POST UTME REDEEMERS UNIVERSITY 2023 Accounting | Objective

Are you preparing for POST UTME REDEEMERS UNIVERSITY exams? Reviewing past 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.

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Question 1
A company uses the double-entry system to record transactions. The company's trial balance shows the following balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's assets?
Correct A. 35,000
B. 40,000
C. 45,000
D. 50,000

Correct Answer: A

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Question 2
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 net income of 100,000, how much will Partner A receive in cash?
Correct A. 60,000
B. 70,000
C. 80,000
D. 90,000

Correct Answer: A

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Question 3
A company uses the straight-line method of depreciation to depreciate its assets. If the asset has a cost of 10,000 and a useful life of 5 years, what is the annual depreciation expense?
Correct A. 1,000
B. 2,000
C. 3,000
D. 4,000

Correct Answer: A

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Question 4
A company produces two products, X and Y. Product X has a selling price of 10 and a variable cost of 6. Product Y has a selling price of 15 and a variable cost of 9. If the company produces 100 units of Product X and 50 units of Product Y, what is the total contribution margin?
A. 1,000
Correct B. 1,500
C. 2,000
D. 2,500

Correct Answer: B

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Question 5
A company has the following accounts in its ledger: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's liabilities and equity?
Correct A. 35,000
B. 40,000
C. 45,000
D. 50,000

Correct Answer: A

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Question 6
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The company also issued 5,000 debentures of 100 each. Prepare the journal entry to record the issue of shares and debentures.
A. Debit Cash 30,000, Credit Share Capital 30,000, Debit Debenture Liability 500,000
Correct B. Debit Cash 30,000, Credit Share Capital 30,000, Credit Debenture Liability 500,000
C. Debit Cash 30,000, Credit Share Capital 30,000, Debit Debenture Liability 500,000
D. Debit Cash 30,000, Credit Share Capital 30,000, Credit Cash 500,000

Correct Answer: B

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are 50,000 and 30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit-sharing ratio in terms of the capital accounts.
Correct A. 3:2
B. 2:3
C. 1:1
D. 4:3

Correct Answer: A

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Question 8
A company has a self-balancing ledger with the following accounts: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. Prepare the ledger accounts.
Correct A. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
B. Cash 10,000, Accounts Payable 5,000, Common Stock 15,000
C. Cash 10,000, Accounts Payable 5,000, Common Stock 25,000
D. Cash 10,000, Accounts Payable 5,000, Common Stock 30,000

Correct Answer: A

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Question 9
A company has the following transactions: Purchased office supplies for 1,000, Paid rent 2,000, and Sold goods for 5,000. Prepare the journal entries.
Correct A. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Cash 2,000, Debit Sales Revenue 5,000, Credit Cash 5,000
B. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Cash 2,000, Debit Sales Revenue 5,000, Credit Accounts Receivable 5,000
C. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Cash 2,000, Debit Sales Revenue 5,000, Credit Cash 5,000
D. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Rent Expense 2,000, Credit Accounts Payable 2,000, Debit Sales Revenue 5,000, Credit Cash 5,000

Correct Answer: A

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Question 10
A company has the following ledger accounts: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. Prepare the trial balance.
Correct A. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
B. Cash 10,000, Accounts Payable 5,000, Common Stock 15,000
C. Cash 10,000, Accounts Payable 5,000, Common Stock 25,000
D. Cash 10,000, Accounts Payable 5,000, Common Stock 30,000

Correct Answer: A

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Question 11
A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?
A. The company has a cash overdraft.
Correct B. The company has a bank overdraft.
C. The company's cash book is incorrect.
D. The company's bank statement is incorrect.

Correct Answer: B

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Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ₦80,000 and ₦60,000 respectively. If the profit for the year is ₦40,000, how much will each partner receive as their share of the profit?
Correct A. A: ₦24,000, B: ₦16,000
B. A: ₦20,000, B: ₦20,000
C. A: ₦16,000, B: ₦24,000
D. A: ₦12,000, B: ₦28,000

Correct Answer: A

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Question 13
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000. What is the correct balance of the company's net income?
Correct A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000

Correct Answer: A

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Question 14
A government agency has the following transactions: Salaries ₦100,000, Rent ₦20,000, Utilities ₦10,000. What is the correct classification of these transactions?
Correct A. Operating Expenses
B. Capital Expenditures
C. Revenue
D. Expenses

Correct Answer: A

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Question 15
A company's cash book shows the following transactions: Cash Sales ₦50,000, Cash Purchases ₦30,000, Cash Received from Customers ₦20,000. What is the correct balance of the company's cash account?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 17
A company's trial balance showed the following balances: Purchases ₦120,000, Sales ₦180,000, Returns Outwards ₦10,000. Calculate the cost of goods sold.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 18
A company's balance sheet showed the following balances: Share Capital ₦500,000, Retained Earnings ₦300,000. Calculate the total equity.
Correct A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦500,000

Correct Answer: A

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Question 19
A company's profit and loss account showed the following balances: Cost of Goods Sold ₦150,000, Gross Profit ₦50,000. Calculate the operating expenses.
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 20
A company's balance sheet showed the following balances: Current Assets ₦200,000, Non-Current Assets ₦300,000. Calculate the total assets.
A. ₦500,000
B. ₦600,000
C. ₦700,000
Correct D. ₦800,000

Correct Answer: D

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Question 21
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 22
A manufacturing company produces 100 units of a product per day. Each unit costs ₦500 to produce. If the company operates for 20 days in a month, what is the total production cost for the month?
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,200,000

Correct Answer: B

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Question 23
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. What is the net income for the period?
Correct A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000

Correct Answer: A

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Question 24
A company's balance sheet shows the following balances: Cash ₦100,000, Accounts Receivable ₦200,000, Inventory ₦300,000. What is the total current assets?
Correct A. ₦600,000
B. ₦500,000
C. ₦400,000
D. ₦300,000

Correct Answer: A

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Question 25
A government agency receives a grant of ₦1,000,000 to fund a project. If the agency spends ₦800,000 on the project, what is the unspent balance?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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