POST UTME RHEMA UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A partnership is formed by three individuals, A, B, and C, with initial capital contributions of ₦50,000, ₦30,000, and ₦20,000 respectively. After one year, the partnership makes a profit of ₦120,000. The profit is divided in the ratio of 3:2:1. Calculate the amount of profit shared by partner C.
A. ₦20,000
B. ₦24,000
Correct C. ₦28,000
D. ₦32,000

Correct Answer: C

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Question 2
A company uses the cash book to record its transactions. The cash book shows a debit balance of ₦50,000. However, the company's bank statement shows a credit balance of ₦60,000. What is the reason for the discrepancy?
A. The company has made a mistake in recording its transactions.
B. The bank has made an error in preparing the statement.
Correct C. The company has a suspense account.
D. The company has a bank overdraft.

Correct Answer: C

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Question 3
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦1,000,000 in taxes and pays ₦800,000 to the government. What is the amount of taxes retained by the agency?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 4
A company prepares a statement of financial position as at 31st December, 2022. The statement shows total assets of ₦500,000 and total liabilities of ₦300,000. What is the amount of equity?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 5
A company uses the single entry system to record its transactions. The company's cash book shows a debit balance of ₦50,000. However, the company's ledger shows a credit balance of ₦60,000. What is the reason for the discrepancy?
A. The company has made a mistake in recording its transactions.
Correct B. The company has a suspense account.
C. The company has a bank overdraft.
D. The company has a loan.

Correct Answer: B

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Question 6
A company issued 5,000 shares of ₥ 10 each at a premium of ₥ 5 per share. Calculate the total amount received from the issue of shares.
A. ₥ 50,000
B. ₥ 250,000
Correct C. ₥ 300,000
D. ₥ 400,000

Correct Answer: C

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Question 7
A manufacturing company uses a job costing system. The following data are extracted from the company's records for a particular job: Direct Materials: ₥ 10,000 Direct Labour: ₥ 20,000 Overheads: ₥ 30,000 Total Cost: ₥ 60,000 Calculate the percentage of total cost that represents the direct labour cost.
A. 50%
Correct B. 33.33%
C. 25%
D. 20%

Correct Answer: B

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Question 8
A company has the following balances in its ledger: Debtors: ₥ 50,000 Creditors: ₥ 30,000 Cash: ₥ 20,000 Calculate the company's net current assets.
Correct A. ₥ 40,000
B. ₥ 50,000
C. ₥ 60,000
D. ₥ 70,000

Correct Answer: A

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Question 9
A company issued 10,000 shares of ₥ 10 each at a premium of ₥ 2 per share. Calculate the total amount received from the issue of shares.
A. ₥ 200,000
Correct B. ₥ 220,000
C. ₥ 240,000
D. ₥ 260,000

Correct Answer: B

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Question 10
A company has the following balances in its ledger: Debtors: ₥ 70,000 Creditors: ₥ 40,000 Cash: ₥ 30,000 Calculate the company's net current assets.
A. ₥ 60,000
Correct B. ₥ 70,000
C. ₥ 80,000
D. ₥ 90,000

Correct Answer: B

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Question 11
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a perpetual inventory system, what is the cost of goods sold?
A. ₦300,000
Correct B. ₦600,000
C. ₦900,000
D. ₦1,200,000

Correct Answer: B

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Question 12
A manufacturing company uses a job order costing system. The company has two departments: Cutting and Assembly. The Cutting department has a beginning balance of ₦50,000 in Work in Process (WIP) and adds ₦200,000 in direct materials and ₦150,000 in direct labor during the period. The Assembly department has a beginning balance of ₦30,000 in WIP and adds ₦100,000 in direct materials and ₦80,000 in direct labor during the period. What is the total cost of goods manufactured?
A. ₦430,000
B. ₦470,000
Correct C. ₦510,000
D. ₦550,000

Correct Answer: C

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Question 13
A government agency uses the accrual basis of accounting. During the year, the agency receives ₦1,000,000 in cash and earns revenue of ₦1,500,000. The agency also incurs expenses of ₦800,000 and pays cash of ₦600,000. What is the net increase in cash?
A. ₦0
B. ₦100,000
C. ₦200,000
Correct D. ₦300,000

