POST UTME CALEB UNIVERSITY 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the most likely reason for the discrepancy?
A. The company has not yet received a payment from a customer.
Correct B. The company has made an error in its cash book.
C. The bank has made an error in its statement.
D. The company has invested in a new asset.

Correct Answer: B

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Question 2
A public sector organization has the following transactions: Purchase of goods for ₦50,000, Payment of salaries ₦30,000, Receipt of revenue ₦20,000. What is the net effect on the organization's cash balance?
Correct A. ₦20,000 increase
B. ₦30,000 decrease
C. ₦50,000 decrease
D. ₦20,000 decrease

Correct Answer: A

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Question 3
A partnership has the following capital accounts: John ₦100,000, Mary ₦80,000, and David ₦60,000. If the partnership makes a profit of ₦20,000, how will the profit be shared?
Correct A. John ₦40,000, Mary ₦32,000, David ₦24,000
B. John ₦30,000, Mary ₦24,000, David ₦18,000
C. John ₦20,000, Mary ₦16,000, David ₦12,000
D. John ₦10,000, Mary ₦8,000, David ₦6,000

Correct Answer: A

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Question 4
A company uses the single entry system and has the following transactions: Purchase of goods for ₦50,000, Payment of salaries ₦30,000, Receipt of revenue ₦20,000. What is the net effect on the company's cash balance?
Correct A. ₦20,000 increase
B. ₦30,000 decrease
C. ₦50,000 decrease
D. ₦20,000 decrease

Correct Answer: A

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Question 5
A company uses the double entry system and has the following transactions: Purchase of goods for ₦50,000, Payment of salaries ₦30,000, Receipt of revenue ₦20,000. What is the net effect on the company's cash balance?
Correct A. ₦20,000 increase
B. ₦30,000 decrease
C. ₦50,000 decrease
D. ₦20,000 decrease

Correct Answer: A

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Question 6
In a partnership account, if the capital of one partner is overdrawn by ₦5,000, what will be the effect on the partner's capital account?
A. ₦5,000 will be credited to the partner's capital account.
Correct B. ₦5,000 will be debited to the partner's capital account.
C. ₦5,000 will be transferred to the partner's loan account.
D. ₦5,000 will be transferred to the partner's drawing account.

Correct Answer: B

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Question 7
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. If the issue expenses were ₦20,000, what will be the amount credited to the share premium account?
Correct A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: A

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Question 8
A bank reconciliation statement showed a difference of ₦1,500 between the bank statement balance and the cash book balance. The bank statement balance included an interest of ₦500 and a bank charge of ₦1,000. What will be the cause of the difference?
A. The bank statement balance included an interest of ₦500 and a bank charge of ₦1,000.
Correct B. The cash book balance did not include an interest of ₦500 and a bank charge of ₦1,000.
C. The bank statement balance did not include an interest of ₦500 and a bank charge of ₦1,000.
D. The cash book balance included an interest of ₦500 and a bank charge of ₦1,000.

Correct Answer: B

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Question 9
A company's trial balance showed a difference of ₦2,000 between the debit and credit balances. The difference was due to an error in posting a transaction of ₦1,000. What will be the effect on the company's net profit?
A. The net profit will be reduced by ₦1,000.
Correct B. The net profit will be increased by ₦1,000.
C. The net profit will be reduced by ₦2,000.
D. The net profit will be increased by ₦2,000.

