POST UTME NILE UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME NILE 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 has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
Correct A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease

Correct Answer: A

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Question 2
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
Correct A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease

Correct Answer: A

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Question 3
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
Correct A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease

Correct Answer: A

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Question 4
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
Correct A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease

Correct Answer: A

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Question 5
A company has the following transactions: Purchased goods for ₦120,000 on credit from a supplier. Paid ₦50,000 in cash to settle a portion of the debt. Sold goods for ₦180,000 on credit to a customer. What is the net effect on the company's cash balance?
Correct A. ₦30,000 increase
B. ₦30,000 decrease
C. ₦50,000 increase
D. ₦50,000 decrease

Correct Answer: A

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Question 6
A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?
Correct A. The company has an overdraft facility with the bank.
B. The company's cash book is not up-to-date.
C. The bank has made an error in its statement.
D. The company has deposited cash into its bank account.

Correct Answer: A

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Question 7
A company uses the double-entry system of accounting. It records the following transactions in its journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the correct entry in the ledger?
A. Debit Purchases ₦10,000, Credit Cash ₦10,000.
B. Debit Purchases ₦10,000, Credit Cash ₦10,000.
Correct C. Debit Cash ₦10,000, Credit Purchases ₦10,000.
D. Debit Purchases ₦10,000, Credit Purchases ₦10,000.

Correct Answer: C

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Question 8
A company prepares its final accounts for the year ended 31st December 2020. The trading account shows a profit of ₦200,000. The profit and loss account shows a profit of ₦250,000. What is the correct explanation for the difference?
A. The company has made an error in its trading account.
Correct B. The company has made an error in its profit and loss account.
C. The company has made an error in its balance sheet.
D. The company has made an error in its cash flow statement.

Correct Answer: B

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Question 9
A government agency prepares its financial statements for the year ended 31st December 2020. The financial statements show a surplus of ₦500,000. What is the correct explanation for this surplus?
Correct A. The agency has collected more revenue than it has spent.
B. The agency has spent more than it has collected.
C. The agency has made an error in its financial statements.
D. The agency has made an error in its budget.

Correct Answer: A

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Question 10
A company uses the straight-line method of depreciation. It has a machine that cost ₦100,000 and has a useful life of 5 years. What is the annual depreciation charge?
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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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 its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦25,000

Correct Answer: A

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Question 12
A company's cash book shows a balance of ₦150,000. The bank statement shows a balance of ₦180,000. The bank reconciliation statement shows a difference of ₦10,000 due to outstanding checks. What is the correct balance in the cash book?
Correct A. ₦140,000
B. ₦160,000
C. ₦170,000
D. ₦190,000

Correct Answer: A

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Question 13
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦100,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

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Question 14
A company's trial balance shows a debit balance of ₦50,000 in the accounts payable account. However, the company's ledger shows a credit balance of ₦60,000 in the same account. What is the correct balance in the accounts payable account?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 15
A company's bank reconciliation statement shows a difference of ₦20,000 due to outstanding deposits. If the bank statement shows a balance of ₦200,000, what is the correct balance in the cash book?
Correct A. ₦220,000
B. ₦200,000
C. ₦180,000
D. ₦220,000

Correct Answer: A

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Question 16
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders and the amount of discount.
Correct A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000

Correct Answer: A

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Question 17
A company's trading account for the year ended 31st December 2020 shows a profit of ₦500,000. The company's profit and loss account shows a net profit of ₦750,000. Calculate the company's net profit for the year.
Correct A. ₦1,250,000
B. ₦1,250,500
C. ₦1,250,750
D. ₦1,251,000

Correct Answer: A

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Question 18
A company's balance sheet as at 31st December 2020 shows a total of ₦1,500,000 in the current assets and ₦1,000,000 in the non-current assets. Calculate the company's total assets.
Correct A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000

Correct Answer: A

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Question 19
A company's cash book shows a balance of ₦200,000. The company's bank statement shows a balance of ₦250,000. Calculate the company's bank overdraft.
A. ₦50,000
B. ₦100,000
C. ₦150,000
Correct D. ₦200,000

Correct Answer: D

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Question 20
A company's ledger account for wages payable shows a debit balance of ₦150,000. The company's balance sheet shows a credit balance of ₦100,000 in the wages payable account. Calculate the company's wages payable.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 21
A company issued 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦1,000,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 22
A company's trial balance showed the following balances: Debitors ₦50,000, Creditors ₦20,000, Capital ₦100,000. What is the total amount of the company's assets?
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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Question 23
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦475,000
B. ₦480,000
Correct C. ₦485,000
D. ₦490,000

Correct Answer: C

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Question 24
A company's profit and loss account showed the following balances: Sales ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000. What is the company's net profit?
A. ₦20,000
B. ₦30,000
C. ₦40,000
Correct D. ₦50,000

Correct Answer: D

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Question 25
A company's balance sheet showed the following balances: Assets ₦200,000, Liabilities ₦100,000, Capital ₦100,000. What is the company's net worth?
A. ₦0
B. ₦50,000
Correct C. ₦100,000
D. ₦150,000

Correct Answer: C

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