POST UTME NOUN 2018 Accounting | Objective

Are you preparing for POST UTME NOUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company purchases a machine for ₦150,000 on January 1, 2020. The machine has an estimated useful life of 5 years and a residual value of ₦20,000. Using the straight-line method, calculate the depreciation for the year 2022.
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 2
A cash book shows a balance of ₦50,000 on January 1, 2020. During the year, the following transactions occurred: - Cash received from customers: ₦200,000 - Cash paid to suppliers: ₦120,000 - Cash paid to employees: ₦80,000 - Bank charges: ₦10,000 - Interest received from bank: ₦5,000 - Interest paid to bank: ₦3,000 Calculate the balance in the cash book on December 31, 2020.
A. ₦62,000
B. ₦67,000
Correct C. ₦72,000
D. ₦77,000

Correct Answer: C

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Question 3
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦5,500
Correct B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00

Correct Answer: B

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Question 4
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, calculate A's share of the profit.
A. ₦90,000
Correct B. ₦90,000.00
C. ₦90,000.00
D. ₦90,000.00

Correct Answer: B

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Question 5
A company produces two products, X and Y, which require the following resources: - Product X: 2 hours of labor and 1 unit of raw material - Product Y: 1 hour of labor and 2 units of raw material The company has 100 hours of labor and 150 units of raw material available. Using linear programming, determine the optimal production levels of X and Y to maximize profit.
A. X=50, Y=75
Correct B. X=75, Y=50
C. X=100, Y=0
D. X=0, Y=100

Correct Answer: B

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Question 6
A company issues 10,000 shares of 1 par value at a premium of 3 per share. The shares are sold for 4 each. Calculate the total amount received from the sale of shares and the total amount of share capital.
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 7
A trader purchases goods worth ₦100,000 on credit. He sells the goods for ₦120,000 and incurs a discount of 5%. Calculate the profit made by the trader.
A. ₦10,000
Correct B. ₦12,000
C. ₦15,000
D. ₦18,000

Correct Answer: B

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Question 8
A company issues 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures and the total amount of debenture capital.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 9
A company's trading account for the year shows a profit of ₦150,000. The company's profit and loss account shows a profit of ₦180,000. Calculate the company's net profit for the year.
A. ₦150,000
B. ₦180,000
Correct C. ₦220,000
D. ₦250,000

Correct Answer: C

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Question 10
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. Calculate the company's net worth.
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 11
In a double-entry system, what is the purpose of the debit and credit columns in the ledger account?
A. To record the increase in assets
B. To record the decrease in liabilities
Correct C. To record the increase in liabilities and decrease in assets
D. To record the decrease in assets and increase in liabilities

Correct Answer: C

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Question 12
A company has the following transactions: Purchased office supplies for ₦10,000, and paid salaries of ₦20,000. Prepare the journal entry for these transactions.
Correct A. Debit Office Supplies ₦10,000, Credit Salaries ₦20,000
B. Debit Salaries ₦20,000, Credit Office Supplies ₦10,000
C. Debit Office Supplies ₦20,000, Credit Salaries ₦10,000
D. Debit Salaries ₦10,000, Credit Office Supplies ₦20,000

Correct Answer: A

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Question 13
A government agency has the following transactions: Received a grant of ₦50,000, and paid salaries of ₦30,000. Prepare the journal entry for these transactions.
Correct A. Debit Salaries ₦30,000, Credit Grant ₦50,000
B. Debit Grant ₦50,000, Credit Salaries ₦30,000
C. Debit Salaries ₦50,000, Credit Grant ₦30,000
D. Debit Grant ₦30,000, Credit Salaries ₦50,000

Correct Answer: A

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Question 14
A company has the following transactions: Purchased a machine for ₦100,000, and paid salaries of ₦20,000. Prepare the journal entry for these transactions.
Correct A. Debit Machine ₦100,000, Credit Salaries ₦20,000
B. Debit Salaries ₦20,000, Credit Machine ₦100,000
C. Debit Machine ₦20,000, Credit Salaries ₦100,000
D. Debit Salaries ₦100,000, Credit Machine ₦20,000

Correct Answer: A

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Question 15
A company has the following transactions: Sold goods for ₦50,000, and purchased office supplies for ₦10,000. Prepare the journal entry for these transactions.
Correct A. Debit Office Supplies ₦10,000, Credit Sales ₦50,000
B. Debit Sales ₦50,000, Credit Office Supplies ₦10,000
C. Debit Office Supplies ₦50,000, Credit Sales ₦10,000
D. Debit Sales ₦10,000, Credit Office Supplies ₦50,000

Correct Answer: A

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Question 16
A company uses the weighted average method to value its inventory. The following data is available for the year ended December 31, 2022:
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 17
A company has the following transactions related to its manufacturing department:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 18
A company uses the straight-line method to depreciate its assets. The following data is available for the year ended December 31, 2022:
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 19
A company has the following transactions related to its control account:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 20
A company uses the perpetual inventory system. The following data is available for the year ended December 31, 2022:
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 21
In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' function?
A. To ensure that all transactions are recorded in the general ledger
Correct B. To provide a framework for managing and controlling public sector finances
C. To prepare financial statements for the public sector
D. To conduct audits of public sector entities

Correct Answer: B

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Question 22
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
A. ₦60,000
Correct B. ₦72,000
C. ₦90,000
D. ₦108,000

Correct Answer: B

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Question 23
A company maintains a cash book that records all cash transactions. If the cash book balance is ₦50,000 and the bank statement balance is ₦60,000, what is the amount of the bank reconciliation difference?
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 24
What is the primary difference between a 'ledger' and a 'journal' in accounting?
Correct A. A ledger is a permanent record, while a journal is a temporary record
B. A ledger is a temporary record, while a journal is a permanent record
C. A ledger is used for cash transactions, while a journal is used for non-cash transactions
D. A ledger is used for non-cash transactions, while a journal is used for cash transactions

Correct Answer: A

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Question 25
A company uses the double-entry system of accounting. If a customer pays ₦10,000 cash for a product, what is the effect on the accounting equation?
A. Assets increase by ₦10,000, and liabilities decrease by ₦10,000
B. Assets decrease by ₦10,000, and liabilities increase by ₦10,000
Correct C. Assets increase by ₦10,000, and equity increases by ₦10,000
D. Assets decrease by ₦10,000, and equity decreases by ₦10,000

Correct Answer: C

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