POST UTME AL-HIKMAH UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following balances: Assets ₦1,000,000, Liabilities ₦500,000, Equity ₦500,000. What is the correct journal entry to record the increase in assets of ₦200,000?
A. Debit Assets ₦200,000, Credit Capital ₦200,000
B. Debit Assets ₦200,000, Credit Drawings ₦200,000
C. Debit Assets ₦200,000, Credit Retained Earnings ₦200,000
D. Debit Assets ₦200,000, Credit Liabilities ₦200,000
Question 2
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to a dishonored cheque of ₦20,000 and an outstanding deposit of ₦10,000. What is the correct journal entry to record the bank reconciliation?
A. Debit Cash ₦20,000, Credit Bank ₦20,000
B. Debit Bank ₦10,000, Credit Cash ₦10,000
C. Debit Cash ₦30,000, Credit Bank ₦30,000
D. Debit Bank ₦20,000, Credit Cash ₦20,000
Question 3
A manufacturing company uses a process costing system to account for its production activities. What is the correct procedure for assigning costs to a process?
A. Assign all costs to the process as soon as they are incurred
B. Assign costs to the process only when the process is completed
C. Assign costs to the process as soon as the process is started
D. Assign costs to the process only when the product is sold
Question 4
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000, and the cost of purchases is ₦1,200,000. The total number of units available for sale is 5,000. The beginning inventory is 1,000 units, and the number of units purchased is 4,000. The cost per unit of beginning inventory is ₦300, and the cost per unit of purchases is ₦250. What is the total cost of goods sold?
A. ₦1,400,000
B. ₦1,500,000
C. ₦1,600,000
D. ₦1,700,000
Question 5
In a partnership account, what is the correct method of valuing a partner's loan to the firm?
A. At cost
B. At cost plus interest
C. At cost minus interest
D. At market value
Question 6
A company has a capital of ₦0,000 divided into 5,000 shares of ₡0 each. If the company issues 2,000 shares at a premium of ₥0 per share, calculate the amount received from the issue of shares.
A. ₡0,000
B. ₢0,000
C. ₣0,000
D. ₤0,000
Question 7
A company's trial balance shows the following balances: Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000, and Retained Earnings ₦150,000. Prepare a balance sheet.
A. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000, and Retained Earnings ₦150,000
B. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000, and Retained Earnings ₦150,000
C. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000, and Retained Earnings ₦150,000
D. Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000, and Retained Earnings ₦150,000
Question 8
A partnership is formed between two individuals, A and B, with initial capital contributions of ₦100,000 and ₦200,000, respectively. After one year, the partnership earns a profit of ₦150,000. The profit is divided in the ratio 2:3. What is the amount of profit shared by partner A?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 9
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | Jan 1 | Cash | ₦10,000 | | | Jan 10 | Sales | | ₦15,000 | | Jan 15 | Purchases | ₦5,000 | | | Jan 20 | Cash | | ₦20,000 | What is the net cash flow for the month of January?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 10
A company uses a job costing system to account for its manufacturing activities. What is the correct procedure for assigning costs to a job?
A. Assign all costs to the job as soon as they are incurred
B. Assign costs to the job only when the job is completed
C. Assign costs to the job as soon as the job is started
D. Assign costs to the job only when the job is sold
Question 11
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00
Question 12
A company manufactures two products, X and Y, using a common machine. The production process for each product involves two stages: cutting and assembly. The cutting stage requires 2 hours for product X and 3 hours for product Y. The assembly stage requires 1 hour for product X and 2 hours for product Y. The machine can operate for a maximum of 8 hours per day. If the company operates for 5 days a week, what is the maximum number of units of product X that can be produced in a week?
A. 120
B. 150
C. 180
D. 200
Question 13
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to a dishonored cheque of ₦20,000 and an outstanding deposit of ₦10,000. What is the correct journal entry to record the bank reconciliation?
A. Debit Cash ₦20,000, Credit Bank ₦20,000
B. Debit Bank ₦10,000, Credit Cash ₦10,000
C. Debit Cash ₦30,000, Credit Bank ₦30,000
D. Debit Bank ₦20,000, Credit Cash ₦20,000
Question 14
A company has the following ledger balances as at 31st December 2024: Cash: ₦1,500,000; Bank: ₦2,000,000; Accounts Receivable: ₦1,800,000; Inventory: ₦2,500,000. What is the total value of the company's assets as at 31st December 2024?
A. ₦8,800,000
B. ₦9,300,000
C. ₦10,100,000
D. ₦11,200,000
Question 15
A company's cash book shows the following transactions: Debit Cash ₦8,000, Credit Accounts Payable ₦4,000, Debit Sales Revenue ₦12,000, Credit Cost of Goods Sold ₦9,000. What is the net effect on the accounting equation?
A. ₦3,000 increase in assets
B. ₦3,000 decrease in liabilities
C. ₦3,000 increase in equity
D. ₦3,000 decrease in assets

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: