POST UTME KSU 2018 Accounting | Objective

Are you preparing for POST UTME KSU 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's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
Correct B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

Correct Answer: B

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Question 2
A company's bank reconciliation statement shows a difference of ₦1,500 between the cash book balance and the bank statement balance. The cash book balance is ₦20,000 and the bank statement balance is ₦21,500. What is the reason for this difference?
A. Bank interest
B. Bank charges
Correct C. Cheque deposited but not yet credited
D. Cheque issued but not yet debited

Correct Answer: C

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Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 4
A company's manufacturing account shows a cost of goods sold of ₦50,000 and a direct labour cost of ₦20,000. What is the total cost of goods sold?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 5
A company's double-entry system shows a debit balance of ₦10,000 in the account 'Purchases' and a credit balance of ₦15,000 in the account 'Sales'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Purchases and ₦5,000 credit to Sales
B. ₦15,000 debit to Sales and ₦10,000 credit to Purchases
C. ₦5,000 debit to Sales and ₦5,000 credit to Purchases
Correct D. ₦10,000 debit to Purchases and ₦15,000 credit to Sales

Correct Answer: D

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Question 6
In a manufacturing company, the following transactions occurred during the month of January: Purchased raw materials worth ₦120,000 on credit. Purchased machinery worth ₦500,000 on credit. Sold goods worth ₦300,000 for cash. Sold goods worth ₦200,000 on credit. Paid salaries worth ₦150,000 for the month. What is the total amount of cash received from customers during the month?
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 7
A company has the following ledger balances: Debtors: ₦150,000 Creditors: ₦80,000 Capital: ₦200,000 Profit: ₦50,000 What is the total amount of assets?
A. ₦380,000
B. ₦420,000
C. ₦460,000
Correct D. ₦500,000

Correct Answer: D

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Question 8
A partnership has the following capital balances: A: ₦100,000 B: ₦80,000 C: ₦60,000 What is the total capital of the partnership?
A. ₦240,000
B. ₦240,000
C. ₦240,000
Correct D. ₦240,000

Correct Answer: D

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Question 9
A company has the following transactions: Purchased raw materials worth ₦120,000 on credit. Purchased machinery worth ₦500,000 on credit. Sold goods worth ₦300,000 for cash. Sold goods worth ₦200,000 on credit. Paid salaries worth ₦150,000 for the month. What is the total amount of cash paid for salaries?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 10
A company has the following ledger balances: Debtors: ₦150,000 Creditors: ₦80,000 Capital: ₦200,000 Profit: ₦50,000 What is the total amount of liabilities?
A. ₦230,000
Correct B. ₦270,000
C. ₦310,000
D. ₦350,000

Correct Answer: B

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Question 11
A company produces two products, A and B. Product A requires 2 hours of direct labor and 3 hours of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 120 hours of direct labor and 180 hours of indirect labor, how many units of product A and product B should the company produce?
A. 10 units of A and 15 units of B
Correct B. 15 units of A and 10 units of B
C. 20 units of A and 20 units of B
D. 25 units of A and 25 units of B

Correct Answer: B

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Question 12
A company's trial balance shows the following accounts: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 10,000. What is the company's net income?
Correct A. 5,000
B. 10,000
C. 15,000
D. 20,000

Correct Answer: A

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Question 13
A company's balance sheet shows the following accounts: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 10,000. What is the company's total assets?
A. 25,000
Correct B. 30,000
C. 35,000
D. 40,000

Correct Answer: B

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Question 14
A company's single-entry accounting system shows the following transactions: Debit Cash 10,000, Credit Accounts Payable 5,000, Debit Sales Revenue 20,000, Credit Cost of Goods Sold 15,000, and Debit Common Stock 10,000. What is the company's net income?
Correct A. 5,000
B. 10,000
C. 15,000
D. 20,000

Correct Answer: A

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Question 15
A government agency's budget shows the following accounts: Revenue 100,000, Expenditures 80,000, and Surplus 20,000. What is the agency's net income?
Correct A. 20,000
B. 30,000
C. 40,000
D. 50,000

Correct Answer: A

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of interest payable annually.
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 17
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. Calculate the company's equity.
Correct A. ₦700,000
B. ₦800,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: A

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Question 18
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset's original value is ₦100,000, calculate the asset's value after 5 years.
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 19
A company's trial balance shows the following balances: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare the company's income statement.
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 20
A company's financial statements show the following: Total Assets ₦1,000,000, Total Liabilities ₦800,000, Total Equity ₦200,000. Calculate the company's debt-to-equity ratio.
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 21
A company's trading account shows a profit of ₦1,500,000. However, the company's profit before tax is ₦2,000,000. What is the amount of the company's tax expense?
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 22
A manufacturing company has the following ledger balances: Work-in-Progress (₦1,200,000), Finished Goods (₦800,000), and Cost of Goods Sold (₦1,500,000). What is the company's gross profit?
A. ₦400,000
B. ₦600,000
Correct C. ₦800,000
D. ₦1,000,000

Correct Answer: C

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Question 23
A public sector organization has the following budgetary accounts: Revenue (₦2,500,000), Expenditure (₦2,000,000), and Surplus (₦500,000). What is the organization's budgetary balance?
A. ₦500,000
B. ₦1,000,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 24
A company's balance sheet shows the following: Assets (₦5,000,000), Liabilities (₦3,000,000), and Equity (₦2,000,000). What is the company's capital employed?
A. ₦2,000,000
B. ₦3,000,000
C. ₦4,000,000
Correct D. ₦5,000,000

Correct Answer: D

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Question 25
A manufacturing company has the following ledger balances: Raw Materials (₦1,500,000), Work-in-Progress (₦1,200,000), and Finished Goods (₦800,000). What is the company's total inventory value?
A. ₦3,500,000
B. ₦4,000,000
Correct C. ₦4,500,000
D. ₦5,000,000

Correct Answer: C

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