POST UTME IMS U 2018 Accounting | Objective

Are you preparing for POST UTME IMS U 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.

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Question 1
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦12,000, but the bank statement shows a balance of ₦15,000. What is the most likely reason for the discrepancy?
A. The company has an outstanding cheque.
B. The bank has charged a fee for an overdraft.
Correct C. The company has deposited cash into the bank but has not yet recorded it in the cash book.
D. The company has withdrawn cash from the bank but has not yet recorded it in the cash book.

Correct Answer: C

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Question 2
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Debit Balance: ₦20,000, Credit Balance: ₦15,000. What is the net effect of the transactions on the company's equity?
A. The company's equity has increased by ₦5,000.
Correct B. The company's equity has decreased by ₦5,000.
C. The company's equity has remained unchanged.
D. The company's equity has increased by ₦10,000.

Correct Answer: B

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Question 3
A company uses a single-entry system to record its transactions. The company's cash book shows the following transactions: Debit: ₦10,000, Credit: ₦8,000. What is the net effect of the transactions on the company's equity?
A. The company's equity has increased by ₦2,000.
Correct B. The company's equity has decreased by ₦2,000.
C. The company's equity has remained unchanged.
D. The company's equity has increased by ₦4,000.

Correct Answer: B

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Question 4
A company prepares its final accounts for the year ended 31st December 2022. The company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦60,000. What is the company's net worth at the end of the year?
A. ₦110,000
B. ₦120,000
Correct C. ₦130,000
D. ₦140,000

Correct Answer: C

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Question 5
A company uses a control account to record its transactions. The control account shows a balance of ₦20,000. The company's ledger shows the following balances: Debit Balance: ₦15,000, Credit Balance: ₦10,000. What is the net effect of the transactions on the company's equity?
A. The company's equity has increased by ₦5,000.
Correct B. The company's equity has decreased by ₦5,000.
C. The company's equity has remained unchanged.
D. The company's equity has increased by ₦10,000.

Correct Answer: B

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Question 6
A public sector organization has a cash book account with the following transactions: Debit: ₦1,000, Credit: ₦500. What is the net effect on the cash book balance?
A. ₦500 increase
B. ₦1,000 increase
Correct C. ₦500 decrease
D. ₦1,000 decrease

Correct Answer: C

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Question 7
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦10,000, what is the annual depreciation charge for an asset costing ₦50,000?
Correct A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦15,000

Correct Answer: A

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Question 8
A bank reconciliation statement shows a difference of ₦1,500 between the bank statement balance and the cash book balance. The bank statement balance includes a debit of ₦2,000 for a dishonored cheque. What is the correct adjustment to the cash book balance?
A. ₦1,500 increase
Correct B. ₦1,500 decrease
C. ₦2,000 increase
D. ₦2,000 decrease

Correct Answer: B

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Question 9
A company's cash book shows the following transactions: Debit: ₦5,000, Credit: ₦3,000. What is the net effect on the cash book balance?
A. ₦2,000 increase
Correct B. ₦2,000 decrease
C. ₦5,000 increase
D. ₦5,000 decrease

Correct Answer: B

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Question 10
A company uses the diminishing balance method of depreciation. If the asset's initial cost is ₦50,000, the rate of depreciation is 10% per annum, and the asset is depreciated for 3 years, what is the book value of the asset at the end of the third year?
Correct A. ₦21,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: A

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Question 11
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦120,000, while the general ledger shows a balance of ₦130,000. The bank statement shows a balance of ₦110,000. What is the cause of the discrepancy?
Correct A. The company has not recorded a deposit of ₦10,000.
B. The company has not recorded a withdrawal of ₦20,000.
C. The company has not recorded a sale of ₦30,000.
D. The company has not recorded a purchase of ₦40,000.

Correct Answer: A

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Question 12
A company prepares a trial balance but discovers that the debit and credit totals do not balance. The debit total is ₦150,000, while the credit total is ₦140,000. What is the cause of the discrepancy?
A. The company has not recorded a sale of ₦10,000.
Correct B. The company has not recorded a purchase of ₦20,000.
C. The company has not recorded a deposit of ₦30,000.
D. The company has not recorded a withdrawal of ₦40,000.

