POST UTME ABU 2024 Accounting | Objective

Are you preparing for POST UTME ABU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000

Correct Answer: A

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Question 2
A company has two departments: A and B. Department A has a direct material cost of ₦100,000 and a direct labor cost of ₦150,000. Department B has a direct material cost of ₦80,000 and a direct labor cost of ₦120,000. Calculate the total direct material cost and total direct labor cost of the company.
Correct A. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
B. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
C. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000
D. Direct Material Cost: ₦180,000, Direct Labor Cost: ₦270,000

Correct Answer: A

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Question 3
A company has a self-balancing ledger with the following accounts: Cash, Accounts Payable, and Common Stock. The ledger shows a debit balance of ₦50,000 in the Cash account and a credit balance of ₦20,000 in the Accounts Payable account. Calculate the balance in the Common Stock account.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 4
A company has the following transactions: Purchase of equipment for ₦100,000, Sale of goods for ₦150,000, and Purchase of inventory for ₦80,000. Calculate the net income of the company.
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 5
A company has the following accounts: Sales, Cost of Goods Sold, and Gross Profit. The Sales account has a balance of ₦200,000 and the Cost of Goods Sold account has a balance of ₦120,000. Calculate the Gross Profit of the company.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 6
A company's trial balance shows a credit balance of ₦1,500 in the 'Dividends Received' account. However, the company's accounting records show that no dividends were received during the year. What is the most likely explanation for this discrepancy?
A. The company's accountant made an error in preparing the trial balance.
Correct B. The company received dividends from a subsidiary, which was incorrectly recorded as a credit.
C. The company's financial statements were incorrectly prepared, resulting in an incorrect trial balance.
D. The company's accounting records were not up-to-date, resulting in an incorrect trial balance.

Correct Answer: B

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Question 7
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦24,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 8
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦120,000 and its current liabilities are ₦60,000, what is the company's quick ratio?
A. 1:1
Correct B. 1.5:1
C. 2:1
D. 3:1

Correct Answer: B

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Question 9
A company's financial statements show a net income of ₦150,000. If the company's tax rate is 25%, what is the company's tax expense?
Correct A. ₦37,500
B. ₦40,000
C. ₦45,000
D. ₦50,000

Correct Answer: A

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Question 10
A company's balance sheet shows a total equity of ₦200,000. If the company's retained earnings are ₦100,000, what is the company's total liabilities?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 11
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Calculate the total amount received from the sale of shares.
A. ₦40,000,000
Correct B. ₦50,000,000
C. ₦60,000,000
D. ₦70,000,000

Correct Answer: B

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Question 12
A company's cash book shows a balance of ₦100,000. The bank statement shows a balance of ₦120,000. The difference is due to an outstanding cheque of ₦20,000. Calculate the company's cash balance.
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 13
A company's assets are valued at ₦500,000. The company depreciates its assets by 10% per annum. Calculate the value of the assets after 2 years.
Correct A. ₦441,000
B. ₦450,000
C. ₦460,000
D. ₦470,000

Correct Answer: A

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Question 14
A company issued 5,000 debentures of ₦1,000 each at a premium of ₦100 per debenture. The debentures were sold for ₦1,200 each. Calculate the total amount received from the sale of debentures.
A. ₦6,000,000
Correct B. ₦7,000,000
C. ₦8,000,000
D. ₦9,000,000

Correct Answer: B

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Question 15
A company's cash book shows a balance of ₦200,000. The bank statement shows a balance of ₦180,000. The difference is due to an outstanding cheque of ₦20,000. Calculate the company's cash balance.
A. ₦180,000
B. ₦190,000
Correct C. ₦200,000
D. ₦210,000

Correct Answer: C

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Question 16
A company's trading account for the year ended 31st December 2023 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 17
A company uses the straight-line method of depreciation. A machine was purchased for ₦500,000 and has a residual value of ₦50,000. Calculate the annual depreciation charge for the machine.
A. ₦20,000
Correct B. ₦22,500
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 18
A company's cash book shows the following transactions: 1st January: Cash: ₦100,000; 5th January: Bank: ₦50,000; 10th January: Cash: ₦20,000. What is the balance in the cash book on 10th January?
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 19
A company's balance sheet as at 31st December 2023 is as follows: Assets: ₦1,500,000; Liabilities: ₦1,000,000; Capital: ₦500,000. What is the company's net worth?
Correct A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: A

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Question 20
A company's profit and loss account for the year ended 31st December 2023 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the net profit for the year.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 21
A company's trial balance shows a debit balance of ₦12,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦15,000 in rent for the year. What is the correct journal entry to record the error?
A. Debit Rent Expense ₦3,000, Credit Cash ₦3,000
Correct B. Debit Rent Expense ₦3,000, Credit Rent Payable ₦3,000
C. Debit Rent Expense ₦12,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦12,000, Credit Rent Payable ₦15,000

Correct Answer: B

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Question 22
A company's balance sheet shows a current liability of ₦50,000 due to a bank loan. However, the company's accounting records show that it has paid ₦20,000 towards the loan. What is the correct journal entry to record the payment?
Correct A. Debit Cash ₦20,000, Credit Bank Loan ₦20,000
B. Debit Cash ₦20,000, Credit Bank Loan ₦30,000
C. Debit Bank Loan ₦20,000, Credit Cash ₦20,000
D. Debit Bank Loan ₦30,000, Credit Cash ₦20,000

Correct Answer: A

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Question 23
A company's cash book shows a debit balance of ₦10,000 in the 'Bank' account. However, the company's accounting records show that it has a credit balance of ₦15,000 in the 'Bank' account. What is the correct journal entry to record the error?
A. Debit Bank ₦15,000, Credit Cash ₦10,000
Correct B. Debit Bank ₦10,000, Credit Cash ₦15,000
C. Debit Bank ₦15,000, Credit Cash ₦25,000
D. Debit Bank ₦25,000, Credit Cash ₦15,000

Correct Answer: B

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Question 24
A company's trial balance shows a credit balance of ₦20,000 in the 'Salaries Expense' account. However, the company's accounting records show that it has paid ₦25,000 in salaries for the year. What is the correct journal entry to record the error?
A. Debit Salaries Expense ₦25,000, Credit Cash ₦25,000
B. Debit Salaries Expense ₦20,000, Credit Cash ₦25,000
Correct C. Debit Salaries Expense ₦25,000, Credit Cash ₦20,000
D. Debit Salaries Expense ₦20,000, Credit Cash ₦20,000

Correct Answer: C

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Question 25
A company's balance sheet shows a non-current liability of ₦100,000 due to a long-term loan. However, the company's accounting records show that it has paid ₦50,000 towards the loan. What is the correct journal entry to record the payment?
Correct A. Debit Cash ₦50,000, Credit Long-Term Loan ₦50,000
B. Debit Cash ₦50,000, Credit Long-Term Loan ₦100,000
C. Debit Long-Term Loan ₦50,000, Credit Cash ₦50,000
D. Debit Long-Term Loan ₦100,000, Credit Cash ₦50,000

Correct Answer: A

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