POST UTME NOUN 2022 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 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 accounting records show that it has a cash balance of ₦150,000, but the bank statement shows a balance of ₦120,000. What is the most likely explanation for this discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank account.
C. The company has a debit balance in its bank account.
Correct D. The company's accounting records are incorrect.

Correct Answer: D

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Question 2
A government agency is required to prepare a statement of financial position as at 31st December, 2022. The agency has the following assets and liabilities: Assets: ₦100,000 cash, ₦50,000 accounts receivable, ₦20,000 property, plant and equipment. Liabilities: ₦30,000 accounts payable, ₦10,000 loans payable. What is the total amount of the agency's assets?
A. ₦120,000
B. ₦150,000
Correct C. ₦170,000
D. ₦200,000

Correct Answer: C

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Question 3
A company's accounting records show that it has a cash balance of ₦50,000, but the bank statement shows a balance of ₦40,000. What is the most likely explanation for this discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank account.
C. The company has a debit balance in its bank account.
Correct D. The company's accounting records are incorrect.

Correct Answer: D

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Question 4
A company's accounting records show that it has a cash balance of ₦80,000, but the bank statement shows a balance of ₦60,000. What is the most likely explanation for this discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank account.
C. The company has a debit balance in its bank account.
Correct D. The company's accounting records are incorrect.

Correct Answer: D

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Question 5
A company's accounting records show that it has a cash balance of ₦30,000, but the bank statement shows a balance of ₦20,000. What is the most likely explanation for this discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank account.
C. The company has a debit balance in its bank account.
Correct D. The company's accounting records are incorrect.

Correct Answer: D

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Question 6
A company's cash book shows a balance of ₦12,500. However, the bank statement shows a balance of ₦15,000. What is the reason for the discrepancy?
A. Bank charges
B. Interest earned
Correct C. Unrecorded cash transactions
D. Error in bank statement

Correct Answer: C

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Question 7
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
Correct B. ₦15,000
C. ₦12,000
D. ₦18,000

Correct Answer: B

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Question 8
A company's trading account shows a profit of ₦50,000. However, the profit and loss account shows a loss of ₦20,000. What is the reason for the discrepancy?
A. Error in trading account
B. Error in profit and loss account
Correct C. Unrecorded expenses
D. Unrecorded income

Correct Answer: C

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Question 9
A company's balance sheet shows a total asset value of ₦100,000. However, the total liability value is ₦80,000. What is the reason for the discrepancy?
A. Error in balance sheet
B. Error in accounting records
Correct C. Unrecorded assets
D. Unrecorded liabilities

Correct Answer: C

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Question 10
A company's cash book shows a balance of ₦15,000. However, the bank statement shows a balance of ₦20,000. What is the reason for the discrepancy?
A. Bank charges
B. Interest earned
Correct C. Unrecorded cash transactions
D. Error in bank statement

Correct Answer: C

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Question 11
A company uses the double-entry system to record its transactions. The company's trial balance shows a debit balance of ₦50,000 in the account 'Office Equipment' and a credit balance of ₦20,000 in the account 'Office Supplies'. What is the correct journal entry to record the transfer of ₦30,000 from Office Equipment to Office Supplies?
Correct A. Debit Office Equipment ₦30,000, Credit Office Supplies ₦30,000
B. Debit Office Supplies ₦30,000, Credit Office Equipment ₦30,000
C. Debit Office Equipment ₦30,000, Credit Cash ₦30,000
D. Debit Office Supplies ₦30,000, Credit Cash ₦30,000

Correct Answer: A

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Question 12
A public sector organization has the following transactions for the month of January:
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 13
A company's cash book shows the following transactions for the month of January:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 14
A company uses the self-balancing ledger system to record its transactions. The company's ledger shows a debit balance of ₦20,000 in the account 'Office Equipment' and a credit balance of ₦10,000 in the account 'Office Supplies'. What is the correct journal entry to record the transfer of ₦5,000 from Office Equipment to Office Supplies?
Correct A. Debit Office Equipment ₦5,000, Credit Office Supplies ₦5,000
B. Debit Office Supplies ₦5,000, Credit Office Equipment ₦5,000
C. Debit Office Equipment ₦5,000, Credit Cash ₦5,000
D. Debit Office Supplies ₦5,000, Credit Cash ₦5,000

Correct Answer: A

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Question 15
A public sector organization has the following transactions for the month of January:
A. ₦15,000
Correct B. ₦25,000
C. ₦35,000
D. ₦45,000

Correct Answer: B

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Question 16
A partnership is formed between two individuals, A and B, with a capital of ₦1,000,000 each. During the year, A withdraws ₦200,000 for personal use, while B invests an additional ₦300,000. The profit for the year is ₦500,000. Prepare the partnership's statement of profit or loss and the partners' capital accounts.
A. ₦1,200,000
Correct B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

Correct Answer: B

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Question 17
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The company pays interest annually. Calculate the amount of interest paid to debenture holders for the first year.
A. ₦10,000
Correct B. ₦11,000
C. ₦12,000
D. ₦13,000

Correct Answer: B

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Question 18
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
A. ₦180,000
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

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Question 19
A company's income statement for the year shows the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's statement of retained earnings.
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 20
A company's balance sheet shows the following: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦100,000. Prepare the company's statement of cash flows.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 21
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received' and a credit balance of ₦12,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. Debit Rent Paid by ₦2,000 and Credit Rent Received by ₦2,000
B. Debit Rent Paid by ₦12,000 and Credit Rent Received by ₦10,000
Correct C. Debit Rent Received by ₦2,000 and Credit Rent Paid by ₦2,000
D. Debit Rent Paid by ₦10,000 and Credit Rent Received by ₦12,000

Correct Answer: C

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Question 22
A partnership has two partners, A and B. The partnership's capital account shows a balance of ₦50,000. If A's capital account shows a balance of ₦20,000 and B's capital account shows a balance of ₦30,000, what is the correct ratio of A's and B's capital?
A. A:B = 2:3
Correct B. A:B = 3:2
C. A:B = 1:1
D. A:B = 4:3

Correct Answer: B

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Question 23
A company uses the straight-line method of depreciation. If the asset's cost is ₦100,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset is used for 5 years?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 24
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,500
Correct B. ₦11,000
C. ₦12,000
D. ₦13,000

Correct Answer: B

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Question 25
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the correct interpretation of the current ratio?
Correct A. The company has sufficient liquidity to meet its short-term obligations
B. The company has insufficient liquidity to meet its short-term obligations
C. The company has a high level of liquidity
D. The company has a low level of liquidity

Correct Answer: A

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