Correct Answer: B

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Question 13
A company uses the double-entry system and maintains a ledger. The ledger shows the following transactions: Debit: ₦100,000, Credit: ₦120,000. What is the effect of this transaction on the company's equity?
A. The company's equity increases by ₦20,000.
Correct B. The company's equity decreases by ₦20,000.
C. The company's equity remains unchanged.
D. The company's equity increases by ₦40,000.

Correct Answer: B

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Question 14
A company maintains incomplete records and uses the single-entry system. The company's cash book shows a balance of ₦80,000. What is the effect of this on the company's equity?
Correct A. The company's equity increases by ₦80,000.
B. The company's equity decreases by ₦80,000.
C. The company's equity remains unchanged.
D. The company's equity increases by ₦40,000.

Correct Answer: A

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Question 15
A company prepares a trial balance but discovers that the debit and credit totals do not balance. The debit total is ₦180,000, while the credit total is ₦160,000. What is the cause of the discrepancy?
A. The company has not recorded a sale of ₦20,000.
Correct B. The company has not recorded a purchase of ₦30,000.
C. The company has not recorded a deposit of ₦40,000.
D. The company has not recorded a withdrawal of ₦50,000.

Correct Answer: B

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Question 16
A company uses the double-entry system and maintains a ledger. The ledger shows the following transactions: Debit: ₦120,000, Credit: ₦100,000. What is the effect of this transaction on the company's equity?
A. The company's equity increases by ₦20,000.
Correct B. The company's equity decreases by ₦20,000.
C. The company's equity remains unchanged.
D. The company's equity increases by ₦40,000.

Correct Answer: B

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Question 17
A company maintains incomplete records and uses the single-entry system. The company's cash book shows a balance of ₦60,000. What is the effect of this on the company's equity?
Correct A. The company's equity increases by ₦60,000.
B. The company's equity decreases by ₦60,000.
C. The company's equity remains unchanged.
D. The company's equity increases by ₦30,000.

Correct Answer: A

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Question 18
A company prepares a trial balance but discovers that the debit and credit totals do not balance. The debit total is ₦200,000, while the credit total is ₦180,000. What is the cause of the discrepancy?
A. The company has not recorded a sale of ₦20,000.
Correct B. The company has not recorded a purchase of ₦30,000.
C. The company has not recorded a deposit of ₦40,000.
D. The company has not recorded a withdrawal of ₦50,000.

Correct Answer: B

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Question 19
A company uses a self-balancing ledger system. The ledger contains the following accounts: Cash, Accounts Payable, Accounts Receivable, and Sales Revenue. The ledger is balanced at the end of each month. What is the purpose of the self-balancing ledger system?
Correct A. To ensure that the ledger is always balanced
B. To simplify the process of preparing financial statements
C. To reduce the risk of errors in the ledger
D. To increase the speed of preparing financial statements

Correct Answer: A

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Question 20
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦20,000, and Collected cash from customers of ₦30,000. What is the total amount of cash received from customers?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 21
A company has the following trial balance: Cash ₦50,000, Accounts Payable ₦20,000, Accounts Receivable ₦30,000, and Sales Revenue ₦40,000. What is the total amount of assets?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 22
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦20,000, and Collected cash from customers of ₦30,000. What is the total amount of cash paid to employees?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 23
A company has the following manufacturing costs: Direct Materials ₦50,000, Direct Labor ₦30,000, and Factory Overhead ₦20,000. What is the total amount of manufacturing costs?
Correct A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 24
A company has the following departmental accounts: Sales Department ₦50,000, Marketing Department ₦30,000, and Research and Development Department ₦20,000. What is the total amount of departmental expenses?
Correct A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 25
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦20,000, and Collected cash from customers of ₦30,000. What is the total amount of cash received from customers?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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