POST UTME ELIZADE UNIVERSITY 2022 Accounting | Objective

Are you preparing for POST UTME ELIZADE 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.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials have a cost of ₦120,000 and a weightage of 30%. The work-in-progress has a cost of ₦180,000 and a weightage of 40%. The finished goods have a cost of ₦150,000 and a weightage of 30%. What is the total value of the inventory?
A. ₦450,000
Correct B. ₦540,000
C. ₦630,000
D. ₦720,000

Correct Answer: B

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Question 2
A company has the following transactions: Purchased raw materials for ₦100,000; sold goods for ₦150,000; purchased finished goods for ₦80,000; and sold raw materials for ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000 decrease
Correct B. ₦30,000 increase
C. ₦60,000 decrease
D. ₦60,000 increase

Correct Answer: B

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Question 3
A company has the following trial balance: ₦100,000 debit; ₦150,000 credit; ₦200,000 debit; ₦250,000 credit. What is the total value of the company's assets?
A. ₦350,000
Correct B. ₦450,000
C. ₦550,000
D. ₦650,000

Correct Answer: B

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Question 4
A company has the following transactions: Purchased raw materials for ₦100,000; sold goods for ₦150,000; purchased finished goods for ₦80,000; and sold raw materials for ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000 decrease
Correct B. ₦30,000 increase
C. ₦60,000 decrease
D. ₦60,000 increase

Correct Answer: B

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Question 5
A company has the following trial balance: ₦100,000 debit; ₦150,000 credit; ₦200,000 debit; ₦250,000 credit. What is the total value of the company's assets?
A. ₦350,000
Correct B. ₦450,000
C. ₦550,000
D. ₦650,000

Correct Answer: B

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Question 6
A company issued 10,000 shares of 1 par value at a premium of 50%.
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 7
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000.
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 8
A company's trading account shows a profit of ₦200,000. The profit and loss account shows a profit of ₦250,000.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 9
A company issued 5,000 shares of 1 par value at a premium of 25%.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 10
A company's balance sheet shows a total assets of ₦500,000. The total liabilities is ₦300,000.
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 11
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. Calculate the annual depreciation charge.
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 12
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000 Returns outwards: ₦50,000 Returns inwards: ₦20,000 Cost of goods sold: ₦900,000 Opening stock: ₦150,000 Closing stock: ₦200,000 Calculate the gross profit for the year.
Correct A. ₦450,000
B. ₦400,000
C. ₦350,000
D. ₦300,000

Correct Answer: A

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Question 13
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦2,500,000 Equity: ₦1,500,000 Liabilities: ₦1,000,000 Calculate the current ratio.
Correct A. 2.5
B. 2.0
C. 1.5
D. 1.0

Correct Answer: A

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Question 14
A company uses the weighted average method of inventory valuation. The following data is available for the year ended 31st December 2022: Opening stock: 100 units @ ₦50 each Purchases: 500 units @ ₦60 each Returns inwards: 20 units @ ₦50 each Sales: 600 units @ ₦80 each Closing stock: 150 units @ ₦60 each Calculate the cost of goods sold for the year.
A. ₦32,000
B. ₦35,000
Correct C. ₦38,000
D. ₦40,000

Correct Answer: C

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Question 15
A company's cash book for the year ended 31st December 2022 is as follows: Cash at bank: ₦100,000 Cash in hand: ₦20,000 Bank overdraft: ₦50,000 Calculate the total cash and bank balance.
Correct A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000

Correct Answer: A

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Question 16
A company uses the single-entry system of accounting. The company's cash account shows a debit balance of ₦120,000. The company's bank statement shows a balance of ₦150,000. What is the reason for the difference?
Correct A. The company has a bank overdraft.
B. The company has a cash credit balance.
C. The company has a bank overdraft and a cash credit balance.
D. The company has a cash debit balance.

Correct Answer: A

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Question 17
A company prepares its trial balance on December 31, 2022. The trial balance shows a debit balance in the accounts payable account of ₦50,000. The company's ledger shows a credit balance in the accounts payable account of ₦30,000. What is the reason for the difference?
A. The company has a bank overdraft.
Correct B. The company has a cash credit balance.
C. The company has a bank overdraft and a cash credit balance.
D. The company has a cash debit balance.

Correct Answer: B

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Question 18
A company prepares its trial balance on December 31, 2022. The trial balance shows a debit balance in the accounts receivable account of ₦100,000. The company's ledger shows a credit balance in the accounts receivable account of ₦80,000. What is the reason for the difference?
A. The company has a bank overdraft.
B. The company has a cash credit balance.
C. The company has a bank overdraft and a cash credit balance.
Correct D. The company has a cash debit balance.

Correct Answer: D

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Question 19
A company prepares its trial balance on December 31, 2022. The trial balance shows a debit balance in the accounts payable account of ₦50,000. The company's ledger shows a credit balance in the accounts payable account of ₦30,000. What is the reason for the difference?
A. The company has a bank overdraft.
Correct B. The company has a cash credit balance.
C. The company has a bank overdraft and a cash credit balance.
D. The company has a cash debit balance.

Correct Answer: B

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Question 20
A company prepares its trial balance on December 31, 2022. The trial balance shows a debit balance in the accounts receivable account of ₦100,000. The company's ledger shows a credit balance in the accounts receivable account of ₦80,000. What is the reason for the difference?
A. The company has a bank overdraft.
B. The company has a cash credit balance.
C. The company has a bank overdraft and a cash credit balance.
Correct D. The company has a cash debit balance.

Correct Answer: D

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Question 21
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 6 each. Calculate the total amount received from the sale of shares.
A. ₦30,000,000
B. ₦40,000,000
C. ₦50,000,000
Correct D. ₦60,000,000

Correct Answer: D

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Question 22
A company's trial balance showed the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's Balance Sheet.
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

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Question 23
A company purchased a machine for ₦500,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
Correct A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: A

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Question 24
A company's manufacturing account for the year showed the following: Materials Purchased ₦200,000, Labour Cost ₦150,000, and Factory Overheads ₦100,000. Calculate the total cost of production.
A. ₦450,000
B. ₦500,000
C. ₦550,000
Correct D. ₦600,000

Correct Answer: D

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Question 25
A company issued 5,000 debentures of ₦1,000 each at a premium of 5%. Calculate the total amount received from the sale of debentures.
A. ₦50,000,000
B. ₦55,000,000
C. ₦60,000,000
Correct D. ₦65,000,000

Correct Answer: D

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