POST UTME BOWEN UNIVERSITY 2024 Accounting | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's trial balance shows an error of ₦1,500 in the debit side of the accounts payable account. If the correct balance is ₦120,000, what is the correct balance of the accounts payable account?
Correct A. ₦121,500
B. ₦119,500
C. ₦121,000
D. ₦119,000

Correct Answer: A

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Question 2
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦240,000, what is the share of profit of partner A?
Correct A. ₦180,000
B. ₦120,000
C. ₦160,000
D. ₦140,000

Correct Answer: A

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Question 3
A company's balance sheet shows that its total assets are ₦500,000, total liabilities are ₦200,000, and equity is ₦300,000. What is the company's current ratio?
Correct A. 2:1
B. 3:2
C. 1:1
D. 4:3

Correct Answer: A

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Question 4
A company's profit and loss account shows a net profit of ₦150,000. If the company's turnover is ₦1,500,000 and its gross profit is ₦600,000, what is the company's gross profit percentage?
A. 40%
B. 50%
Correct C. 60%
D. 70%

Correct Answer: C

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Question 5
A company's manufacturing account shows a cost of goods sold of ₦300,000 and a direct labor cost of ₦120,000. If the company's overheads are ₦180,000, what is the company's prime cost?
Correct A. ₦420,000
B. ₦480,000
C. ₦540,000
D. ₦600,000

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?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 7
A manufacturing company produces 500 units of a product daily. Each unit costs ₦200 to produce. If the company operates for 20 days in a month, what is the total cost of production for the month?
A. ₦1,000,000
Correct B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: B

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Question 8
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦200,000, and Common Stock ₦300,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
C. ₦200,000
Correct D. ₦250,000

Correct Answer: D

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Question 9
A company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs: Type A (100 units, ₦50 each), Type B (200 units, ₦75 each), and Type C (300 units, ₦100 each), what is the total value of the inventory?
A. ₦35,000
B. ₦40,000
C. ₦45,000
Correct D. ₦50,000

Correct Answer: D

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Question 10
A company's financial statements show the following: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's return on equity?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 11
A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦50,000, sold goods for ₦200,000, and paid salaries of ₦150,000. Prepare the ledger accounts for office equipment and sales.
A. Office Equipment: Debit ₦50,000, Credit ₦0; Sales: Debit ₦0, Credit ₦200,000
B. Office Equipment: Debit ₦0, Credit ₦50,000; Sales: Debit ₦200,000, Credit ₦0
Correct C. Office Equipment: Debit ₦50,000, Credit ₦0; Sales: Debit ₦0, Credit ₦200,000
D. Office Equipment: Debit ₦0, Credit ₦50,000; Sales: Debit ₦200,000, Credit ₦0

Correct Answer: C

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Question 12
A company's trial balance as at December 31, 2023, is as follows: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦500,000. Prepare the company's balance sheet as at December 31, 2023.
A. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
Correct B. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
C. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
D. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000

Correct Answer: B

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Question 13
A company's profit and loss account for the year ended December 31, 2023, is as follows: Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000, Operating Expenses ₦20,000, Net Profit ₦30,000. Prepare the company's statement of changes in equity for the year ended December 31, 2023.
Correct A. Statement of Changes in Equity: ₦30,000
B. Statement of Changes in Equity: ₦50,000
C. Statement of Changes in Equity: ₦20,000
D. Statement of Changes in Equity: ₦10,000

Correct Answer: A

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Question 14
A company uses the single-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦50,000, sold goods for ₦200,000, and paid salaries of ₦150,000. Prepare the company's ledger accounts for office equipment and sales.
A. Office Equipment: Debit ₦50,000, Credit ₦0; Sales: Debit ₦0, Credit ₦200,000
B. Office Equipment: Debit ₦0, Credit ₦50,000; Sales: Debit ₦200,000, Credit ₦0
Correct C. Office Equipment: Debit ₦50,000, Credit ₦0; Sales: Debit ₦0, Credit ₦200,000
D. Office Equipment: Debit ₦0, Credit ₦50,000; Sales: Debit ₦200,000, Credit ₦0

Correct Answer: C

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Question 15
A company's trial balance as at December 31, 2023, is as follows: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦500,000. Prepare the company's balance sheet as at December 31, 2023.
A. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
Correct B. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
C. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
D. Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000

