POST UTME BELLS UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME BELLS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method to depreciate its assets. If the asset cost ₦250,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: A

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Question 2
A public sector organization has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash received from customers | | ₦100,000 | | 02/01 | Cash paid to suppliers | ₦80,000 | | | 03/01 | Cash received from bank | | ₦120,000 | | 04/01 | Cash paid to employees | ₦60,000 | | What is the balance on the cash account?
A. ₦80,000
B. ₦100,000
Correct C. ₦120,000
D. ₦140,000

Correct Answer: C

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Question 3
A company uses the following accounting equation: Assets = Liabilities + Equity If the company has ₦200,000 in assets and ₦100,000 in liabilities, what is the amount of equity?
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 4
A company has the following transactions in its incomplete records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash received from customers | | ₦150,000 | | 02/01 | Cash paid to suppliers | ₦100,000 | | | 03/01 | Cash received from bank | | ₦120,000 | | 04/01 | Cash paid to employees | ₦80,000 | | What is the total amount of cash received from customers?
Correct A. ₦150,000
B. ₦170,000
C. ₦190,000
D. ₦210,000

Correct Answer: A

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Question 5
A company uses the following single-entry system: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash received from customers | | ₦200,000 | | 02/01 | Cash paid to suppliers | ₦150,000 | | | 03/01 | Cash received from bank | | ₦180,000 | | 04/01 | Cash paid to employees | ₦120,000 | | What is the total amount of cash received?
A. ₦380,000
B. ₦400,000
Correct C. ₦420,000
D. ₦440,000

Correct Answer: C

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Question 6
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their existing capital. If the capital of the departing partner is ₦150,000 and the capital of the remaining partners are ₦80,000 and ₦120,000 respectively, what is the amount of capital that the departing partner will receive?
A. ₦60,000
B. ₦80,000
Correct C. ₦100,000
D. ₦120,000

Correct Answer: C

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Question 7
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Accounts Receivable, and Common Stock. If the company has a balance of ₦50,000 in the Cash account and a balance of ₦20,000 in the Accounts Payable account, what is the total amount of assets that the company has?
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 8
A company uses the incomplete records method to record its transactions. The company has the following information: Cash = ₦30,000, Accounts Payable = ₦15,000, and Common Stock = ₦50,000. If the company has a balance of ₦20,000 in the Accounts Receivable account, what is the total amount of assets that the company has?
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 9
A company uses the public sector accounting method to record its transactions. The company has the following information: Cash = ₦40,000, Accounts Payable = ₦20,000, and Common Stock = ₦60,000. If the company has a balance of ₦30,000 in the Accounts Receivable account, what is the total amount of assets that the company has?
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 10
A company uses the control accounts method to record its transactions. The company has the following information: Cash = ₦50,000, Accounts Payable = ₦25,000, and Common Stock = ₦70,000. If the company has a balance of ₦35,000 in the Accounts Receivable account, what is the total amount of assets that the company has?
Correct A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: A

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Question 11
A company issued 5,000, 10% 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. ₦250,000
B. ₦500,000
Correct C. ₦750,000
D. ₦1,000,000

Correct Answer: C

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Question 12
A company's trading account for the year ended 31st December 20X7 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000. Calculate the gross profit for the year.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 13
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from the issue of the preference shares.
A. ₦200,000
B. ₦250,000
C. ₦300,000
Correct D. ₦350,000

Correct Answer: D

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Question 14
A company's balance sheet as at 31st December 20X7 is as follows: Share Capital: ₦500,000; Reserves: ₦300,000. Calculate the total amount of capital employed by the company.
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
Correct D. ₦1,100,000

Correct Answer: D

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Question 15
A company's profit and loss account for the year ended 31st December 20X7 is as follows: Gross Profit: ₦600,000; Operating Expenses: ₦400,000. Calculate the net profit for the year.
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

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Question 16
A company's balance sheet as at 31st December 20X7 is as follows: Share Capital: ₦500,000; Reserves: ₦300,000. Calculate the total amount of capital employed by the company.
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
Correct D. ₦1,100,000

Correct Answer: D

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Question 17
A company's profit and loss account for the year ended 31st December 20X7 is as follows: Gross Profit: ₦600,000; Operating Expenses: ₦400,000. Calculate the net profit for the year.
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

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Question 18
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from the issue of the preference shares.
A. ₦200,000
B. ₦250,000
C. ₦300,000
Correct D. ₦350,000

Correct Answer: D

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Question 19
A company's trading account for the year ended 31st December 20X7 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000. Calculate the gross profit for the year.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 20
A public sector organization prepares its financial statements in accordance with the Cash Basis of Accounting. Which of the following accounts would be included in the financial statements?
A. Accrued Expenses
B. Prepaid Expenses
Correct C. Deposits Received
D. Accounts Payable

Correct Answer: C

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Question 21
A company has the following trial balance: Debitors: ₦100,000; Creditors: ₦80,000. What is the net current asset position of the company?
Correct A. ₦20,000
B. ₦20,000 credit
C. ₦20,000 debit
D. ₦20,000

Correct Answer: A

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Question 22
A company's cash book shows the following transactions: Cash received from customers: ₦100,000; Cash paid to suppliers: ₦80,000. What is the net cash inflow from customers?
Correct A. ₦20,000
B. ₦20,000 credit
C. ₦20,000 debit
D. ₦20,000

Correct Answer: A

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Question 23
A company's balance sheet shows the following: Share Capital: ₦500,000; Retained Earnings: ₦200,000. What is the total equity of the company?
Correct A. ₦700,000
B. ₦700,000 credit
C. ₦700,000 debit
D. ₦700,000

Correct Answer: A

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Question 24
A company's trial balance shows the following: Debitors: ₦100,000; Creditors: ₦80,000. What is the net current asset position of the company?
Correct A. ₦20,000
B. ₦20,000 credit
C. ₦20,000 debit
D. ₦20,000

Correct Answer: A

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Question 25
A company's cash book shows the following transactions: Cash received from customers: ₦100,000; Cash paid to suppliers: ₦80,000. What is the net cash inflow from customers?
Correct A. ₦20,000
B. ₦20,000 credit
C. ₦20,000 debit
D. ₦20,000

Correct Answer: A

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