POST UTME NILE UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The company's ledger shows the following transactions: Debit Cash ₦100,000, Credit Accounts Payable ₦100,000. What is the effect of this transaction on the company's financial position?
A. The company's cash balance decreases by ₦100,000.
B. The company's accounts payable balance increases by ₦100,000.
C. The company's cash balance increases by ₦100,000.
D. The company's accounts payable balance decreases by ₦100,000.
Question 2
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1000 | | | 2 Jan | Cash | 500 | | | 3 Jan | Cash | | 2000 | | 4 Jan | Cash | | 1500 | What is the balance in the cash account?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 3
A company's profit and loss account shows the following: | Particulars | ₦ | Particulars | ₦ | | --- | --- | --- | --- | | Sales | 100,000 | Cost of Goods Sold | 80,000 | | Gross Profit | 20,000 | Operating Expenses | 10,000 | | Net Profit | 10,000 | | | What is the company's net profit?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A manufacturing company has the following costs for the month of January:
A. Direct Materials 10,000, Direct Labor 8,000, Manufacturing Overhead 12,000
B. Direct Materials 12,000, Direct Labor 10,000, Manufacturing Overhead 8,000
C. Direct Materials 8,000, Direct Labor 12,000, Manufacturing Overhead 10,000
D. Direct Materials 10,000, Direct Labor 12,000, Manufacturing Overhead 8,000
Question 5
A company's balance sheet as at December 31, 2024, is as follows:
A. Assets 1,000,000, Liabilities 500,000, Equity 500,000
B. Assets 1,000,000, Liabilities 1,000,000, Equity 0
C. Assets 1,000,000, Liabilities 0, Equity 1,000,000
D. Assets 1,000,000, Liabilities 500,000, Equity 1,500,000
Question 6
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. If the company receives a total of ₦550,000, what is the amount received from the issue of shares?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 7
A company's bank reconciliation statement for the month of January is as follows:
A. Bank Balance 10,000, Cash Balance 12,000, Outstanding Checks 2,000
B. Bank Balance 12,000, Cash Balance 10,000, Outstanding Deposits 2,000
C. Bank Balance 10,000, Cash Balance 10,000, Outstanding Checks 2,000
D. Bank Balance 12,000, Cash Balance 12,000, Outstanding Deposits 2,000
Question 8
A company uses the accrual basis of accounting. The company's ledger shows the following transactions: Debit Salaries Expense ₦200,000, Credit Salaries Payable ₦200,000. What is the effect of this transaction on the company's financial position?
A. The company's salaries expense balance increases by ₦200,000.
B. The company's salaries payable balance increases by ₦200,000.
C. The company's salaries expense balance decreases by ₦200,000.
D. The company's salaries payable balance decreases by ₦200,000.
Question 9
A company's profit and loss account for the year ended December 31, 2024, is as follows:
A. Sales 1,000,000, Cost of Goods Sold 200,000, Gross Profit 800,000
B. Sales 1,000,000, Cost of Goods Sold 100,000, Gross Profit 900,000
C. Sales 1,000,000, Cost of Goods Sold 0, Gross Profit 1,000,000
D. Sales 1,000,000, Cost of Goods Sold 500,000, Gross Profit 500,000
Question 10
A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 15,000 | Creditors | 10,000 | | Stock | 20,000 | Capital | 30,000 | What is the total amount of the company's assets?
A. ₦55,000
B. ₦65,000
C. ₦75,000
D. ₦85,000
Question 11
A company has a debt of ₦1,000,000, which is to be repaid in 5 years. If the company repays the debt in equal annual installments, what is the amount of each installment?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 12
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000
Question 13
A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦250,000. The bank statement shows a balance of ₦300,000. The company's accountant has prepared a bank reconciliation statement showing a difference of ₦20,000. What is the reason for the difference?
A. The company has outstanding checks.
B. The company has deposited cash into the bank but has not been credited yet.
C. The company has a loan from the bank that has not been recorded.
D. The company has a credit card balance that has not been recorded.
Question 14
A company's balance sheet as at December 31, 2024, is as follows:
A. Assets 1,000,000, Liabilities 500,000, Equity 500,000
B. Assets 1,000,000, Liabilities 1,000,000, Equity 0
C. Assets 1,000,000, Liabilities 0, Equity 1,000,000
D. Assets 1,000,000, Liabilities 500,000, Equity 1,500,000
Question 15
A company has the following transactions in its ledger: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchases | 50,000 | | | 2nd Jan | Purchases | | 40,000 | | 3rd Jan | Purchases | | 60,000 | | 4th Jan | Purchases | | 80,000 | What is the total amount of purchases made during the month?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000

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