POST UTME UI 2025 Accounting | Objective

Are you preparing for POST UTME UI 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 issued 5,000 shares of ₦ 10 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 50,000
B. ₦ 100,000
Correct C. ₦ 150,000
D. ₦ 200,000

Correct Answer: C

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Question 2
A manufacturing company uses a job costing system. The following data are extracted from the company's records for the month of January:
A. ₦ 10,000
B. ₦ 15,000
Correct C. ₦ 20,000
D. ₦ 25,000

Correct Answer: C

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Question 3
A company's trial balance as at 31st December, 2024 is as follows:
A. ₦ 500,000
B. ₦ 750,000
Correct C. ₦ 1,000,000
D. ₦ 1,250,000

Correct Answer: C

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Question 4
A company's balance sheet as at 31st December, 2024 is as follows:
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 5
A company's cash flow statement as at 31st December, 2024 is as follows:
A. ₦ 500,000
B. ₦ 750,000
Correct C. ₦ 1,000,000
D. ₦ 1,250,000

Correct Answer: C

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Question 6
A company purchased a machine for ₦2,500,000 on January 1, 2020. The machine has a useful life of 5 years and a residual value of ₦200,000. Calculate the annual depreciation using the straight-line method.
A. ₦400,000
B. ₦500,000
Correct C. ₦450,000
D. ₦550,000

Correct Answer: C

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Question 7
A company's trial balance as at December 31, 2022, showed the following balances: Accounts Payable ₦1,200,000, Sales Revenue ₦2,500,000, Cost of Goods Sold ₦1,800,000, and Common Stock ₦3,000,000. Prepare a corrected trial balance.
Correct A. ₦1,200,000
B. ₦2,500,000
C. ₦1,800,000
D. ₦3,000,000

Correct Answer: A

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Question 8
A company manufactures and sells a product at ₦1,000 per unit. The company's total fixed costs are ₦200,000 and the variable costs per unit are ₦300. If the company sells 2,000 units, calculate the contribution margin.
A. ₦1,400,000
Correct B. ₦1,600,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 9
A company issues 10,000 shares of ₦10 par value at ₦15 per share. Calculate the amount received from the issue of shares.
Correct A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: A

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Question 10
A company has the following balance sheet as at December 31, 2022: Assets ₦5,000,000, Liabilities ₦2,000,000, and Equity ₦3,000,000. Calculate the return on equity.
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 11
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 charge if the asset's cost is ₦250,000?
Correct A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: A

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Question 12
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
Correct A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000

Correct Answer: A

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Question 13
A company uses the double-entry system to record its transactions. If the company purchases office supplies for ₦10,000 cash and issues a check for ₦5,000 to a supplier, what is the journal entry?
Correct A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Office Supplies ₦5,000, Credit Cash ₦5,000
C. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000
D. Debit Office Supplies ₦5,000, Credit Accounts Payable ₦5,000

Correct Answer: A

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Question 14
A company's balance sheet shows the following balances: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the company's net income?
Correct A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000

Correct Answer: A

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Question 15
A company uses the public sector accounting system to record its transactions. If the company receives a grant of ₦100,000 from the government and uses it to purchase office supplies, what is the journal entry?
Correct A. Debit Office Supplies ₦100,000, Credit Grant ₦100,000
B. Debit Office Supplies ₦50,000, Credit Grant ₦50,000
C. Debit Office Supplies ₦100,000, Credit Accounts Payable ₦100,000
D. Debit Office Supplies ₦50,000, Credit Accounts Payable ₦50,000

Correct Answer: A

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Question 16
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. If the company's net income is ₦150,000, what is the company's retained earnings?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 17
A company uses the double-entry system to record its transactions. If the company purchases office supplies for ₦10,000 cash and issues a check for ₦5,000 to a supplier, what is the journal entry?
Correct A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Office Supplies ₦5,000, Credit Cash ₦5,000
C. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000
D. Debit Office Supplies ₦5,000, Credit Accounts Payable ₦5,000

Correct Answer: A

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Question 18
A company's balance sheet shows the following balances: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. If the company's net income is ₦200,000, what is the company's retained earnings?
Correct A. ₦400,000
B. ₦350,000
C. ₦300,000
D. ₦250,000

Correct Answer: A

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Question 19
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that it has paid ₦20,000 in rent and rates for the year. Prepare the necessary journal entry to correct the error.
A. ₦15,000
B. ₦20,000
C. ₦5,000
Correct D. ₦10,000

Correct Answer: D

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Question 20
A company's balance sheet shows a decrease in its cash balance from ₦50,000 to ₦30,000. However, the company's profit and loss account shows a decrease in its cash balance from ₦50,000 to ₦40,000. Prepare the necessary journal entry to correct the error.
Correct A. ₦20,000
B. ₦10,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 21
A company's trial balance shows a credit balance of ₦10,000 in the 'Dividends' account. However, the company's accounting records show that it has declared dividends of ₦15,000. Prepare the necessary journal entry to correct the error.
A. ₦10,000
Correct B. ₦15,000
C. ₦5,000
D. ₦20,000

Correct Answer: B

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Question 22
A company's balance sheet shows a decrease in its debtors' balance from ₦50,000 to ₦30,000. However, the company's profit and loss account shows a decrease in its debtors' balance from ₦50,000 to ₦40,000. Prepare the necessary journal entry to correct the error.
Correct A. ₦20,000
B. ₦10,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 23
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that it has paid ₦20,000 in rent and rates for the year. Prepare the necessary journal entry to correct the error.
A. ₦15,000
B. ₦20,000
C. ₦5,000
Correct D. ₦10,000

Correct Answer: D

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Question 24
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The proceeds from the issue of shares were credited to a 'Share Capital' account. Prepare the journal entry to record the issue of shares.
Correct A. Debit Share Capital 30,000, Credit Cash 30,000
B. Debit Share Capital 30,000, Credit Cash 40,000
C. Debit Share Capital 40,000, Credit Cash 30,000
D. Debit Share Capital 40,000, Credit Cash 40,000

Correct Answer: A

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Question 25
A company purchased a machine for ₦500,000. Depreciation is provided using the straight-line method. The machine is expected to have a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation charge.
Correct A. ₦90,000
B. ₦92,000
C. ₦95,000
D. ₦97,000

Correct Answer: A

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