POST UTME ABU 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A manufacturing company uses a job costing system. The following data are available for the year ended December 31, 2021: Direct Materials: ₦150,000; Direct Labor: ₦120,000; Overheads: ₦180,000. Calculate the total cost of production for the year.
A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000
Question 2
A company uses the weighted average method to value its inventory. If the cost of the items is ₦100,000, the selling price is ₦120,000, and the number of units sold is 500, what is the cost of goods sold?
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦70,000
Question 3
A company's trial balance showed a debit balance of ₦50,000 in the accounts payable account. However, the company's ledger showed a credit balance of ₦20,000 in the accounts payable account. What is the correct balance in the accounts payable account?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 4
A company's balance sheet shows a non-current asset of ₦100,000. However, the company's accounting records show that the asset is expected to be sold within the next 12 months. What is the correct treatment of this account?
A. Debit the account 'Non-Current Asset' by ₦100,000
B. Credit the account 'Non-Current Asset' by ₦100,000
C. Debit the account 'Non-Current Asset' by ₦100,000 and credit the account 'Current Asset' by ₦100,000
D. Credit the account 'Non-Current Asset' by ₦100,000 and debit the account 'Current Asset' by ₦100,000
Question 5
A company's balance sheet shows a current liability of ₦40,000 due within 30 days. However, the company's accounting records show that the liability is due in 60 days. What is the correct treatment of this account?
A. Debit the account 'Current Liability' by ₦40,000
B. Credit the account 'Current Liability' by ₦40,000
C. Debit the account 'Current Liability' by ₦40,000 and credit the account 'Long-term Liability' by ₦40,000
D. Credit the account 'Current Liability' by ₦40,000 and debit the account 'Long-term Liability' by ₦40,000
Question 6
A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends Paid'. However, the company's accounting records show that it has not paid any dividends. What is the correct treatment of this account?
A. Debit the account 'Dividends Paid' by ₦20,000
B. Credit the account 'Dividends Paid' by ₦20,000
C. Debit the account 'Dividends Paid' by ₦20,000 and credit the account 'Retained Earnings' by ₦20,000
D. Credit the account 'Dividends Paid' by ₦20,000 and debit the account 'Retained Earnings' by ₦20,000
Question 7
A company has the following financial statements for the year ended December 31, 2021: Net Income: ₦200,000; Dividends: ₦50,000. Calculate the retained earnings for the year.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 9
A company has two departments, A and B, with the following sales and expenses for the year ended 31st December 2020:
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦1,000,000
Question 10
A company's manufacturing account showed a cost of goods manufactured of ₦200,000 and a cost of goods sold of ₦180,000. What is the gross profit?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that partner A will receive.
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 12
A partnership has two partners, A and B. Partner A has a 60% interest in the profits, while partner B has a 40% interest. If the total profit for the year is ₦180,000, how much will partner A receive?
A. ₦108,000
B. ₦90,000
C. ₦100,000
D. ₦120,000
Question 13
A company's balance sheet as at December 31, 2021, shows a current ratio of 2:1. If the current assets are ₦1,000,000 and the current liabilities are ₦500,000, calculate the total assets.
A. ₦2,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦750,000
Question 14
A company's trial balance showed a debit balance of ₦70,000 in the accounts payable account. However, the company's ledger showed a credit balance of ₦50,000 in the accounts payable account. What is the correct balance in the accounts payable account?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company uses the single entry system and records all its transactions in a cash book. The cash book shows a balance of ₦120,000. However, the company's bank statement shows a balance of ₦150,000. What is the reason for the difference?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank account.
C. The company has a debit balance in its bank account.
D. The company has a cash credit balance in its bank account.

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