POST UTME OAU 2018 Accounting | Objective

Are you preparing for POST UTME OAU 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.

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Question 1
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product on hand at a cost of ₦100 per unit. During the year, 300 units were sold, and 200 units were purchased at ₦120 per unit. The company uses the weighted average method to value its inventory. What is the total cost of goods sold for the year?
A. ₦30,000
Correct B. ₦32,000
C. ₦35,000
D. ₦38,000

Correct Answer: B

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Question 2
A company's trial balance as of December 31, 2022, is as follows: Debit Cash: ₦100,000 Accounts Payable: ₦50,000 Sales Revenue: ₦200,000 Cost of Goods Sold: ₦150,000 Credit Accounts Receivable: ₦70,000 Common Stock: ₦150,000 Salaries Expense: ₦30,000 Rent Expense: ₦20,000 What is the net income for the year?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 3
A company has the following transactions related to its manufacturing operations: 1. Purchased raw materials for ₦100,000. 2. Incurred direct labor costs of ₦50,000. 3. Incurred indirect labor costs of ₦20,000. 4. Incurred factory overhead of ₦30,000. 5. Sold 1,000 units of product at ₦50 per unit. What is the total cost of goods sold for the year?
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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Question 4
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a cost of ₦100,000, what is the annual depreciation expense?
A. ₦10,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 5
A company has the following balance sheet as of December 31, 2022: Assets: Cash: ₦100,000 Accounts Receivable: ₦70,000 Inventory: ₦150,000 Property, Plant, and Equipment: ₦500,000 Total Assets: ₦1,120,000 Liabilities: Accounts Payable: ₦50,000 Salaries Payable: ₦30,000 Total Liabilities: ₦80,000 What is the total equity of the company?
A. ₦1,040,000
B. ₦1,050,000
Correct C. ₦1,060,000
D. ₦1,070,000

Correct Answer: C

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Question 6
A company uses the single-entry system of accounting. The following transactions were recorded in the cash book for the month of January:
A. ₦12,000
Correct B. ₦15,000
C. ₦18,000
D. ₦20,000

Correct Answer: B

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Question 7
The following is a partial extract from the cash book of XYZ Limited:
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 8
The following is a partial extract from the cash book of ABC Limited:
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 9
The following is a partial extract from the cash book of DEF Limited:
A. ₦100,000
B. ₦120,000
Correct C. ₦140,000
D. ₦160,000

Correct Answer: C

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Question 10
The following is a partial extract from the cash book of GHI Limited:
A. ₦200,000
B. ₦220,000
C. ₦240,000
Correct D. ₦260,000

Correct Answer: D

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Question 11
A company's accounting records show that its total assets increased by ₦1,500,000 and its total liabilities increased by ₦800,000 during the year. If the company's net income for the year was ₦1,200,000, what was the increase in its equity?
Correct A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 12
A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance of ₦10,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment', what is the correct journal entry to record the transfer of ₦10,000 from 'Office Supplies' to 'Office Equipment'?
Correct A. Debit Office Supplies ₦10,000, Credit Office Equipment ₦10,000
B. Debit Office Supplies ₦20,000, Credit Office Equipment ₦10,000
C. Debit Office Supplies ₦10,000, Credit Office Equipment ₦20,000
D. Debit Office Supplies ₦10,000, Credit Office Equipment ₦30,000

Correct Answer: A

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Question 13
A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Expense' and a credit balance of ₦60,000 in the account 'Rent Payable'. What is the correct journal entry to record the payment of ₦50,000 to the landlord?
A. Debit Rent Expense ₦50,000, Credit Cash ₦50,000
Correct B. Debit Rent Payable ₦50,000, Credit Cash ₦50,000
C. Debit Rent Expense ₦50,000, Credit Rent Payable ₦50,000
D. Debit Rent Expense ₦50,000, Credit Cash ₦60,000

Correct Answer: B

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Question 14
A company uses the single-entry system of accounting. If the company's cash account shows a balance of ₦100,000 and the company purchases office supplies worth ₦20,000, what is the correct journal entry?
A. Debit Office Supplies ₦20,000, Credit Cash ₦20,000
B. Debit Office Supplies ₦20,000, Credit Accounts Payable ₦20,000
Correct C. Debit Cash ₦20,000, Credit Office Supplies ₦20,000
D. Debit Office Supplies ₦20,000, Credit Accounts Receivable ₦20,000

Correct Answer: C

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Question 15
A company's accounting records show that its total assets increased by ₦500,000 and its total liabilities increased by ₦200,000 during the year. If the company's net income for the year was ₦300,000, what was the increase in its equity?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 16
A company purchases a machine for ₦1,500,000. The machine has an expected useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 17
A trader purchases goods for ₦200,000 and sells them for ₦250,000. Calculate the gross profit.
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 18
A company issues 10,000 shares of ₦1 each at a premium of ₦2 per share. Calculate the total amount received.
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 19
A company purchases a building for ₦5,000,000 and depreciates it using the straight-line method over 10 years. Calculate the annual depreciation.
Correct A. ₦500,000
B. ₦450,000
C. ₦400,000
D. ₦350,000

Correct Answer: A

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Question 20
A company issues 5,000 debentures of ₦100 each at a premium of ₦5 per debenture. Calculate the total amount received.
A. ₦500,000
B. ₦525,000
Correct C. ₦550,000
D. ₦575,000

Correct Answer: C

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Question 21
In a public sector accounting system, what is the primary purpose of the 'Statement of Changes in Equity'?
A. To report the net income or loss of the entity
Correct B. To disclose the changes in equity during the period
C. To present the financial position of the entity at the end of the period
D. To reconcile the opening and closing balances of the equity accounts

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 A receive as their share of the profit?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 23
What is the main difference between a sole proprietorship and a partnership?
Correct A. A sole proprietorship is a business owned by one person, while a partnership is owned by two or more people
B. A sole proprietorship is a business owned by two or more people, while a partnership is owned by one person
C. A sole proprietorship is a business that is registered with the government, while a partnership is not
D. A sole proprietorship is a business that is not registered with the government, while a partnership is

Correct Answer: A

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Question 24
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the issue price is ₦15 per share, what is the total amount received from the issue of shares?
A. ₦15,000
B. ₦16,000
C. ₦17,000
Correct D. ₦18,000

Correct Answer: D

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Question 25
A company has a debenture issue of ₦100,000 at 10% interest per annum. If the debentures are redeemable after 5 years, what is the total interest payable on the debentures?
A. ₦5,000
B. ₦10,000
C. ₦15,000
Correct D. ₦20,000

Correct Answer: D

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