Exam Body

Year

Subject

Paper Type

POST UTME AL-HIKMAH UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME AL-HIKMAH UNIVERSITY 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's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the discrepancy?

A. Bank charges

B. Unrecorded cash sales

C. Unrecorded cash purchases

Correct D. Cheque returned unpaid

Correct Answer: D

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

Question 2

A government agency is required to prepare a statement of sources and applications of funds. What type of account is this?

A. Trading account

B. Profit and loss account

C. Balance sheet

Correct D. Statement of sources and applications of funds

Correct Answer: D

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

Question 3

A company has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit for the year is ₦60,000. What is the ratio of A's and B's shares of the profit?

A. 1:1

Correct B. 2:1

C. 3:2

D. 4:3

Correct Answer: B

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

Question 4

A company's trading account shows a profit of ₦120,000. However, the profit and loss account shows a loss of ₦80,000. What is the reason for the discrepancy?

A. Unrecorded sales

B. Unrecorded purchases

Correct C. Depreciation

D. Interest on loan

Correct Answer: C

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

Question 5

A company's balance sheet shows a total assets of ₦500,000 and total liabilities of ₦300,000. What is the company's net worth?

A. ₦100,000

Correct B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: B

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

Question 6

A company issues 10,000 9% debentures of ₦100 each on January 1, 2020. The debentures are redeemable at par on January 1, 2025. Interest is payable half-yearly on June 30 and December 31. Calculate the amount of interest payable on December 31, 2021.

Correct A. ₦45,000

B. ₦50,000

C. ₦55,000

D. ₦60,000

Correct Answer: A

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

Question 7

A company's trial balance as at December 31, 2021, is as follows: Debit ₦ 1,500,000 Cash ₦ 2,000,000 ₦ 3,000,000 ₦ 4,000,000 ₦ 5,000,000 ₦ 6,000,000 ₦ 7,000,000 ₦ 8,000,000 ₦ 9,000,000 ₦ 10,000,000 ₦ 11,000,000 ₦ 12,000,000 ₦ 13,000,000 ₦ 14,000,000 ₦ 15,000,000 ₦ 16,000,000 ₦ 17,000,000 ₦ 18,000,000 ₦ 19,000,000 ₦ 20,000,000 Credit ₦ 1,000,000 ₦ 2,000,000 ₦ 3,000,000 ₦ 4,000,000 ₦ 5,000,000 ₦ 6,000,000 ₦ 7,000,000 ₦ 8,000,000 ₦ 9,000,000 ₦ 10,000,000 ₦ 11,000,000 ₦ 12,000,000 ₦ 13,000,000 ₦ 14,000,000 ₦ 15,000,000 ₦ 16,000,000 ₦ 17,000,000 ₦ 18,000,000 ₦ 19,000,000 ₦ 20,000,000 What is the amount of the company's capital as at December 31, 2021?

A. ₦ 1,500,000

B. ₦ 2,000,000

C. ₦ 3,000,000

Correct D. ₦ 4,000,000

Correct Answer: D

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

Question 8

A company's assets are as follows: ₦ 1,000,000 - Cash ₦ 2,000,000 - Accounts Receivable ₦ 3,000,000 - Inventory ₦ 4,000,000 - Property, Plant, and Equipment ₦ 5,000,000 - Intangible Assets What is the total amount of the company's assets?

A. ₦ 15,000,000

B. ₦ 20,000,000

C. ₦ 25,000,000

Correct D. ₦ 30,000,000

Correct Answer: D

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

Question 9

A company's liabilities are as follows: ₦ 1,000,000 - Accounts Payable ₦ 2,000,000 - Short-term Loans ₦ 3,000,000 - Long-term Loans What is the total amount of the company's liabilities?

A. ₦ 6,000,000

B. ₦ 7,000,000

C. ₦ 8,000,000

Correct D. ₦ 9,000,000

Correct Answer: D

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

Question 10

A company's equity is as follows: ₦ 1,000,000 - Common Stock ₦ 2,000,000 - Retained Earnings What is the total amount of the company's equity?

