POST UTME ABU 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1000 | | | 2nd Jan | Cash | 500 | | | 3rd Jan | Cash | | 2000 | What is the balance of the cash account?
A. ₦1500
B. ₦2500
C. ₦3000
D. ₦3500
Question 2
A company has the following transactions: Purchased goods for ₦15,000 on credit, sold goods for ₦20,000 on credit, and paid cash for office expenses of ₦2,000. What is the net effect on the company's cash position?
A. The company's cash position has increased by ₦3,000.
B. The company's cash position has decreased by ₦3,000.
C. The company's cash position has remained the same.
D. The company's cash position has increased by ₦5,000.
Question 3
A company's trial balance shows the following balances: Debit: Rent Expense ¡ 100,000 Salaries Expense ¡ 150,000 Credit: Rent Income ¡ 120,000 Salaries Payable ¡ 180,000 What is the correct classification of the above items?
A. Assets
B. Liabilities
C. Equity
D. Expenses
Question 4
A company's bank statement shows a balance of ₦90,000. However, the company's cash book shows a balance of ₦80,000. What is the likely reason for the discrepancy?
A. The company has not yet deposited the cash into the bank.
B. The bank has not yet credited the company's account for the deposited cash.
C. The company has not yet debited the bank for the withdrawn cash.
D. The company's cash book is not up-to-date.
Question 5
A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦150,000 on credit, and paid cash for office expenses of ₦20,000. What is the net effect on the company's accounts payable?
A. ₦30,000
B. ₦20,000
C. ₦30,000
D. ₦20,000
Question 6
The trial balance of XYZ Ltd. shows the following balances: Debit: Cash ¡ 500,000 Accounts Payable ¡ 200,000 Sales Revenue ¡ 300,000 Credit: Accounts Receivable ¡ 150,000 Common Stock ¡ 400,000 Cost of Goods Sold ¡ 250,000 What is the correct classification of the above items?
A. Assets
B. Liabilities
C. Equity
D. Revenues
Question 7
The following is a partial list of accounts from XYZ Ltd.'s general ledger: Debit: Cash ¡ 500,000 Accounts Payable ¡ 200,000 Sales Revenue ¡ 300,000 Credit: Accounts Receivable ¡ 150,000 Common Stock ¡ 400,000 Cost of Goods Sold ¡ 250,000 What is the correct classification of the above items?
A. Assets
B. Liabilities
C. Equity
D. Revenues
Question 8
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000
Question 9
A company uses the weighted average method to calculate its inventory cost. The company has the following inventory transactions: Beginning Inventory ₦100,000, Purchase 1 ₦150,000, Purchase 2 ₦200,000. What is the total value of the company's inventory?
A. ₦450,000
B. ₦550,000
C. ₦450,000
D. ₦550,000
Question 10
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1000 | | | 2nd Jan | Cash | 500 | | | 3rd Jan | Cash | | 2000 | What is the bank reconciliation statement?
A. ₦1500
B. ₦2500
C. ₦3000
D. ₦3500
Question 11
A manufacturing company uses the weighted average method to calculate its inventory cost. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The following information is available: Raw Materials ₦100,000, Work-in-Progress ₦150,000, Finished Goods ₦200,000. What is the total value of the company's inventory?
A. ₦450,000
B. ₦550,000
C. ₦450,000
D. ₦550,000
Question 12
A company's profit and loss account shows the following: | Revenue | ₦1,000,000 | | Cost of Goods Sold | ₦800,000 | | Gross Profit | ₦200,000 | | Operating Expenses | ₦150,000 | | Net Profit | ₦50,000 | What is the company's gross profit margin?
A. 20%
B. 25%
C. 30%
D. 35%
Question 13
What is the primary purpose of a bank reconciliation statement?
A. To reconcile the company's cash book with the bank statement.
B. To reconcile the company's accounts payable with the accounts receivable.
C. To reconcile the company's inventory with the accounts payable.
D. To reconcile the company's accounts receivable with the accounts payable.
Question 14
A company has the following transactions: Purchased goods for ₦20,000 on credit, sold goods for ₦25,000 on credit, and paid cash for office expenses of ₦3,000. What is the net effect on the company's cash position?
A. The company's cash position has increased by ₦4,000.
B. The company's cash position has decreased by ₦4,000.
C. The company's cash position has remained the same.
D. The company's cash position has increased by ₦6,000.
Question 15
A company uses the double entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable ₦100,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, and Retained Earnings ₦200,000. What is the total amount of the company's assets?
A. ₦780,000
B. ₦680,000
C. ₦780,000
D. ₦680,000

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