POST UTME OAU 2023 Accounting | Objective

Prepare for your exams with POST UTME OAU questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
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, using the straight-line method.
A. ₦20,000
Correct B. ₦24,000
C. ₦28,000
D. ₦32,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2 View Details
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
A. Bank charges
B. Unrecorded cash sales
Correct C. Unrecorded cash purchases
D. Bank interest

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3 View Details
A trader purchases goods worth ₦100,000 and sells them for ₦120,000. What is the gross profit?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4 View Details
A company's balance sheet shows a current ratio of 2:1. What does this indicate?
Correct A. The company is liquid
B. The company is insolvent
C. The company has a high level of debt
D. The company has a low level of assets

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5 View Details
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
A. Bank charges
B. Unrecorded cash sales
Correct C. Unrecorded cash purchases
D. Bank interest

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6 View Details
A company issues 5,000, 12% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7 View Details
A firm's trial balance shows an error of ₦5,000 due to an incorrect posting of an account. The error is discovered during the preparation of the balance sheet. What is the effect of this error on the balance sheet?
Correct A. The error will result in an overstatement of assets.
B. The error will result in an understatement of liabilities.
C. The error will not affect the balance sheet.
D. The error will result in an overstatement of liabilities.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8 View Details
A company has a capital of ₦500,000 divided into 5,000 shares of ₦100 each. The company issues 1,000 shares at a premium of ₦20 per share. Calculate the amount received from the issue of shares.
A. ₦220,000
B. ₦230,000
Correct C. ₦240,000
D. ₦250,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9 View Details
A firm's balance sheet shows an error of ₦10,000 due to an incorrect posting of an account. The error is discovered during the preparation of the income statement. What is the effect of this error on the income statement?
A. The error will result in an overstatement of revenue.
B. The error will result in an understatement of expenses.
C. The error will not affect the income statement.
Correct D. The error will result in an overstatement of expenses.

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10 View Details
A company has a capital of ₦750,000 divided into 7,500 shares of ₦100 each. The company issues 1,500 shares at a premium of ₦15 per share. Calculate the amount received from the issue of shares.
A. ₦285,000
B. ₦295,000
Correct C. ₦305,000
D. ₦315,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11 View Details
A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12 View Details
A bank's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the difference between the two balances?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13 View Details
A company's trial balance shows an error of ₦10,000 due to an omission. What is the correct balance of the company's accounts?
A. ₦500,000
B. ₦510,000
Correct C. ₦520,000
D. ₦530,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14 View Details
A government agency uses the accrual basis of accounting. If the agency receives ₦50,000 in revenue and pays ₦30,000 in expenses, what is the net increase in assets?
Correct A. ₦20,000
B. ₦15,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15 View Details
A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦220,000. What is the difference between the two balances?
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16 View Details
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. What is the likely reason for the discrepancy?
A. The company has made a mistake in recording a transaction.
B. The bank has made an error in its statement.
Correct C. The company has a suspense account that needs to be cleared.
D. The company has a loan from the bank that has not been recorded.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17 View Details
A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product A and product B should it produce to maximize profit?
Correct A. 10 units of product A and 15 units of product B
B. 15 units of product A and 10 units of product B
C. 20 units of product A and 5 units of product B
D. 5 units of product A and 20 units of product B

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18 View Details
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Profit ₦150,000. What is the company's gross profit?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19 View Details
A company's balance sheet shows the following accounts: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the company's liquidity ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20 View Details
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦30,000. What is the company's net cash inflow?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21 View Details
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 22 View Details
A company's trial balance showed a debit balance of ₦50,000 in the account 'Sales Returns'. The company's accounting policy requires that sales returns be treated as a deduction from sales revenue. What is the correct journal entry to correct the error?
A. Debit Sales Returns, Credit Sales
Correct B. Debit Sales, Credit Sales Returns
C. Debit Sales, Credit Sales Returns and Profit
D. Debit Sales Returns, Credit Profit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23 View Details
A company's bank statement showed a balance of ₦150,000, but the company's cash book showed a balance of ₦120,000. The bank statement included a debit of ₦20,000 for a dishonored cheque. What is the correct amount of the bank reconciliation statement?
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 24 View Details
A company issued 5,000 debentures of ₦1,000 each at a premium of ₦50 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦50,000
B. ₦55,000
C. ₦60,000
Correct D. ₦65,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25 View Details
A company's accounting records showed a debit balance of ₦30,000 in the account 'Purchases Returns'. The company's accounting policy requires that purchases returns be treated as a deduction from purchases. What is the correct journal entry to correct the error?
A. Debit Purchases Returns, Credit Purchases
Correct B. Debit Purchases, Credit Purchases Returns
C. Debit Purchases, Credit Purchases Returns and Cost of Goods Sold
D. Debit Purchases Returns, Credit Cost of Goods Sold

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