POST UTME RHEMA UNIVERSITY 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 shares of ₦ 10 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 50,000
B. ₦ 100,000
Correct C. ₦ 150,000
D. ₦ 200,000

Correct Answer: C

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Question 2
A company's assets are valued at ₦ 1,000,000. If the company's liabilities are ₦ 300,000, what is the company's net worth?
A. ₦ 200,000
B. ₦ 400,000
Correct C. ₦ 700,000
D. ₦ 1,000,000

Correct Answer: C

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Question 3
A company purchased a machine for ₦ 50,000. If the machine is depreciated at 10% per annum, what is the value of the machine after 3 years?
A. ₦ 30,000
B. ₦ 35,000
Correct C. ₦ 40,000
D. ₦ 45,000

Correct Answer: C

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Question 4
A company issued 10,000 debentures of ₦ 100 each at 6% interest. Calculate the total interest payable on the debentures after 2 years.
A. ₦ 12,000
B. ₦ 15,000
Correct C. ₦ 18,000
D. ₦ 20,000

Correct Answer: C

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Question 5
A company's profit for the year is ₦ 200,000. If the company's tax rate is 25%, what is the company's net profit?
A. ₦ 150,000
Correct B. ₦ 175,000
C. ₦ 200,000
D. ₦ 225,000

Correct Answer: B

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Question 6
In a double-entry system, what is the purpose of the Trial Balance?
Correct A. To verify the accuracy of the ledger accounts
B. To identify any errors in the ledger accounts
C. To prepare the financial statements
D. To calculate the net worth of the business

Correct Answer: A

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Question 7
A company purchases a machine for ₦120,000 and pays ₦30,000 in cash and the balance by a 3-year loan at 10% interest per annum. What is the amount of interest paid annually?
A. ₦3,000
Correct B. ₦3,500
C. ₦4,000
D. ₦4,500

Correct Answer: B

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Question 8
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
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 9
A company has a cash book balance of ₦50,000 and a bank statement balance of ₦60,000. What is the difference between the two balances?
A. ₦5,000
B. ₦10,000
C. ₦15,000
Correct D. ₦20,000

Correct Answer: D

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Question 10
A company purchases a machine for ₦120,000 and pays ₦30,000 in cash and the balance by a 3-year loan at 10% interest per annum. What is the amount of interest paid annually?
A. ₦3,000
Correct B. ₦3,500
C. ₦4,000
D. ₦4,500

Correct Answer: B

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Question 11
The following trial balance was extracted from the books of a government ministry. Prepare the ledger accounts for the assets and liabilities.
A. Assets: Cash = ₦100,000, Bank = ₦200,000, Prepaid Rent = ₦50,000; Liabilities: Accrued Expenses = ₦20,000, Unearned Revenue = ₦30,000
B. Assets: Cash = ₦100,000, Bank = ₦200,000, Prepaid Rent = ₦50,000; Liabilities: Accrued Expenses = ₦30,000, Unearned Revenue = ₦20,000
Correct C. Assets: Cash = ₦100,000, Bank = ₦200,000, Prepaid Rent = ₦50,000; Liabilities: Accrued Expenses = ₦20,000, Unearned Revenue = ₦30,000
D. Assets: Cash = ₦100,000, Bank = ₦200,000, Prepaid Rent = ₦50,000; Liabilities: Accrued Expenses = ₦30,000, Unearned Revenue = ₦20,000

Correct Answer: C

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Question 12
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦20,000, what is the annual depreciation charge if the asset's cost is ₦150,000?
A. ₦25,000
Correct B. ₦30,000
C. ₦20,000
D. ₦15,000

Correct Answer: B

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Question 13
A bank reconciles its cash book with its bank statement. The cash book shows a balance of ₦100,000, while the bank statement shows a balance of ₦120,000. The bank statement includes a credit of ₦10,000 for interest earned and a debit of ₦5,000 for bank charges. What is the correct balance per the bank statement?
A. ₦115,000
B. ₦120,000
Correct C. ₦125,000
D. ₦130,000

Correct Answer: C

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Question 14
A company's trial balance shows the following accounts: Cash = ₦50,000, Accounts Payable = ₦20,000, Sales Revenue = ₦100,000, Cost of Goods Sold = ₦80,000. Prepare the company's income statement.
Correct A. Revenue = ₦100,000, Cost of Goods Sold = ₦80,000, Gross Profit = ₦20,000, Net Income = ₦10,000
B. Revenue = ₦100,000, Cost of Goods Sold = ₦80,000, Gross Profit = ₦20,000, Net Income = ₦15,000
C. Revenue = ₦100,000, Cost of Goods Sold = ₦80,000, Gross Profit = ₦20,000, Net Income = ₦10,000
D. Revenue = ₦100,000, Cost of Goods Sold = ₦80,000, Gross Profit = ₦20,000, Net Income = ₦5,000

Correct Answer: A

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Question 15
A company uses the perpetual inventory system. If the company purchases 100 units of inventory at ₦50 each and sells 50 units at ₦75 each, what is the cost of goods sold?
A. ₦2,500
Correct B. ₦3,750
C. ₦4,000
D. ₦5,000

Correct Answer: B

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Question 16
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦95,000
B. ₦99,000
C. ₦100,000
Correct D. ₦105,000

Correct Answer: D

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Question 17
A trader purchases goods worth ₦50,000 and sells them at a profit of 25%. Calculate the selling price.
Correct A. ₦62,500
B. ₦62,500
C. ₦62,500
D. ₦62,500

Correct Answer: A

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Question 18
A company's cash book shows a balance of ₦20,000. The bank statement shows a balance of ₦25,000. The difference is due to an unrecorded debit of ₦3,000. Calculate the cash balance as per the cash book.
Correct A. ₦23,000
B. ₦23,000
C. ₦23,000
D. ₦23,000

Correct Answer: A

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Question 19
A company issues 1,000, 10% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.
Correct A. ₦1,020,000
B. ₦1,020,000
C. ₦1,020,000
D. ₦1,020,000

Correct Answer: A

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Question 20
A company's cash book shows a balance of ₦30,000. The bank statement shows a balance of ₦35,000. The difference is due to an unrecorded credit of ₦2,000. Calculate the cash balance as per the cash book.
Correct A. ₦32,000
B. ₦32,000
C. ₦32,000
D. ₦32,000

Correct Answer: A

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Question 21
A company issues 1,000, 10% debentures of ₦100 each at a premium of ₦5. Calculate the amount received from the debenture holders.
Correct A. ₦105,000
B. ₦105,000
C. ₦105,000
D. ₦105,000

Correct Answer: A

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Question 22
A company's cash book shows a balance of ₦25,000. The bank statement shows a balance of ₦30,000. The difference is due to an unrecorded debit of ₦3,000. Calculate the cash balance as per the cash book.
Correct A. ₦28,000
B. ₦28,000
C. ₦28,000
D. ₦28,000

Correct Answer: A

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Question 23
A company issues 1,000, 10% shares of ₦10 each at a discount of ₦2. Calculate the amount received from the shareholders.
Correct A. ₦8,000
B. ₦8,000
C. ₦8,000
D. ₦8,000

Correct Answer: A

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Question 24
A company's cash book shows a balance of ₦20,000. The bank statement shows a balance of ₦25,000. The difference is due to an unrecorded credit of ₦2,000. Calculate the cash balance as per the cash book.
Correct A. ₦22,000
B. ₦22,000
C. ₦22,000
D. ₦22,000

Correct Answer: A

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Question 25
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders and the amount of discount.
Correct A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

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