POST UTME SUMMIT UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME SUMMIT 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.

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Question 1
In a partnership account, what is the correct method to calculate the capital of a partner who has been absent for the past two years?
Correct A. Capital is calculated based on the average profit of the past three years.
B. Capital is calculated based on the average profit of the past two years.
C. Capital is calculated based on the average profit of the past five years.
D. Capital is calculated based on the current year's profit.

Correct Answer: A

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Question 2
A company has a cash book balance of ₦150,000 and a bank statement balance of ₦180,000. What is the difference between the two balances?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 3
A company has the following ledger balances: Debtors: ₦100,000, Creditors: ₦80,000, and Capital: ₦200,000. What is the total value of the company's assets?
A. ₦380,000
B. ₦400,000
Correct C. ₦420,000
D. ₦440,000

Correct Answer: C

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Question 4
A company has the following single entry records: Rent: ₦50,000, Salaries: ₦100,000, and Purchases: ₦200,000. What is the total value of the company's expenses?
A. ₦350,000
B. ₦400,000
Correct C. ₦450,000
D. ₦500,000

Correct Answer: C

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Question 5
A company has the following debenture details: Face value: ₦100,000, Interest rate: 10%, and Redemption value: ₦120,000. What is the total value of the debenture?
A. ₦220,000
B. ₦240,000
Correct C. ₦260,000
D. ₦280,000

Correct Answer: C

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Question 6
A company uses the cash basis of accounting. It records all cash receipts and payments in the cash book. However, it does not record any transactions that do not involve cash. Which of the following is a characteristic of the cash basis of accounting?
A. It records all transactions in the cash book.
Correct B. It records all cash receipts and payments in the cash book.
C. It records all transactions that do not involve cash in the cash book.
D. It records all transactions in the ledger.

Correct Answer: B

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Question 7
A company has the following transactions: Purchased goods for ₦100,000 cash; Sold goods for ₦120,000 on credit; Purchased goods for ₦80,000 on credit. What is the total amount of cash received from customers?
Correct A. ₦120,000
B. ₦100,000
C. ₦80,000
D. ₦20,000

Correct Answer: A

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Question 8
A company has the following ledger balances: Debtors ₦50,000, Creditors ₦30,000, Capital ₦100,000. What is the total amount of assets?
Correct A. ₦180,000
B. ₦170,000
C. ₦160,000
D. ₦150,000

Correct Answer: A

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Question 9
A company has the following transactions: Purchased goods for ₦80,000 on credit; Sold goods for ₦100,000 on credit; Purchased goods for ₦60,000 cash. What is the total amount of cash paid for purchases?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 10
A company has the following ledger balances: Debtors ₦50,000, Creditors ₦30,000, Capital ₦100,000. What is the total amount of liabilities?
Correct A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000

Correct Answer: A

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Question 11
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method. The machine is currently in its 3rd year of use.
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 12
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
Correct B. ₦6,000
C. ₦6,500
D. ₦7,000

Correct Answer: B

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Question 13
A trader purchased goods worth ₦120,000 and sold them at a profit of 25%. Calculate the selling price of the goods.
A. ₦150,000
B. ₦152,000
Correct C. ₦155,000
D. ₦160,000

Correct Answer: C

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Question 14
A company's balance sheet showed a total asset value of ₦500,000 and a total liability value of ₦300,000. Calculate the company's equity.
A. ₦100,000
B. ₦150,000
C. ₦200,000
Correct D. ₦250,000

Correct Answer: D

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Question 15
A firm issued 5,000 debentures of ₦100 each at a premium of ₦5 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦500,000
B. ₦505,000
Correct C. ₦510,000
D. ₦515,000

Correct Answer: C

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Question 16
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received a total of 250,000, what is the amount of the premium received?
A. ₦125,000
B. ₦250,000
Correct C. ₦375,000
D. ₦500,000

Correct Answer: C

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Question 17
A company's trial balance showed the following balances: Accounts Payable 50,000, Accounts Receivable 30,000, Common Stock 100,000, and Retained Earnings 20,000. What is the total amount of assets?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 18
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received a total of 60,000, what is the amount of the premium received?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 19
A company's trial balance showed the following balances: Accounts Payable 40,000, Accounts Receivable 25,000, Common Stock 120,000, and Retained Earnings 15,000. What is the total amount of assets?
A. ₦175,000
B. ₦225,000
Correct C. ₦275,000
D. ₦325,000

Correct Answer: C

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Question 20
A company issued 15,000 shares of 10 par value at a premium of 3 per share. If the company received a total of 225,000, what is the amount of the premium received?
A. ₦35,000
B. ₦45,000
Correct C. ₦55,000
D. ₦65,000

Correct Answer: C

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Question 21
In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' module?
A. To ensure compliance with government regulations
B. To facilitate the preparation of financial reports
C. To enable the management to make informed decisions
Correct D. To control and monitor the use of public funds

Correct Answer: D

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Question 22
A company has the following trial balance: Debit: Cash ₦ 100,000, Credit: Bank ₦ 50,000. What is the correct journal entry to rectify the error?
A. Debit Bank ₦ 50,000, Credit Cash ₦ 50,000
Correct B. Debit Cash ₦ 50,000, Credit Bank ₦ 50,000
C. Debit Bank ₦ 50,000, Credit Cash ₦ 100,000
D. Debit Cash ₦ 100,000, Credit Bank ₦ 50,000

Correct Answer: B

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Question 23
What is the accounting equation?
Correct A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets = Equity - Liabilities
D. Assets = Equity + Liabilities

Correct Answer: A

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Question 24
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦ 150,000, how much will A receive?
Correct A. ₦ 90,000
B. ₦ 120,000
C. ₦ 135,000
D. ₦ 150,000

Correct Answer: A

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Question 25
What is the purpose of a control account?
A. To record all transactions affecting a particular account
Correct B. To provide a summary of all transactions affecting a particular account
C. To reconcile the balance of a particular account
D. To verify the accuracy of a particular account

Correct Answer: B

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