POST UTME COVENANT UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME COVENANT 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 straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦25,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦900,000; Gross Profit: ₦600,000. Calculate the company's net profit for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
Correct D. ₦600,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦1,000,000; Liabilities: ₦800,000. Calculate the company's net worth.
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company manufactures and sells a product. The company's cost of goods sold is ₦1,200,000 and the selling price is ₦1,800,000. Calculate the company's gross profit margin.
Correct A. 66.67%
B. 75%
C. 80%
D. 85%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's public sector accounting records show that the company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. Calculate the company's net cash position.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product on hand at a cost of ₦100 per unit. During the year, 500 units were sold at ₦200 each. On December 31, 2022, 200 units were on hand. Calculate the cost of goods sold for the year.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A partnership is formed by three individuals: A, B, and C. A contributes ₦200,000, B contributes ₦150,000, and C contributes ₦100,000. The profit-sharing ratio is 3:2:1. What is the total profit for the year if the total profit is ₦500,000?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company uses the cash basis of accounting. On January 1, 2022, it had a cash balance of ₦50,000. During the year, it received ₦200,000 in cash and paid ₦150,000 in cash. On December 31, 2022, the cash balance was ₦100,000. What is the net cash flow for the year?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company uses the accrual basis of accounting. On January 1, 2022, it had an accounts payable balance of ₦100,000. During the year, it purchased goods worth ₦500,000 on credit and paid ₦200,000 of the amount. On December 31, 2022, the accounts payable balance was ₦150,000. What is the net change in accounts payable for the year?
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product on hand at a cost of ₦100 per unit. During the year, 500 units were sold at ₦200 each. On December 31, 2022, 200 units were on hand. Calculate the cost of goods sold for the year.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's trial balance shows a credit balance in the account 'Dividends' of ₦50,000. However, the company's financial statements show a debit balance of ₦50,000 in the same account. What is the most likely cause of this discrepancy?
Correct A. Error in journalizing dividends paid
B. Error in posting dividends paid
C. Error in preparing the trial balance
D. Error in preparing the financial statements

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company purchases a machine for ₦200,000 and depreciates it using the straight-line method over a period of 5 years. If the annual depreciation is ₦20,000, what is the accumulated depreciation at the end of 3 years?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦12,000, what is the amount received from the issue of shares?
A. ₦10,000
B. ₦11,000
Correct C. ₦12,000
D. ₦13,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
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?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's trial balance shows a debit balance in the account 'Salaries' of ₦150,000. However, the company's financial statements show a credit balance of ₦150,000 in the same account. What is the most likely cause of this discrepancy?
A. Error in journalizing salaries paid
B. Error in posting salaries paid
C. Error in preparing the trial balance
Correct D. Error in preparing the financial statements

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
Correct C. ₦1,000,000
D. ₦1,050,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company has two departments: A and B. Department A has a net realizable value of ₦150,000 and Department B has a net realizable value of ₦120,000. Calculate the total net realizable value of the company.
Correct A. ₦270,000
B. ₦270,500
C. ₦270,000
D. ₦270,500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a premium of 5%. Calculate the amount received from debenture holders.
Correct A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
Correct C. ₦1,000,000
D. ₦1,050,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has a capital of ₦500,000. It issues 10,000 9% debentures of ₦100 each at a premium of 5%. Calculate the amount received from debenture holders.
Correct A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. They share profits and losses in the ratio 3:2. If the profit for the year is ₦750,000, how much will A receive?
A. ₦450,000
Correct B. ₦525,000
C. ₦600,000
D. ₦675,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,200,000, and the total cost of the opening inventory is ₦300,000. If the company uses a perpetual inventory system, what is the cost of goods sold?
A. ₦900,000
B. ₦1,000,000
Correct C. ₦1,050,000
D. ₦1,100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has the following ledger balances: Cash ₦100,000, Accounts Payable ₦200,000, Common Stock ₦500,000, and Retained Earnings ₦300,000. If the company issues 10,000 shares of common stock at ₦50 per share, what is the new balance of Common Stock?
A. ₦550,000
B. ₦600,000
C. ₦650,000
Correct D. ₦700,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company uses the straight-line method to depreciate its assets. The cost of the asset is ₦500,000, and the useful life is 10 years. If the asset is sold for ₦200,000 after 5 years, what is the gain or loss on sale?
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following balance sheet: Cash ₦100,000, Accounts Payable ₦200,000, Common Stock ₦500,000, and Retained Earnings ₦300,000. If the company issues 10,000 shares of common stock at ₦50 per share, what is the new balance of Common Stock?
A. ₦550,000
B. ₦600,000
C. ₦650,000
Correct D. ₦700,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support