POST UTME WELLSPRING UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦1,000 each at a discount of ₦50 per debenture. What is the total amount received from the issue of shares and debentures?
A. ₦6,500,000
B. ₦6,500,000
C. ₦6,500,000
D. ₦6,500,000
Question 2
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the company's net profit for the year.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 3
A company has two partners, A and B, who share profits in the ratio 3:2. The capital of the company is ₦1,500,000, and the profit for the year is ₦450,000. If A's drawings are ₦30,000, calculate the amount of profit to be distributed to A.
A. ₦135,000
B. ₦150,000
C. ₦165,000
D. ₦180,000
Question 4
A company's trial balance shows the following balances:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 5
A company's cash book shows the following transactions: cash received from customers ₦50,000, cash paid to suppliers ₦30,000, cash received from bank ₦20,000, and cash paid to bank ₦10,000. What is the total cash balance?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the company's net profit for the year.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 7
A company's trial balance shows the following accounts: Accounts Payable ₦50,000, Sales Revenue ₦150,000, Cost of Goods Sold ₦80,000, and Common Stock ₦100,000. What is the total amount of assets?
A. ₦230,000
B. ₦240,000
C. ₦250,000
D. ₦260,000
Question 8
A company issued 5,000 debentures of ₦100 each at a premium of 10%.
A. ₦5,00,000
B. ₦5,50,000
C. ₦6,00,000
D. ₦6,50,000
Question 9
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦800,000. Calculate the company's total assets.
A. ₦1,300,000
B. ₦1,300,000
C. ₦1,300,000
D. ₦1,300,000
Question 10
A company issued 10,000 shares of 1 par value at a premium of 50%.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 11
The following is a statement of cash flows for a public sector entity. Prepare the cash flow statement using the direct method.
A. Cash flows from operating activities: ₦1,500,000; Cash flows from investing activities: ₦750,000; Cash flows from financing activities: ₦1,000,000
B. Cash flows from operating activities: ₦1,000,000; Cash flows from investing activities: ₦1,500,000; Cash flows from financing activities: ₦750,000
C. Cash flows from operating activities: ₦750,000; Cash flows from investing activities: ₦1,000,000; Cash flows from financing activities: ₦1,500,000
D. Cash flows from operating activities: ₦1,500,000; Cash flows from investing activities: ₦1,000,000; Cash flows from financing activities: ₦750,000
Question 12
A company has a balance sheet that shows total assets of ₦500,000 and total liabilities of ₦200,000. If the company's equity is ₦300,000, calculate the company's return on equity (ROE).
A. 50%
B. 60%
C. 70%
D. 80%
Question 13
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦800,000. Calculate the company's total assets.
A. ₦1,300,000
B. ₦1,300,000
C. ₦1,300,000
D. ₦1,300,000
Question 14
A company's bank reconciliation statement shows a difference of ₦5,000 between the cash book balance and the bank statement balance. The company's cash book balance is ₦20,000 and the bank statement balance is ₦25,000. What is the reason for the difference?
A. Bank error
B. Cash book error
C. Both bank and cash book errors
D. Neither bank nor cash book errors
Question 15
A company uses the double-entry system of accounting. The following transactions occurred during the year:
A. Debit Cash 1,000 and Credit Accounts Payable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000 and Credit Cash 1,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: