POST UTME MOUNTAIN TOP UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME MOUNTAIN TOP UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 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 ₦120,000, while the general ledger shows a balance of ₦150,000. The bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
Correct A. The company has not recorded a deposit of ₦60,000.
B. The company has not recorded a withdrawal of ₦30,000.
C. The bank has charged a fee of ₦10,000.
D. The company has not recorded a loan of ₦20,000.

Correct Answer: A

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Question 2
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000, Accounts Payable ₦50,000, and Accounts Receivable ₦20,000. What is the total amount of assets?
Correct A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000

Correct Answer: A

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Question 3
A government agency uses a public sector accounting system to record its transactions. The system shows the following balances: Cash ₦500,000, Accounts Payable ₦200,000, and Accounts Receivable ₦150,000. What is the total amount of assets?
Correct A. ₦850,000
B. ₦950,000
C. ₦1,050,000
D. ₦1,150,000

Correct Answer: A

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Question 4
A company uses a trial balance to record its transactions. The trial balance shows the following balances: Cash ₦100,000, Accounts Payable ₦50,000, and Accounts Receivable ₦20,000. What is the total amount of assets?
Correct A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000

Correct Answer: A

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Question 5
A company uses a single entry system to record its transactions. The system shows the following balances: Cash ₦100,000, Accounts Payable ₦50,000, and Accounts Receivable ₦20,000. What is the total amount of assets?
Correct A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000

Correct Answer: A

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Question 6
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
Correct A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Receivable 1,000 and Credit Cash 1,000

Correct Answer: A

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Question 7
A company's bank statement shows a balance of 10,000. However, the company's cash book shows a balance of 8,000. What is the reason for the difference?
A. The bank has charged a fee for the month.
Correct B. The company has deposited 2,000 into the bank but has not yet been credited.
C. The company has written a check for 2,000 but has not yet been debited.
D. The bank has made an error in its records.

Correct Answer: B

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Question 8
A partnership has two partners, A and B. The partnership agreement states that A will receive 60% of the profits and B will receive 40%. If the partnership makes a profit of 100,000, how much will A receive?
Correct A. 60,000
B. 40,000
C. 80,000
D. 120,000

Correct Answer: A

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Question 9
A company manufactures two products, X and Y. Product X requires 2 hours of labor and 3 units of raw material, while product Y requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material available, how many units of product X can be produced?
A. 60 units
B. 80 units
Correct C. 100 units
D. 120 units

Correct Answer: C

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Question 10
A government agency has a budget of 1 million for a project. The project requires an initial investment of 200,000 and a monthly expenditure of 50,000. If the project is expected to last for 12 months, how much of the budget will be left after the project is completed?
Correct A. 500,000
B. 600,000
C. 700,000
D. 800,000

Correct Answer: A

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦30,000
Correct C. ₦36,000
D. ₦40,000

Correct Answer: C

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Question 12
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Net Income ₦30,000. What is the total amount of assets?
A. ₦250,000
Correct B. ₦270,000
C. ₦290,000
D. ₦310,000

Correct Answer: B

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Question 13
A company uses the weighted average method to value its inventory. If the total cost of goods available for sale is ₦150,000, the cost of beginning inventory is ₦30,000, and the cost of purchases is ₦120,000, what is the cost of ending inventory?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 14
A company's income statement shows the following information: Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, Operating Expenses ₦30,000, and Net Income ₦30,000. What is the gross profit?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 15
A company's balance sheet shows the following information: Cash ₦20,000, Accounts Payable ₦50,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. What is the total amount of liabilities and equity?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 16
A company issued 10,000 shares of ₠ 1 each at a premium of ₠ 2 per share. The shares were issued for ₠ 12,000 cash. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital ₠ 10,000, Credit Cash ₠ 10,000
B. Debit Share Capital ₠ 12,000, Credit Cash ₠ 10,000
C. Debit Share Capital ₠ 10,000, Credit Cash ₠ 12,000
D. Debit Share Capital ₠ 12,000, Credit Cash ₠ 12,000

