POST UTME COAL CITY UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME COAL CITY 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's trial balance shows a discrepancy of ₦10,000. The accountant suspects that the error is due to an incorrect posting of a transaction. The transaction involved a sale of goods for ₦50,000, and the accountant believes that the error is in the debit or credit column. What is the most likely cause of the error?
A. The error is due to an incorrect debit of ₦50,000.
Correct B. The error is due to an incorrect credit of ₦50,000.
C. The error is due to an incorrect posting of a transaction.
D. The error is due to an incorrect calculation of the trial balance.

Correct Answer: B

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Question 2
A company uses the straight-line method of depreciation. The cost of a machine is ₦200,000, and it has a residual value of ₦20,000. The machine is expected to last for 5 years. What is the annual depreciation charge?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 3
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000, respectively. The profit-sharing ratio is 2:3. What is the ratio of the interest on the capital accounts?
Correct A. 1:2
B. 2:3
C. 3:4
D. 4:5

Correct Answer: A

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Question 4
A company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦150 per unit. The variable costs of X and Y are ₦50 per unit and ₦75 per unit, respectively. The fixed costs are ₦50,000 per month. If the company sells 100 units of X and 50 units of Y in a month, what is the total profit?
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 5
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦500,000, and its current liabilities are ₦200,000. What is the company's quick ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 6
A company uses the straight-line method to depreciate its assets. The asset cost ₦1,500,000 and has a useful life of 5 years. Calculate the annual depreciation charge.
Correct A. ₦300,000
B. ₦150,000
C. ₦75,000
D. ₦30,000

Correct Answer: A

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Question 7
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
Correct A. Assets ₦1,100,000, Liabilities ₦200,000, Equity ₦900,000
B. Assets ₦1,200,000, Liabilities ₦300,000, Equity ₦900,000
C. Assets ₦1,300,000, Liabilities ₦400,000, Equity ₦900,000
D. Assets ₦1,400,000, Liabilities ₦500,000, Equity ₦900,000

Correct Answer: A

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Question 8
A company's income statement for the year ended December 31, 2021, shows the following: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦600,000, Operating Expenses ₦150,000, and Net Income ₦250,000. Prepare the company's statement of cash flows using the indirect method.
Correct A. Cash Flows from Operating Activities ₦500,000, Cash Flows from Investing Activities ₦200,000, Cash Flows from Financing Activities ₦100,000
B. Cash Flows from Operating Activities ₦600,000, Cash Flows from Investing Activities ₦300,000, Cash Flows from Financing Activities ₦200,000
C. Cash Flows from Operating Activities ₦700,000, Cash Flows from Investing Activities ₦400,000, Cash Flows from Financing Activities ₦300,000
D. Cash Flows from Operating Activities ₦800,000, Cash Flows from Investing Activities ₦500,000, Cash Flows from Financing Activities ₦400,000

Correct Answer: A

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Question 9
A company's balance sheet as of December 31, 2021, shows the following: Cash ₦100,000, Accounts Payable ₦200,000, Common Stock ₦500,000, and Retained Earnings ₦300,000. Prepare the company's statement of stockholders' equity.
Correct A. Common Stock ₦500,000, Retained Earnings ₦300,000, Dividends ₦50,000
B. Common Stock ₦500,000, Retained Earnings ₦350,000, Dividends ₦50,000
C. Common Stock ₦500,000, Retained Earnings ₦400,000, Dividends ₦50,000
D. Common Stock ₦500,000, Retained Earnings ₦450,000, Dividends ₦50,000

Correct Answer: A

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Question 10
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦100,000. Prepare the company's income statement.
Correct A. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦150,000, Net Income ₦50,000
B. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦200,000, Net Income ₦0
C. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦250,000, Net Income ₦-50,000
D. Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦300,000, Net Income ₦-100,000

Correct Answer: A

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Question 11
A company uses the single entry system of accounting. The following transactions were recorded in the year ended December 31, 2022: Purchase of office equipment for ₦120,000, Purchase of office furniture for ₦80,000, Sale of goods for ₦500,000, and Payment of salaries for ₦200,000. Prepare the single entry ledger for the year ended December 31, 2022.
Correct A. Office Equipment A/c: Dr. ₦120,000, Office Furniture A/c: Dr. ₦80,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦200,000
B. Office Equipment A/c: Dr. ₦80,000, Office Furniture A/c: Dr. ₦120,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦200,000
C. Office Equipment A/c: Dr. ₦120,000, Office Furniture A/c: Dr. ₦80,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦500,000
D. Office Equipment A/c: Dr. ₦80,000, Office Furniture A/c: Dr. ₦120,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦500,000

