POST UTME RHEMA UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 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. ₦0,500
B. ₦1,000
Correct C. ₦1,050
D. ₦1,500

Correct Answer: C

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Question 2
A trader's cash book showed a balance of ₦0,000. However, the bank statement showed a balance of ₦0,500. The bank statement included a credit of ₦0,200 for a dishonored cheque. Calculate the correct balance of the trader's cash book.
A. ₦0,000
B. ₦0,200
Correct C. ₦0,500
D. ₦1,000

Correct Answer: C

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Question 3
A company's trading account for the year showed a profit of ₦0,000. The company's profit and loss account showed a net profit of ₦0,500. Calculate the company's net profit.
A. ₦0,000
Correct B. ₦0,500
C. ₦1,000
D. ₦1,500

Correct Answer: B

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Question 4
A company issued 5,000 shares of ₦1 each at a premium of ₦0.25 per share. Calculate the total amount received from the issue of shares.
A. ₠,625
B. ₡,000
Correct C. ₡,125
D. ₡,250

Correct Answer: C

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Question 5
A company's balance sheet showed a total assets of ₡0,000,000 and total liabilities of ₥,000,000. Calculate the company's net worth.
A. ₥,000,000
Correct B. ₦,000,000
C. ₧,000,000
D. ₨,000,000

Correct Answer: B

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Question 6
A company manufactures two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 200 units of product X and 150 units of product Y, what is the total labor cost for the day?
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 7
A company uses a job costing system. The following data are available for Job No. 123: Direct Materials: ₦15,000; Direct Labor: ₦8,000; Overhead: ₦12,000. What is the total cost of Job No. 123?
A. ₦35,000
B. ₦40,000
Correct C. ₦45,000
D. ₦50,000

Correct Answer: C

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Question 8
A company uses a process costing system. The following data are available for the month: Beginning Work-in-Process Inventory: ₦50,000; Direct Materials: ₦120,000; Direct Labor: ₦80,000; Overhead: ₦60,000. What is the total cost of goods manufactured for the month?
A. ₦310,000
B. ₦320,000
Correct C. ₦330,000
D. ₦340,000

Correct Answer: C

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Question 9
A company uses a perpetual inventory system. The following data are available for the month: Beginning Inventory: 100 units; Purchases: 500 units; Sales: 300 units. What is the ending inventory?
A. 200 units
Correct B. 250 units
C. 300 units
D. 350 units

Correct Answer: B

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Question 10
A company uses a single-entry system. The following data are available for the month: Cash: ₦100,000; Accounts Payable: ₦50,000; Sales: ₦200,000. What is the net income for the month?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 11
A company's manufacturing overheads are allocated to production departments using the following formula: Manufacturing Overheads = (Direct Labour Hours x Factory Wage Rate) + (Machine Hours x Machine Rate). If the company's direct labour hours are 1000, factory wage rate is ₦120 per hour, machine hours are 800, and machine rate is ₦80 per hour, calculate the manufacturing overheads.
A. ₦144,000
Correct B. ₦160,000
C. ₦176,000
D. ₦192,000

Correct Answer: B

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Question 12
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 13
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,500,000; Capital: ₦1,000,000. Calculate the ratio of capital to liabilities.
A. 1:1
B. 1:2
Correct C. 2:1
D. 3:1

Correct Answer: C

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Question 14
A company uses the following formula to calculate its manufacturing overheads: Manufacturing Overheads = (Direct Labour Hours x Factory Wage Rate) + (Machine Hours x Machine Rate). If the company's direct labour hours are 1000, factory wage rate is ₦120 per hour, machine hours are 800, and machine rate is ₦80 per hour, calculate the manufacturing overheads.
A. ₦144,000
Correct B. ₦160,000
C. ₦176,000
D. ₦192,000

Correct Answer: B

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Question 15
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 16
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,500,000; Capital: ₦1,000,000. Calculate the ratio of capital to liabilities.
A. 1:1
B. 1:2
Correct C. 2:1
D. 3:1

Correct Answer: C

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Question 17
A company uses the following formula to calculate its manufacturing overheads: Manufacturing Overheads = (Direct Labour Hours x Factory Wage Rate) + (Machine Hours x Machine Rate). If the company's direct labour hours are 1000, factory wage rate is ₦120 per hour, machine hours are 800, and machine rate is ₦80 per hour, calculate the manufacturing overheads.
A. ₦144,000
Correct B. ₦160,000
C. ₦176,000
D. ₦192,000

Correct Answer: B

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Question 18
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 19
A public sector organization has the following transactions: Purchases office equipment for ₦150,000 cash. Pays ₦20,000 to a supplier for goods received in the previous month. Pays ₦30,000 to an employee as salary. Pays ₦15,000 to a creditor for services rendered in the previous month. What is the total amount of cash paid out by the organization?
Correct A. ₦65,000
B. ₦75,000
C. ₦85,000
D. ₦95,000

Correct Answer: A

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Question 20
A partnership has the following capital accounts: Partners A and B each contribute ₦50,000 to the partnership. Partners C and D each contribute ₦30,000 to the partnership. The partnership has a profit of ₦20,000. What is the total amount of profit to be distributed to the partners?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 21
A company uses the double-entry system of accounting. The following transactions occur: Purchases office equipment for ₦100,000 cash. Pays ₦20,000 to a supplier for goods received in the previous month. Pays ₦30,000 to an employee as salary. What is the total amount of assets acquired by the company?
Correct A. ₦150,000
B. ₦170,000
C. ₦190,000
D. ₦210,000

Correct Answer: A

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Question 22
A company uses the single-entry system of accounting. The following transactions occur: Purchases office equipment for ₦150,000 cash. Pays ₦20,000 to a supplier for goods received in the previous month. Pays ₦30,000 to an employee as salary. What is the total amount of assets acquired by the company?
Correct A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: A

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Question 23
A company uses the straight-line method of depreciation. The asset has a cost of ₦100,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 24
The following trial balance of XYZ Ltd. was prepared at 31st December 2020. Prepare the Balance Sheet as at 31st December 2020.
A. ₦10,000,000
Correct B. ₦15,000,000
C. ₦20,000,000
D. ₦25,000,000

Correct Answer: B

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Question 25
The following are the Balance Sheet of ABC Ltd. as at 31st December 2020. Prepare the Trading and Profit and Loss Account for the year ended 31st December 2020.
A. ₦10,000,000
Correct B. ₦15,000,000
C. ₦20,000,000
D. ₦25,000,000

Correct Answer: B

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