POST UTME VERITAS UNIVERSITY 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
In a partnership account, if the capital of one partner is increased by ₦10,000 and the capital of the other partner is decreased by ₦8,000, what is the net effect on the total capital of the partnership?
Correct A. ₦2,000 increase
B. ₦1,000 increase
C. ₦2,000 decrease
D. ₦1,000 decrease

Correct Answer: A

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Question 2
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦50,000. What is the effect on the company's net worth?
A. ₦50,000 increase
Correct B. ₦50,000 decrease
C. No effect
D. ₦25,000 increase

Correct Answer: B

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Question 3
A bank reconciliation statement shows that a customer's account has a credit balance of ₦20,000, but the bank statement shows a debit balance of ₦15,000. What is the reason for the difference?
A. Bank error
B. Customer error
C. Interest on loan
Correct D. Deposit in transit

Correct Answer: D

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Question 4
A company's trial balance shows a debit balance of ₦30,000 in the accounts payable account. What is the effect on the company's net worth?
A. ₦30,000 increase
Correct B. ₦30,000 decrease
C. No effect
D. ₦15,000 increase

Correct Answer: B

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Question 5
A company's balance sheet shows a current asset of ₦100,000 and a current liability of ₦80,000. What is the company's working capital?
Correct A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 6
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the likely reason for the discrepancy?
A. The company has not yet deposited the cash into the bank.
Correct B. The bank has not yet credited the company's account for the deposited cash.
C. The company has not yet debited the cash from the bank account.
D. The bank has charged a fee for the service.

Correct Answer: B

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Question 7
A company uses the straight-line method of depreciation. If the asset's original cost is ₦100,000 and its residual value is ₦20,000, what is the annual depreciation expense?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 8
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. What is the total amount received from the issue of shares?
A. ₦5,500
Correct B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00

Correct Answer: B

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Question 9
A company's manufacturing account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Raw Materials | ₦10,000 | | | 2 | Labour | ₦5,000 | | | 3 | Factory Overheads | ₦8,000 | | | 4 | Work-in-Progress | | ₦23,000 | What is the total cost of production?
A. ₦23,000
Correct B. ₦23,000.00
C. ₦23,000.00
D. ₦23,000.00

Correct Answer: B

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Question 10
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Bank | | ₦8,000 | | 3 | Cash | | ₦5,000 | What is the total cash balance?
A. ₦7,000
Correct B. ₦7,000.00
C. ₦7,000.00
D. ₦7,000.00

Correct Answer: B

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Question 11
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that the rent expense for the year was actually ₦20,000. What is the correct journal entry to record the correction?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Rent Expense ₦5,000
D. Debit Rent Expense ₦5,000, Credit Cash ₦5,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B. The partnership agreement states that profits and losses are to be shared in the ratio 3:2. If the partnership makes a profit of ₦120,000, how much will each partner receive?
Correct A. Partner A: ₦90,000, Partner B: ₦30,000
B. Partner A: ₦60,000, Partner B: ₦60,000
C. Partner A: ₦90,000, Partner B: ₦30,000
D. Partner A: ₦60,000, Partner B: ₦60,000

Correct Answer: A

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Question 13
A company's balance sheet shows a current asset of ₦50,000 in the 'Accounts Receivable' account. However, the company's accounting records show that the accounts receivable for the year was actually ₦60,000. What is the correct journal entry to record the correction?
Correct A. Debit Accounts Receivable ₦10,000, Credit Cash ₦10,000
B. Debit Accounts Receivable ₦10,000, Credit Accounts Payable ₦10,000
C. Debit Accounts Receivable ₦10,000, Credit Cash ₦10,000
D. Debit Accounts Receivable ₦10,000, Credit Cash ₦10,000

Correct Answer: A

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Question 14
A company's trial balance shows a credit balance of ₦15,000 in the 'Salaries Expense' account. However, the company's accounting records show that the salaries expense for the year was actually ₦20,000. What is the correct journal entry to record the correction?
A. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Salaries Expense ₦5,000, Credit Salaries Payable ₦5,000
C. Debit Salaries Expense ₦5,000, Credit Salaries Expense ₦5,000
D. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000

Correct Answer: B

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Question 15
A partnership has two partners, A and B. The partnership agreement states that profits and losses are to be shared in the ratio 3:2. If the partnership makes a loss of ₦120,000, how much will each partner receive?
Correct A. Partner A: ₦90,000, Partner B: ₦30,000
B. Partner A: ₦60,000, Partner B: ₦60,000
C. Partner A: ₦90,000, Partner B: ₦30,000
D. Partner A: ₦60,000, Partner B: ₦60,000

Correct Answer: A

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Question 16
A company uses the double-entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 50,000, Dividends 2,000, and Retained Earnings 30,000. What is the net income of the company for the year?
A. 15,000
B. 20,000
Correct C. 25,000
D. 30,000

Correct Answer: C

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Question 17
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while Product B requires 1 hour of direct labor and 2 hours of indirect labor. If the company produces 100 units of Product A and 50 units of Product B, what is the total direct labor cost?
A. 1,500
Correct B. 2,000
C. 2,500
D. 3,000

Correct Answer: B

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Question 18
A company's balance sheet shows the following: Cash 10,000, Accounts Payable 5,000, Common Stock 50,000, and Retained Earnings 30,000. What is the total equity of the company?
A. 80,000
B. 85,000
Correct C. 90,000
D. 95,000

Correct Answer: C

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Question 19
A company issues 1,000 shares of common stock at a price of 10 per share. What is the total amount received from the issuance of common stock?
A. 10,000
B. 20,000
Correct C. 30,000
D. 40,000

Correct Answer: C

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Question 20
A company has the following transactions: Purchased office supplies for 1,000, Paid rent for 2,000, and Sold merchandise for 5,000. What is the net income of the company for the period?
A. 2,000
B. 3,000
Correct C. 4,000
D. 5,000

Correct Answer: C

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Question 21
A company has two departments: Manufacturing and Sales. The Manufacturing department has a balance of ₦120,000 in its control account, while the Sales department has a balance of ₦80,000. If the company's total assets are ₦500,000 and its total liabilities are ₦200,000, what is the balance in the Sales department's control account after adjusting for the difference between the Manufacturing and Sales departments?
A. ₦60,000
B. ₦80,000
Correct C. ₦100,000
D. ₦120,000

Correct Answer: C

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Question 22
A company uses the single-entry system of accounting. The company's assets are ₦300,000, liabilities are ₦100,000, and equity is ₦200,000. If the company's net income is ₦50,000, what is the new balance in the equity account?
A. ₦250,000
B. ₦200,000
Correct C. ₦225,000
D. ₦250,000

Correct Answer: C

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Question 23
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, what is the amount of the share capital?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 24
A company has a manufacturing department that produces 1,000 units of a product. The cost of raw materials is ₦50 per unit, labor costs are ₦20 per unit, and overhead costs are ₦10 per unit. If the selling price is ₦80 per unit, what is the gross profit?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 25
A company has a cash book that shows a balance of ₦100,000. The company's bank statement shows a balance of ₦120,000. If the company's cash book has a debit balance of ₦5,000, what is the amount of the bank reconciliation?
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

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