POST UTME LEAD CITY UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME LEAD CITY 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 perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦120 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦150 each and 300 units at ₦180 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 2
A manufacturing company has the following data for the year ended December 31, 2022:
A. ₦1,500,000
B. ₦1,800,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 3
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦120 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦150 each and 300 units at ₦180 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 4
A company has the following data for the year ended December 31, 2022:
A. ₦1,500,000
B. ₦1,800,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 5
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦120 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦150 each and 300 units at ₦180 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 6
In a public sector accounting system, what is the primary purpose of the 'General Ledger'?
Correct A. To record all financial transactions of the organization
B. To prepare the trial balance
C. To prepare the balance sheet
D. To prepare the income statement

Correct Answer: A

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Question 7
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
A. ₦90,000
B. ₦60,000
Correct C. ₦72,000
D. ₦48,000

Correct Answer: C

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Question 8
A bank reconciliation statement shows a difference of ₦5,000 between the bank statement balance and the cash book balance. What is the most likely reason for this difference?
A. Bank charges
B. Interest on overdraft
Correct C. Cheques deposited but not yet credited
D. Cheques issued but not yet debited

Correct Answer: C

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Question 9
A company uses the double entry system of accounting. If a customer pays ₦10,000 for goods sold, what is the effect on the accounting equation?
A. Assets increase by ₦10,000 and liabilities decrease by ₦10,000
B. Assets decrease by ₦10,000 and liabilities increase by ₦10,000
Correct C. Assets increase by ₦10,000 and equity increases by ₦10,000
D. Assets decrease by ₦10,000 and equity decreases by ₦10,000

Correct Answer: C

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Question 10
A partnership has two partners, A and B, who share profits in the ratio 2:3. If the total profit for the year is ₦150,000, how much will partner B receive?
A. ₦60,000
Correct B. ₦90,000
C. ₦120,000
D. ₦30,000

Correct Answer: B

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Question 11
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were purchased at ₦60 each. The company uses the weighted average method to value its inventory. What is the total cost of goods sold for the year?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 12
A manufacturing company has two departments: Production and Sales. The Production department has a budget of ₦1,000,000, and the Sales department has a budget of ₦500,000. If the company's total budget is ₦2,000,000, what is the ratio of the Production department's budget to the Sales department's budget?
A. 1:1
Correct B. 2:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 13
A company's trial balance as of December 31, 2022, is as follows: Accounts Receivable ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦50,000. What is the company's total equity?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 14
A government agency has the following transactions: Cash received from taxpayers ₦500,000, Cash paid to suppliers ₦200,000, Cash paid to employees ₦150,000. What is the net increase in cash for the period?
Correct A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 15
A company uses the weighted average method to value its inventory. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were purchased at ₦60 each. What is the total cost of goods available for sale for the year?
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

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Question 16
A company's accounting records show the following transactions for the year ended December 31, 2018: Cash: ₦100,000; Sales: ₦500,000; Cost of Goods Sold: ₦300,000; Operating Expenses: ₦150,000; Depreciation: ₦20,000; Dividends: ₦50,000. What is the net income for the year?
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 17
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's accounting records show the following transactions for the year ended December 31, 2018: Cash: ₦150,000; Sales: ₦600,000; Cost of Goods Sold: ₦400,000; Operating Expenses: ₦200,000; Depreciation: ₦30,000; Dividends: ₦60,000. What is the share of net income for partner A?
A. ₦90,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 18
A company uses the weighted average method to value its inventory. The company's accounting records show the following data for the year ended December 31, 2018: Beginning inventory: ₦100,000; Purchases: ₦500,000; Sales: ₦600,000; Cost of Goods Sold: ₦400,000; Operating Expenses: ₦200,000; Depreciation: ₦30,000; Dividends: ₦60,000. What is the cost of goods sold for the year?
A. ₦400,000
B. ₦450,000
Correct C. ₦500,000
D. ₦550,000

Correct Answer: C

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Question 19
A company uses the FIFO method to value its inventory. The company's accounting records show the following data for the year ended December 31, 2018: Beginning inventory: ₦100,000; Purchases: ₦500,000; Sales: ₦600,000; Cost of Goods Sold: ₦400,000; Operating Expenses: ₦200,000; Depreciation: ₦30,000; Dividends: ₦60,000. What is the cost of goods sold for the year?
A. ₦400,000
B. ₦450,000
Correct C. ₦500,000
D. ₦550,000

Correct Answer: C

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Question 20
A company uses the LIFO method to value its inventory. The company's accounting records show the following data for the year ended December 31, 2018: Beginning inventory: ₦100,000; Purchases: ₦500,000; Sales: ₦600,000; Cost of Goods Sold: ₦400,000; Operating Expenses: ₦200,000; Depreciation: ₦30,000; Dividends: ₦60,000. What is the cost of goods sold for the year?
A. ₦400,000
B. ₦450,000
Correct C. ₦500,000
D. ₦550,000

Correct Answer: C

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦400,000
Correct B. ₦450,000
C. ₦500,000
D. ₦550,000

Correct Answer: B

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Question 22
A manufacturing company has a production cost of ₦500 per unit. If it sells 1,000 units at ₦600 each, what is the gross profit?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 23
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If it issues 5,000 shares at a premium of ₦20 per share, what is the amount received from share issue?
A. ₦1,050,000
Correct B. ₦1,100,000
C. ₦1,150,000
D. ₦1,200,000

Correct Answer: B

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Question 24
A partnership has a capital of ₦500,000 divided into 5,000 shares of ₦100 each. If two partners, A and B, share the profits and losses in the ratio 3:2, what is the share of profit of partner A?
Correct A. ₦225,000
B. ₦250,000
C. ₦275,000
D. ₦300,000

Correct Answer: A

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Question 25
A company has a production cost of ₦300 per unit. If it sells 2,000 units at ₦450 each, what is the gross profit?
A. ₦450,000
Correct B. ₦600,000
C. ₦750,000
D. ₦900,000

Correct Answer: B

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