POST UTME LAUTECH 2019 Accounting | Objective

Are you preparing for POST UTME LAUTECH exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 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 an error of ₦15,000 in the debit side of the accounts payable account. The correct balance is ₦120,000. What is the correct balance in the credit side of the accounts payable account?
A. ₦135,000
Correct B. ₦125,000
C. ₦115,000
D. ₦105,000

Correct Answer: B

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Question 2
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: cutting and assembly. The cutting department has a total cost of ₦500,000 and the assembly department has a total cost of ₦750,000. What is the total production cost for the period?
Correct A. ₦1,250,000
B. ₦1,250,000
C. ₦1,250,000
D. ₦1,250,000

Correct Answer: A

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Question 3
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦250,000, what is the company's quick ratio?
Correct A. 1.5
B. 2.0
C. 2.5
D. 3.0

Correct Answer: A

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Question 4
A company uses the single-entry system of accounting. The company's journal entry for the purchase of equipment is as follows: Debit Equipment ₦50,000 and Credit Cash ₦50,000. What is the effect of this transaction on the company's cash balance?
Correct A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000

Correct Answer: A

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Question 5
A company's trial balance shows an error of ₦20,000 in the credit side of the accounts receivable account. The correct balance is ₦200,000. What is the correct balance in the debit side of the accounts receivable account?
Correct A. ₦220,000
B. ₦220,000
C. ₦220,000
D. ₦220,000

Correct Answer: A

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Question 6
A company purchased a machine for ₦120,000. It is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦20,000
Correct B. ₦22,000
C. ₦24,000
D. ₦26,000

Correct Answer: B

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Question 7
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00

Correct Answer: A

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Question 8
A company purchased a machine for ₦150,000. It is expected to have a useful life of 5 years and a residual value of ₦30,000. Calculate the annual depreciation using the straight-line method.
A. ₦24,000
Correct B. ₦26,000
C. ₦28,000
D. ₦30,000

Correct Answer: B

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Question 9
A company issued 5,000 shares of ₦1 each at a premium of ₦0.25 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦1,250
B. ₦1,250.00
C. ₦1,250.00
D. ₦1,250.00

Correct Answer: A

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Question 10
A company purchased a machine for ₦180,000. It is expected to have a useful life of 5 years and a residual value of ₦40,000. Calculate the annual depreciation using the straight-line method.
A. ₦28,000
Correct B. ₦30,000
C. ₦32,000
D. ₦34,000

Correct Answer: B

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Question 11
A company's cash book shows a balance of ₦250,000, but the bank statement shows a balance of ₦280,000. The company's cash book also shows a debit balance of ₦15,000 in the 'Office Supplies' account. What is the correct balance in the 'Office Supplies' account according to the bank statement?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 12
A government agency has the following transactions for the month of January: - January 1: Cash received from sale of goods ₦50,000 - January 5: Cash paid for office supplies ₦20,000 - January 10: Cash received from sale of services ₦30,000 - January 15: Cash paid for rent ₦15,000 What is the total cash received by the agency in January?
A. ₦50,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 13
A company has the following trial balance: Debit ₦10,000 Cash ₦20,000 Office Supplies ₦30,000 Equipment Credit ₦15,000 Accounts Payable ₦25,000 Accounts Receivable What is the correct balance in the 'Office Supplies' account?
Correct A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: A

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Question 14
A partnership has the following capital accounts: Partner A: ₦50,000 Partner B: ₦30,000 Partner C: ₦20,000 The partnership also has the following drawings: Partner A: ₦10,000 Partner B: ₦5,000 Partner C: ₦3,000 What is the total capital of the partnership?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 15
A manufacturing company has the following costs: Direct Materials: ₦50,000 Direct Labor: ₦30,000 Overhead: ₦20,000 What is the total cost of production?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 16
A company's accounting policy requires that depreciation be calculated using the straight-line method. The company purchased a machine for ₦120,000 and it is expected to have a useful life of 5 years. Calculate 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 17
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 18
A company's profit and loss account for the year ended 31st December 2019 is as follows: ₦ Turnover: ₦500,000 Cost of Goods Sold: ₦300,000 Gross Profit: ₦200,000 Operating Expenses: ₦100,000 Profit Before Tax: ₦100,000 Tax: ₦20,000 Profit After Tax: ₦80,000 What is the company's gross profit percentage?
A. 20%
Correct B. 25%
C. 30%
D. 40%

Correct Answer: B

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Question 19
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 20
A company's profit and loss account for the year ended 31st December 2019 is as follows: ₦ Turnover: ₦500,000 Cost of Goods Sold: ₦300,000 Gross Profit: ₦200,000 Operating Expenses: ₦100,000 Profit Before Tax: ₦100,000 Tax: ₦20,000 Profit After Tax: ₦80,000 What is the company's gross profit percentage?
A. 20%
Correct B. 25%
C. 30%
D. 40%

Correct Answer: B

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Question 21
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 22
A company's profit and loss account for the year ended 31st December 2019 is as follows: ₦ Turnover: ₦500,000 Cost of Goods Sold: ₦300,000 Gross Profit: ₦200,000 Operating Expenses: ₦100,000 Profit Before Tax: ₦100,000 Tax: ₦20,000 Profit After Tax: ₦80,000 What is the company's gross profit percentage?
A. 20%
Correct B. 25%
C. 30%
D. 40%

Correct Answer: B

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Question 23
A company's balance sheet as at 31st December 2019 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total Assets: ₦300,000 Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total Liabilities: ₦300,000 What is the company's current ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 24
A partnership is dissolved when one of the partners dies. What is the accounting treatment for the deceased partner's share of the profits?
A. The deceased partner's share of the profits is written off as a loss.
Correct B. The deceased partner's share of the profits is distributed to the remaining partners.
C. The deceased partner's share of the profits is transferred to the partner's estate.
D. The deceased partner's share of the profits is ignored.

Correct Answer: B

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Question 25
A company issues 10,000 shares of 1 par value at 5 per share. What is the amount of cash received from the issue of shares?
Correct A. 50,000
B. 40,000
C. 30,000
D. 20,000

Correct Answer: A

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