POST UTME IGBINEDION UNIVERSITY 2024 Accounting | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' module?
A. To track and manage cash flows
Correct B. To monitor and control government expenditures
C. To prepare and present financial statements
D. To conduct internal audits

Correct Answer: B

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Question 2
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, what is the amount of profit that partner A will receive?
A. ₦90,000
B. ₦60,000
Correct C. ₦72,000
D. ₦80,000

Correct Answer: C

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Question 3
A company uses the double-entry system of accounting. If the company purchases an asset for ₦50,000 and pays for it in cash, what is the effect on the accounting equation?
A. Assets increase by ₦50,000 and Liabilities decrease by ₦50,000
Correct B. Assets increase by ₦50,000 and Equity increases by ₦50,000
C. Assets decrease by ₦50,000 and Liabilities increase by ₦50,000
D. Assets decrease by ₦50,000 and Equity decreases by ₦50,000

Correct Answer: B

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Question 4
A company has a control account for its cash account. If the balance in the control account is ₦100,000 and the balance in the cash ledger account is ₦120,000, what is the reason for the difference?
Correct A. The control account is not up-to-date
B. The cash ledger account has a debit balance
C. The control account has a credit balance
D. The cash ledger account has a credit balance

Correct Answer: A

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Question 5
A company has a self-balancing ledger account for its accounts payable. If the balance in the ledger account is ₦50,000 and the balance in the control account is ₦60,000, what is the reason for the difference?
A. The ledger account is not up-to-date
Correct B. The control account has a debit balance
C. The ledger account has a credit balance
D. The control account has a credit balance

Correct Answer: B

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the 'Accrued Expenses' account. However, the company's accountant believes that this balance is incorrect. Which of the following steps should the accountant take to correct the error?
Correct A. Verify the journal entries related to the 'Accrued Expenses' account.
B. Reconcile the 'Accrued Expenses' account with the general ledger.
C. Adjust the 'Accrued Expenses' account to reflect the correct balance.
D. Ignore the error and proceed with the financial statements.

Correct Answer: A

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Question 7
A manufacturing company uses the process cost method to account for its production costs. The company's cost of goods manufactured for the year is ₦1,500,000, and the cost of goods sold is ₦1,800,000. What is the company's gross profit for the year?
A. ₦300,000
Correct B. ₦600,000
C. ₦900,000
D. ₦1,200,000

Correct Answer: B

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Question 8
A company issues 10,000 shares of ₦1 par value at ₦5 per share. What is the total amount received from the issue of shares?
A. ₦50,000
B. ₦100,000
C. ₦150,000
Correct D. ₦200,000

Correct Answer: D

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Question 9
A company purchases a machine for ₦200,000, which is expected to have a useful life of 5 years and a residual value of ₦20,000. Using the straight-line method, what is the annual depreciation for the machine?
A. ₦36,000
B. ₦40,000
Correct C. ₦42,000
D. ₦44,000

Correct Answer: C

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Question 10
A company's trial balance shows a credit balance of ₦15,000 in the 'Accrued Income' account. However, the company's accountant believes that this balance is incorrect. Which of the following steps should the accountant take to correct the error?
Correct A. Verify the journal entries related to the 'Accrued Income' account.
B. Reconcile the 'Accrued Income' account with the general ledger.
C. Adjust the 'Accrued Income' account to reflect the correct balance.
D. Ignore the error and proceed with the financial statements.

Correct Answer: A

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 12
A bank's cash book shows a balance of ₦1,500,000. However, the bank statement shows a balance of ₦1,800,000. What is the amount of the bank's outstanding checks?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 13
A government agency uses the accrual basis of accounting. If the agency receives ₦1,000,000 in revenue and pays ₦800,000 in expenses, what is the net increase in the agency's assets?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 14
A company's trial balance shows a debit balance of ₦50,000 in the accounts receivable account. However, the company's ledger shows a credit balance of ₦20,000 in the same account. What is the correct balance of the accounts receivable account?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 15
A company uses the single-entry system of accounting. If the company's cash account shows a balance of ₦100,000 and the company's accounts payable account shows a balance of ₦50,000, what is the company's net worth?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 16
A company's manufacturing overheads for the year ended December 31, 2023, were as follows: Direct Labour £ 10,000, Direct Materials £ 20,000, and Factory Rent £ 30,000. The total production cost for the year was £ 150,000. Calculate the manufacturing overheads as a percentage of total production cost.
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 17
A company's trading account for the year ended December 31, 2023, showed a profit of £ 50,000. The company's balance sheet at the beginning of the year showed a capital of £ 100,000. The company's drawings for the year were £ 20,000. Prepare the company's statement of profit or loss and other comprehensive income for the year ended December 31, 2023.
A. Profit £ 30,000, Capital £ 120,000
B. Profit £ 40,000, Capital £ 120,000
Correct C. Profit £ 50,000, Capital £ 120,000
D. Profit £ 60,000, Capital £ 120,000

Correct Answer: C

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Question 18
A company's balance sheet at the beginning of the year showed a capital of £ 100,000. The company's drawings for the year were £ 20,000. The company's profit for the year was £ 50,000. Prepare the company's statement of changes in equity for the year ended December 31, 2023.
A. Capital £ 130,000, Retained Earnings £ 30,000
Correct B. Capital £ 120,000, Retained Earnings £ 30,000
C. Capital £ 110,000, Retained Earnings £ 30,000
D. Capital £ 100,000, Retained Earnings £ 30,000

Correct Answer: B

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Question 19
A company's balance sheet at the beginning of the year showed a capital of £ 100,000. The company's drawings for the year were £ 20,000. The company's profit for the year was £ 50,000. Prepare the company's statement of financial position as at December 31, 2023.
A. Capital £ 130,000, Retained Earnings £ 30,000, Drawings £ 20,000
B. Capital £ 120,000, Retained Earnings £ 30,000, Drawings £ 20,000
C. Capital £ 110,000, Retained Earnings £ 30,000, Drawings £ 20,000
Correct D. Capital £ 100,000, Retained Earnings £ 30,000, Drawings £ 20,000

Correct Answer: D

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Question 20
A company's statement of profit or loss and other comprehensive income for the year ended December 31, 2023, showed a profit of £ 50,000. The company's balance sheet at the beginning of the year showed a capital of £ 100,000. The company's drawings for the year were £ 20,000. Prepare the company's statement of changes in equity for the year ended December 31, 2023.
A. Capital £ 120,000, Retained Earnings £ 30,000
B. Capital £ 110,000, Retained Earnings £ 30,000
Correct C. Capital £ 100,000, Retained Earnings £ 30,000
D. Capital £ 90,000, Retained Earnings £ 30,000

Correct Answer: C

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Question 21
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

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Question 22
A partnership is formed between two partners, A and B, with a capital of ₦500,000 and ₦300,000 respectively. If the profit is divided in the ratio 3:2, what is the share of profit of partner A?
Correct A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: A

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Question 23
A company purchases a machine for ₦1,200,000 and sells it after 5 years for ₦1,500,000. If the machine is depreciated at 10% per annum, what is the amount of depreciation for the first year?
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 24
A company issues 5,000, 8% preference shares of ₦50 each at a premium of ₦10 per share. Calculate the amount received from preference shareholders.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 25
A company purchases a machine for ₦800,000 and sells it after 3 years for ₦1,200,000. If the machine is depreciated at 15% per annum, what is the amount of depreciation for the first year?
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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