Correct Answer: A

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Question 17
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. Prepare the profit-sharing ratio schedule.
A. A: ₠ 45,000, B: ₠ 30,000
B. A: ₠ 40,000, B: ₠ 35,000
Correct C. A: ₠ 42,500, B: ₠ 32,500
D. A: ₠ 50,000, B: ₠ 20,000

Correct Answer: C

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Question 18
A company's trading account for the year ended 31st December 2020 is as follows: Debit: ₠ 1,50,000 ₠ 2,00,000 ₠ 1,20,000 ₠ 50,000 ₠ 30,000 ₠ 20,000 ₠ 10,000 ₠ 5,000 Total Debit: ₠ 4,75,000 Credit: ₠ 3,00,000 ₠ 1,50,000 ₠ 1,20,000 ₠ 50,000 ₠ 30,000 ₠ 20,000 ₠ 10,000 ₠ 5,000 Total Credit: ₠ 4,75,000 What is the profit or loss for the year?
Correct A. Profit ₠ 50,000
B. Loss ₠ 50,000
C. Profit ₠ 1,00,000
D. Loss ₠ 1,00,000

Correct Answer: A

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Question 19
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₠ 1,50,000 ₠ 2,00,000 ₠ 1,20,000 ₠ 50,000 ₠ 30,000 ₠ 20,000 ₠ 10,000 ₠ 5,000 Total Assets: ₠ 5,75,000 Liabilities: ₠ 3,00,000 ₠ 1,50,000 ₠ 1,20,000 ₠ 50,000 ₠ 30,000 ₠ 20,000 ₠ 10,000 ₠ 5,000 Total Liabilities: ₠ 5,75,000 What is the company's equity?
Correct A. ₠ 5,75,000
B. ₠ 5,00,000
C. ₠ 6,00,000
D. ₠ 7,00,000

Correct Answer: A

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Question 20
A company's trial balance as at 31st December 2020 is as follows: Debit: ₠ 1,50,000 ₠ 2,00,000 ₠ 1,20,000 ₠ 50,000 ₠ 30,000 ₠ 20,000 ₠ 10,000 ₠ 5,000 Total Debit: ₠ 5,75,000 Credit: ₠ 3,00,000 ₠ 1,50,000 ₠ 1,20,000 ₠ 50,000 ₠ 30,000 ₠ 20,000 ₠ 10,000 ₠ 5,000 Total Credit: ₠ 5,75,000 What is the company's net worth?
Correct A. ₠ 5,75,000
B. ₠ 5,00,000
C. ₠ 6,00,000
D. ₠ 7,00,000

Correct Answer: A

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Question 21
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 22
A manufacturing company uses a job costing system. The following data relate to a particular job: Direct Materials: ₦ 15,000; Direct Labour: ₦ 8,000; Factory Overheads: ₦ 12,000. Calculate the total cost of the job.
A. ₦35,000
B. ₦40,000
Correct C. ₦45,000
D. ₦50,000

Correct Answer: C

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Question 23
A company's cash book shows the following transactions: 1. Cash received from customers ₦ 20,000; 2. Cash paid to suppliers ₦ 15,000; 3. Cash paid to employees ₦ 10,000. What is the net increase in cash?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 24
A company issues 5% debentures of ₦ 100 each at a premium of ₦ 10 per debenture. Calculate the annual interest on the debentures.
A. ₦2,500
Correct B. ₦5,000
C. ₦7,500
D. ₦10,000

Correct Answer: B

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Question 25
A company's trial balance shows the following balances: Sales: ₦ 100,000; Purchases: ₦ 80,000; Returns Outwards: ₦ 5,000. Calculate the cost of goods sold.
A. ₦75,000
B. ₦80,000
Correct C. ₦85,000
D. ₦90,000

Correct Answer: C

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