POST UTME ABU 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Calculate the total amount received from the sale of shares.
A. ₦40,000,000
B. ₦50,000,000
C. ₦60,000,000
D. ₦70,000,000
Question 2
A company's balance sheet shows the following accounts: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦100,000. What is the company's total liabilities?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 3
A company's cash book shows a debit balance of ₦10,000 in the 'Bank' account. However, the company's accounting records show that it has a credit balance of ₦15,000 in the 'Bank' account. What is the correct journal entry to record the error?
A. Debit Bank ₦15,000, Credit Cash ₦10,000
B. Debit Bank ₦10,000, Credit Cash ₦15,000
C. Debit Bank ₦15,000, Credit Cash ₦25,000
D. Debit Bank ₦25,000, Credit Cash ₦15,000
Question 4
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦24,000
C. ₦25,000
D. ₦30,000
Question 5
A company uses the straight-line method of depreciation. A machine was purchased for ₦500,000 and has a residual value of ₦50,000. Calculate the annual depreciation charge for the machine.
A. ₦20,000
B. ₦22,500
C. ₦25,000
D. ₦30,000
Question 6
A company's assets are valued at ₦500,000. The company depreciates its assets by 10% per annum. Calculate the value of the assets after 2 years.
A. ₦441,000
B. ₦450,000
C. ₦460,000
D. ₦470,000
Question 7
A company issues 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦500,000
Question 8
A company's cash book shows a balance of ₦100,000. The bank statement shows a balance of ₦120,000. The difference is due to an outstanding cheque of ₦20,000. Calculate the company's cash balance.
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 9
A company has a capital of ₦500,000, divided into 100,000 shares of ₦5 each. If the company issues 10,000 shares at a premium of ₦2, what is the amount received from the issue of shares?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 10
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?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 11
A company uses the double-entry system of accounting. The company's cash account shows a balance of ₦150,000. The company's bank statement shows a balance of ₦120,000. The bank has charged a service fee of ₦2,000. What is the correct journal entry to record the bank reconciliation?
A. ₦2,000 debit to Cash and ₦2,000 credit to Bank Charges
B. ₦2,000 debit to Bank Charges and ₦2,000 credit to Cash
C. ₦2,000 debit to Bank Charges and ₦2,000 credit to Profit and Loss
D. ₦2,000 debit to Cash and ₦2,000 credit to Profit and Loss
Question 12
A partnership has two partners, A and B. The partnership's capital account shows a balance of ₦200,000. Partner A's capital account shows a balance of ₦100,000. Partner B's capital account shows a balance of ₦50,000. What is the correct journal entry to record the distribution of the partnership's profit?
A. ₦50,000 debit to Partner A's Capital and ₦50,000 credit to Partner B's Capital
B. ₦50,000 debit to Partner B's Capital and ₦50,000 credit to Partner A's Capital
C. ₦50,000 debit to Partner A's Capital and ₦50,000 credit to Profit and Loss
D. ₦50,000 debit to Partner B's Capital and ₦50,000 credit to Profit and Loss
Question 13
A company has a self-balancing ledger with the following accounts: Cash, Accounts Payable, and Common Stock. The ledger shows a debit balance of ₦50,000 in the Cash account and a credit balance of ₦20,000 in the Accounts Payable account. Calculate the balance in the Common Stock account.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 14
A company has two departments: A and B. Department A has a direct material cost of ₦100,000 and a direct labor cost of ₦150,000. Department B has a direct material cost of ₦80,000 and a direct labor cost of ₦120,000. Calculate the total direct material cost and total direct labor cost of the company.
A. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
B. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
C. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
D. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
Question 15
A company has a capital of ₦1,500,000, divided into 300,000 shares of ₦5 each. If the company issues 30,000 shares at a premium of ₦2, what is the amount received from the issue of shares?
A. ₦60,000
B. ₦120,000
C. ₦180,000
D. ₦240,000

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