POST UTME COVENANT UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: 1. Purchased office supplies for ₦10,000 cash. 2. Sold goods for ₦50,000 credit. 3. Purchased a new vehicle for ₦200,000 cash. 4. Collected ₦30,000 cash from customers. Determine the total amount of assets acquired during the month of January.
Correct A. ₦250,000
B. ₦240,000
C. ₦230,000
D. ₦220,000

Correct Answer: A

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Question 2
A partnership is formed between three individuals, A, B, and C, who contribute ₦100,000, ₦150,000, and ₦200,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 2:3:4. Determine the total amount of profit that will be shared by partner A.
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 3
A company uses the straight-line method of depreciation to depreciate its assets. The asset has a cost of ₦500,000 and a useful life of 5 years. Determine the annual depreciation charge.
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 4
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: 1. Purchased office supplies for ₦10,000 cash. 2. Sold goods for ₦50,000 credit. 3. Purchased a new vehicle for ₦200,000 cash. 4. Collected ₦30,000 cash from customers. Determine the total amount of assets acquired during the month of January.
Correct A. ₦250,000
B. ₦240,000
C. ₦230,000
D. ₦220,000

Correct Answer: A

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Question 5
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: 1. Purchased office supplies for ₦10,000 cash. 2. Sold goods for ₦50,000 credit. 3. Purchased a new vehicle for ₦200,000 cash. 4. Collected ₦30,000 cash from customers. Determine the total amount of assets acquired during the month of January.
Correct A. ₦250,000
B. ₦240,000
C. ₦230,000
D. ₦220,000

Correct Answer: A

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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 12 hours and machine B operates for 15 hours, what is the total number of units of product X produced?
Correct A. 30
B. 40
C. 50
D. 60

Correct Answer: A

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Question 7
A partnership is formed between three individuals, A, B, and C, with initial capital contributions of ₦100,000, ₦80,000, and ₦120,000, respectively. After one year, the partnership earns a profit of ₦240,000. The profit is divided in the ratio of 3:5:7. What is the share of profit allocated to partner B?
A. ₦96,000
Correct B. ₦120,000
C. ₦144,000
D. ₦168,000

Correct Answer: B

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Question 8
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over a period of 5 years. What is the annual depreciation charge?
Correct A. ₦80,000
B. ₦100,000
C. ₦120,000
D. ₦150,000

Correct Answer: A

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Question 9
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 10
A company purchases a machine for ₦300,000 and depreciates it using the reducing balance method. The rate of depreciation is 20% per annum. What is the value of the machine after 2 years?
A. ₦144,000
B. ₦180,000
Correct C. ₦216,000
D. ₦240,000

Correct Answer: C

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Question 11
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. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 12
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
A. ₦180,000
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

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Question 13
A company purchased a machine for ₦200,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

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Question 14
A company issued 5,000 debentures of ₦100 each at a premium of ₦20 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 15
A company's trial balance showed the following balances: Accounts Payable ₦40,000, Accounts Receivable ₦20,000, and Common Stock ₦80,000. Prepare the company's balance sheet.
A. ₦140,000
B. ₦160,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 16
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, what is the total number of units of product X produced?
Correct A. 60
B. 72
C. 80
D. 90

Correct Answer: A

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Question 17
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 2,000 | | 3 Jan | Purchases | 1,500 | | | 4 Jan | Cash | | 1,200 | What is the balance in the cash account?
A. ₦800
Correct B. ₦1,200
C. ₦1,500
D. ₦2,000

Correct Answer: B

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Question 18
A company's trial balance shows the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Sales | | 100,000 | | Purchases | 80,000 | | | Wages | 20,000 | | | Rent | | 10,000 | What is the total amount of the company's assets?
A. ₦110,000
B. ₦120,000
Correct C. ₦130,000
D. ₦140,000

Correct Answer: C

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Question 19
A company's trading account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Sales | | 100,000 | | 2 Jan | Purchases | 80,000 | | | 3 Jan | Wages | 20,000 | | | 4 Jan | Rent | | 10,000 | What is the company's net profit?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 20
A company's balance sheet shows the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Assets | 100,000 | | | Liabilities | | 50,000 | | Capital | | 50,000 | What is the company's total equity?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 21
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The total amount received from the issue of shares is 250,000. Calculate the amount of premium received.
A. ₦125,000
Correct B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: B

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Question 22
A company's trial balance showed the following balances: Accounts Payable 20,000, Accounts Receivable 15,000, Common Stock 50,000, and Retained Earnings 30,000. Prepare a balance sheet for the company.
Correct A. Assets: 65,000, Liabilities: 20,000, Equity: 45,000
B. Assets: 75,000, Liabilities: 20,000, Equity: 55,000
C. Assets: 85,000, Liabilities: 20,000, Equity: 65,000
D. Assets: 95,000, Liabilities: 20,000, Equity: 75,000

Correct Answer: A

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Question 23
A company's bank statement showed a balance of 10,000. The company's cash book showed a balance of 12,000. The bank statement included a credit of 2,000 for a deposited check that had not yet been cleared. Prepare a bank reconciliation statement.
Correct A. Bank Statement Balance: 12,000, Cash Book Balance: 10,000, Difference: 2,000
B. Bank Statement Balance: 10,000, Cash Book Balance: 12,000, Difference: 2,000
C. Bank Statement Balance: 12,000, Cash Book Balance: 10,000, Difference: 2,000
D. Bank Statement Balance: 10,000, Cash Book Balance: 12,000, Difference: 2,000

Correct Answer: A

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Question 24
A company issued 1,000 shares of 10 par value at a premium of 5 per share. The total amount received from the issue of shares is 15,000. Calculate the amount of premium received.
A. ₦7,500
Correct B. ₦10,000
C. ₦12,500
D. ₦15,000

Correct Answer: B

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Question 25
A company's trial balance showed the following balances: Accounts Payable 25,000, Accounts Receivable 20,000, Common Stock 75,000, and Retained Earnings 40,000. Prepare a balance sheet for the company.
Correct A. Assets: 105,000, Liabilities: 25,000, Equity: 80,000
B. Assets: 115,000, Liabilities: 25,000, Equity: 90,000
C. Assets: 125,000, Liabilities: 25,000, Equity: 100,000
D. Assets: 135,000, Liabilities: 25,000, Equity: 110,000

Correct Answer: A

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