POST UTME CALEB UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦500,000
B. ₦1,000,000
C. ₦2,000,000
Correct D. ₦5,000,000

Correct Answer: D

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Question 2
A company's share capital consists of 10,000 ordinary shares of ₦10 each and 5,000 preference shares of ₦5 each. Calculate the total share capital.
A. ₦150,000
B. ₦250,000
C. ₦350,000
Correct D. ₦450,000

Correct Answer: D

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Question 3
A company's assets consist of a building worth ₦1,000,000, a machine worth ₦500,000, and an investment worth ₦200,000. Calculate the total value of the assets using the weighted average method.
A. ₦1,700,000
B. ₦1,800,000
C. ₦1,900,000
Correct D. ₦2,000,000

Correct Answer: D

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Question 4
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦50,000, calculate the annual depreciation.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 5
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, and Common Stock ₦500,000. Calculate the total equity.
A. ₦750,000
B. ₦850,000
C. ₦950,000
Correct D. ₦1,050,000

Correct Answer: D

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Question 6
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?
A. Debit Rent Paid by ₦300 and Credit Rent Received by ₦300
Correct B. Debit Rent Received by ₦300 and Credit Rent Paid by ₦300
C. Debit Rent Paid by ₦300 and Credit Rent Received by ₦300
D. Credit Rent Paid by ₦300 and Debit Rent Received by ₦300

Correct Answer: B

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Question 7
A company's balance sheet shows a decrease in inventory of ₦10,000. What is the effect on the company's net income?
A. Increase in net income by ₦10,000
Correct B. Decrease in net income by ₦10,000
C. No effect on net income
D. Increase in net income by ₦20,000

Correct Answer: B

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Question 8
A company's cash book shows a debit balance of ₦5,000 in the account 'Bank'. What is the correct journal entry to rectify this discrepancy?
A. Debit Bank by ₦5,000 and Credit Cash by ₦5,000
Correct B. Debit Cash by ₦5,000 and Credit Bank by ₦5,000
C. Debit Bank by ₦5,000 and Credit Cash by ₦5,000
D. Credit Bank by ₦5,000 and Debit Cash by ₦5,000

Correct Answer: B

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Question 9
A company's trial balance shows a debit balance of ₦2,000 in the account 'Salaries' and a credit balance of ₦1,500 in the account 'Wages'. What is the correct journal entry to rectify this discrepancy?
A. Debit Salaries by ₦500 and Credit Wages by ₦500
Correct B. Debit Wages by ₦500 and Credit Salaries by ₦500
C. Debit Salaries by ₦500 and Credit Wages by ₦500
D. Credit Wages by ₦500 and Debit Salaries by ₦500

Correct Answer: B

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Question 10
A company's balance sheet shows a decrease in accounts payable of ₦15,000. What is the effect on the company's net income?
A. Increase in net income by ₦15,000
Correct B. Decrease in net income by ₦15,000
C. No effect on net income
D. Increase in net income by ₦30,000

Correct Answer: B

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Question 11
A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 12
A company's assets were valued at ₦100,000 in 2018. If the value of the assets increased by 20% in 2019, what is the value of the assets in 2019?
Correct A. ₦120,000
B. ₦120,000
C. ₦120,000
D. ₦120,000

Correct Answer: A

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Question 13
A company issued 10,000 debentures of ₦100 each at 5% interest. Calculate the total interest payable on the debentures for the first year.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 14
A company's trial balance showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. Prepare a balance sheet for the company.
A. ₦170,000
B. ₦180,000
Correct C. ₦190,000
D. ₦200,000

Correct Answer: C

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Question 15
A company's income statement showed the following revenues and expenses: Revenues ₦200,000, Cost of Goods Sold ₦100,000, and Operating Expenses ₦50,000. Calculate the company's net income.
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 16
A company uses the single-entry system of accounting. The following transactions were recorded in the accounting period: Purchased office supplies for ₦5,000, sold goods for ₦20,000, and paid rent of ₦8,000. Prepare a trial balance as at the end of the accounting period.
A. ₦33,000
Correct B. ₦35,000
C. ₦37,000
D. ₦40,000

Correct Answer: B

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Question 17
A company uses the double-entry system of accounting. The following transactions were recorded in the accounting period: Purchased office supplies for ₦5,000, sold goods for ₦20,000, and paid rent of ₦8,000. Prepare a trial balance as at the end of the accounting period.
A. ₦33,000
Correct B. ₦35,000
C. ₦37,000
D. ₦40,000

Correct Answer: B

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Question 18
A company uses the single-entry system of accounting. The following transactions were recorded in the accounting period: Purchased office supplies for ₦5,000, sold goods for ₦20,000, and paid rent of ₦8,000. Prepare a trial balance as at the end of the accounting period.
A. ₦33,000
Correct B. ₦35,000
C. ₦37,000
D. ₦40,000

Correct Answer: B

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Question 19
A company uses the double-entry system of accounting. The following transactions were recorded in the accounting period: Purchased office supplies for ₦5,000, sold goods for ₦20,000, and paid rent of ₦8,000. Prepare a trial balance as at the end of the accounting period.
A. ₦33,000
Correct B. ₦35,000
C. ₦37,000
D. ₦40,000

Correct Answer: B

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Question 20
A company uses the single-entry system of accounting. The following transactions were recorded in the accounting period: Purchased office supplies for ₦5,000, sold goods for ₦20,000, and paid rent of ₦8,000. Prepare a trial balance as at the end of the accounting period.
A. ₦33,000
Correct B. ₦35,000
C. ₦37,000
D. ₦40,000

Correct Answer: B

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Question 21
A company issued 5,000, 10% debentures of ₦100 each. Calculate the amount of interest payable annually.
Correct A. ₦50,000
B. ₦25,000
C. ₦50,000
D. ₦25,000

Correct Answer: A

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Question 22
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Retained Earnings ₦20,000. Prepare a balance sheet.
A. ₦50,000
B. ₦30,000
Correct C. ₦100,000
D. ₦20,000

Correct Answer: C

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Question 23
A company's cash book showed the following transactions: Cash received from customers ₦50,000, Cash paid to suppliers ₦30,000, Cash received from bank ₦20,000. Prepare a bank reconciliation statement.
A. ₦50,000
B. ₦30,000
Correct C. ₦20,000
D. ₦10,000

Correct Answer: C

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Question 24
A company issued 5,000, 10% shares of ₦10 each. Calculate the amount of dividend payable annually.
Correct A. ₦5,000
B. ₦10,000
C. ₦5,000
D. ₦10,000

Correct Answer: A

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Question 25
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Retained Earnings ₦20,000. Prepare a balance sheet.
A. ₦50,000
B. ₦30,000
Correct C. ₦100,000
D. ₦20,000

Correct Answer: C

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