POST UTME BOWEN UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, valued at ₦150 each. During the year, 300 units were sold, and 200 units were purchased at ₦200 each. If the company uses the FIFO method to value its inventory, what is the total value of inventory on December 31, 2024?
A. ₦75,000
B. ₦80,000
C. ₦85,000
D. ₦90,000
Question 2
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company's net income for the year is ₦
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 3
A company's bank reconciliation statement as at 31st December, 2024 is as follows:
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 4
A company prepares a trial balance as at 31 Dec. The trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | | | Bank | | ₦100,000 | | Accounts Payable | ₦20,000 | | | Accounts Receivable | | ₦30,000 | What is the net effect of the above transactions on the company's assets?
A. ₦20,000 decrease
B. ₦20,000 increase
C. ₦30,000 decrease
D. ₦30,000 increase
Question 5
A company's trial balance as at 31st December, 2024 is as follows:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 6
A company's cash book shows the following transactions: Cash received from customers ₦150,000, Cash paid to suppliers ₦80,000, Cash paid to employees ₦60,000, and Cash received from bank ₦20,000. Calculate the net increase in cash.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 7
A company's departmental accounts for the year ended 31st December 2024 showed the following: Sales ₦ 200,000, Cost of goods sold ₦ 150,000, Gross profit ₦ 50,000. Calculate the net profit.
A. ₦ 30,000
B. ₦ 40,000
C. ₦ 50,000
D. ₦ 60,000
Question 8
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. If the company receives a cash payment of ₦50,000, what is the amount received from the sale of shares?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 9
A company's trial balance showed an error of ₦ 1,000 in the debit side of the cash account. The correct balance of the cash account is ₦ 20,000. Prepare the correcting journal entry.
A. Debit Cash ₦ 1,000, Credit Bank ₦ 1,000
B. Debit Bank ₦ 1,000, Credit Cash ₦ 1,000
C. Debit Cash ₦ 1,000, Credit Profit and Loss ₦ 1,000
D. Debit Profit and Loss ₦ 1,000, Credit Cash ₦ 1,000
Question 10
A manufacturing company has the following production costs: Direct Materials ₦120,000, Direct Labour ₦80,000, and Overheads ₦60,000. Calculate the total production cost.
A. ₦260,000
B. ₦280,000
C. ₦300,000
D. ₦320,000
Question 11
A company uses the job order costing system. On January 1, 2024, it had a work-in-progress inventory of ₦50,000. During the year, it incurred direct materials costs of ₦100,000 and direct labor costs of ₦150,000. If the company uses the variable costing method, what is the total cost of goods manufactured for the year?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company issued 5% debentures of ₦ 100 each at a premium of ₦ 10. The debentures are redeemable after 5 years. Calculate the annual charge on the debentures.
A. ₦ 5,000
B. ₦ 5,500
C. ₦ 6,000
D. ₦ 6,500
Question 13
A company issues 10,000, 9% shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders.
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 14
A company uses the perpetual inventory system. The cost of goods available for sale at the beginning of the year is ₦1,500,000. During the year, purchases amounting to ₦2,000,000 were made, and the cost of goods sold was ₦1,800,000. Calculate the value of closing stock.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 15
A company uses the straight-line method of depreciation for its assets. If an asset with a cost of ₦120,000 and a residual value of ₦20,000 is depreciated over 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000

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