A government agency is required to prepare a budget for the upcoming fiscal year. Which of the following is a characteristic of a zero-based budget?
A. All expenses are assumed to be zero unless justified
B. All expenses are assumed to be justified unless challenged
C. All expenses are assumed to be justified unless challenged and approved
D. All expenses are assumed to be zero unless approved
Question 4
A company prepares a trial balance as part of its accounting process. Which of the following is a characteristic of a trial balance?
A. It is a list of all accounts with their respective debit and credit balances
B. It is a list of all accounts with their respective debit and credit balances, and is used to identify any errors in the accounting process
C. It is a list of all accounts with their respective debit and credit balances, and is used to prepare the financial statements
D. It is a list of all accounts with their respective debit and credit balances, and is used to prepare the budget
Question 5
A company issued 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. The debentures were issued at a discount of ₦5 per debenture. Calculate the amount received from the public and the amount paid up by the debenture holders.
A. ₦475,000
B. ₦485,000
C. ₦495,000
D. ₦505,000
Question 6
The following are the ledger accounts for the year ended 31st December, 2016. Prepare the trial balance and balance sheet.
A. ₦225,000
B. ₦250,000
C. ₦275,000
D. ₦300,000
Question 7
A company prepares a trial balance but discovers that the debit and credit totals are not equal. The difference is ₦ 1,000. What is the next step in the accounting process?
A. Prepare a balance sheet
B. Prepare a cash flow statement
C. Investigate the cause of the difference
D. Prepare a profit and loss account
Question 8
A company produces two products, X and Y. The production process involves two departments, A and B. Department A produces 60% of product X and 40% of product Y, while department B produces 40% of product X and 60% of product Y. If department A uses 10,000 units of raw material and department B uses 8,000 units of raw material, what is the total raw material used by the company?
A. 18,000
B. 20,000
C. 22,000
D. 24,000
Question 9
A company purchases a machine for ₦120,000 and sells it for ₦150,000. Calculate the gain on the sale of the machine.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
A company issues 5,000, 10% shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 11
The following trial balance was extracted from the books of a manufacturing company. Prepare a balance sheet as at 31st December, 2016.
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 12
A company's balance sheet showed a capital of ₦50,000 and a profit of ₦20,000. What was the total amount of the company's assets?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦70,000
Question 13
The following are the journal entries for the year ended 31st December, 2016. Prepare the ledger accounts and trial balance.
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 14
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1000 | | | Sales | | 500 | | Purchase | 200 | | | Capital | | 2000 | What is the correct balance of the Capital account?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 15
A company prepares a balance sheet as part of its accounting process. Which of the following is a characteristic of a balance sheet?
A. It is a list of all assets, liabilities, and equity of the company
B. It is a list of all assets and liabilities of the company, and is used to prepare the income statement
C. It is a list of all assets and equity of the company, and is used to prepare the cash flow statement
D. It is a list of all liabilities and equity of the company, and is used to prepare the budget

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