POST UTME SUMMIT UNIVERSITY 2019 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 2019 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 straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation expense if the asset's cost is ₦1,500,000?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, and Common Stock ₦100,000. If the company's total assets are ₦150,000 and its total liabilities are ₦70,000, what is the company's net income?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 3
A company's balance sheet shows the following: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. If the company's total assets are ₦150,000 and its total liabilities are ₦70,000, what is the company's net income?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 4
A company's income statement shows the following: Sales ₦200,000, Cost of Goods Sold ₦100,000, and Net Income ₦50,000. If the company's total assets are ₦150,000 and its total liabilities are ₦70,000, what is the company's net income?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 5
A company's balance sheet shows the following: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. If the company's total assets are ₦150,000 and its total liabilities are ₦70,000, what is the company's net income?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 6
A company manufactures two products, X and Y. Product X requires 2 hours of direct labor and 1 hour of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 160 hours of direct labor and 80 hours of indirect labor in a week, how many units of product X and product Y should be produced?
A. 10 units of X and 20 units of Y
Correct B. 20 units of X and 10 units of Y
C. 15 units of X and 15 units of Y
D. 25 units of X and 5 units of Y

Correct Answer: B

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Question 7
A company has the following trial balance as at 31st December 2022.
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 8
A company has the following ledger accounts as at 31st December 2022.
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 9
A company has the following ledger accounts as at 31st December 2022.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
Correct D. ₦2,500,000

Correct Answer: D

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Question 10
A company has the following ledger accounts as at 31st December 2022.
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 11
A company uses the double-entry system of accounting. The following transactions were recorded in the journal: 1. Purchased office equipment for ₦120,000 cash. 2. Sold goods for ₦150,000 on credit. 3. Paid salaries of ₦80,000 by cheque. 4. Purchased goods for ₦200,000 on credit. What is the total amount of cash used in the above transactions?
A. ₦120,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 12
A company has the following ledger balances: Cash: ₦50,000 Bank: ₦100,000 Accounts Payable: ₦80,000 Sales: ₦120,000 Cost of Goods Sold: ₦90,000 What is the total amount of assets?
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 13
A company uses the single-entry system of accounting. The following transactions were recorded in the journal: 1. Purchased office equipment for ₦120,000 cash. 2. Sold goods for ₦150,000 on credit. 3. Paid salaries of ₦80,000 by cheque. 4. Purchased goods for ₦200,000 on credit. What is the total amount of cash used in the above transactions?
A. ₦120,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 14
A company has the following ledger balances: Cash: ₦50,000 Bank: ₦100,000 Accounts Payable: ₦80,000 Sales: ₦120,000 Cost of Goods Sold: ₦90,000 What is the total amount of assets?
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 15
A company uses the double-entry system of accounting. The following transactions were recorded in the journal: 1. Purchased office equipment for ₦120,000 cash. 2. Sold goods for ₦150,000 on credit. 3. Paid salaries of ₦80,000 by cheque. 4. Purchased goods for ₦200,000 on credit. What is the total amount of cash used in the above transactions?
A. ₦120,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 16
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. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 17
A business uses the single-entry system of accounting. The following transactions were recorded in the cash book:
A. ₦15,000
Correct B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: B

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Question 18
A company's bank statement shows a balance of ₦50,000, but the cash book balance is ₦60,000. What is the reason for the difference?
A. Bank error
B. Cash book error
Correct C. Both bank and cash book errors
D. Neither bank nor cash book errors

Correct Answer: C

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Question 19
A company uses the double-entry system of accounting. The following transactions were recorded in the ledger:
A. ₦30,000
B. ₦25,000
Correct C. ₦28,000
D. ₦32,000

Correct Answer: C

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Question 20
A company's trial balance shows a balance of ₦100,000, but the balance sheet shows a balance of ₦120,000. What is the reason for the difference?
A. Error in trial balance
B. Error in balance sheet
Correct C. Both trial balance and balance sheet errors
D. Neither trial balance nor balance sheet errors

Correct Answer: C

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Question 21
A company issued 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.
A. ₦30,000,000
Correct B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000

Correct Answer: B

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Question 22
A company has the following ledger balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000. Prepare a classified balance sheet.
A. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
B. Cash 10,000, Accounts Payable 5,000, Common Stock 30,000
Correct C. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
D. Cash 10,000, Accounts Payable 5,000, Common Stock 40,000

Correct Answer: C

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Question 23
A company uses the single-entry system and has the following transactions: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000. Prepare a trial balance.
A. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
B. Cash 10,000, Accounts Payable 5,000, Common Stock 30,000
Correct C. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
D. Cash 10,000, Accounts Payable 5,000, Common Stock 40,000

Correct Answer: C

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Question 24
A company has the following ledger balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000. Prepare a statement of stockholders' equity.
A. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
B. Cash 10,000, Accounts Payable 5,000, Common Stock 30,000
Correct C. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
D. Cash 10,000, Accounts Payable 5,000, Common Stock 40,000

Correct Answer: C

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Question 25
A company has the following ledger balances: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000. Prepare a statement of retained earnings.
A. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
B. Cash 10,000, Accounts Payable 5,000, Common Stock 30,000
Correct C. Cash 10,000, Accounts Payable 5,000, Common Stock 20,000
D. Cash 10,000, Accounts Payable 5,000, Common Stock 40,000

Correct Answer: C

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