POST UTME OSUSTECH 2025 Accounting | Objective

Are you preparing for POST UTME OSUSTECH exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 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 assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. Prepare the company's statement of financial position at the end of the year.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 2
A company's cash book shows the following transactions: ₦10,000 received from a customer, ₦5,000 paid to a supplier, ₦2,000 received from a customer, and ₦3,000 paid to a supplier. What is the company's cash balance at the end of the month?
A. ₦12,000
B. ₦13,000
C. ₦14,000
Correct D. ₦15,000

Correct Answer: D

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Question 3
A company's trial balance shows the following balances: ₦100,000 debit, ₦50,000 credit, ₦20,000 debit, and ₦30,000 credit. What is the company's net profit for the year?
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 4
A company's balance sheet shows the following balances: ₦100,000 assets, ₦50,000 liabilities, and ₦50,000 equity. 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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Question 5
A company's cash book shows the following transactions: ₦10,000 received from a customer, ₦5,000 paid to a supplier, ₦2,000 received from a customer, and ₦3,000 paid to a supplier. What is the company's cash balance at the end of the month?
A. ₦12,000
B. ₦13,000
C. ₦14,000
Correct D. ₦15,000

Correct Answer: D

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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 bank charges a service fee of ₦5,000 and a NSF fee of ₦2,000. The company's cash book also shows a deposit of ₦20,000. What is the correct balance in the company's cash book?
A. ₦145,000
Correct B. ₦140,000
C. ₦135,000
D. ₦130,000

Correct Answer: B

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Question 7
A company uses the double-entry system to record its transactions. The company's ledger shows the following accounts: Cash, Accounts Payable, and Sales Revenue. The company's journal entries are as follows: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000; Debit Sales Revenue ₦20,000, Credit Cash ₦20,000. What is the correct balance in the Cash account?
A. ₦30,000
B. ₦20,000
Correct C. ₦10,000
D. ₦0

Correct Answer: C

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Question 8
A company uses the self-balancing ledger system to record its transactions. The company's ledger shows the following accounts: Cash, Accounts Payable, and Sales Revenue. The company's journal entries are as follows: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000; Debit Sales Revenue ₦20,000, Credit Cash ₦20,000. What is the correct balance in the Cash account?
A. ₦30,000
B. ₦20,000
Correct C. ₦10,000
D. ₦0

Correct Answer: C

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Question 9
A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦75,000. The company's balance sheet shows a total assets of ₦200,000 and total liabilities of ₦100,000. What is the correct net worth of the company?
Correct A. ₦75,000
B. ₦50,000
C. ₦25,000
D. ₦0

Correct Answer: A

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Question 10
A government agency uses the public sector accounting system to record its transactions. The agency's ledger shows the following accounts: Cash, Accounts Payable, and Sales Revenue. The agency's journal entries are as follows: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000; Debit Sales Revenue ₦20,000, Credit Cash ₦20,000. What is the correct balance in the Cash account?
A. ₦30,000
B. ₦20,000
Correct C. ₦10,000
D. ₦0

Correct Answer: C

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Question 11
A company is considering the purchase of a new machine that will cost ₦1,500,000. The machine is expected to last for 5 years and will be depreciated using the straight-line method. If the company expects to sell the machine for ₦800,000 at the end of its useful life, what is the annual depreciation charge?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the partnership makes a profit of ₦120,000, how much will A receive?
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 13
A company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs:
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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Question 14
A company has the following transactions in its manufacturing account:
A. ₦100,000
B. ₦120,000
Correct C. ₦140,000
D. ₦160,000

Correct Answer: C

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Question 15
A company has the following balance sheet at the beginning and end of the year:
A. ₦500,000
B. ₦550,000
Correct C. ₦600,000
D. ₦650,000

Correct Answer: C

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 17
A company's trial balance showed an error of ₦10,000 due to an incorrect posting of a sale. The error was discovered and corrected. Prepare the necessary journal entry to rectify the error.
A. Debit Sales and Credit Bank
Correct B. Debit Bank and Credit Sales
C. Debit Sales and Credit Purchases
D. Debit Purchases and Credit Sales

Correct Answer: B

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Question 18
A company purchased a machine for ₦200,000 and depreciated it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
Correct A. ₦20,000
B. ₦22,000
C. ₦20,000
D. ₦22,000

Correct Answer: A

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Question 19
A company's bank statement showed a balance of ₦50,000, but the cash book showed a balance of ₦40,000. The bank statement included a credit of ₦5,000 for a dishonored cheque. Prepare the bank reconciliation statement.
A. ₦50,000 - ₦5,000 = ₦45,000
B. ₦50,000 + ₦5,000 = ₦55,000
Correct C. ₦40,000 + ₦5,000 = ₦45,000
D. ₦40,000 - ₦5,000 = ₦35,000

Correct Answer: C

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Question 20
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from shareholders.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 21
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
Correct A. The company has an outstanding cheque that has not been presented for payment.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has written a cheque that has been dishonoured by the bank.
D. The company has made an error in recording the cash transactions.

Correct Answer: A

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Question 22
A manufacturing company uses the weighted average method to value its inventory. The company's inventory at the beginning of the year consisted of 100 units of product A and 50 units of product B. During the year, 20 units of product A and 30 units of product B were sold. The company purchased 150 units of product A and 100 units of product B during the year. The cost of product A is ₦50 per unit, and the cost of product B is ₦75 per unit. What is the total value of the company's inventory at the end of the year?
A. ₦18,750
B. ₦20,000
Correct C. ₦22,500
D. ₦25,000

Correct Answer: C

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Question 23
A government agency is required to prepare a statement of cash flows in accordance with the accrual accounting system. The agency's cash inflows during the year consisted of ₦100,000 from taxes and ₦50,000 from interest on investments. The agency's cash outflows during the year consisted of ₦150,000 for salaries and ₦75,000 for rent. What is the net cash inflow from operating activities?
Correct A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: A

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Question 24
A company's balance sheet shows a current ratio of 2:1. The company's current assets consist of ₦100,000 in cash, ₦150,000 in accounts receivable, and ₦200,000 in inventory. The company's current liabilities consist of ₦50,000 in accounts payable and ₦75,000 in short-term loans. What is the company's total current assets?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 25
A company's profit and loss statement shows a net income of ₦50,000. The company's balance sheet shows a total equity of ₦200,000. What is the company's return on equity (ROE)?
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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