POST UTME COVENANT UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME COVENANT UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 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 weighted average method to value its inventory. The following data are available for the year ended December 31, 2022: Cost of goods available for sale: ₦1,500,000 Cost of goods sold: ₦1,200,000 Beginning inventory: ₦200,000 Ending inventory: ₦300,000 What is the cost of goods sold using the weighted average method?
A. ₦1,200,000
Correct B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

Correct Answer: B

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Question 2
A company has the following transactions related to its cash account: Jan 1: Cash in bank: ₦100,000 Jan 10: Cash received from customers: ₦50,000 Jan 15: Cash paid to suppliers: ₦20,000 Jan 20: Cash received from customers: ₦30,000 Jan 25: Cash paid to employees: ₦15,000 What is the balance in the cash account on January 31?
A. ₦105,000
B. ₦110,000
C. ₦115,000
Correct D. ₦120,000

Correct Answer: D

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Question 3
A company has the following transactions related to its accounts payable account: Jan 1: Accounts payable: ₦50,000 Jan 10: Purchased goods on credit from suppliers: ₦30,000 Jan 15: Paid cash to suppliers: ₦20,000 Jan 20: Purchased goods on credit from suppliers: ₦25,000 What is the balance in the accounts payable account on January 31?
A. ₦40,000
B. ₦45,000
C. ₦50,000
Correct D. ₦55,000

Correct Answer: D

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Question 4
A company has the following transactions related to its accounts receivable account: Jan 1: Accounts receivable: ₦30,000 Jan 10: Sold goods on credit to customers: ₦25,000 Jan 15: Received cash from customers: ₦20,000 Jan 20: Sold goods on credit to customers: ₦35,000 What is the balance in the accounts receivable account on January 31?
A. ₦45,000
B. ₦50,000
C. ₦55,000
Correct D. ₦60,000

Correct Answer: D

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Question 5
A company has the following transactions related to its cash account: Jan 1: Cash in bank: ₦100,000 Jan 10: Cash received from customers: ₦50,000 Jan 15: Cash paid to suppliers: ₦20,000 Jan 20: Cash received from customers: ₦30,000 Jan 25: Cash paid to employees: ₦15,000 What is the balance in the cash account on January 31?
A. ₦105,000
B. ₦110,000
C. ₦115,000
Correct D. ₦120,000

Correct Answer: D

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Question 6
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit balance of ₦10,000 for an outstanding cheque. The cash book shows a debit balance of ₦5,000 for an uncleared cheque. What is the correct balance of the company's cash account?
A. ₦130,000
Correct B. ₦125,000
C. ₦140,000
D. ₦145,000

Correct Answer: B

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Question 7
A company's trading account shows a profit of ₦200,000. The profit is transferred to the profit and loss account. The company's capital is increased by ₦100,000. What is the correct amount of the company's capital after the increase?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 8
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company receives a total of ₦15,000. What is the correct amount of the company's share capital?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 9
A company's balance sheet shows a current liability of ₦50,000. The company's profit and loss account shows a profit of ₦100,000. What is the correct amount of the company's equity?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 10
A company's cash book shows a debit balance of ₦20,000 for an outstanding cheque. The company's bank statement shows a credit balance of ₦10,000 for the same cheque. What is the correct balance of the company's cash account?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 11
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. The company also issued 5,000 6% debentures of £ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦1,500,000
Correct B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be distributed to each partner.
A. ₦18,000
Correct B. ₦20,000
C. ₦22,000
D. ₦24,000

Correct Answer: B

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Question 13
A company has the following transactions: Purchased goods for ₦50,000; sold goods for ₦60,000; purchased office equipment for ₦10,000. Prepare a self-balancing ledger for the company.
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 14
A company issued 5,000 8% debentures of ₦100 each. The company also issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of debentures and shares.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
Correct D. ₦1,500,000

Correct Answer: D

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Question 15
A company has the following transactions: Purchased goods for ₦40,000; sold goods for ₦50,000; purchased office equipment for ₦15,000. Prepare a control account for the company.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 16
The following is a partial statement of a manufacturing account for the year ended 31st December 2022: Dr. Work-in-Progress 1,500,000 Work-in-Progress 2,000,000 Cr. Opening Work-in-Progress 1,000,000 Materials Consumed 800,000 Labour 400,000 What is the total value of work-in-progress at the end of the year?
Correct A. ₦3,500,000
B. ₦3,000,000
C. ₦4,000,000
D. ₦4,500,000

Correct Answer: A

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Question 17
A company's trading account for the year ended 31st December 2022 is as follows: Sales 1,200,000 Cost of Goods Sold 800,000 What is the gross profit for the year?
Correct A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: A

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Question 18
A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash 100,000 Debtors 200,000 Stock 300,000 Total Assets 600,000 Liabilities: Creditors 150,000 Capital 450,000 Total Liabilities 600,000 What is the ratio of capital to total liabilities?
Correct A. 1:1
B. 2:3
C. 3:5
D. 5:7

Correct Answer: A

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Question 19
A company's depreciation policy is to depreciate all assets by 10% per annum. If an asset with a cost of ₦100,000 is purchased on 1st January 2022, what will be its value at the end of the year?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 20
A company's control account for the year ended 31st December 2022 is as follows: Dr. Bank 100,000 Cr. Sales 100,000 What is the balance on the control account?
Correct A. ₦0
B. ₦100,000
C. ₦200,000
D. ₦300,000

Correct Answer: A

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Question 21
A company prepares a trial balance on December 31, 2022. The total debit balance is ₦250,000 and the total credit balance is ₦300,000. What is the reason for the discrepancy?
A. The company has made a profit.
B. The company has made a loss.
Correct C. The company has a discrepancy in its trial balance.
D. The company has not recorded all its transactions.

Correct Answer: C

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Question 22
A company's balance sheet as at December 31, 2022, shows an asset of ₦500,000 and a liability of ₦200,000. What is the company's equity?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 23
A company's profit and loss account for the year ended December 31, 2022, shows a profit of ₦150,000. The company's balance sheet as at December 31, 2022, shows an asset of ₦500,000 and a liability of ₦200,000. What is the company's equity?
A. ₦400,000
Correct B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: B

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Question 24
A company's trial balance as at December 31, 2022, shows a debit balance of ₦200,000 and a credit balance of ₦300,000. What is the reason for the discrepancy?
A. The company has made a profit.
B. The company has made a loss.
Correct C. The company has a discrepancy in its trial balance.
D. The company has not recorded all its transactions.

Correct Answer: C

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Question 25
A company's balance sheet as at December 31, 2022, shows an asset of ₦500,000 and a liability of ₦200,000. What is the company's equity?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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