POST UTME ACHIEVERS UNIVERSITY 2024 Accounting | Objective

Are you preparing for POST UTME ACHIEVERS UNIVERSITY 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 purchased a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's trial balance showed the following balances: Accounts Payable ₦500,000, Sales Revenue ₦1,200,000, Cost of Goods Sold ₦800,000, and Common Stock ₦300,000. Prepare a corrected trial balance.
Correct A. ₦1,500,000
B. ₦1,200,000
C. ₦1,000,000
D. ₦800,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A public sector organization received a grant of ₦2,500,000 to implement a project. The organization incurred the following expenses: Salaries ₦1,200,000, Rent ₦300,000, and Utilities ₦100,000. Prepare a statement of changes in net assets.
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company issued 10,000 shares of ₦10 par value at ₦15 per share. Calculate the amount received from the issue of shares.
Correct A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in inventory, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's trial balance as of December 31, 2024, is as follows:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company uses the straight-line method of depreciation. It purchased a machine on January 1, 2024, for ₦500,000. The machine has an estimated useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation expense for the year.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's bank reconciliation statement as of December 31, 2024, is as follows:
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company uses the weighted average method of inventory valuation. It had 500 units of a product in inventory on January 1, 2024, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
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

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. Calculate the annual depreciation charge for the machine.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's balance sheet as at 31st December 2023 is as follows: ₦1,500,000 (₦1,200,000) = ₦300,000. What is the meaning of the above equation?
Correct A. The company has a net asset value of ₦300,000.
B. The company has a net liability of ₦300,000.
C. The company has a net worth of ₦300,000.
D. The company has a net asset value of ₦1,500,000.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
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

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. Calculate the total depreciation for the machine over its useful life of 10 years.
A. ₦400,000
B. ₦450,000
Correct C. ₦500,000
D. ₦550,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
Correct A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's trial balance as at 31st December, 2022, showed the following balances: Cash ₦50,000, Bank ₦200,000, Accounts Payable ₦150,000, and Accounts Receivable ₦100,000. Prepare the company's cash book for the year ended 31st December, 2022.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's balance sheet as at 31st December, 2022, showed the following balances: Share Capital ₦500,000, Retained Earnings ₦200,000, and Dividends ₦100,000. Prepare the company's statement of changes in equity for the year ended 31st December, 2022.
Correct A. ₦500,000
B. ₦200,000
C. ₦100,000
D. ₦300,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company issued 5,000, 10% debentures of ₦100 each at a premium of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of premium on the debentures.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's trial balance as at 31st December, 2022, showed the following balances: Cash ₦50,000, Bank ₦200,000, Accounts Payable ₦150,000, and Accounts Receivable ₦100,000. Prepare the company's bank reconciliation statement for the year ended 31st December, 2022.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. After one year, the partnership makes a profit of ₦200,000. The profit is divided in the ratio of 2:3. Calculate the amount of profit that A will receive.
Correct A. ₦120,000
B. ₦180,000
C. ₦160,000
D. ₦140,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases Assets and Decreases Liabilities
B. Increases Liabilities and Decreases Assets
C. Increases Equity and Decreases Assets
Correct D. Increases Assets and Decreases Equity

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A public sector organization has the following transactions: Purchase of office supplies ₦50,000, Payment of salaries ₦200,000. Prepare the journal entries for these transactions.
Correct A. Debit Office Supplies ₦50,000, Credit Cash ₦50,000
B. Debit Salaries ₦200,000, Credit Cash ₦200,000
C. Debit Office Supplies ₦50,000, Credit Salaries ₦50,000
D. Debit Salaries ₦200,000, Credit Office Supplies ₦200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company uses the single-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦20,000, Credit Accounts Receivable ₦20,000. What is the effect of this transaction on the accounting equation?
Correct A. Increases Assets and Decreases Equity
B. Increases Equity and Decreases Assets
C. Increases Assets and Decreases Liabilities
D. Increases Liabilities and Decreases Assets

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A partnership is formed between three individuals, A, B, and C, with a capital contribution of ₦300,000, ₦200,000, and ₦400,000 respectively. After one year, the partnership makes a profit of ₦250,000. The profit is divided in the ratio of 3:2:5. Calculate the amount of profit that A will receive.
Correct A. ₦120,000
B. ₦180,000
C. ₦160,000
D. ₦140,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support