POST UTME RHEMA UNIVERSITY 2025 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 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 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?
Correct A. Asset
B. Liability
C. Equity
D. Revenue

Correct Answer: A

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Question 2
A company's trial balance shows the following accounts: Accounts Receivable 50,000, Sales Revenue 100,000, Cost of Goods Sold 70,000. What is the correct balance of the company's accounts receivable account?
A. ₦20,000
B. ₦30,000
C. ₦40,000
Correct D. ₦50,000

Correct Answer: D

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Question 3
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 liabilities?
A. ₦30,000
Correct B. ₦35,000
C. ₦40,000
D. ₦45,000

Correct Answer: B

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Question 4
A company's income statement shows the following accounts: Sales Revenue 100,000, Cost of Goods Sold 70,000, Gross Profit 30,000. What is the correct net income of the company?
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

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Question 5
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
Correct C. ₦40,000
D. ₦45,000

Correct Answer: C

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Question 6
A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 1,500. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 5,000, Credit Cash £ 5,000
Correct B. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Issue Expenses £ 1,500
C. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Debit Issue Expenses £ 1,500
D. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Bank £ 1,500

Correct Answer: B

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Question 7
A company issues 10,000, 9% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 8
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
Correct B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: B

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Question 9
A company uses the weighted average method to value its inventory. If the cost of goods available for sale is ₦1,500,000, the cost of goods sold is ₦1,200,000, and the total value of closing inventory is ₦300,000, calculate the cost of goods sold using the weighted average method.
Correct A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: A

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Question 10
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
Correct C. ₦14,000
D. ₦16,000

Correct Answer: C

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Question 11
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
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 12
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable after 5 years. Calculate the amount of interest to be paid annually for the first 5 years.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 13
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials: ₦150,000; Direct Labour: ₦120,000; Overheads: ₦180,000. Calculate the total cost of production for the month.
Correct A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000

Correct Answer: A

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Question 14
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
Correct B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

Correct Answer: B

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Question 15
A partnership is formed between two partners, A and B, with a capital of ₦500,000 and ₦300,000 respectively. The profit is to be shared in the ratio 3:2. If the profit for the year is ₦200,000, calculate the share of profit of each partner.
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 16
A company's income statement for the year ended 31st December 2024 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦900,000; Operating Expenses: ₦200,000. Calculate the company's net profit.
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 17
A company issued 5,000 shares of 50 kobo each at a premium of 20 kobo per share. Calculate the total amount received from the issue of shares.
A. ₦25,000
B. ₦12,500
C. ₦50,000
Correct D. ₦62,500

Correct Answer: D

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Question 18
A company's trial balance showed an error of ₦5,000 due to an omission of a transaction. The error was discovered and corrected. Calculate the new total assets of the company, given that the total assets before the correction were ₦250,000.
Correct A. ₦255,000
B. ₦250,000
C. ₦245,000
D. ₦260,000

Correct Answer: A

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Question 19
A company's single entry system showed a total debit balance of ₦120,000 and a total credit balance of ₦80,000. Calculate the net profit or loss for the period.
Correct A. ₦40,000
B. ₦20,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 20
A company purchased a machine for ₦80,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
Correct A. ₦48,000
B. ₦60,000
C. ₦64,000
D. ₦72,000

Correct Answer: A

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Question 21
A company issued 10,000 debentures of ₦100 each at a premium of 10%. Calculate the total amount received from the issue of debentures.
Correct A. ₦1,100,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,200,000

Correct Answer: A

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Question 22
A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials have a cost of ₦120,000 and a quantity of 100 units. The work-in-progress has a cost of ₦150,000 and a quantity of 50 units. The finished goods have a cost of ₦180,000 and a quantity of 200 units. If the company uses a weighted average method with a weight of 0.4 for raw materials, 0.3 for work-in-progress, and 0.3 for finished goods, what is the total value of the inventory?
A. ₦150,000
B. ₦180,000
C. ₦200,000
Correct D. ₦220,000

Correct Answer: D

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Question 23
A company has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 2022-01-01 | Cash received from customers | ₦100,000 | | | 2022-01-05 | Cash paid to suppliers | | ₦50,000 | | 2022-01-10 | Cash received from bank | ₦200,000 | | | 2022-01-15 | Cash paid to employees | | ₦150,000 | What is the balance of the cash account at the end of January?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 24
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | ₦200,000 | | | Cost of Goods Sold | | ₦150,000 | | Net Income | | ₦50,000 | What is the net income of the company?
Correct A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 25
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
Correct D. ₦350,000

Correct Answer: D

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