Correct Answer: A

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Question 12
A company has the following transactions: Purchase of raw materials for ₦150,000, Purchase of finished goods for ₦200,000, Sale of goods for ₦500,000, and Payment of salaries for ₦250,000. Prepare the manufacturing account for the year ended December 31, 2022.
Correct A. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦200,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦250,000
B. Raw Materials A/c: Dr. ₦200,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦250,000
C. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦200,000, Sales A/c: Cr. ₦250,000, Salaries A/c: Cr. ₦500,000
D. Raw Materials A/c: Dr. ₦200,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦250,000, Salaries A/c: Cr. ₦500,000

Correct Answer: A

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Question 13
A company has the following transactions: Purchase of raw materials for ₦100,000, Purchase of finished goods for ₦150,000, Sale of goods for ₦400,000, and Payment of salaries for ₦200,000. Prepare the trading account for the year ended December 31, 2022.
Correct A. Raw Materials A/c: Dr. ₦100,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦400,000, Salaries A/c: Cr. ₦200,000
B. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦100,000, Sales A/c: Cr. ₦400,000, Salaries A/c: Cr. ₦200,000
C. Raw Materials A/c: Dr. ₦100,000, Finished Goods A/c: Dr. ₦150,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦400,000
D. Raw Materials A/c: Dr. ₦150,000, Finished Goods A/c: Dr. ₦100,000, Sales A/c: Cr. ₦200,000, Salaries A/c: Cr. ₦400,000

Correct Answer: A

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Question 14
A company has the following transactions: Purchase of raw materials for ₦120,000, Purchase of finished goods for ₦180,000, Sale of goods for ₦500,000, and Payment of salaries for ₦250,000. Prepare the profit and loss account for the year ended December 31, 2022.
Correct A. Raw Materials A/c: Dr. ₦120,000, Finished Goods A/c: Dr. ₦180,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦250,000
B. Raw Materials A/c: Dr. ₦180,000, Finished Goods A/c: Dr. ₦120,000, Sales A/c: Cr. ₦500,000, Salaries A/c: Cr. ₦250,000
C. Raw Materials A/c: Dr. ₦120,000, Finished Goods A/c: Dr. ₦180,000, Sales A/c: Cr. ₦250,000, Salaries A/c: Cr. ₦500,000
D. Raw Materials A/c: Dr. ₦180,000, Finished Goods A/c: Dr. ₦120,000, Sales A/c: Cr. ₦250,000, Salaries A/c: Cr. ₦500,000

Correct Answer: A

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Question 15
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5% debentures of ₦10,000. Calculate the amount received from the issue of shares and debentures.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000

Correct Answer: B

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Question 16
A company's trading account for the year ended 31st December 2020 showed a profit of ₦1,00,000. The company's profit and loss account also showed a gain of ₦1,00,000 on the revaluation of assets. The company's balance sheet as at 31st December 2020 showed a decrease in equity of ₦1,00,000. Calculate the company's retained earnings as at 31st December 2020.
A. ₦1,00,000
B. ₦1,00,000
Correct C. ₦1,00,000
D. ₦1,00,000

Correct Answer: C

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Question 17
A partnership firm has two partners, A and B. The profit-sharing ratio is 3:2. The firm's profit for the year ended 31st December 2020 was ₦1,00,000. Calculate the amount of profit to be shared by partner A.
Correct A. ₦1,00,000
B. ₦1,00,000
C. ₦1,00,000
D. ₦1,00,000

Correct Answer: A

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Question 18
A company's manufacturing account for the year ended 31st December 2020 showed a cost of goods sold of ₦1,00,000. The company's selling price per unit was ₦100. Calculate the number of units sold.
A. 10,000 units
Correct B. 20,000 units
C. 30,000 units
D. 40,000 units

Correct Answer: B

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Question 19
A company's departmental account for the year ended 31st December 2020 showed a profit of ₦1,00,000. The company's overheads were ₦1,00,000. Calculate the department's contribution to the company's profit.
A. ₦1,00,000
B. ₦1,00,000
Correct C. ₦1,00,000
D. ₦1,00,000

Correct Answer: C

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Question 20
A company's public sector accounting records showed a cash balance of ₦1,00,000. The company's accounts payable were ₦1,00,000. Calculate the company's net cash position.
Correct A. ₦1,00,000
B. ₦1,00,000
C. ₦1,00,000
D. ₦1,00,000

Correct Answer: A

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Question 21
A company purchases a machine for ₦250,000. The machine has an expected useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 22
A government agency is responsible for collecting taxes on behalf of the state. The agency's cash book shows a balance of ₦1,500,000. The bank statement shows a balance of ₦1,800,000. The difference is due to a bank error. Calculate the amount of the bank error.
Correct A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000

Correct Answer: A

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Question 23
A company issues 5,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦55,000
Correct C. ₦60,000
D. ₦65,000

Correct Answer: C

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Question 24
A business has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash of ₦50,000 for rent. Prepare a cash book for the business.
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 25
A company has the following balance sheet: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. Calculate the company's gearing ratio.
A. 0.4
Correct B. 0.5
C. 0.6
D. 0.7

Correct Answer: B

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