Correct Answer: D

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Question 14
A company uses the straight-line method to depreciate its assets. The company purchases a machine for ₦500,000 and estimates its useful life to be 5 years. What is the annual depreciation expense?
A. ₦100,000
Correct B. ₦125,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 15
A company uses the lower of cost or net realizable value (LCNRV) method to value its inventory. The cost of goods available for sale is ₦1,000,000, and the net realizable value of the ending inventory is ₦900,000. What is the cost of goods sold?
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

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Question 16
A company's cash book shows a balance of ₦150,000, but the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. The company's accountant has identified the following transactions that may have caused the discrepancy: Transaction 1: A customer paid ₦20,000 by cheque, but the cheque was not deposited into the bank. Transaction 2: The company paid ₦15,000 to a supplier by cash, but the payment was not recorded in the cash book. Transaction 3: The company received ₦30,000 from a customer by bank transfer, but the transfer was not recorded in the cash book. Transaction 4: The company paid ₦25,000 to an employee by cheque, but the cheque was not deposited into the bank. Which of the following transactions is most likely to have caused the discrepancy in the cash book?
Correct A. Transaction 1
B. Transaction 2
C. Transaction 3
D. Transaction 4

Correct Answer: A

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Question 17
A partnership has two partners, A and B. The partnership agreement states that profits will be shared in the ratio 3:2. The partnership's profit for the year is ₦150,000. How much will partner A receive?
Correct A. ₦90,000
B. ₦120,000
C. ₦135,000
D. ₦150,000

Correct Answer: A

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Question 18
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. The company uses the straight-line method of depreciation. What is the annual depreciation charge?
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

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Question 19
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. The company's balance sheet shows a total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's net worth?
A. ₦700,000
B. ₦800,000
Correct C. ₦900,000
D. ₦1,000,000

Correct Answer: C

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Question 20
A company's bank reconciliation statement shows a difference of ₦20,000 between the cash book balance and the bank statement balance. The company's accountant has identified the following transactions that may have caused the difference: Transaction 1: A customer paid ₦10,000 by cheque, but the cheque was not deposited into the bank. Transaction 2: The company paid ₦15,000 to a supplier by cash, but the payment was not recorded in the cash book. Transaction 3: The company received ₦25,000 from a customer by bank transfer, but the transfer was not recorded in the cash book. Transaction 4: The company paid ₦20,000 to an employee by cheque, but the cheque was not deposited into the bank. Which of the following transactions is most likely to have caused the difference in the bank reconciliation statement?
A. Transaction 1
B. Transaction 2
C. Transaction 3
Correct D. Transaction 4

Correct Answer: D

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Question 21
A company's cash book shows a balance of ₦150,000, but the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. The company's accountant has identified the following transactions that may have caused the discrepancy: Transaction 1: A customer paid ₦20,000 by cheque, but the cheque was not deposited into the bank. Transaction 2: The company paid ₦15,000 to a supplier by cash, but the payment was not recorded in the cash book. Transaction 3: The company received ₦30,000 from a customer by bank transfer, but the transfer was not recorded in the cash book. Transaction 4: The company paid ₦25,000 to an employee by cheque, but the cheque was not deposited into the bank. Which of the following transactions is most likely to have caused the discrepancy in the cash book?
Correct A. Transaction 1
B. Transaction 2
C. Transaction 3
D. Transaction 4

Correct Answer: A

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Question 22
A partnership has two partners, A and B. The partnership agreement states that profits will be shared in the ratio 3:2. The partnership's profit for the year is ₦150,000. How much will partner A receive?
Correct A. ₦90,000
B. ₦120,000
C. ₦135,000
D. ₦150,000

Correct Answer: A

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Question 23
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. ₦1,000
Correct B. ₦1,050
C. ₦1,050,000
D. ₦1,050,000

Correct Answer: B

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Question 24
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials ₦0,000, Direct Labour ₦0,000, Overheads ₦0,000. Calculate the total cost of production for the month.
Correct A. ₡20,000
B. ₡20,000
C. ₡20,000
D. ₡20,000

Correct Answer: A

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Question 25
A company's trading account for the year ended 31st December 2021 is as follows: Sales ₦1,000,000, Cost of Goods Sold ₥0,000,000, Gross Profit ₥1,000,000. Calculate the company's net profit for the year.
Correct A. ₥1,000,000
B. ₥1,000,000
C. ₥1,000,000
D. ₥1,000,000

Correct Answer: A

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