POST UTME BELLS UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME BELLS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system to record its transactions. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000 cash. Sold goods for ₦50,000 on credit. Purchased a new computer for ₦30,000 on credit. What is the total amount of assets recorded in the ledger at the end of January?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 2
A manufacturing company produces two products, X and Y. The production process involves two departments: Cutting and Assembly. The following data is available: Cutting Department: Product X: 5 units/hour, ₦10/hour Product Y: 3 units/hour, ₦8/hour Assembly Department: Product X: 4 units/hour, ₦12/hour Product Y: 2 units/hour, ₦9/hour What is the total cost of producing 100 units of product X?
A. ₦4,000
B. ₦4,500
Correct C. ₦5,000
D. ₦5,500

Correct Answer: C

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Question 3
A partnership between three individuals, A, B, and C, has the following capital accounts: A: ₦50,000 B: ₦30,000 C: ₦20,000 The partnership agreement states that the profits and losses will be shared in the ratio 3:2:1. What is the total profit of ₦10,000 shared among the partners?
A. ₦6,000
B. ₦7,000
Correct C. ₦8,000
D. ₦9,000

Correct Answer: C

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Question 4
A company maintains a cash book and a general ledger. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000 cash. Sold goods for ₦50,000 on credit. What is the total amount of cash recorded in the cash book at the end of January?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 5
A company prepares a trial balance at the end of the year. The following accounts are listed: Assets: ₦100,000 Liabilities: ₦50,000 Equity: ₦30,000 What is the total amount of assets recorded in the trial balance?
Correct A. ₦100,000
B. ₦120,000
C. ₦140,000
D. ₦160,000

Correct Answer: A

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Question 6
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received'. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦10,000, Credit Rent Paid ₦10,000
Correct B. Debit Rent Paid ₦10,000, Credit Rent Received ₦10,000
C. Debit Rent Received ₦10,000, Credit Rent Expense ₦10,000
D. Debit Rent Expense ₦10,000, Credit Rent Received ₦10,000

Correct Answer: B

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Question 7
A manufacturing company produces 10,000 units of a product in a month. The total cost of production is ₦500,000, which includes direct materials of ₦150,000 and direct labor of ₦100,000. What is the variable overhead absorption rate per unit?
A. ₦5
B. ₦10
Correct C. ₦15
D. ₦20

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 ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
Correct A. 1:1
B. 2:1
C. 3:1
D. 4:1

Correct Answer: A

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Question 9
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership's net income for the year is ₦120,000, what is Partner A's share of the net income?
Correct A. ₦72,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 10
A company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries Expense'. What is the correct journal entry to correct this error?
A. Debit Salaries Expense ₦20,000, Credit Salaries Payable ₦20,000
Correct B. Debit Salaries Payable ₦20,000, Credit Salaries Expense ₦20,000
C. Debit Salaries Expense ₦20,000, Credit Salaries Expense ₦20,000
D. Debit Salaries Payable ₦20,000, Credit Salaries Payable ₦20,000

Correct Answer: B

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Question 11
A company issues 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount and the amount received by the company.
Correct A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: A

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Question 12
A company has two departments: Manufacturing and Sales. The Manufacturing department has a direct labor cost of ₦1,500,000 and an overhead cost of ₦750,000. The Sales department has a direct labor cost of ₦1,000,000 and an overhead cost of ₦500,000. Calculate the total cost of goods sold.
A. ₦3,250,000
B. ₦3,500,000
Correct C. ₦3,750,000
D. ₦4,000,000

Correct Answer: C

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Question 13
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. Calculate the company's net cash position.
A. ₦300,000
B. ₦400,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 14
A company has a capital of ₦1,000,000 and a profit of ₦500,000. Calculate the company's retained earnings.
Correct A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0

Correct Answer: A

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Question 15
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. Calculate the company's net cash position.
A. ₦300,000
B. ₦400,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 16
A company's accounting records were destroyed in a fire. The company's accountant has reconstructed the records using the single-entry system. The accountant has identified the following transactions for the year ended December 31, 2020:
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 17
The following is an extract from the financial statements of XYZ Limited for the year ended December 31, 2020:
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,500,000

Correct Answer: C

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Question 18
The following is an extract from the financial statements of ABC Limited for the year ended December 31, 2020:
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 19
The following is an extract from the financial statements of DEF Limited for the year ended December 31, 2020:
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 20
The following is an extract from the financial statements of GHI Limited for the year ended December 31, 2020:
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 21
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has made a mistake in recording the cash transactions.
B. The bank has made an error in preparing the bank statement.
Correct C. The company has deposited cash into the bank but has not yet been credited.
D. The company has withdrawn cash from the bank but has not yet been debited.

Correct Answer: C

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Question 22
A company's trial balance shows a debit balance of ₦10,000 in the accounts receivable account. However, the accounts receivable ledger shows a credit balance of ₦15,000. What is the correct explanation for this discrepancy?
A. The company has made a mistake in recording the accounts receivable transactions.
B. The accounts receivable ledger has been incorrectly prepared.
C. The company has received cash from customers but has not yet been credited.
Correct D. The company has written off bad debts but has not yet been debited.

Correct Answer: D

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Question 23
A company's balance sheet shows a current ratio of 2:1. However, the company's cash flow statement shows a negative cash flow from operating activities. What is the correct explanation for this discrepancy?
A. The company has made a mistake in preparing the balance sheet.
B. The company has made a mistake in preparing the cash flow statement.
Correct C. The company has invested in new assets but has not yet been debited.
D. The company has paid dividends but has not yet been debited.

Correct Answer: C

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Question 24
A company's financial statements show a net income of ₦50,000. However, the company's tax return shows a tax liability of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has made a mistake in preparing the financial statements.
B. The company has made a mistake in preparing the tax return.
Correct C. The company has paid taxes but has not yet been debited.
D. The company has received a tax refund but has not yet been credited.

Correct Answer: C

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Question 25
A company's financial statements show a current ratio of 3:1. However, the company's cash flow statement shows a positive cash flow from operating activities. What is the correct explanation for this discrepancy?
A. The company has made a mistake in preparing the financial statements.
B. The company has made a mistake in preparing the cash flow statement.
C. The company has invested in new assets but has not yet been debited.
Correct D. The company has paid dividends but has not yet been debited.

Correct Answer: D

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