POST UTME LEAD CITY UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME LEAD CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: (1) Purchased office supplies for ₦10,000 cash. (2) Sold goods for ₦20,000 on credit. (3) Purchased a machine for ₦50,000 on credit. (4) Collected ₦15,000 from a customer who owed the company ₦20,000. (5) Paid ₦30,000 to a supplier who owed the company ₦40,000. Determine the total amount of assets, liabilities, and equity of the company at the end of January.
A. ₦85,000
B. ₦90,000
C. ₦95,000
Correct D. ₦100,000

Correct Answer: D

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Question 2
A company has the following ledger accounts: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 3
A company has the following trial balance: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 4
A company has the following ledger accounts: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 5
A company has the following trial balance: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit: ₦20,000. Determine the total amount of assets, liabilities, and equity of the company.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 6
A company's trading account for the year ended 31st December 2022 is as follows: Debtors: ₦120,000 Cash at Bank: ₦150,000 Sales: ₦500,000 Purchases: ₦300,000 Discount allowed: ₦10,000 Discount received: ₦5,000 What is the company's net profit for the year?
A. ₦150,000
Correct B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: B

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Question 7
A company's balance sheet at 31st December 2022 is as follows: Share Capital: ₦200,000 Reserves: ₦150,000 Debtors: ₦120,000 Cash at Bank: ₦150,000 What is the company's total equity?
A. ₦450,000
B. ₦470,000
Correct C. ₦490,000
D. ₦510,000

Correct Answer: C

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Question 8
A company's manufacturing account for the year ended 31st December 2022 is as follows: Direct Materials: ₦150,000 Direct Labour: ₦100,000 Prime Cost: ₦250,000 Overheads: ₦50,000 What is the company's total cost of production?
A. ₦300,000
B. ₦350,000
Correct C. ₦400,000
D. ₦450,000

Correct Answer: C

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Question 9
A company's departmental account for the year ended 31st December 2022 is as follows: Selling Department: ₦100,000 Administrative Department: ₦80,000 What is the company's total departmental expenses?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 10
A company's control account for the year ended 31st December 2022 is as follows: Cash at Bank: ₦150,000 Debtors: ₦120,000 What is the company's total assets?
A. ₦270,000
B. ₦290,000
Correct C. ₦310,000
D. ₦330,000

Correct Answer: C

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Question 11
SHARED STIMULUS
| Account | Debit | Credit | Balance | | --- | --- | --- | --- | | Cash | 120,000 | | 120,000 | | Bank | | 150,000 | 150,000 | | Capital | | 180,000 | 180,000 | | Profit | | 200,000 | 200,000 |
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 12
SHARED STIMULUS
| Account | Debit | Credit | Balance | | --- | --- | --- | --- | | Cash | 120,000 | | 120,000 | | Bank | | 150,000 | 150,000 | | Capital | | 180,000 | 180,000 | | Profit | | 200,000 | 200,000 |
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 13
SHARED STIMULUS
| Account | Debit | Credit | Balance | | --- | --- | --- | --- | | Cash | 120,000 | | 120,000 | | Bank | | 150,000 | 150,000 | | Capital | | 180,000 | 180,000 | | Profit | | 200,000 | 200,000 |
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
A. ₦120,000
B. ₦150,000
C. ₦180,000
Correct D. ₦200,000

Correct Answer: D

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Question 14
SHARED STIMULUS
| Account | Debit | Credit | Balance | | --- | --- | --- | --- | | Cash | 120,000 | | 120,000 | | Bank | | 150,000 | 150,000 | | Capital | | 180,000 | 180,000 | | Profit | | 200,000 | 200,000 |
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 15
SHARED STIMULUS
| Account | Debit | Credit | Balance | | --- | --- | --- | --- | | Cash | 120,000 | | 120,000 | | Bank | | 150,000 | 150,000 | | Capital | | 180,000 | 180,000 | | Profit | | 200,000 | 200,000 |
The following is an extract from the trial balance of XYZ Ltd. at 31st December 2022.
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 16
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge?
A. ₦50,000
B. ₦60,000
Correct C. ₦80,000
D. ₦100,000

Correct Answer: C

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Question 17
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦80,000, and Common Stock ₦200,000. What is the total amount of the company's liabilities?
Correct A. ₦230,000
B. ₦250,000
C. ₦270,000
D. ₦290,000

Correct Answer: A

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Question 18
A company's income statement for the year ended December 31, 2020, shows the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Gross Profit ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 19
A company's balance sheet as of December 31, 2020, shows the following: Cash ₦100,000, Accounts Payable ₦150,000, and Common Stock ₦200,000. What is the company's total assets?
A. ₦350,000
B. ₦400,000
Correct C. ₦450,000
D. ₦500,000

Correct Answer: C

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Question 20
A company's bank reconciliation statement shows the following: Bank Balance ₦150,000, Outstanding Checks ₦20,000, and Deposits in Transit ₦30,000. What is the company's adjusted bank balance?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 21
Determine the amount of depreciation for a machine that cost ₦500,000 and has a useful life of 5 years, using the straight-line method. The machine is currently in its third year of use.
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 22
A company's public sector accounting records show a revenue of ₦1,200,000 and an expenditure of ₦900,000. Calculate the company's net cash inflow from operating activities.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 23
A business uses the double-entry system of accounting. The company's ledger shows a debit of ₦80,000 to the asset account 'Machinery' and a credit of ₦80,000 to the expense account 'Depreciation'. What is the effect of this transaction on the company's net income?
A. Increase net income by ₦80,000
Correct B. Decrease net income by ₦80,000
C. No effect on net income
D. Increase net income by ₦40,000

Correct Answer: B

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Question 24
A company uses the single-entry system of accounting. The company's records show a cash receipt of ₦120,000. What is the effect of this transaction on the company's net income?
Correct A. Increase net income by ₦120,000
B. Decrease net income by ₦120,000
C. No effect on net income
D. Increase net income by ₦60,000

Correct Answer: A

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Question 25
A business uses the nature and principles of accounting. The company's accounting records show a revenue of ₦1,500,000 and an expense of ₦900,000. Calculate the company's net income.
Correct A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000

Correct Answer: A

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