POST UTME WELLSPRING UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the process costing method to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of ₦120,000 and adds ₦150,000 of direct materials and ₦80,000 of direct labor during the period. The Assembly department has a beginning work-in-process inventory of ₦90,000 and adds ₦120,000 of direct materials and ₦60,000 of direct labor during the period. What is the total cost of goods manufactured by the Cutting department?
A. ₦420,000
B. ₦420,000
C. ₦420,000
D. ₦420,000
Question 2
A company has a debt of ₦500,000 and a credit of ₦200,000. What is the net debt?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company issued 5,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 5,000. Calculate the amount of share capital.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 4
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000. Calculate the gross profit for the year.
A. ₦300,000
B. ₦200,000
C. ₦400,000
D. ₦500,000
Question 5
The following is a partial balance sheet for XYZ Ltd. as at 31st December 2020: Equity: ₦500,000; Liabilities: ₦300,000. What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 6
A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid', what is the correct journal entry to record the adjustment for the difference?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦5,000 debit to Rent Received and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Rent Received
Question 7
A company uses the job costing method to account for its manufacturing costs. The company has a job that requires 10 units of a component that costs ₦50 per unit. The company also requires 5 units of another component that costs ₦75 per unit. What is the total cost of the job?
A. ₦1,500
B. ₦1,500
C. ₦1,500
D. ₦1,500
Question 8
A partnership is formed between three individuals, A, B, and C. The capital contributions are ₦50,000, ₦30,000, and ₦20,000 respectively. If the profit-sharing ratio is 2:3:4, what is the ratio of their capital contributions?
A. 2:3:4
B. 3:4:5
C. 4:5:6
D. 5:6:7
Question 9
A cash book shows the following transactions: 1st January 2020: Cash: ₦100,000; 15th January 2020: Cash: ₦50,000; 31st December 2020: Cash: ₦200,000. What is the cash balance on 31st December 2020?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 10
A partnership has two partners, A and B. The capital accounts of the partners are as follows: A: ₦200,000; B: ₦300,000. What is the ratio of A's capital to B's capital?
A. 1:2
B. 2:1
C. 1:3
D. 3:1
Question 11
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to record the adjustment for the difference?
A. ₦5,000 debit to Salaries and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries
C. ₦5,000 debit to Salaries and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Salaries
Question 12
A manufacturing company has a production cost of ₦500,000 and a selling price of ₦700,000. What is the gross profit?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 13
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000. Calculate the gross profit for the year.
A. ₦300,000
B. ₦200,000
C. ₦400,000
D. ₦500,000
Question 14
A partnership has two partners, A and B. The capital accounts of the partners are as follows: A: ₦200,000; B: ₦300,000. What is the ratio of A's capital to B's capital?
A. 1:2
B. 2:1
C. 1:3
D. 3:1
Question 15
A partnership is formed between two partners, A and B, with a capital contribution of ₦100,000 and ₦150,000 respectively. What is the ratio of A's capital to B's capital?
A. 1:1
B. 1:2
C. 2:1
D. 3:2

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