POST UTME AAUA 2021 Accounting | Objective

Are you preparing for POST UTME AAUA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. The ledger shows a balance of ₦50,000 in the Cash account and a balance of ₦30,000 in the Accounts Payable account. What is the total amount of the company's assets?
Correct A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's trial balance shows the following accounts: Sales Revenue, Cost of Goods Sold, and Net Income. The trial balance shows a balance of ₦100,000 in the Sales Revenue account and a balance of ₦80,000 in the Cost of Goods Sold account. What is the amount of the company's net income?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company uses a double-entry system to record its transactions. The company has the following accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. The company's journal entries show a debit of ₦50,000 in the Cash account and a credit of ₦30,000 in the Accounts Payable account. What is the total amount of the company's assets?
Correct A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's cash book shows the following transactions: a deposit of ₦10,000, a withdrawal of ₦5,000, and a payment of ₦3,000. What is the company's new cash balance?
Correct A. ₦12,000
B. ₦11,000
C. ₦10,000
D. ₦9,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's bank reconciliation statement shows the following discrepancies: a difference of ₦1,000 between the company's cash book balance and the bank statement balance, and a difference of ₦500 between the company's cash book balance and the bank statement balance. What is the company's new cash balance?
A. ₦12,000
Correct B. ₦11,000
C. ₦10,000
D. ₦9,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 20,000
Correct B. ₦ 25,000
C. ₦ 30,000
D. ₦ 35,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A partnership business has two partners, A and B. Their capital accounts are ₦ 50,000 and ₦ 30,000 respectively. The profit for the year is ₦ 20,000. If A's share of profit is ₦ 12,000, calculate B's share of profit.
A. ₦ 8,000
B. ₦ 10,000
Correct C. ₦ 12,000
D. ₦ 14,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company purchased a machine for ₦ 50,000. The machine has a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
A. ₦ 9,500
Correct B. ₦ 10,000
C. ₦ 10,500
D. ₦ 11,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
Correct A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A partnership business has two partners, A and B. Their capital accounts are ₦ 50,000 and ₦ 30,000 respectively. The profit for the year is ₦ 20,000. If A's share of profit is ₦ 12,000, calculate B's share of profit.
A. ₦ 8,000
B. ₦ 10,000
Correct C. ₦ 12,000
D. ₦ 14,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company has a cash book and a bank statement. The cash book shows a balance of ₦125,000, while the bank statement shows a balance of ₦120,000. The bank statement also shows a credit of ₦5,000 for interest earned. What is the correct explanation for the difference between the cash book and bank statement balances?
A. The company has a cash surplus of ₦5,000.
Correct B. The company has a cash deficit of ₦5,000.
C. The company has a bank overdraft of ₦5,000.
D. The company has a cash balance of ₦125,000 and a bank balance of ₦120,000.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product A and product B should the company produce to maximize profit?
Correct A. Product A: 30 units, Product B: 40 units
B. Product A: 40 units, Product B: 30 units
C. Product A: 50 units, Product B: 20 units
D. Product A: 20 units, Product B: 50 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company has the following transactions: purchase of goods for ₦100,000, sale of goods for ₦150,000, and payment of ₦20,000 to a creditor. What is the correct journal entry for these transactions?
Correct A. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Debit: Creditor ₦20,000
B. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Credit: Creditor ₦20,000
C. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Debit: Creditor ₦20,000
D. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Credit: Creditor ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company has the following financial statements: Balance Sheet and Income Statement. The Balance Sheet shows a total asset of ₦500,000 and a total liability of ₦300,000. The Income Statement shows a net income of ₦50,000. What is the correct explanation for the difference between the total asset and total liability?
A. The company has a cash surplus of ₦200,000.
Correct B. The company has a cash deficit of ₦200,000.
C. The company has a bank overdraft of ₦200,000.
D. The company has a cash balance of ₦500,000 and a bank balance of ₦300,000.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company has the following transactions: purchase of goods for ₦100,000, sale of goods for ₦150,000, and payment of ₦20,000 to a creditor. What is the correct journal entry for these transactions?
Correct A. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Debit: Creditor ₦20,000
B. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Credit: Creditor ₦20,000
C. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Debit: Creditor ₦20,000
D. Debit: Purchases ₦100,000, Credit: Sales ₦150,000, Credit: Creditor ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The following is an extract from the financial statements of a company: Trading Account: Sales: ₦1,500,000 Cost of Goods Sold: ₦1,200,000 Gross Profit: ₦300,000 Profit and Loss Account: Gross Profit: ₦300,000 Operating Expenses: ₦150,000 Net Profit: ₦150,000 Balance Sheet: Assets: ₦1,500,000 Liabilities: ₦1,200,000 Equity: ₦300,000 What is the amount of net profit shown in the financial statements?
Correct A. ₦150,000
B. ₦300,000
C. ₦450,000
D. ₦600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company has the following transactions: 1. Purchased goods for ₦500,000 on credit. 2. Sold goods for ₦700,000 on credit. 3. Paid cash of ₦200,000 to settle a debt. What is the total amount of cash paid by the company?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A partnership has two partners, A and B. The capital contributions of the partners are as follows: A: ₦500,000 B: ₦300,000 The profit-sharing ratio is 3:2. What is the amount of profit to be shared by partner A?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has the following transactions: 1. Purchased goods for ₦600,000 on credit. 2. Sold goods for ₦800,000 on credit. 3. Paid cash of ₦400,000 to settle a debt. What is the total amount of cash paid by the company?
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has the following financial statements: Trading Account: Sales: ₦1,200,000 Cost of Goods Sold: ₦900,000 Gross Profit: ₦300,000 Profit and Loss Account: Gross Profit: ₦300,000 Operating Expenses: ₦150,000 Net Profit: ₦150,000 Balance Sheet: Assets: ₦1,200,000 Liabilities: ₦900,000 Equity: ₦300,000 What is the amount of net profit shown in the financial statements?
Correct A. ₦150,000
B. ₦300,000
C. ₦450,000
D. ₦600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company has the following transactions: 1. Purchased goods for ₦700,000 on credit. 2. Sold goods for ₦900,000 on credit. 3. Paid cash of ₦500,000 to settle a debt. What is the total amount of cash paid by the company?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A partnership has two partners, A and B. The capital contributions of the partners are as follows: A: ₦600,000 B: ₦400,000 The profit-sharing ratio is 3:2. What is the amount of profit to be shared by partner A?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company uses the single-entry system of accounting. The following transactions occurred during the year: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦500,000. 3. Purchased raw materials for ₦300,000. 4. Paid salaries of ₦200,000. 5. Collected cash from customers for ₦400,000. What is the total amount of cash received from customers?
A. ₦400,000
Correct B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A manufacturing company has the following production costs: Direct Materials: ₦100,000 Direct Labour: ₦150,000 Overhead: ₦200,000 What is the total production cost?
A. ₦450,000
B. ₦550,000
Correct C. ₦650,000
D. ₦750,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following balance in its control account: Debit: ₦500,000 Credit: ₦300,000 What is the balance in the control account?
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:
Chat with Support