POST UTME CALEB UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 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 of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 2
A business has the following transactions in its incomplete records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 15,000 | | 1/3 | Purchase | 8,000 | | | 1/4 | Cash | | 12,000 | What is the total amount of cash at the end of the period?
Correct A. ₦22,000
B. ₦20,000
C. ₦18,000
D. ₦25,000

Correct Answer: A

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Question 3
A company's bank statement shows a balance of ₦50,000, but its cash book shows a balance of ₦60,000. The bank statement also shows a debit of ₦10,000 for a cheque that has been returned. What is the correct balance of the company's cash?
Correct A. ₦55,000
B. ₦50,000
C. ₦60,000
D. ₦65,000

Correct Answer: A

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Question 4
A business has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 15,000 | | 1/3 | Purchase | 8,000 | | | 1/4 | Cash | | 12,000 | What is the total amount of cash at the end of the period?
Correct A. ₦22,000
B. ₦20,000
C. ₦18,000
D. ₦25,000

Correct Answer: A

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Question 5
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Sales | | 15,000 | | Purchase | 8,000 | | | Cash | | 12,000 | What is the correct balance of the company's cash?
Correct A. ₦22,000
B. ₦20,000
C. ₦18,000
D. ₦25,000

Correct Answer: A

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Question 6
A company's trading account for the year ended 31st December 2022 is as follows: Debit: Sales: ₦1,500,000 Purchases: ₦1,200,000 Returns inwards: ₦20,000 Returns outwards: ₦30,000 Carriage inwards: ₦40,000 Carriage outwards: ₦20,000 Credit: Discount received: ₦10,000 Discount allowed: ₦15,000 What is the gross profit for the year?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 7
The following is a trial balance for XYZ Ltd. as at 31st December 2022: Debit: Cash: ₦500,000 Accounts receivable: ₦200,000 Inventory: ₦300,000 Prepaid rent: ₦50,000 Equipment: ₦100,000 Accumulated depreciation: ₦20,000 Credit: Accounts payable: ₦150,000 Salaries payable: ₦30,000 Taxes payable: ₦20,000 Common stock: ₦500,000 Retained earnings: ₦200,000 What is the total amount of assets?
Correct A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000

Correct Answer: A

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Question 8
A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash: ₦500,000 Accounts receivable: ₦200,000 Inventory: ₦300,000 Prepaid rent: ₦50,000 Equipment: ₦100,000 Accumulated depreciation: ₦20,000 Total assets: ₦1,260,000 Liabilities: Accounts payable: ₦150,000 Salaries payable: ₦30,000 Taxes payable: ₦20,000 Total liabilities: ₦200,000 What is the total amount of equity?
Correct A. ₦1,060,000
B. ₦1,100,000
C. ₦1,140,000
D. ₦1,180,000

Correct Answer: A

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Question 9
A company's income statement for the year ended 31st December 2022 is as follows: Revenue: ₦1,500,000 Cost of goods sold: ₦1,200,000 Gross profit: ₦300,000 Operating expenses: ₦150,000 Net income: ₦150,000 What is the gross margin percentage?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 10
A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash: ₦500,000 Accounts receivable: ₦200,000 Inventory: ₦300,000 Prepaid rent: ₦50,000 Equipment: ₦100,000 Accumulated depreciation: ₦20,000 Total assets: ₦1,260,000 Liabilities: Accounts payable: ₦150,000 Salaries payable: ₦30,000 Taxes payable: ₦20,000 Total liabilities: ₦200,000 What is the total amount of equity?
Correct A. ₦1,060,000
B. ₦1,100,000
C. ₦1,140,000
D. ₦1,180,000

Correct Answer: A

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦475,000
B. ₦475,500
Correct C. ₦475,000
D. ₦475,500

Correct Answer: C

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Question 12
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare the company's income statement.
A. ₦50,000
Correct B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: B

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Question 13
A company's bank statement showed a balance of ₦150,000. The company's cash book showed a balance of ₦180,000. The bank statement included a debit of ₦20,000 for a NSF check. What is the correct balance of the company's cash book?
Correct A. ₦160,000
B. ₦180,000
C. ₦160,000
D. ₦180,000

Correct Answer: A

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Question 14
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the share issue.
A. ₦105,000
B. ₦110,000
Correct C. ₦105,000
D. ₦110,000

Correct Answer: C

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Question 15
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
A. ₦50,000
B. ₦200,000
C. ₦150,000
Correct D. ₦100,000

Correct Answer: D

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Question 16
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the company received a total of 35,000 from the sale of these shares, what is the total amount of the premium received?
A. 20,000
B. 25,000
Correct C. 30,000
D. 35,000

Correct Answer: C

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Question 17
A company has the following transactions: Purchased office supplies for 1,500; sold office supplies for 2,000; purchased office equipment for 10,000. What is the net increase in office supplies?
A. 500
Correct B. 1,000
C. 1,500
D. 2,000

Correct Answer: B

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Question 18
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received a total of 50,000 from the sale of these shares, what is the total amount of the premium received?
A. 10,000
B. 15,000
Correct C. 20,000
D. 25,000

Correct Answer: C

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Question 19
A company has the following transactions: Purchased office equipment for 10,000; sold office equipment for 8,000; purchased office supplies for 1,500. What is the net increase in office equipment?
Correct A. 1,000
B. 2,000
C. 3,000
D. 4,000

Correct Answer: A

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Question 20
A company issued 10,000 shares of 1 par value at a premium of 2 per share. If the company received a total of 20,000 from the sale of these shares, what is the total amount of the premium received?
A. 10,000
Correct B. 12,000
C. 14,000
D. 16,000

Correct Answer: B

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Question 21
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦500,000
B. ₦500,000
C. ₦500,000
Correct D. ₦500,000

Correct Answer: D

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Question 22
A company's trading account for the year ended 31st December 2022 is as follows: Debit: ₦500,000; Credit: ₦400,000. Prepare the trading account.
A. ₦100,000
B. ₦100,000
C. ₦100,000
Correct D. ₦100,000

Correct Answer: D

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Question 23
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦1,000,000; Liabilities: ₦500,000. Calculate the company's equity.
A. ₦500,000
B. ₦500,000
C. ₦500,000
Correct D. ₦500,000

Correct Answer: D

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Question 24
A company issued 10,000, 5% preference shares of ₦10 each. Calculate the total amount received from preference shareholders.
A. ₦100,000
B. ₦100,000
C. ₦100,000
Correct D. ₦100,000

Correct Answer: D

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Question 25
A company's profit and loss account for the year ended 31st December 2022 is as follows: Trading profit: ₦200,000; Interest: ₦50,000. Calculate the company's net profit.
A. ₦250,000
B. ₦250,000
C. ₦250,000
Correct D. ₦250,000

Correct Answer: D

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