POST UTME VERITAS UNIVERSITY 2022 Accounting | Objective

Are you preparing for POST UTME VERITAS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 2
A trader purchases goods on credit for ₦120,000. He sells the goods for ₦180,000 and pays 10% of the profit as commission to the salesperson. Calculate the amount paid as commission.
A. ₦6,000
B. ₦8,000
Correct C. ₦10,000
D. ₦12,000

Correct Answer: C

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Question 3
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Bank | | 1,000 | | 3 | Cash | | 500 | | 4 | Bank | 500 | | | 5 | Cash | | 1,000 | What is the balance in the cash account?
A. ₦500
Correct B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: B

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Question 4
A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 15,000 | Share Capital | 30,000 | | Stock | 20,000 | | | | | 45,000 | | 50,000 | What is the amount of stock?
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 5
A company's profit and loss account shows the following: | Particulars | ₦ | Particulars | ₦ | | --- | --- | --- | --- | | Sales | 100,000 | Cost of Goods Sold | 80,000 | | | | Gross Profit | 20,000 | | | | Operating Expenses | 10,000 | | | | Net Profit | 10,000 | What is the gross profit percentage?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 6
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦1,500, Credit Rent Paid ₦1,500
Correct B. Debit Rent Paid ₦1,500, Credit Rent Received ₦1,500
C. Debit Rent Received ₦1,500, Credit Cash ₦1,500
D. Debit Rent Paid ₦1,500, Credit Cash ₦1,500

Correct Answer: B

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Question 7
A company uses the straight-line method of depreciation. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦18,000

Correct Answer: A

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Question 8
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's profit is ₦180,000, how much will partner A receive as their share of the profit?
Correct A. ₦108,000
B. ₦72,000
C. ₦90,000
D. ₦120,000

Correct Answer: A

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Question 9
A company's ledger shows the following transactions: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the company's accounting equation?
A. Increases Assets, Decreases Liabilities
Correct B. Increases Liabilities, Decreases Assets
C. Increases Equity, Decreases Liabilities
D. Increases Assets, Increases Liabilities

Correct Answer: B

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Question 10
A company uses the double-entry system of accounting. If the company debits an account for ₦15,000 and credits another account for ₦20,000, what is the net effect on the company's accounting equation?
A. Increases Assets, Increases Liabilities
B. Increases Assets, Decreases Liabilities
Correct C. Increases Liabilities, Decreases Assets
D. Increases Equity, Decreases Liabilities

Correct Answer: C

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Question 11
Determine the amount of depreciation for the year ended December 31, 2022, on a machine purchased on January 1, 2020, for ₦250,000, with an estimated useful life of 5 years and a residual value of ₦20,000. The machine is depreciated using the straight-line method.
A. ₦40,000
B. ₦50,000
Correct C. ₦45,000
D. ₦60,000

Correct Answer: C

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Question 12
A company issues 10,000, ₦1 shares at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦20,000,000
Correct B. ₦22,000,000
C. ₦25,000,000
D. ₦30,000,000

Correct Answer: B

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Question 13
A company has the following transactions: Purchased a machine for ₦150,000; Sold goods for ₦50,000; Purchased goods for ₦30,000. Prepare a trial balance.
A. ₦230,000
Correct B. ₦240,000
C. ₦250,000
D. ₦260,000

Correct Answer: B

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Question 14
A company has the following transactions: Purchased a machine for ₦150,000; Sold goods for ₦50,000; Purchased goods for ₦30,000. Prepare a balance sheet.
A. ₦230,000
Correct B. ₦240,000
C. ₦250,000
D. ₦260,000

Correct Answer: B

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Question 15
A company has the following transactions: Purchased a machine for ₦150,000; Sold goods for ₦50,000; Purchased goods for ₦30,000. Prepare a cash flow statement.
A. ₦230,000
Correct B. ₦240,000
C. ₦250,000
D. ₦260,000

Correct Answer: B

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Question 16
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance sheet as at 31st December 2021, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
Correct A. ₦4,500,000
B. ₦4,200,000
C. ₦4,700,000
D. ₦4,300,000

Correct Answer: A

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Question 17
A company's balance sheet as at 31st December 2022, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
A. ₦4,500,000
Correct B. ₦4,200,000
C. ₦4,700,000
D. ₦4,300,000

Correct Answer: B

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Question 18
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance sheet as at 31st December 2021, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
A. ₦4,500,000
B. ₦4,200,000
Correct C. ₦4,700,000
D. ₦4,300,000

Correct Answer: C

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Question 19
A company's balance sheet as at 31st December 2022, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
A. ₦4,500,000
B. ₦4,200,000
C. ₦4,700,000
Correct D. ₦4,300,000

Correct Answer: D

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Question 20
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance sheet as at 31st December 2021, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
Correct A. ₦4,500,000
B. ₦4,200,000
C. ₦4,700,000
D. ₦4,300,000

Correct Answer: A

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Question 21
A company's balance sheet as at 31st December 2022, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
A. ₦4,500,000
Correct B. ₦4,200,000
C. ₦4,700,000
D. ₦4,300,000

Correct Answer: B

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Question 22
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance sheet as at 31st December 2021, showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the company's capital as at 31st December 2022.
A. ₦4,500,000
B. ₦4,200,000
Correct C. ₦4,700,000
D. ₦4,300,000

Correct Answer: C

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Question 23
A company has two types of shares: ordinary and preference. The ordinary shares have a par value of ₦10 and a market value of ₦20. The preference shares have a par value of ₦5 and a market value of ₦15. If the company issues 100,000 ordinary shares and 50,000 preference shares, what is the total value of the shares issued?
A. ₦2,500,000
Correct B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: B

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Question 24
A company has a trial balance that includes the following accounts: Sales, Cost of Goods Sold, and Net Income. The trial balance shows that Sales is ₦100,000, Cost of Goods Sold is ₦60,000, and Net Income is ₦40,000. What is the total amount of assets on the balance sheet?
A. ₦200,000
Correct B. ₦240,000
C. ₦280,000
D. ₦320,000

Correct Answer: B

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Question 25
A company has a single-entry accounting system and records the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash received from loans ₦20,000. What is the total amount of cash received?
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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