POST UTME ABU 2021 Accounting | Objective

Are you preparing for POST UTME ABU 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 has two departments, A and B, with the following sales and expenses for the year ended 31st December 2020:
A. ₦1,500,000
Correct B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000

Correct Answer: B

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Question 2
The following is a partial statement of affairs of XYZ Ltd. as at 31st December 2020:
Correct A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000

Correct Answer: A

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Question 3
The following is a partial cash book of ABC Ltd. for the year ended 31st December 2020:
A. ₦1,500,000
B. ₦1,200,000
Correct C. ₦1,800,000
D. ₦1,000,000

Correct Answer: C

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Question 4
The following is a partial statement of profit or loss of XYZ Ltd. for the year ended 31st December 2020:
A. ₦1,500,000
Correct B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000

Correct Answer: B

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Question 5
The following is a partial balance sheet of ABC Ltd. as at 31st December 2020:
Correct A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000

Correct Answer: A

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 7
A partnership has two partners, A and B. Partner A has a 60% interest in the profits, while partner B has a 40% interest. If the total profit for the year is ₦180,000, how much will partner A receive?
Correct A. ₦108,000
B. ₦90,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 8
A company uses the weighted average method to value its inventory. If the cost of the items is ₦100,000, the selling price is ₦120,000, and the number of units sold is 500, what is the cost of goods sold?
Correct A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦70,000

Correct Answer: A

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Question 9
A company has the following transactions: Purchased office supplies for ₦10,000, paid rent for ₦20,000, and purchased equipment for ₦50,000. What is the total amount of cash outflows?
Correct A. ₦80,000
B. ₦70,000
C. ₦90,000
D. ₦60,000

Correct Answer: A

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Question 10
A company uses the FIFO method to value its inventory. If the cost of the items is ₦100,000, the selling price is ₦120,000, and the number of units sold is 500, what is the cost of goods sold?
Correct A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦70,000

Correct Answer: A

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Question 11
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that partner A will receive.
Correct A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 12
A manufacturing company uses a job costing system. The following data are available for the year ended December 31, 2021: Direct Materials: ₦150,000; Direct Labor: ₦120,000; Overheads: ₦180,000. Calculate the total cost of production for the year.
Correct A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000

Correct Answer: A

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Question 13
A company has the following ledger account balances: Cash: ₦100,000; Accounts Receivable: ₦80,000; Inventory: ₦120,000. Calculate the total current assets of the company.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 14
A government agency has the following budgetary data for the year ended December 31, 2021: Revenue: ₦500,000; Expenditure: ₦600,000. Calculate the budget deficit for the year.
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 15
A company has the following financial statements for the year ended December 31, 2021: Net Income: ₦200,000; Dividends: ₦50,000. Calculate the retained earnings for the year.
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 16
A company's trading account for the year ended December 31, 2021, shows a profit of ₦1,500,000. The balance sheet as at December 31, 2021, shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦150,000. Calculate the net profit for the year.
Correct A. ₦1,450,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

Correct Answer: A

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Question 17
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its useful life is 5 years. Calculate the annual depreciation charge.
A. ₦100,000
Correct B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: B

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Question 18
A partnership consists of two partners, A and B. The capital account of A is ₦200,000 and that of B is ₦300,000. The profit-sharing ratio is 2:3. Calculate the share of profit of A.
Correct A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,000,000

Correct Answer: A

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Question 19
A company's balance sheet as at December 31, 2021, shows a current ratio of 2:1. If the current assets are ₦1,000,000 and the current liabilities are ₦500,000, calculate the total assets.
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦750,000

Correct Answer: A

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Question 20
A company's trial balance as at December 31, 2021, shows a debit balance of ₦100,000 in the account of 'Accrued Expenses'. Calculate the credit balance in the account of 'Accrued Income'.
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 21
A company issued 5,000 shares of ₦10 each at a premium of ₦3 per share. The issue expenses were ₦20,000. If the company received ₦150,000 from the issue, calculate the amount transferred to the share capital account.
A. ₦75,000
Correct B. ₦80,000
C. ₦85,000
D. ₦90,000

Correct Answer: B

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Question 22
A company's trial balance showed a debit balance of ₦50,000 in the accounts payable account. However, the company's ledger showed a credit balance of ₦20,000 in the accounts payable account. What is the correct balance in the accounts payable account?
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

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Question 23
A company's manufacturing account showed a cost of goods manufactured of ₦200,000 and a cost of goods sold of ₦180,000. What is the gross profit?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 24
A company issued 10,000 debentures of ₦100 each at a premium of ₦5 per debenture. The issue expenses were ₦30,000. If the company received ₦1,200,000 from the issue, calculate the amount transferred to the debenture account.
A. ₦120,000
B. ₦125,000
Correct C. ₦130,000
D. ₦135,000

Correct Answer: C

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Question 25
A company's ledger showed a debit balance of ₦80,000 in the accounts receivable account. However, the company's trial balance showed a credit balance of ₦60,000 in the accounts receivable account. What is the correct balance in the accounts receivable account?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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