Correct Answer: B

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Question 10
A company issued 5,000 shares of ₦10 each at a premium of ₦2 per share. If the issue expenses were ₦10,000, what will be the amount credited to the share premium account?
Correct A. ₦10,000
B. ₦8,000
C. ₦6,000
D. ₦4,000

Correct Answer: A

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Question 11
A government agency is considering the adoption of a new accounting system. The agency's current system is based on cash accounting, while the proposed system is based on accrual accounting. Which of the following is a key advantage of the accrual accounting system?
Correct A. Improved financial reporting
B. Simplified accounting procedures
C. Enhanced budgeting and forecasting
D. Reduced accounting costs

Correct Answer: A

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Question 12
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, and Paid salaries of ₦20,000. What is the net effect on the company's cash balance?
A. +₦20,000
Correct B. +₦30,000
C. +₦40,000
D. +₦50,000

Correct Answer: B

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Question 13
A company has the following balance sheet: Assets ₦100,000, Liabilities ₦50,000, and Equity ₦50,000. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 14
A company uses the straight-line method of depreciation. If the asset's cost is ₦100,000 and its useful life is 5 years, what is the annual depreciation expense?
A. +₦10,000
Correct B. +₦20,000
C. +₦30,000
D. +₦40,000

Correct Answer: B

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Question 15
A company has the following transactions: Purchased a new asset for ₦50,000, Sold an old asset for ₦30,000, and Paid salaries of ₦20,000. What is the net effect on the company's cash balance?
A. +₦20,000
Correct B. +₦30,000
C. +₦40,000
D. +₦50,000

Correct Answer: B

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Question 16
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2023 shows a current liability of ₦800,000 and a non-current liability of ₦1,200,000. What is the company's net worth as at 31st December 2023?
A. ₦1,500,000
Correct B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000

Correct Answer: B

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Question 17
A company's balance sheet as at 31st December 2023 shows a non-current asset of ₦2,500,000 and a non-current liability of ₦1,200,000. What is the company's net worth as at 31st December 2023?
A. ₦1,300,000
B. ₦1,500,000
C. ₦1,700,000
Correct D. ₦2,000,000

Correct Answer: D

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Question 18
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2023 shows a current asset of ₦800,000 and a non-current asset of ₦2,500,000. What is the company's net worth as at 31st December 2023?
A. ₦4,300,000
B. ₦4,500,000
C. ₦4,700,000
Correct D. ₦5,000,000

Correct Answer: D

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Question 19
A company's balance sheet as at 31st December 2023 shows a non-current asset of ₦2,500,000 and a non-current liability of ₦1,200,000. The company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. What is the company's net worth as at 31st December 2023?
A. ₦3,800,000
B. ₦4,000,000
C. ₦4,200,000
Correct D. ₦4,500,000

Correct Answer: D

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Question 20
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2023 shows a current asset of ₦800,000 and a non-current asset of ₦2,500,000. The company's non-current liability is ₦1,200,000. What is the company's net worth as at 31st December 2023?
A. ₦4,100,000
B. ₦4,300,000
C. ₦4,500,000
Correct D. ₦5,000,000

Correct Answer: D

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Question 21
A company's balance sheet as at 31st December 2023 shows a non-current asset of ₦2,500,000 and a non-current liability of ₦1,200,000. The company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's current asset is ₦800,000. What is the company's net worth as at 31st December 2023?
A. ₦4,300,000
B. ₦4,500,000
C. ₦4,700,000
Correct D. ₦5,000,000

Correct Answer: D

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Question 22
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2023 shows a current asset of ₦800,000 and a non-current asset of ₦2,500,000. The company's non-current liability is ₦1,200,000. The company's current liability is ₦800,000. What is the company's net worth as at 31st December 2023?
A. ₦4,100,000
B. ₦4,300,000
C. ₦4,500,000
Correct D. ₦5,000,000

Correct Answer: D

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Question 23
A company's balance sheet as at 31st December 2023 shows a non-current asset of ₦2,500,000 and a non-current liability of ₦1,200,000. The company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's current asset is ₦800,000. The company's current liability is ₦800,000. What is the company's net worth as at 31st December 2023?
A. ₦4,300,000
B. ₦4,500,000
C. ₦4,700,000
D. ₦5,000,000

Correct Answer: VIEW ANSWER

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Question 24
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method.
A. ₦50,000
Correct B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: B

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Question 25
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦150,000
B. ₦100,000
C. ₦120,000
D. ₦180,000

Correct Answer: A

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