POST UTME NOUN 2020 Accounting | Objective

Are you preparing for POST UTME NOUN 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.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single-entry system of accounting. The company's trial balance as at 31st December, 2020, shows the following balances: Cash 10,000, Accounts Payable 15,000, Common Stock 20,000, and Retained Earnings 30,000. What is the total amount of assets on the balance sheet?
Correct A. 55,000
B. 65,000
C. 75,000
D. 85,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company has the following transactions in its journal: Debit Cash 1,000, Credit Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
Correct A. Increases Assets and Decreases Liabilities
B. Decreases Assets and Increases Liabilities
C. Increases Assets and Increases Liabilities
D. Decreases Assets and Decreases Liabilities

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company has the following ledger balances: Accounts Payable 10,000, Common Stock 20,000, and Retained Earnings 30,000. What is the total amount of equity on the balance sheet?
A. 60,000
B. 70,000
Correct C. 80,000
D. 90,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company has the following transactions in its journal: Debit Accounts Payable 1,000, Credit Cash 1,000. What is the effect of this transaction on the accounting equation?
A. Increases Assets and Decreases Liabilities
B. Decreases Assets and Increases Liabilities
C. Increases Assets and Increases Liabilities
Correct D. Decreases Assets and Decreases Liabilities

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company has the following ledger balances: Cash 10,000, Accounts Payable 15,000, Common Stock 20,000, and Retained Earnings 30,000. What is the total amount of assets on the balance sheet?
Correct A. 55,000
B. 65,000
C. 75,000
D. 85,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
The following is a balance sheet of a company as at 31st December 2020. Prepare the trading and profit and loss account for the year ended 31st December 2020.
Correct A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A partnership is formed by two partners, A and B, who contribute ₦50,000 and ₦30,000 respectively. The profit is to be shared in the ratio 2:1. If the profit for the year is ₦60,000, how much will A receive?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
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. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's balance sheet as at 31st December 2020 is as follows: Assets ₦500,000, Liabilities ₦300,000, and Capital ₦200,000. Calculate the company's net worth.
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to record the payment?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
C. Debit Rent Expense ₦15,000, Credit Cash ₦15,000
Correct D. Debit Rent Expense ₦5,000, Credit Cash ₦20,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's balance sheet shows a decrease in its current assets of ₦50,000 and an increase in its current liabilities of ₦30,000. What is the effect on the company's net working capital?
A. Increase in net working capital of ₦20,000
Correct B. Decrease in net working capital of ₦20,000
C. No change in net working capital
D. Increase in net working capital of ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's trial balance shows a credit balance of ₦10,000 in the 'Dividends' account. However, the company's accounting records show that it has declared a dividend of ₦15,000. What is the correct journal entry to record the dividend?
Correct A. Debit Dividends ₦15,000, Credit Retained Earnings ₦15,000
B. Debit Dividends ₦10,000, Credit Retained Earnings ₦10,000
C. Debit Dividends ₦15,000, Credit Cash ₦15,000
D. Debit Dividends ₦10,000, Credit Cash ₦10,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's balance sheet shows a decrease in its non-current assets of ₦20,000 and an increase in its non-current liabilities of ₦15,000. What is the effect on the company's net worth?
A. Increase in net worth of ₦5,000
Correct B. Decrease in net worth of ₦5,000
C. No change in net worth
D. Increase in net worth of ₦5,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's trial balance shows a debit balance of ₦30,000 in the 'Salaries Expense' account. However, the company's accounting records show that it has paid ₦25,000 in salaries for the year. What is the correct journal entry to record the payment?
A. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000
B. Debit Salaries Expense ₦25,000, Credit Cash ₦25,000
C. Debit Salaries Expense ₦30,000, Credit Cash ₦30,000
Correct D. Debit Salaries Expense ₦5,000, Credit Cash ₦25,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's balance sheet shows a decrease in its current assets of ₦40,000 and an increase in its current liabilities of ₦25,000. What is the effect on the company's net working capital?
Correct A. Decrease in net working capital of ₦15,000
B. Increase in net working capital of ₦15,000
C. No change in net working capital
D. Decrease in net working capital of ₦15,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's trial balance shows a credit balance of ₦12,000 in the 'Dividends' account. However, the company's accounting records show that it has declared a dividend of ₦18,000. What is the correct journal entry to record the dividend?
Correct A. Debit Dividends ₦18,000, Credit Retained Earnings ₦18,000
B. Debit Dividends ₦12,000, Credit Retained Earnings ₦12,000
C. Debit Dividends ₦18,000, Credit Cash ₦18,000
D. Debit Dividends ₦12,000, Credit Cash ₦12,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's balance sheet shows a decrease in its non-current assets of ₦30,000 and an increase in its non-current liabilities of ₦20,000. What is the effect on the company's net worth?
A. Decrease in net worth of ₦10,000
B. Increase in net worth of ₦10,000
C. No change in net worth
D. Decrease in net worth of ₦10,000

Correct Answer: VIEW ANSWER

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company uses the double-entry system of accounting. The following transactions were recorded during the year: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦80,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦30,000. 5. Collected cash from customers for ₦100,000. What is the total amount of assets acquired by the company during the year?
A. ₦250,000
Correct B. ₦270,000
C. ₦290,000
D. ₦310,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's balance sheet as at 31st December, 2019 is as follows: Assets: Cash ₦50,000 Accounts Receivable ₦20,000 Inventory ₦30,000 Total Assets ₦100,000 Liabilities: Accounts Payable ₦10,000 Long-term Debt ₦30,000 Total Liabilities ₦40,000 What is the company's equity as at 31st December, 2019?
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company uses the cash basis of accounting. The following transactions were recorded during the year: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦80,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦30,000. 5. Collected cash from customers for ₦100,000. What is the total amount of cash received by the company during the year?
A. ₦230,000
B. ₦240,000
Correct C. ₦250,000
D. ₦260,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company's cash book as at 31st December, 2019 is as follows: Cash ₦50,000 Bank ₦20,000 Total ₦70,000 What is the company's cash balance as at 31st December, 2019?
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company's bank reconciliation statement as at 31st December, 2019 is as follows: Bank Balance ₦20,000 Cash Balance ₦50,000 Total ₦70,000 What is the company's bank balance as at 31st December, 2019?
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's manufacturing account as at 31st December, 2019 is as follows: Direct Materials ₦30,000 Direct Labour ₦20,000 Total ₦50,000 What is the company's manufacturing cost as at 31st December, 2019?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company's departmental account as at 31st December, 2019 is as follows: Selling Expenses ₦20,000 Administrative Expenses ₦30,000 Total ₦50,000 What is the company's total expenses as at 31st December, 2019?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support