POST UTME EKSU 2018 Accounting | Objective

Are you preparing for POST UTME EKSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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 matching of revenues and expenses
B. Simplified financial reporting
C. Increased transparency
D. Reduced accounting complexity

Correct Answer: A

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Question 2
A company has the following trial balance: Debit 100,000; Credit 120,000. What is the correct journal entry to rectify the error?
A. Debit 20,000 to Cash; Credit 20,000 to Accounts Payable
Correct B. Debit 20,000 to Accounts Payable; Credit 20,000 to Cash
C. Debit 20,000 to Accounts Receivable; Credit 20,000 to Cash
D. Debit 20,000 to Cash; Credit 20,000 to Accounts Receivable

Correct Answer: B

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Question 3
A manufacturing company uses the process costing method to value its inventory. The company has the following data: Direct Materials 10,000; Direct Labor 15,000; Factory Overhead 20,000. What is the total cost of production?
A. 45,000
B. 50,000
C. 55,000
Correct D. 60,000

Correct Answer: D

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Question 4
A company has the following data: Depreciable Asset 100,000; Useful Life 5 years; Residual Value 20,000. What is the annual depreciation expense?
A. 16,000
Correct B. 18,000
C. 20,000
D. 22,000

Correct Answer: B

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Question 5
A company has the following data: Sales 100,000; Cost of Goods Sold 60,000; Gross Profit 40,000. What is the gross profit margin?
Correct A. 40%
B. 50%
C. 60%
D. 70%

Correct Answer: A

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Question 6
A company's cash book shows a balance of ₦15,000. However, the bank statement shows a balance of ₦18,000. The difference of ₦3,000 is due to a dishonored cheque. Prepare a bank reconciliation statement.
A. ₦15,000
B. ₦18,000
Correct C. ₦3,000
D. ₦21,000

Correct Answer: C

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Question 7
A partnership account shows a profit of ₦50,000. The partners' capital accounts are as follows: A ₦80,000, B ₦60,000, and C ₦40,000. Prepare a statement of partners' capital accounts.
A. ₦80,000
B. ₦60,000
C. ₦40,000
Correct D. ₦180,000

Correct Answer: D

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Question 8
A company's trading account shows a profit of ₦100,000. The profit and loss account shows a net profit of ₦120,000. The balance sheet shows a capital of ₦200,000. Prepare a statement of changes in capital.
A. ₦20,000
Correct B. ₦120,000
C. ₦100,000
D. ₦180,000

Correct Answer: B

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Question 9
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference of ₦10,000 is due to a bank charge. Prepare a bank reconciliation statement.
A. ₦50,000
B. ₦60,000
Correct C. ₦10,000
D. ₦70,000

Correct Answer: C

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Question 10
A partnership account shows a loss of ₦20,000. The partners' capital accounts are as follows: A ₦80,000, B ₦60,000, and C ₦40,000. Prepare a statement of partners' capital accounts.
A. ₦80,000
B. ₦60,000
C. ₦40,000
Correct D. ₦180,000

Correct Answer: D

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Question 11
A company's trading account for the year ended 31st December 2022 is as follows: Debtors: ₦120,000 Credit Sales: ₦500,000 Cash Sales: ₦200,000 Discount Allowed: ₦15,000 Returns Inwards: ₦10,000 What is the total value of sales for the year?
A. ₦650,000
B. ₦700,000
Correct C. ₦750,000
D. ₦800,000

Correct Answer: C

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Question 12
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦1,500,000 (Cash) ₦800,000 (Debtors) ₦300,000 (Stock) ₦200,000 (Prepaid Rent) Liabilities: ₦1,000,000 (Creditors) ₦500,000 (Loans) What is the total value of the company's assets?
A. ₦2,300,000
Correct B. ₦2,500,000
C. ₦2,700,000
D. ₦3,000,000

Correct Answer: B

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Question 13
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000 Cost of Goods Sold: ₦1,000,000 Gross Profit: ₦500,000 Operating Expenses: ₦200,000 Profit Before Tax: ₦300,000 Tax: ₦100,000 Profit After Tax: ₦200,000 What is the company's net profit for the year?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 14
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount received from the issue of shares and debentures?
A. ₦15,500
Correct B. ₦16,000
C. ₦16,500
D. ₦17,000

Correct Answer: B

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Question 15
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦1,500,000 (Cash) ₦800,000 (Debtors) ₦300,000 (Stock) ₦200,000 (Prepaid Rent) Liabilities: ₦1,000,000 (Creditors) ₦500,000 (Loans) What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 16
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank reconciliation statement reveals that there are 20 outstanding cheques totaling ₦8,000 each. What is the correct balance in the company's cash book?
A. ₦128,000
B. ₦130,000
Correct C. ₦132,000
D. ₦134,000

Correct Answer: C

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Question 17
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the amount of profit to be distributed to partner A?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 18
A company's trading account shows a profit of ₦200,000. The profit and loss account shows a net profit of ₦250,000. What is the amount of the company's dividend?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 19
A company's balance sheet shows a total assets of ₦500,000 and total liabilities of ₦300,000. What is the company's net worth?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 20
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank reconciliation statement reveals that there are 20 outstanding cheques totaling ₦8,000 each. What is the correct balance in the company's cash book?
A. ₦128,000
B. ₦130,000
Correct C. ₦132,000
D. ₦134,000

Correct Answer: C

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Question 21
A public sector organization has the following transactions in its cash book: Debit: ₦1,000,000 (cash received from customers) ₦500,000 (cash received from government grant) ₦200,000 (cash paid to suppliers) ₦300,000 (cash paid to employees) Credit: ₦1,500,000 (cash paid to creditors) ₦800,000 (cash paid to government) What is the balance in the cash book?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 22
A company has the following transactions in its trial balance: Debit: ₦1,000,000 (sales) ₦500,000 (cost of goods sold) Credit: ₦1,500,000 (expenses) What is the net profit?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,500,000

Correct Answer: C

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Question 23
A company has the following transactions in its bank reconciliation statement: Debit: ₦1,000,000 (cash received from customers) ₦500,000 (cash received from government grant) Credit: ₦1,500,000 (cash paid to creditors) What is the balance in the bank account?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 24
A company has the following transactions in its ledger: Debit: ₦1,000,000 (sales) ₦500,000 (cost of goods sold) Credit: ₦1,500,000 (expenses) What is the net profit?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,500,000

Correct Answer: C

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Question 25
A company has the following transactions in its cash book: Debit: ₦1,000,000 (cash received from customers) ₦500,000 (cash received from government grant) Credit: ₦1,500,000 (cash paid to creditors) What is the balance in the cash book?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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