A. ₦ 3,000,000

B. ₦ 4,000,000

C. ₦ 5,000,000

Correct D. ₦ 6,000,000

Correct Answer: D

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

Question 11

A company's financial statements for the year ended December 31, 2021, are as follows: Balance Sheet: ₦ 1,000,000 - Cash ₦ 2,000,000 - Accounts Receivable ₦ 3,000,000 - Inventory ₦ 4,000,000 - Property, Plant, and Equipment ₦ 5,000,000 - Intangible Assets Income Statement: ₦ 1,000,000 - Revenue ₦ 2,000,000 - Cost of Goods Sold ₦ 3,000,000 - Gross Profit What is the company's net income for the year ended December 31, 2021?

A. ₦ 1,000,000

B. ₦ 2,000,000

C. ₦ 3,000,000

Correct D. ₦ 4,000,000

Correct Answer: D

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

Question 12

A company uses the double entry system to record its transactions. If the company purchases office equipment for ₦50,000, and the supplier is paid ₦55,000, what is the journal entry to record the transaction?

Correct A. Debit Office Equipment ₦50,000, Credit Cash ₦55,000

B. Debit Office Equipment ₦55,000, Credit Cash ₦50,000

C. Debit Office Equipment ₦50,000, Credit Accounts Payable ₦55,000

D. Debit Office Equipment ₦55,000, Credit Accounts Payable ₦50,000

Correct Answer: A

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

Question 13

A partnership is formed between two individuals, John and Mary. They agree to share profits and losses in the ratio 3:2. If the partnership makes a profit of ₦120,000, how much will John receive?

Correct A. ₦90,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: A

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

Question 14

A company prepares its final accounts for the year ended December 31, 2022. The trading account shows a profit of ₦500,000, and the profit and loss account shows a profit of ₦200,000. What is the total profit for the year?

Correct A. ₦700,000

B. ₦500,000

C. ₦200,000

D. ₦300,000

Correct Answer: A

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

Question 15

A company purchases a machine for ₦1,000,000 and depreciates it by 10% per annum. What is the book value of the machine after 3 years?

Correct A. ₦720,000

B. ₦810,000

C. ₦900,000

D. ₦990,000

Correct Answer: A

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

Question 16

A government agency prepares its financial statements for the year ended December 31, 2022. The statement of financial position shows a total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the total equity?

Correct A. ₦3,000,000

B. ₦2,000,000

C. ₦1,000,000

D. ₦500,000

Correct Answer: A

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

Question 17

A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦110,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?

Correct A. The cash book has not been updated to reflect the latest bank statement.

B. The bank has charged a fee for a service rendered.

C. The company has not recorded a deposit in the cash book.

D. The cash book has been incorrectly balanced.

Correct Answer: A

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

Question 18

A company has two departments: Manufacturing and Sales. The Manufacturing department has a cost of goods sold of ₦500,000, while the Sales department has a cost of goods sold of ₦300,000. What is the total cost of goods sold for the company?

Correct A. ₦800,000

B. ₦700,000

C. ₦600,000

D. ₦900,000

Correct Answer: A

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

Question 19

A company uses the double-entry system to record its financial transactions. The company has a debit balance of ₦100,000 in the asset account and a credit balance of ₦150,000 in the liability account. What is the net effect on the company's equity?

A. Increase in equity by ₦50,000

Correct B. Decrease in equity by ₦50,000

C. No effect on equity

D. Increase in equity by ₦50,000 and decrease in equity by ₦50,000

Correct Answer: B

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

Question 20

A company has a building with a cost of ₦1,000,000 and a useful life of 10 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?

Correct A. ₦100,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: A

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

Question 21

A company has a machine with a cost of ₦500,000 and a useful life of 5 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?

Correct A. ₦100,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: A

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

Question 22

A company has a building with a cost of ₦1,500,000 and a useful life of 10 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?

Correct A. ₦150,000

B. ₦180,000

C. ₦200,000

D. ₦220,000

Correct Answer: A

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

Question 23

A company has a machine with a cost of ₦200,000 and a useful life of 5 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?

Correct A. ₦40,000

B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: A

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

Question 24

A company has a building with a cost of ₦2,000,000 and a useful life of 10 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?

Correct A. ₦200,000

B. ₦220,000

C. ₦240,000

D. ₦260,000

Correct Answer: A

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

Question 25

A company has a machine with a cost of ₦300,000 and a useful life of 5 years. The company uses the straight-line method of depreciation. What is the annual depreciation charge?

A. ₦60,000

B. ₦70,000

C. ₦80,000

D. ₦90,000

Correct Answer: VIEW ANSWER

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