POST UTME RHEMA UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a credit balance of ₦50,000 in the account 'Rent Received' and a debit balance of ₦30,000 in the account 'Rent Paid'. What is the net effect on the company's profit?
A. ₦20,000 increase in profit
Correct B. ₦20,000 decrease in profit
C. ₦50,000 increase in profit
D. ₦30,000 increase in profit

Correct Answer: B

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Question 2
A manufacturing company uses the weighted average method to value its inventory. The company has two types of inventory: raw materials and work-in-progress. The raw materials inventory has a cost of ₦100,000 and a quantity of 1,000 units. The work-in-progress inventory has a cost of ₦200,000 and a quantity of 500 units. What is the total value of the inventory?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 3
A company has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | 1/1/2022 | Purchased goods from XYZ Ltd | ₦50,000 | | 15/1/2022 | Paid cash to XYZ Ltd | ₦30,000 | | 20/1/2022 | Purchased goods from ABC Ltd | ₦70,000 | | 25/1/2022 | Paid cash to ABC Ltd | ₦50,000 | What is the total amount outstanding in the accounts payable at the end of January 2022?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 4
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 5
A company has the following transactions related to its cash account: | Date | Description | Amount | | --- | --- | --- | | 1/1/2022 | Cash received from customers | ₦100,000 | | 15/1/2022 | Cash paid to suppliers | ₦50,000 | | 20/1/2022 | Cash received from sale of assets | ₦70,000 | | 25/1/2022 | Cash paid to employees | ₦30,000 | What is the net increase in cash at the end of January 2022?
A. ₦20,000
B. ₦30,000
C. ₦40,000
Correct D. ₦50,000

Correct Answer: D

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Question 6
The following is the balance sheet of XYZ Manufacturing Company as at December 31, 2022. Prepare the manufacturing account for the year ended December 31, 2022.
Correct A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: A

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Question 7
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
Correct A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: A

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Question 8
A company purchased a machine for ₦500,000. The machine is expected to have a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 9
The following is the balance sheet of XYZ Manufacturing Company as at December 31, 2022. Prepare the statement of changes in equity for the year ended December 31, 2022.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 10
A company issued 10,000, 10% debentures of ₦100 each at a premium of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of premium on the debentures.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 11
A public sector organization has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,500,000 Cash paid to suppliers: ₦800,000 Cash received from government grant: ₦200,000 Cash paid to employees: ₦600,000 Cash paid for rent: ₦150,000 Cash paid for utilities: ₦50,000 Cash paid for insurance: ₦100,000 Cash paid for maintenance: ₦75,000 Cash paid for repairs: ₦25,000 Cash paid for travel: ₦50,000 Cash paid for training: ₦25,000 Cash paid for entertainment: ₦10,000 Cash paid for miscellaneous: ₦5,000 What is the total cash outflow for the year?
A. ₦1,500,000
Correct B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000

Correct Answer: B

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Question 12
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦1,500,000
B. ₦1,750,000
C. ₦2,000,000
Correct D. ₦2,250,000

Correct Answer: D

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Question 13
A company's trial balance as at December 31, 2022, is as follows: Debtors: ₦500,000 Creditors: ₦200,000 Capital: ₦1,000,000 Profit: ₦200,000 What is the total amount of assets?
A. ₦1,700,000
B. ₦1,800,000
Correct C. ₦2,000,000
D. ₦2,100,000

Correct Answer: C

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Question 14
A company's self-balancing ledger as at December 31, 2022, is as follows: Cash: ₦500,000 Bank: ₦200,000 Debtors: ₦300,000 Creditors: ₦100,000 What is the total amount of assets?
A. ₦1,100,000
B. ₦1,200,000
Correct C. ₦1,300,000
D. ₦1,400,000

Correct Answer: C

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Question 15
A company's control account as at December 31, 2022, is as follows: Cash: ₦500,000 Bank: ₦200,000 Debtors: ₦300,000 Creditors: ₦100,000 What is the total amount of assets?
A. ₦1,100,000
B. ₦1,200,000
Correct C. ₦1,300,000
D. ₦1,400,000

Correct Answer: C

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Question 16
A company's trial balance shows a debit balance of ₦5,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the likely cause of this discrepancy?
Correct A. Error in recording rent received
B. Error in recording rent paid
C. Error in preparing the trial balance
D. Error in accounting records

Correct Answer: A

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Question 17
A company's balance sheet shows a decrease in its current assets by ₦10,000. However, its profit and loss account shows an increase in its revenue by ₦15,000. What is the likely cause of this discrepancy?
A. Error in recording revenue
Correct B. Error in recording current assets
C. Error in preparing the balance sheet
D. Error in accounting records

Correct Answer: B

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Question 18
A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends Paid'. However, the company's accounting records show that it has not paid any dividends to its shareholders. What is the likely cause of this discrepancy?
Correct A. Error in recording dividends paid
B. Error in recording dividends received
C. Error in preparing the trial balance
D. Error in accounting records

Correct Answer: A

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Question 19
A company's balance sheet shows a decrease in its non-current liabilities by ₦5,000. However, its profit and loss account shows an increase in its expenses by ₦8,000. What is the likely cause of this discrepancy?
A. Error in recording non-current liabilities
Correct B. Error in recording expenses
C. Error in preparing the balance sheet
D. Error in accounting records

Correct Answer: B

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Question 20
A company's trial balance shows a debit balance of ₦15,000 in the account 'Salaries and Wages Paid'. However, the company's accounting records show that it has not paid any salaries and wages to its employees. What is the likely cause of this discrepancy?
Correct A. Error in recording salaries and wages paid
B. Error in recording salaries and wages received
C. Error in preparing the trial balance
D. Error in accounting records

Correct Answer: A

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Question 21
A company uses the weighted average method to value its inventory. The following information is available for the year ended December 31, 2022:
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 22
A manufacturing company produces two products, A and B. The following information is available for the year ended December 31, 2022:
A. ₦150,000
Correct B. ₦180,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 23
A company uses the double-entry system of accounting. The following transactions occurred during the year ended December 31, 2022:
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 uses the accrual basis of accounting. The following information is available for the year ended December 31, 2022:
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 25
A company uses the self-balancing ledger system. The following information is available for the year ended December 31, 2022:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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