POST UTME IMS U 2022 Accounting | Objective

Are you preparing for POST UTME IMS U 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's trial balance shows a debit balance of ₦100,000 in the account 'Rent Received' and a credit balance of ₦80,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. ₦20,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Correct B. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
C. ₦80,000 debit to Rent Received and ₦80,000 credit to Rent Paid
D. ₦100,000 debit to Rent Paid and ₦100,000 credit to Rent Received

Correct Answer: B

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Question 2
A public sector organization has the following transactions for the year ended December 31, 2022: - Sale of goods: ₦1,500,000 - Purchase of goods: ₦1,200,000 - Wages: ₦300,000 - Rent: ₦150,000 What is the total revenue for the year?
Correct A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 3
A company's balance sheet as at December 31, 2022, shows the following: - Assets: ₦5,000,000 - Liabilities: ₦2,000,000 - Equity: ₦3,000,000 What is the company's current ratio?
Correct A. 2:1
B. 3:1
C. 4:1
D. 5:1

Correct Answer: A

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Question 4
A company uses the straight-line method of depreciation. If the cost of the asset is ₦100,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 5
A company's financial statements for the year ended December 31, 2022, show the following: - Gross profit: ₦500,000 - Operating expenses: ₦200,000 - Non-operating income: ₦100,000 What is the company's net income?
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 6
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
Correct D. ₦ 150,000

Correct Answer: D

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be shared by A and B.
A. ₦ 18,000
B. ₦ 20,000
Correct C. ₦ 22,000
D. ₦ 24,000

Correct Answer: C

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Question 8
A company has the following transactions: Purchased ₦ 10,000 worth of goods on credit. Sold ₦ 8,000 worth of goods for cash. Paid ₦ 2,000 to a creditor. Calculate the net effect on the company's cash balance.
A. ₦ 6,000
Correct B. ₦ 8,000
C. ₦ 10,000
D. ₦ 12,000

Correct Answer: B

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Question 9
A company issued 5,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 2,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 60,000
B. ₦ 70,000
Correct C. ₦ 80,000
D. ₦ 90,000

Correct Answer: C

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Question 10
A company has the following transactions: Purchased ₦ 15,000 worth of goods on credit. Sold ₦ 12,000 worth of goods for cash. Paid ₦ 3,000 to a creditor. Calculate the net effect on the company's cash balance.
A. ₦ 9,000
B. ₦ 11,000
Correct C. ₦ 13,000
D. ₦ 15,000

Correct Answer: C

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Question 11
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge for an asset costing ₦300,000?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 12
A bank's cash book shows a balance of ₦1,500,000. The bank reconciliation statement shows a difference of ₦200,000. What is the correct balance in the bank's cash book?
Correct A. ₦1,300,000
B. ₦1,500,000
C. ₦1,700,000
D. ₦1,800,000

Correct Answer: A

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Question 13
A company's trial balance shows an error of ₦20,000. The error is due to an incorrect posting of a debit entry. What is the correct journal entry to rectify the error?
A. Debit Cash ₦20,000, Credit Expenses ₦20,000
Correct B. Debit Expenses ₦20,000, Credit Cash ₦20,000
C. Debit Expenses ₦20,000, Credit Sales ₦20,000
D. Debit Sales ₦20,000, Credit Expenses ₦20,000

Correct Answer: B

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Question 14
A manufacturing company produces 10,000 units of a product. The direct materials used are ₦500,000 and the direct labor costs are ₦300,000. What is the total cost of production?
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

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Question 15
A company's trading account shows a profit of ₦500,000. The company's profit and loss account shows a net profit of ₦700,000. What is the company's net worth?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
Correct D. ₦1,500,000

Correct Answer: D

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Question 16
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦1,000,000
Correct C. ₦1,050,000
D. ₦1,100,000

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 ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be shared by A.
A. ₦18,000
Correct B. ₦20,000
C. ₦22,000
D. ₦24,000

Correct Answer: B

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Question 18
A company purchases a machine for ₦120,000 and pays ₦10,000 as cash. The balance is paid in 4 equal installments at the end of each quarter. Calculate the amount of each installment.
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 19
A company has a cash book balance of ₦50,000. The bank statement balance is ₦60,000. The difference is due to an outstanding cheque of ₦5,000 and a deposit in transit of ₦5,000. Calculate the bank reconciliation statement.
A. ₦55,000
B. ₦60,000
Correct C. ₦65,000
D. ₦70,000

Correct Answer: C

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Question 20
A company has a trial balance that includes the following accounts: Sales (₦100,000), Purchases (₦80,000), and Cost of Goods Sold (₦60,000). Calculate the gross profit.
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 21
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦500,000?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 22
A bank's cash book shows a balance of ₦1,500,000. The bank reconciliation statement shows a difference of ₦200,000 between the cash book balance and the bank statement balance. What is the correct balance according to the bank statement?
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000

Correct Answer: A

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Question 23
A partnership has two partners, A and B. The capital accounts of A and B are ₦200,000 and ₦300,000 respectively. If the profit for the year is ₦100,000, what is the share of profit for partner A?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 24
A company uses the double-entry system of accounting. If the company purchases an asset for ₦500,000 and pays ₦200,000 in cash, what is the journal entry to record the purchase?
Correct A. Debit Asset ₦500,000, Credit Cash ₦200,000
B. Debit Cash ₦200,000, Credit Asset ₦500,000
C. Debit Asset ₦500,000, Credit Bank ₦200,000
D. Debit Bank ₦200,000, Credit Asset ₦500,000

Correct Answer: A

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Question 25
A company uses the single-entry system of accounting. If the company receives ₦100,000 in cash from customers, what is the journal entry to record the transaction?
Correct A. Debit Cash ₦100,000
B. Credit Cash ₦100,000
C. Debit Sales ₦100,000
D. Credit Sales ₦100,000

Correct Answer: A

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