POST UTME WELLSPRING UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following balances: Cash ₦150,000, Accounts Payable ₦75,000, and Common Stock ₦250,000. What is the correct formula for calculating the company's total liabilities?
A. Total Liabilities = Cash + Accounts Payable + Common Stock
B. Total Liabilities = Cash - Accounts Payable + Common Stock
C. Total Liabilities = Cash + Accounts Payable - Common Stock
D. Total Liabilities = Cash - Accounts Payable - Common Stock
Question 2
A company's financial statements for the year ended 31 December 2022 are as follows: Trading profit ¦1,500,000; Profit before tax ¦1,800,000; Taxation ¦1,200,000; Profit after tax ¦1,600,000. What is the company's net profit for the year?
A. ¦1,800,000
B. ¦1,600,000
C. ¦1,500,000
D. ¦1,200,000
Question 3
A company's financial statements for the year ended 31 December 2022 are as follows: Trading profit ¦1,500,000; Profit before tax ¦1,800,000; Taxation ¦1,200,000; Profit after tax ¦1,600,000. What is the company's net profit for the year?
A. ¦1,800,000
B. ¦1,600,000
C. ¦1,500,000
D. ¦1,200,000
Question 4
A company prepares its final accounts for the year ended 31st December 2022. The trading account shows a gross profit of ₦150,000 and a net profit of ₦80,000. The balance sheet shows a capital of ₦200,000 and a profit and loss appropriation account shows a balance of ₦20,000. What is the correct classification of the balance of the profit and loss appropriation account?
A. Revenue reserve
B. Capital reserve
C. Profit and loss account
D. Dividend account
Question 5
A company's balance sheet as at 31st December 2022 shows a total assets of ₦500,000 and a total liabilities of ₦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 issued 10,000 equity shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 7
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the correct formula for calculating the company's net worth?
A. Net Worth = Cash + Accounts Payable + Common Stock
B. Net Worth = Cash - Accounts Payable + Common Stock
C. Net Worth = Cash + Accounts Payable - Common Stock
D. Net Worth = Cash - Accounts Payable - Common Stock
Question 8
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 9
A company's cash book shows a discrepancy of ₦5,000 between the cash balance as per the cash book and the cash balance as per the bank statement. The cash balance as per the cash book is ₦20,000. What is the correct cash balance?
A. ₦25,000
B. ₦20,000
C. ₦15,000
D. ₦10,000
Question 10
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation expense if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 11
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Sales | | ₦1,500 | | 3rd Jan | Purchases | ₦500 | | | 4th Jan | Cash | | ₦1,000 | Calculate the cash balance on 4th Jan.
A. ₦1,500
B. ₦1,000
C. ₦500
D. ₦0
Question 12
A company's financial statements for the year ended 31 December 2022 are as follows: Revenue ¦1,500,000; Expenditure ¦1,800,000; Surplus/(Deficit) ¦1,200,000. What is the company's financial position?
A. Surplus
B. Deficit
C. Break-even
D. Unknown
Question 13
A company has the following transactions: Purchased office supplies for ₦20,000; Paid rent for ₦50,000; Sold goods for ₦100,000. What is the total revenue for the year?
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 14
A company has two partners, A and B, who share profits and losses in the ratio 3:2. The company's profit for the year is ₦120,000. What is the share of profit for partner A?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 15
A single entry system is used to record transactions. The journal entry for a sale of goods on credit is: Debit Sales A/c ₦10,000, Credit Debtors A/c ₦10,000. What is the correct classification of this transaction?
A. Trading transaction
B. Non-trading transaction
C. Capital transaction
D. Revenue transaction

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