POST UTME OAU 2022 Accounting | Objective

Are you preparing for POST UTME OAU 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
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders and the amount of discount.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,050,000

Correct Answer: B

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Question 2
A public sector organization has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 5-Jan | Office Supplies | | ₦5,000 | | 10-Jan | Salaries | ₦50,000 | | | 15-Jan | Rent | | ₦20,000 | | 20-Jan | Cash | ₦30,000 | | | 25-Jan | Utilities | | ₦10,000 | Prepare the cash book for the month of January.
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 3
A company has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 5-Jan | Office Supplies | | ₦5,000 | | 10-Jan | Salaries | ₦50,000 | | | 15-Jan | Rent | | ₦20,000 | | 20-Jan | Cash | ₦30,000 | | | 25-Jan | Utilities | | ₦10,000 | Prepare the bank reconciliation statement for the month of January.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 4
A company has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 5-Jan | Office Supplies | | ₦5,000 | | 10-Jan | Salaries | ₦50,000 | | | 15-Jan | Rent | | ₦20,000 | | 20-Jan | Cash | ₦30,000 | | | 25-Jan | Utilities | | ₦10,000 | Prepare the journal entries for the month of January.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 5
A company has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 5-Jan | Office Supplies | | ₦5,000 | | 10-Jan | Salaries | ₦50,000 | | | 15-Jan | Rent | | ₦20,000 | | 20-Jan | Cash | ₦30,000 | | | 25-Jan | Utilities | | ₦10,000 | Prepare the ledger accounts for the month of January.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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

Correct Answer: B

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Question 7
A public sector organization has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Salaries | ₦100,000 | | | 2 Jan | Rent | | ₦50,000 | | 3 Jan | Utilities | ₦20,000 | | | 4 Jan | Miscellaneous | | ₦30,000 | What is the correct journal entry for the above transactions?
Correct A. Debit Salaries ₦100,000, Debit Utilities ₦20,000, Credit Rent ₦50,000, Credit Miscellaneous ₦30,000
B. Debit Salaries ₦100,000, Credit Rent ₦50,000, Debit Utilities ₦20,000, Credit Miscellaneous ₦30,000
C. Debit Salaries ₦100,000, Debit Utilities ₦20,000, Credit Rent ₦50,000, Credit Miscellaneous ₦30,000
D. Debit Salaries ₦100,000, Credit Miscellaneous ₦30,000, Debit Utilities ₦20,000, Credit Rent ₦50,000

Correct Answer: A

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Question 8
A company has the following balance sheet: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Accounts Receivable | 30,000 | Share Capital | 50,000 | | Inventory | 40,000 | Retained Earnings | 10,000 | What is the company's net worth?
Correct A. ₦90,000
B. ₦110,000
C. ₦130,000
D. ₦150,000

Correct Answer: A

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Question 9
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Purchase of Equipment | ₦100,000 | | | 2 Jan | Sale of Goods | | ₦150,000 | | 3 Jan | Purchase of Inventory | ₦50,000 | | | 4 Jan | Payment of Salaries | | ₦30,000 | What is the company's net income for the month?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 10
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Issuance of Shares | | ₦100,000 | | 2 Jan | Purchase of Equipment | ₦50,000 | | | 3 Jan | Sale of Goods | | ₦150,000 | | 4 Jan | Payment of Salaries | | ₦30,000 | What is the company's total equity at the end of the month?
A. ₦230,000
B. ₦240,000
Correct C. ₦250,000
D. ₦260,000

Correct Answer: C

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Question 11
A company issued 10,000 shares of 5 par value at a premium of 20%. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 12
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance of the cash account?
A. ₦1,800
Correct B. ₦2,800
C. ₦3,800
D. ₦4,800

Correct Answer: B

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Question 13
A company issued 5% debentures of ₦10,000 each. The debentures are redeemable after 5 years. Calculate the annual interest on the debentures.
A. ₦250
Correct B. ₦500
C. ₦750
D. ₦1,000

Correct Answer: B

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Question 14
A government agency received ₦1,000,000 from the treasury for the purchase of office equipment. The equipment was purchased for ₦900,000. The remaining amount was transferred to the contingency fund. Prepare the journal entry for the above transaction.
Correct A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 15
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | Equity | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 50,000 | Share Capital | 100,000 | | Bank | 20,000 | Loans | 30,000 | Profit | 20,000 | | Investments | 40,000 | | | | | | | | | | | | What is the total amount of the company's equity?
A. ₦150,000
B. ₦170,000
Correct C. ₦190,000
D. ₦210,000

Correct Answer: C

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Question 16
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The bank reconciliation statement shows a difference of ₦20,000. What is the cause of this difference?
A. Bank error
B. Company error
Correct C. Cheque not yet cleared
D. Deposit not yet credited

Correct Answer: C

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Question 17
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
Correct B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: B

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Question 18
A company manufactures 10,000 units of a product. The cost of raw materials is ₦500,000 and the labor cost is ₦300,000. The selling price of each unit is ₦100. Calculate the contribution margin per unit.
A. ₦40
Correct B. ₦50
C. ₦60
D. ₦70

Correct Answer: B

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Question 19
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 20
A company has a debt of ₦200,000 due in 2 years. Calculate the present value of the debt using the discount rate of 10%.
Correct A. ₦180,000
B. ₦190,000
C. ₦200,000
D. ₦210,000

Correct Answer: A

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Question 21
Determine the amount of depreciation for a machine with a cost of ₦120,000, a useful life of 5 years, and a residual value of ₦20,000. The machine is depreciated using the straight-line method.
A. ₦20,000
Correct B. ₦24,000
C. ₦28,000
D. ₦32,000

Correct Answer: B

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Question 22
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a profit of ₦150,000, how much will partner A receive?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 23
A company prepares its financial statements in accordance with the accrual accounting method. At the end of the year, the company has the following accounts: Rent Expense (₦50,000), Salaries Expense (₦30,000), and Utilities Expense (₦20,000). What is the total amount of expenses for the year?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 24
A public sector organization has the following transactions: Revenue (₦100,000), Expenditure (₦80,000), and Capital Expenditure (₦20,000). What is the net result of these transactions?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 25
A company has the following assets: Cash (₦50,000), Accounts Receivable (₦30,000), and Inventory (₦20,000). What is the total amount of current assets?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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