POST UTME OAU 2019 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 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the straight-line method of depreciation. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦25,000

Correct Answer: A

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, and Retained Earnings ₦20,000. What is the total amount of assets?
Correct A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: A

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Question 3
A company has the following transactions: Purchased office supplies on account for ₦10,000, Sold merchandise for ₦50,000 cash, and Purchased a building for ₦200,000 cash. What is the total amount of assets?
Correct A. ₦250,000
B. ₦260,000
C. ₦270,000
D. ₦280,000

Correct Answer: A

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Question 4
A company uses the weighted average method to value its inventory. If the inventory consists of 100 units of item A at ₦10 each and 50 units of item B at ₦20 each, what is the total value of inventory?
A. ₦1,500
Correct B. ₦1,800
C. ₦2,000
D. ₦2,500

Correct Answer: B

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Question 5
A company has the following transactions: Purchased office supplies on account for ₦10,000, Sold merchandise for ₦50,000 cash, and Purchased a building for ₦200,000 cash. What is the total amount of assets?
Correct A. ₦250,000
B. ₦260,000
C. ₦270,000
D. ₦280,000

Correct Answer: A

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Question 6
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 100,000, Cost of Goods Sold ₦ 80,000, and Common Stock ₦ 200,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦ 80,000, Credit Sales Revenue ₦ 100,000
B. Debit Sales Revenue ₦ 80,000, Credit Cost of Goods Sold ₦ 80,000
Correct C. Debit Accounts Payable ₦ 80,000, Credit Sales Revenue ₦ 80,000
D. Debit Sales Revenue ₦ 100,000, Credit Cost of Goods Sold ₦ 80,000

Correct Answer: C

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Question 7
A company's trial balance shows the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 100,000, Cost of Goods Sold ₦ 80,000, and Common Stock ₦ 200,000. What is the correct journal entry to record the purchase of goods on credit from a supplier?
A. Debit Accounts Payable ₦ 80,000, Credit Purchases ₦ 80,000
Correct B. Debit Purchases ₦ 80,000, Credit Accounts Payable ₦ 80,000
C. Debit Purchases ₦ 80,000, Credit Cash ₦ 80,000
D. Debit Accounts Payable ₦ 80,000, Credit Purchases ₦ 80,000

Correct Answer: B

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Question 8
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 100,000, Cost of Goods Sold ₦ 80,000, and Common Stock ₦ 200,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦ 80,000, Credit Sales Revenue ₦ 100,000
B. Debit Sales Revenue ₦ 80,000, Credit Cost of Goods Sold ₦ 80,000
Correct C. Debit Accounts Payable ₦ 80,000, Credit Sales Revenue ₦ 80,000
D. Debit Sales Revenue ₦ 100,000, Credit Cost of Goods Sold ₦ 80,000

Correct Answer: C

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Question 9
A company's trial balance shows the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 100,000, Cost of Goods Sold ₦ 80,000, and Common Stock ₦ 200,000. What is the correct journal entry to record the purchase of goods on credit from a supplier?
A. Debit Accounts Payable ₦ 80,000, Credit Purchases ₦ 80,000
Correct B. Debit Purchases ₦ 80,000, Credit Accounts Payable ₦ 80,000
C. Debit Purchases ₦ 80,000, Credit Cash ₦ 80,000
D. Debit Accounts Payable ₦ 80,000, Credit Purchases ₦ 80,000

Correct Answer: B

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Question 10
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 100,000, Cost of Goods Sold ₦ 80,000, and Common Stock ₦ 200,000. What is the correct journal entry to record the sale of goods on credit to a customer?
A. Debit Accounts Payable ₦ 80,000, Credit Sales Revenue ₦ 100,000
B. Debit Sales Revenue ₦ 80,000, Credit Cost of Goods Sold ₦ 80,000
Correct C. Debit Accounts Payable ₦ 80,000, Credit Sales Revenue ₦ 80,000
D. Debit Sales Revenue ₦ 100,000, Credit Cost of Goods Sold ₦ 80,000

Correct Answer: C

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Question 11
A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦150,000. The difference between the two balances is ₦30,000. What is the reason for this difference?
Correct A. The company has a loan from the bank.
B. The company has a credit balance in its cash book.
C. The company has a debit balance in its bank statement.
D. The company has a difference in exchange rates.

Correct Answer: A

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Question 12
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash outflows?
Correct A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 13
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash inflows?
A. ₦100,000
B. ₦80,000
C. ₦70,000
Correct D. ₦60,000

Correct Answer: D

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Question 14
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash outflows?
Correct A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 15
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash inflows?
A. ₦100,000
B. ₦80,000
C. ₦70,000
Correct D. ₦60,000

Correct Answer: D

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Question 16
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash outflows?
Correct A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 17
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash inflows?
A. ₦100,000
B. ₦80,000
C. ₦70,000
Correct D. ₦60,000

Correct Answer: D

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Question 18
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash outflows?
Correct A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 19
A company has the following transactions: Purchased office equipment for ₦50,000, purchased office supplies for ₦20,000, and paid salaries of ₦30,000. What is the total amount of cash inflows?
A. ₦100,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: VIEW ANSWER

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Question 20
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 21
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 22
A company uses the weighted average method to value its inventory. The following data is available: Beginning Inventory ₦150,000, Purchases ₦300,000, and Cost of Goods Sold ₦250,000. What is the company's ending inventory value?
A. ₦200,000
B. ₦220,000
Correct C. ₦250,000
D. ₦280,000

Correct Answer: C

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Question 23
A company's departmental accounts show the following balances: Manufacturing Department ₦500,000, Selling Department ₦300,000, and Administrative Department ₦200,000. What is the company's total departmental expenses?
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 24
A government agency's budget shows the following allocations: Personnel Expenses ₦500,000, Operating Expenses ₦300,000, and Capital Expenditures ₦200,000. What is the agency's total budget?
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 25
A company's financial statements show the following balances: Total Assets ₦1,500,000, Total Liabilities ₦800,000, and Total Equity ₦700,000. What is the company's return on equity?
A. 0.20
B. 0.25
Correct C. 0.30
D. 0.35

Correct Answer: C

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