POST UTME WELLSPRING UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME WELLSPRING 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.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the year:
Correct A. Debit Cash 1,000 and Credit Accounts Payable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000 and Credit Cash 1,000

Correct Answer: A

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Question 2
A company's assets are valued at ₦10,000,000. The company's liabilities are ₦3,000,000. What is the company's equity?
Correct A. ₦7,000,000
B. ₦10,000,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: A

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Question 3
A company's trial balance shows the following balances:
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 4
A company's assets are valued at ₦10,000,000. The company's liabilities are ₦3,000,000. What is the company's equity?
Correct A. ₦7,000,000
B. ₦10,000,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: A

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Question 5
A company's trial balance shows the following balances:
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 6
A company issued 10,000 shares of 1 par value at a premium of 50%.
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 7
A company's trial balance showed an error of ₦5,000 in the debit side of the purchases account.
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 8
A company's balance sheet showed an asset of ₦100,000 with a depreciation of 20%.
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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Question 9
A company issued 5,000 debentures of ₦100 each at a premium of 10%.
A. ₦5,00,000
Correct B. ₦5,50,000
C. ₦6,00,000
D. ₦6,50,000

Correct Answer: B

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Question 10
A company's single entry system showed an error of ₦10,000 in the credit side of the sales account.
Correct A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: A

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Question 11
The following is a statement of cash flows for a public sector entity. Prepare the cash flow statement using the indirect method.
Correct A. Cash flows from operating activities: ₦1,500,000; Cash flows from investing activities: ₦750,000; Cash flows from financing activities: ₦1,000,000
B. Cash flows from operating activities: ₦1,000,000; Cash flows from investing activities: ₦1,500,000; Cash flows from financing activities: ₦750,000
C. Cash flows from operating activities: ₦750,000; Cash flows from investing activities: ₦1,000,000; Cash flows from financing activities: ₦1,500,000
D. Cash flows from operating activities: ₦1,500,000; Cash flows from investing activities: ₦1,000,000; Cash flows from financing activities: ₦750,000

Correct Answer: A

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Question 12
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 15,000 | | 1/3 | Purchases | 8,000 | | | 1/4 | Cash | | 5,000 | What is the balance in the cash account?
Correct A. ₦7,000
B. ₦3,000
C. ₦5,000
D. ₦10,000

Correct Answer: A

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Question 13
The following is a trial balance for a company: | Account | Debit | Credit | | --- | --- | --- | | Sales | | 100,000 | | Purchases | 80,000 | | | Cash | 10,000 | | | Bank | | 50,000 | | Capital | | 150,000 | What is the amount of the error in the trial balance?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 14
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 15,000 | | 1/3 | Purchases | 8,000 | | | 1/4 | Cash | | 5,000 | What is the balance in the cash account?
Correct A. ₦7,000
B. ₦3,000
C. ₦5,000
D. ₦10,000

Correct Answer: A

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Question 15
The following is a statement of cash flows for a public sector entity. Prepare the cash flow statement using the direct method.
A. Cash flows from operating activities: ₦1,500,000; Cash flows from investing activities: ₦750,000; Cash flows from financing activities: ₦1,000,000
Correct B. Cash flows from operating activities: ₦1,000,000; Cash flows from investing activities: ₦1,500,000; Cash flows from financing activities: ₦750,000
C. Cash flows from operating activities: ₦750,000; Cash flows from investing activities: ₦1,000,000; Cash flows from financing activities: ₦1,500,000
D. Cash flows from operating activities: ₦1,500,000; Cash flows from investing activities: ₦1,000,000; Cash flows from financing activities: ₦750,000

Correct Answer: B

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Question 16
A company has a trial balance that shows a debit balance of ₦15,000 in the account 'Accrued Expenses' and a credit balance of ₦20,000 in the account 'Accrued Income'. What is the correct journal entry to correct this error?
A. Debit Accrued Expenses ₦5,000, Credit Accrued Income ₦5,000
Correct B. Debit Accrued Income ₦5,000, Credit Accrued Expenses ₦5,000
C. Debit Accrued Expenses ₦20,000, Credit Accrued Income ₦15,000
D. Debit Accrued Income ₦20,000, Credit Accrued Expenses ₦15,000

Correct Answer: B

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Question 17
A manufacturing company uses a job order costing system. The company has the following costs: direct materials ₦10,000, direct labor ₦8,000, and overhead ₦6,000. What is the total cost of production?
Correct A. ₦24,000
B. ₦24,000
C. ₦24,000
D. ₦24,000

Correct Answer: A

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Question 18
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦1,000 each at a discount of ₦50 per debenture. What is the total amount received from the issue of shares and debentures?
Correct A. ₦6,500,000
B. ₦6,500,000
C. ₦6,500,000
D. ₦6,500,000

Correct Answer: A

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Question 19
A company's cash book shows the following transactions: cash received from customers ₦50,000, cash paid to suppliers ₦30,000, cash received from bank ₦20,000, and cash paid to bank ₦10,000. What is the total cash balance?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 20
A company's bank reconciliation statement shows a difference of ₦5,000 between the cash book balance and the bank statement balance. The company's cash book balance is ₦20,000 and the bank statement balance is ₦25,000. 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 21
A company uses a self-balancing ledger to record its transactions. The ledger contains the following accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. The ledger is balanced at the end of each month. What is the purpose of the self-balancing ledger in this scenario?
A. To record and classify transactions
B. To prepare the trial balance
Correct C. To ensure the ledger is balanced at the end of each month
D. To prepare the financial statements

Correct Answer: C

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Question 22
A company has the following trial balance: Debit 10,000, Credit 12,000. What is the correct treatment for this discrepancy?
Correct A. Debit the difference to the income statement
B. Credit the difference to the income statement
C. Debit the difference to the balance sheet
D. Credit the difference to the balance sheet

Correct Answer: A

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Question 23
A company has the following incomplete records: Cash 5,000, Accounts Payable 8,000. What is the total amount of assets?
Correct A. 13,000
B. 12,000
C. 11,000
D. 10,000

Correct Answer: A

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Question 24
A company has the following bank reconciliation statement: Bank Balance 10,000, Cash Balance 12,000. What is the correct treatment for this discrepancy?
Correct A. Debit the difference to the income statement
B. Credit the difference to the income statement
C. Debit the difference to the balance sheet
D. Credit the difference to the balance sheet

Correct Answer: A

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Question 25
A company has the following trial balance: Debit 15,000, Credit 18,000. What is the correct treatment for this discrepancy?
Correct A. Debit the difference to the income statement
B. Credit the difference to the income statement
C. Debit the difference to the balance sheet
D. Credit the difference to the balance sheet

Correct Answer: A

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