Correct Answer: B

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦15,000, Credit Rent Received ₦15,000
B. Debit Rent Received ₦15,000, Credit Cash ₦15,000
Correct C. Debit Rent Received ₦15,000, Credit Profit or Loss on Error ₦15,000
D. Debit Cash ₦15,000, Credit Rent Received ₦15,000

Correct Answer: C

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Question 17
A public sector organization has the following transactions: Purchase of office supplies ₦10,000, Payment of salaries ₦50,000, Receipt of rent ₦20,000. What is the correct journal entry to record these transactions?
Correct A. Debit Office Supplies ₦10,000, Debit Salaries ₦50,000, Credit Rent Received ₦20,000
B. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Debit Rent Received ₦20,000
C. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Credit Rent Received ₦20,000
D. Debit Salaries ₦50,000, Debit Rent Received ₦20,000, Credit Office Supplies ₦10,000

Correct Answer: A

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Question 18
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦30,000. What is the correct balance in the ledger for the account 'Cost of Goods Sold'?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 19
A company uses the double-entry system to record its transactions. The company purchases office supplies for ₦10,000 and pays salaries of ₦50,000. What is the correct journal entry to record these transactions?
Correct A. Debit Office Supplies ₦10,000, Debit Salaries ₦50,000, Credit Cash ₦60,000
B. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Debit Cash ₦60,000
C. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Credit Cash ₦60,000
D. Debit Salaries ₦50,000, Debit Cash ₦60,000, Credit Office Supplies ₦10,000

Correct Answer: A

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Question 20
A company uses the single-entry system to record its transactions. The company receives rent of ₦20,000 and pays salaries of ₦50,000. What is the correct journal entry to record these transactions?
Correct A. Debit Rent Received ₦20,000, Debit Salaries ₦50,000, Credit Cash ₦70,000
B. Debit Rent Received ₦20,000, Credit Salaries ₦50,000, Debit Cash ₦70,000
C. Debit Rent Received ₦20,000, Credit Salaries ₦50,000, Credit Cash ₦70,000
D. Debit Salaries ₦50,000, Debit Cash ₦70,000, Credit Rent Received ₦20,000

Correct Answer: A

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Question 21
A company has the following transactions: Purchase of office supplies ₦10,000, Payment of salaries ₦50,000, Receipt of rent ₦20,000. What is the correct journal entry to record these transactions?
Correct A. Debit Office Supplies ₦10,000, Debit Salaries ₦50,000, Credit Rent Received ₦20,000
B. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Debit Rent Received ₦20,000
C. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Credit Rent Received ₦20,000
D. Debit Salaries ₦50,000, Debit Rent Received ₦20,000, Credit Office Supplies ₦10,000

Correct Answer: A

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Question 22
A company uses the double-entry system to record its transactions. The company purchases office supplies for ₦10,000 and pays salaries of ₦50,000. What is the correct journal entry to record these transactions?
A. Debit Office Supplies ₦10,000, Debit Salaries ₦50,000, Credit Cash ₦60,000
B. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Debit Cash ₦60,000
C. Debit Office Supplies ₦10,000, Credit Salaries ₦50,000, Credit Cash ₦60,000
D. Debit Salaries ₦50,000, Debit Cash ₦60,000, Credit Office Supplies ₦10,000

Correct Answer: VIEW ANSWER

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Question 23
A company uses the double-entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦150,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦200,000
Correct B. Debit Sales Revenue ₦200,000, Credit Cost of Goods Sold ₦120,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
D. Debit Sales Revenue ₦200,000, Credit Common Stock ₦150,000

Correct Answer: B

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Question 24
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦150,000. What is the correct journal entry to record the purchase of goods on credit from a supplier?
A. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
B. Debit Sales Revenue ₦200,000, Credit Common Stock ₦150,000
Correct C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
D. Debit Sales Revenue ₦200,000, Credit Accounts Payable ₦50,000

Correct Answer: C

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Question 25
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Common Stock ₦150,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦200,000
Correct B. Debit Sales Revenue ₦200,000, Credit Cost of Goods Sold ₦120,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦120,000
D. Debit Sales Revenue ₦200,000, Credit Common Stock ₦150,000

Correct Answer: B

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