POST UTME CRAWFORD UNIVERSITY 2022 Accounting | Objective

Are you preparing for POST UTME CRAWFORD 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 issued 10,000 shares of 1 par value at a premium of 2 per share. The proceeds from the issue were used to pay off a loan of 50,000. Prepare the journal entry to record the issue of shares.
Correct A. Debit Cash 20,000, Credit Share Capital 20,000
B. Debit Share Capital 20,000, Credit Loan 50,000
C. Debit Cash 20,000, Credit Loan 50,000
D. Debit Share Capital 20,000, Credit Cash 20,000

Correct Answer: A

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Question 2
A manufacturing company has the following costs: Direct Materials 10,000, Direct Labour 15,000, Overhead 20,000. Calculate the prime cost.
A. Direct Materials + Direct Labour
Correct B. Direct Materials + Direct Labour + Overhead
C. Direct Materials + Overhead
D. Direct Labour + Overhead

Correct Answer: B

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Question 3
A company has the following trial balance: Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000. Prepare the balance sheet.
Correct A. Assets: Accounts Payable 10,000, Accounts Receivable 5,000. Liabilities: Common Stock 20,000
B. Assets: Accounts Payable 10,000, Accounts Receivable 5,000. Equity: Common Stock 20,000
C. Liabilities: Accounts Payable 10,000, Accounts Receivable 5,000. Equity: Common Stock 20,000
D. Assets: Accounts Payable 10,000, Accounts Receivable 5,000. Liabilities: Common Stock 20,000

Correct Answer: A

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Question 4
A company issued 1,000 shares of 1 par value at a premium of 2 per share. The proceeds from the issue were used to pay off a loan of 50,000. Prepare the journal entry to record the issue of shares.
Correct A. Debit Cash 2,000, Credit Share Capital 2,000
B. Debit Share Capital 2,000, Credit Loan 50,000
C. Debit Cash 2,000, Credit Loan 50,000
D. Debit Share Capital 2,000, Credit Cash 2,000

Correct Answer: A

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Question 5
A company has the following trial balance: Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000. Prepare the income statement.
A. Revenues: 0. Expenses: 0. Net Income: 0
B. Revenues: 0. Expenses: 0. Net Income: 20,000
Correct C. Revenues: 25,000. Expenses: 25,000. Net Income: 0
D. Revenues: 25,000. Expenses: 0. Net Income: 25,000

Correct Answer: C

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Question 6
A company has two departments, A and B. Department A has a total of 100 employees, while department B has 80 employees. If the company pays a total of ₦1,200,000 in salaries, and department A pays ₦800,000, what is the ratio of the salary per employee in department B to the salary per employee in department A?
A. 1:1
Correct B. 2:1
C. 3:2
D. 4:3

Correct Answer: B

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Question 7
A partnership is formed between three individuals, A, B, and C. The capital contributions are as follows: A contributes ₦100,000, B contributes ₦80,000, and C contributes ₦60,000. If the profit is shared in the ratio 3:2:1, what is the share of profit of each partner?
Correct A. ₦120,000
B. ₦80,000
C. ₦40,000
D. ₦20,000

Correct Answer: A

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Question 8
A company uses the straight-line method of depreciation. If the cost of a machine is ₦200,000 and its useful life is 5 years, what is the annual depreciation?
Correct A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 9
A company has the following balance sheet: Assets ₦500,000, Liabilities ₦300,000, and Equity ₦200,000. If the company issues 10,000 shares of ₦10 each, what is the increase in equity?
A. ₦50,000
B. ₦100,000
C. ₦150,000
Correct D. ₦200,000

Correct Answer: D

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Question 10
A company has the following income statement: Revenue ₦1,000,000, Cost of Goods Sold ₦600,000, and Gross Profit ₦400,000. If the company has a net profit of ₦200,000, what is the operating profit?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 11
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. During the year, A withdrew ₦100,000 for personal use, while B invested an additional ₦50,000. The profit for the year was ₦200,000. Prepare the partnership's statement of profit or loss and the statement of changes in equity.
A. ₦250,000
B. ₦300,000
Correct C. ₦200,000
D. ₦150,000

Correct Answer: C

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Question 12
A company maintains a cash book and a general ledger. The cash book shows a debit balance of ₦50,000, while the general ledger shows a credit balance of ₦20,000. What is the correct balance of the company's cash account?
Correct A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 13
A public sector organization has the following transactions: (i) received ₦100,000 from the government, (ii) paid ₦50,000 to suppliers, and (iii) received ₦20,000 from customers. Prepare the organization's statement of financial performance and cash flow.
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 14
A company uses the double-entry system of accounting. The following transactions are recorded: (i) purchased office equipment for ₦50,000, (ii) sold goods for ₦100,000, and (iii) received cash from customers for ₦20,000. Prepare the company's ledger accounts.
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 15
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. During the year, A withdrew ₦100,000 for personal use, while B invested an additional ₦50,000. The profit for the year was ₦200,000. Prepare the partnership's statement of profit or loss and the statement of changes in equity.
A. ₦250,000
B. ₦300,000
Correct C. ₦200,000
D. ₦150,000

Correct Answer: C

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Question 16
A company's cash book shows a debit balance of ₦12,000. However, the bank statement shows a credit balance of ₦15,000. What is the correct explanation for this discrepancy?
Correct A. The company has a bank overdraft.
B. The company has a cash credit.
C. The company has a bank loan.
D. The company has a cash debit.

Correct Answer: A

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Question 17
A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the book value of the machine after 3 years?
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 18
A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦12,000
C. ₦14,000
Correct D. ₦16,000

Correct Answer: D

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Question 19
A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the annual depreciation charge?
A. ₦5,000
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 20
A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦12,000
C. ₦14,000
Correct D. ₦16,000

Correct Answer: D

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Question 21
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 22
A manufacturing company has the following production costs for the month of January: direct materials ₦150,000, direct labor ₦120,000, and overheads ₦80,000. What is the total production cost?
Correct A. ₦350,000
B. ₦450,000
C. ₦350,000
D. ₦450,000

Correct Answer: A

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Question 23
A company's cash book shows the following transactions: a deposit of ₦50,000, a withdrawal of ₦20,000, and a payment of ₦30,000. What is the net change in cash?
Correct A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: A

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Question 24
A company's trading account for the year ended December 31, 2022, shows a profit of ₦200,000. The company's balance sheet as at December 31, 2022, shows a current asset of ₦150,000 and a current liability of ₦50,000. What is the company's net worth?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 25
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year ended December 31, 2022, is ₦300,000, what is partner A's share of the profit?
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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