POST UTME RHEMA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following balance sheet: | Asset | Liability | Equity | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | ₦200,000 | | | Cost of Goods Sold | | ₦150,000 | | Net Income | | ₦50,000 | What is the total equity of the company?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 2
A company's balance sheet shows the following accounts: Cash 20,000, Accounts Payable 15,000, Common Stock 50,000. What is the correct total of the company's assets?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 3
A partnership is formed between two partners, A and B, with a capital of ₦500,000 and ₦300,000 respectively. If the profit is divided in the ratio 3:2, calculate the share of profit of partner A.
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 4
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the profit for the year is ₦150,000, how much will partner A receive?
A. ₦90,000
B. ₦120,000
C. ₦90,000
D. ₦120,000
Question 5
A company uses the single-entry system of accounting. The journal entry for the purchase of a machine on credit is recorded as follows: Debit Machine 10,000, Credit Accounts Payable 10,000. What is the correct classification of this transaction in the financial statements?
A. Asset
B. Liability
C. Equity
D. Revenue
Question 6
A company's balance sheet as at 31st December 2024 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦750,000; Debtors: ₦200,000; Creditors: ₦150,000. Calculate the company's net worth.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 7
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. After 2 years, the profit is shared in the ratio 2:3. Calculate the profit sharing ratio after 3 years.
A. 2:3
B. 3:2
C. 4:5
D. 5:4
Question 8
A company uses the weighted average method to value its inventory. If the inventory is valued at ₦100,000, the cost of goods available for sale is ₦150,000, and the beginning inventory is ₦50,000, what is the cost of goods sold?
A. ₦75,000
B. ₦100,000
C. ₦75,000
D. ₦100,000
Question 9
A company's balance sheet shows an asset of ¦10,000,000. However, the company's accountant has forgotten to include a depreciation of ¦0,000,000. Prepare the necessary journal entry to rectify the error.
A. Debit Depreciation ¦0,000,000, Credit Asset ¦0,000,000
B. Debit Asset ¦0,000,000, Credit Depreciation ¦0,000,000
C. Debit Profit and Loss Account ¦0,000,000, Credit Asset ¦0,000,000
D. Debit Asset ¦0,000,000, Credit Profit and Loss Account ¦0,000,000
Question 10
A company issues 10,000, 9% 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. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 11
A government agency uses the accrual basis of accounting. If the agency receives ₦100,000 in revenue and incurs ₦50,000 in expenses, what is the net increase in assets?
A. ₦50,000
B. ₦100,000
C. ₦50,000
D. ₦100,000
Question 12
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦300,000
B. ₦320,000
C. ₦350,000
D. ₦400,000
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000, and Common Stock ₦150,000. What is the total amount of assets?
A. ₦300,000
B. ₦250,000
C. ₦300,000
D. ₦250,000
Question 14
A company has a manufacturing department that produces two products, A and B. The selling price of product A is ₦100 and the variable cost is ₦60. The selling price of product B is ₦120 and the variable cost is ₦80. If the company produces 100 units of product A and 50 units of product B, calculate the total contribution margin.
A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000
Question 15
A company has a departmental accounting system. The manufacturing department has a direct labor cost of ₦100,000 and a direct material cost of ₦150,000. The selling department has a direct labor cost of ₦50,000 and a direct material cost of ₦75,000. If the company uses the absorption costing method, calculate the total cost of goods sold.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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