POST UTME MOUNTAIN TOP UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
In a partnership account, what is the correct method of calculating the capital of a partner who has been absent for a year?
A. Capital is calculated as the average of the partner's capital for the previous and next year.
Correct B. Capital is calculated as the average of the partner's capital for the previous year and the current year.
C. Capital is calculated as the average of the partner's capital for the current year and the next year.
D. Capital is calculated as the average of the partner's capital for the previous year and the next year, multiplied by the number of years the partner has been absent.

Correct Answer: B

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Question 2
A company has the following trial balance: Debitors: ₦100,000; Creditors: ₦80,000; Capital: ₦120,000. What is the total amount of assets?
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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Question 3
A manufacturing company has the following departmental accounts: Production Department: ₦500,000; Selling Department: ₦200,000; Administrative Department: ₦100,000. What is the total cost of goods sold?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 4
A company has the following balance sheet: Assets: ₦500,000; Liabilities: ₦200,000; Capital: ₦300,000. What is the net worth of the company?
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

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Question 5
A company has the following profit and loss account: Sales: ₦500,000; Cost of Goods Sold: ₦300,000; Gross Profit: ₦200,000. What is the net profit?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 6
A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
Correct A. The company has an outstanding cheque that has not been presented for payment.
B. The company has deposited cash into the bank but has not yet credited the cash book.
C. The company has written a cheque that has not yet been presented for payment.
D. The company has made an error in the cash book.

Correct Answer: A

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Question 7
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
Correct A. ₦80,400
B. ₦84,000
C. ₦88,800
D. ₦92,400

Correct Answer: A

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Question 8
A company prepares a balance sheet as at 31st December 2022. The company's assets are ₦500,000, liabilities are ₦200,000, and equity is ₦300,000. What is the company's return on equity (ROE) for the year?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 9
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00

Correct Answer: A

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Question 10
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 2 years.
Correct A. ₦105,600
B. ₦108,000
C. ₦110,400
D. ₦112,800

Correct Answer: A

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Question 11
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. The company's accountant has identified the following errors: (i) a journal entry of ₦10,000 was posted twice, (ii) a journal entry of ₦8,000 was posted incorrectly as a debit instead of a credit, and (iii) a journal entry of ₦12,000 was posted incorrectly as a credit instead of a debit. What is the correct adjustment to be made to the trial balance?
A. ₦5,000
Correct B. ₦10,000
C. ₦8,000
D. ₦12,000

Correct Answer: B

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Question 12
A company purchases a machine for ₦120,000 and depreciates it using the straight-line method over a period of 5 years. If the machine is expected to have a residual value of ₦20,000 at the end of the 5-year period, what is the annual depreciation charge?
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦15,000, what is the amount of the share premium account?
A. ₦5,000
Correct B. ₦6,000
C. ₦7,000
D. ₦8,000

Correct Answer: B

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Question 14
A company purchases a building for ₦500,000 and depreciates it using the reducing-balance method. If the rate of depreciation is 10% per annum, what is the value of the building after 3 years?
A. ₦300,000
B. ₦320,000
Correct C. ₦340,000
D. ₦360,000

Correct Answer: C

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Question 15
A company issues 1,000 debentures of ₦100 each at a discount of 5%. If the company receives a cash payment of ₦90,000, what is the amount of the discount account?
Correct A. ₦5,000
B. ₦6,000
C. ₦7,000
D. ₦8,000

Correct Answer: A

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Question 16
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦1,500,000. The beginning inventory is ₦800,000. The cost of goods available for sale is ₦2,500,000. Calculate the cost of ending inventory.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 17
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦1,500,000. The beginning inventory is ₦800,000. The cost of goods available for sale is ₦2,500,000. Calculate the cost of ending inventory.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 18
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦1,500,000. The beginning inventory is ₦800,000. The cost of goods available for sale is ₦2,500,000. Calculate the cost of ending inventory.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 19
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦1,500,000. The beginning inventory is ₦800,000. The cost of goods available for sale is ₦2,500,000. Calculate the cost of ending inventory.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 20
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦1,500,000. The beginning inventory is ₦800,000. The cost of goods available for sale is ₦2,500,000. Calculate the cost of ending inventory.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

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.
Correct A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: A

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Question 22
A partnership consists of three partners, A, B, and C. Their capital accounts are ₦100,000, ₦150,000, and ₦200,000 respectively. If the profit for the year is ₦50,000, and the profit-sharing ratio is 2:3:4, calculate the amount of profit to be distributed to each partner.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 23
A company uses a self-balancing ledger system. The ledger contains the following accounts: Cash, Accounts Receivable, Accounts Payable, and Common Stock. If the balance in the Cash account is ₦50,000, and the balance in the Accounts Payable account is ₦20,000, what is the total amount of assets and liabilities in the company?
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 24
A company has the following incomplete records: Cash, Accounts Receivable, and Accounts Payable. If the balance in the Cash account is ₦30,000, and the balance in the Accounts Payable account is ₦15,000, what is the total amount of assets and liabilities in the company?
A. ₦45,000
Correct B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: B

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Question 25
A company uses the double-entry system. The ledger contains the following accounts: Cash, Accounts Receivable, Accounts Payable, and Common Stock. If the balance in the Cash account is ₦40,000, and the balance in the Accounts Payable account is ₦20,000, what is the total amount of assets and liabilities in the company?
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

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