POST UTME NOUN 2021 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 2021 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 cash book to record all its financial transactions. Which of the following is an example of a cash transaction?
A. Sale of goods on credit
B. Payment of salaries to employees
C. Purchase of office equipment on credit
Correct D. Collection of cash from customers

Correct Answer: D

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Question 2
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. What is the reason for the discrepancy?
A. The company has not recorded a transaction in the cash book
B. The bank has not credited the company's account
C. The company has not debited a transaction in the cash book
Correct D. The bank has charged a fee on the company's account

Correct Answer: D

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Question 3
A company uses the double entry system of accounting. What is the purpose of the ledger account?
A. To record all the transactions of the company
B. To classify the transactions of the company
C. To summarize the transactions of the company
Correct D. To provide a permanent record of the company's financial position

Correct Answer: D

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Question 4
A company uses the single entry system of accounting. What is the main advantage of this system?
Correct A. It is easy to use and understand
B. It is less time-consuming than the double entry system
C. It is more accurate than the double entry system
D. It is less expensive than the double entry system

Correct Answer: A

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Question 5
A company purchases a machine for ₦100,000. The machine has a useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation charge?
A. ₦15,000
Correct B. ₦18,000
C. ₦20,000
D. ₦22,000

Correct Answer: B

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Question 6
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a bank error. The company's accountant wants to reconcile the two balances. What is the correct procedure to follow?
Correct A. Prepare a bank reconciliation statement to identify the differences between the two balances.
B. Reconcile the cash book balance with the bank statement balance by adjusting the cash book.
C. Ignore the bank error and use the cash book balance as the correct balance.
D. Contact the bank to rectify the error.

Correct Answer: A

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Question 7
A company prepares its final accounts for the year ended 31st December 2021. The trading account shows a profit of ₦500,000. The profit and loss account shows a profit of ₦750,000. The balance sheet shows a total assets of ₦2,500,000 and total liabilities of ₦1,500,000. What is the company's net profit for the year?
A. ₦750,000
B. ₦500,000
Correct C. ₦1,250,000
D. ₦2,500,000

Correct Answer: C

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Question 8
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000, Debtors ₦200,000, Creditors ₦50,000. What is the company's net current assets?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 9
A company prepares its trial balance and discovers an error in the accounts. The error is due to a mistake in the recording of a transaction. What is the correct procedure to follow?
Correct A. Prepare a revised trial balance to reflect the correct transaction.
B. Reconcile the trial balance with the ledger accounts.
C. Ignore the error and use the original trial balance.
D. Contact the auditor to rectify the error.

Correct Answer: A

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Question 10
A company keeps incomplete records and wants to prepare its financial statements. What is the correct procedure to follow?
Correct A. Prepare a single entry system to record the transactions.
B. Use the cash book to prepare the financial statements.
C. Reconcile the cash book with the bank statement.
D. Contact the auditor to rectify the error.

Correct Answer: A

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Question 11
In a manufacturing company, the following transactions occurred during the year: Partnership accounts: A, B, and C shared profits in the ratio 5:3:2. Cash book: Purchased goods for ₦150,000 on credit from a supplier. Bank reconciliation: The bank statement showed a balance of ₦120,000, but the company's cash book balance was ₦130,000. Manufacturing account: The company produced 10,000 units of a product, with a selling price of ₦50 per unit. Departmental accounts: The company has two departments: production and sales. The production department incurred expenses of ₦20,000, and the sales department incurred expenses of ₦30,000. Double entry system and ledgers: The company uses a double entry system and has the following ledger accounts: assets, liabilities, equity, revenues, and expenses. Depreciation and asset valuation: The company has a machine that depreciates by 10% per annum. What is the total profit made by the company?
A. ₦150,000
B. ₦120,000
C. ₦130,000
Correct D. ₦200,000

Correct Answer: D

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Question 12
A company uses a cash book to record its transactions. The cash book shows the following entries: Date | Debit | Credit 01/01 | | ₦10,000 02/01 | ₦5,000 | 03/01 | | ₦8,000 What is the balance in the cash book?
A. ₦13,000
Correct B. ₦15,000
C. ₦17,000
D. ₦19,000

Correct Answer: B

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Question 13
A company has two departments: production and sales. The production department incurred expenses of ₦20,000, and the sales department incurred expenses of ₦30,000. What is the total expense of the company?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 14
A company uses a double entry system and has the following ledger accounts: assets, liabilities, equity, revenues, and expenses. What is the purpose of the double entry system?
A. To record transactions in a single entry system
Correct B. To record transactions in a double entry system
C. To record transactions in a cash book
D. To record transactions in a journal

Correct Answer: B

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Question 15
A company has a machine that depreciates by 10% per annum. The machine was purchased for ₦100,000. What is the value of the machine after 2 years?
A. ₦90,000
Correct B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: B

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Question 16
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. What is the reason for the difference?
A. The company has a loan from the bank.
B. The company has made a deposit into the bank.
Correct C. The company has written a cheque that has not yet been presented for payment.
D. The company has a credit card account with the bank.

Correct Answer: C

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Question 17
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department has a direct labor cost of ₦100,000 and an overhead cost of ₦50,000. The Assembly department has a direct labor cost of ₦150,000 and an overhead cost of ₦75,000. What is the total cost of production?
A. ₦350,000
B. ₦400,000
Correct C. ₦450,000
D. ₦500,000

Correct Answer: C

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Question 18
A company's assets are valued at ₦1,000,000. The company depreciates its assets by 10% per annum. What is the value of the assets after 2 years?
A. ₦900,000
B. ₦800,000
Correct C. ₦720,000
D. ₦640,000

Correct Answer: C

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Question 19
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. What is the reason for the difference?
A. The company has a loan from a bank.
B. The company has made a deposit into a bank.
Correct C. The company has written a cheque that has not yet been presented for payment.
D. The company has a credit card account with a bank.

Correct Answer: C

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Question 20
A company's cash book shows a balance of ₦300,000. The company's bank statement shows a balance of ₦320,000. What is the reason for the difference?
A. The company has a loan from a bank.
B. The company has made a deposit into a bank.
Correct C. The company has written a cheque that has not yet been presented for payment.
D. The company has a credit card account with a bank.

Correct Answer: C

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Question 21
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?
Correct A. ₦24,000
B. ₦25,000
C. ₦26,000
D. ₦28,000

Correct Answer: A

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Question 22
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦150,000, Cost of Goods Sold ₦80,000, and Common Stock ₦100,000. What is the total amount of the company's assets?
Correct A. ₦230,000
B. ₦240,000
C. ₦250,000
D. ₦260,000

Correct Answer: A

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Question 23
A company uses the double-entry system of accounting. If the company purchases office supplies for ₦10,000 and pays cash for the purchase, what is the journal entry to record the transaction?
A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
Correct B. Debit Cash ₦10,000, Credit Office Supplies ₦10,000
C. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000
D. Debit Accounts Payable ₦10,000, Credit Office Supplies ₦10,000

Correct Answer: B

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Question 24
A company's balance sheet shows the following information: Total Assets ₦500,000, Total Liabilities ₦200,000, and Total Equity ₦300,000. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 25
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 asset's book value after 3 years if the asset's cost is ₦120,000?
Correct A. ₦72,000
B. ₦80,000
C. ₦88,000
D. ₦96,000

Correct Answer: A

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