POST UTME CALEB UNIVERSITY 2021 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 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company has two departments: Manufacturing and Sales. The Manufacturing department has a cost of goods sold of ₦1,500,000 and a direct labor cost of ₦800,000. The Sales department has a cost of goods sold of ₦2,000,000 and a direct labor cost of ₦1,200,000. What is the total cost of goods sold for the company?
A. ₦3,500,000
Correct B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000

Correct Answer: B

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Question 2
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 3
A company has the following ledger balances: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total equity of the company?
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 4
A company has the following trial balance: Debit ₦100,000, Credit ₦150,000. What is the net income of the company?
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 5
A company has the following single-entry accounting system: Cash ₦100,000, Accounts Payable ₦50,000. What is the total assets of the company?
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 6
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, how many units of product X and Y should the company produce?
A. 10 units of X and 8 units of Y
B. 12 units of X and 6 units of Y
Correct C. 15 units of X and 9 units of Y
D. 18 units of X and 12 units of Y

Correct Answer: C

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Question 7
A company's trial balance shows the following balances: Accounts Payable = ₦50,000, Accounts Receivable = ₦30,000, Sales Revenue = ₦150,000, Cost of Goods Sold = ₦80,000. What is the company's net income?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 8
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the partnership's net income for the year is ₦120,000, how much will each partner receive?
Correct A. ₦36,000 and ₦24,000
B. ₦42,000 and ₦28,000
C. ₦48,000 and ₦32,000
D. ₦54,000 and ₦36,000

Correct Answer: A

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Question 9
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C, with costs of ₦20, ₦30, and ₦40 per unit, respectively. The company has 100 units of A, 80 units of B, and 60 units of C. What is the total cost of the inventory?
A. ₦6,000
B. ₦7,000
Correct C. ₦8,000
D. ₦9,000

Correct Answer: C

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Question 10
A company has the following transactions: Purchased inventory for ₦10,000, sold inventory for ₦15,000, and purchased equipment for ₦20,000. What is the company's net income?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 11
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. The difference of ₦30,000 is due to a bank error. What is the correct balance in the cash book?
A. ₦150,000
B. ₦180,000
Correct C. ₦160,000
D. ₦170,000

Correct Answer: C

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Question 12
A company uses the double-entry system of accounting. It records the following transactions: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the company's balance sheet?
Correct A. Increase in Cash and decrease in Accounts Payable
B. Decrease in Cash and increase in Accounts Payable
C. No effect on Cash and Accounts Payable
D. Increase in Accounts Payable and decrease in Cash

Correct Answer: A

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Question 13
A government agency is required to prepare a public sector financial statement. Which of the following financial statements is NOT required?
A. Statement of Financial Position
B. Statement of Comprehensive Income
C. Statement of Changes in Equity
Correct D. Statement of Cash Flows

Correct Answer: D

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Question 14
A company prepares a trading account for the year ended December 31, 2021. The company's sales revenue is ₦500,000 and its cost of goods sold is ₦350,000. What is the company's gross profit?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 15
A manufacturing company produces a product that requires 2 kg of raw material A and 3 kg of raw material B to produce 1 unit of the product. The company uses 100 kg of raw material A and 150 kg of raw material B to produce 50 units of the product. What is the company's total cost of raw materials?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 16
A company issues 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 17
A company's trading account for the year ended 31st December 2020 is as follows: Debit: Sundry expenses: ₦50,000 Depreciation: ₦20,000 Credit: Sales: ₦500,000 Cost of goods sold: ₦300,000 Determine the net profit for the year.
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 18
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦100,000 Liabilities: ₦50,000 ₦30,000 ₦20,000 Determine the company's net worth.
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 19
A company's profit and loss account for the year ended 31st December 2020 is as follows: Trading account: ₦500,000 ₦300,000 ₦200,000 ₦100,000 ₦50,000 Determine the net profit for the year.
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 20
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦100,000 ₦50,000 ₦30,000 ₦20,000 Liabilities: ₦50,000 ₦30,000 ₦20,000 Determine the company's net worth.
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 21
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from tenants. What is the correct journal entry to correct the error?
A. ₦15,000 debit to Rent Received and ₦15,000 credit to Cash
Correct B. ₦15,000 debit to Cash and ₦15,000 credit to Rent Received
C. ₦15,000 debit to Rent Received and ₦15,000 credit to Profit or Loss on Disposal of Assets
D. ₦15,000 debit to Profit or Loss on Disposal of Assets and ₦15,000 credit to Rent Received

Correct Answer: B

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Question 22
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦100,000 and the Assembly department has a total cost of ₦150,000. What is the total cost of the product if the Cutting department contributes 30% of the total cost and the Assembly department contributes 70%?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 23
A public sector organization has a cash book that shows a balance of ₦500,000. However, the bank statement shows a balance of ₦600,000. What is the correct explanation for the difference?
Correct A. The cash book balance includes a deposit of ₦100,000 that has not been recorded in the bank statement
B. The bank statement balance includes a credit of ₦100,000 that has not been recorded in the cash book
C. The cash book balance includes a debit of ₦100,000 that has not been recorded in the bank statement
D. The bank statement balance includes a debit of ₦100,000 that has not been recorded in the cash book

Correct Answer: A

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Question 24
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 25
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. What is the amount of depreciation for the first year?
A. ₦50,000
Correct B. ₦45,000
C. ₦40,000
D. ₦35,000

Correct Answer: B

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