POST UTME RHEMA UNIVERSITY 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December 2023 showed a profit of ₦1,500,000. The balance on the capital account of the partners was ₦2,500,000. The balance on the drawings account was ₦300,000. The balance on the profit-sharing account was ₦1,200,000. The partners' capital was divided in the ratio 3:2:1. What was the amount of profit to be divided among the partners?
A. ₦900,000
Correct B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company uses the straight-line method of depreciation. A machine was purchased on 1st January 2022 for ₦500,000. The machine has a useful life of 5 years. What is the annual depreciation charge for the year ended 31st December 2023?
A. ₦100,000
B. ₦80,000
Correct C. ₦60,000
D. ₦40,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's balance sheet as at 31st December 2023 showed a total of ₦3,500,000 in the current assets section. The company's total liabilities were ₦2,000,000. What is the amount of the company's equity?
Correct A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's profit and loss account for the year ended 31st December 2023 showed a gross profit of ₦2,500,000. The company's operating expenses were ₦1,200,000. What was the company's net profit for the year?
Correct A. ₦1,300,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's balance sheet as at 31st December 2023 showed a total of ₦4,000,000 in the non-current assets section. The company's total liabilities were ₦2,500,000. What is the amount of the company's equity?
Correct A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company uses the single entry system of accounting. The company's cash book shows a balance of ₦120,000. However, the company's bank statement shows a balance of ₦150,000. What is the amount of the bank's error?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's profit is ₦240,000, how much will partner A receive?
Correct A. ₦144,000
B. ₦120,000
C. ₦96,000
D. ₦80,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge using the straight-line method?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Sales | | ₦15,000 | | 3 Jan | Purchase | ₦8,000 | | | 4 Jan | Cash | | ₦12,000 | What is the balance on the cash account?
Correct A. ₦2,000
B. ₦4,000
C. ₦6,000
D. ₦8,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's bank statement shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank | ₦20,000 | | | 2 Jan | Sales | | ₦25,000 | | 3 Jan | Purchase | ₦18,000 | | | 4 Jan | Bank | | ₦22,000 | What is the balance on the bank account?
Correct A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company uses the percentage of completion method to account for its construction contracts. At the end of the current year, the company has completed 75% of the contract. The total contract price is ₦10,000,000, and the company has incurred costs of ₦7,500,000. Calculate the profit recognized for the year.
A. ₦1,875,000
Correct B. ₦2,250,000
C. ₦2,500,000
D. ₦3,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company has the following transactions in its trial balance: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare the company's balance sheet at the end of the year.
A. Assets ₦200,000, Liabilities ₦50,000, Equity ₦150,000
Correct B. Assets ₦250,000, Liabilities ₦50,000, Equity ₦200,000
C. Assets ₦300,000, Liabilities ₦50,000, Equity ₦250,000
D. Assets ₦350,000, Liabilities ₦50,000, Equity ₦300,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company uses the straight-line method to depreciate its assets. The asset has a useful life of 10 years and a residual value of ₦20,000. Calculate the annual depreciation for the asset.
Correct A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A government agency has the following transactions: Salaries ₦100,000, Rent ₦50,000, and Utilities ₦20,000. Prepare the agency's statement of cash flows for the year.
Correct A. Cash Flows from Operations ₦150,000, Cash Flows from Investing ₦0, Cash Flows from Financing ₦0
B. Cash Flows from Operations ₦100,000, Cash Flows from Investing ₦50,000, Cash Flows from Financing ₦0
C. Cash Flows from Operations ₦50,000, Cash Flows from Investing ₦100,000, Cash Flows from Financing ₦0
D. Cash Flows from Operations ₦0, Cash Flows from Investing ₦150,000, Cash Flows from Financing ₦0

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company has the following trial balance: Accounts Receivable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare the company's income statement for the year.
Correct A. Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000
B. Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000
C. Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000
D. Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Gross Profit ₦50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct the error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Cash ₦20,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company uses the cash basis of accounting and records its revenues and expenses when cash is received or paid. However, the company's accounting records show that it has earned ₦50,000 in revenue but has not yet received the cash. What is the correct journal entry to record the revenue?
A. Debit Cash ₦50,000, Credit Revenue ₦50,000
Correct B. Debit Revenue ₦50,000, Credit Accounts Receivable ₦50,000
C. Debit Cash ₦50,000, Credit Accounts Receivable ₦50,000
D. Debit Revenue ₦50,000, Credit Cash ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's balance sheet shows a current asset of ₦100,000 in the 'Accounts Receivable' account. However, the company's accounting records show that it has written off ₦20,000 of the accounts receivable as uncollectible. What is the correct journal entry to record the write-off?
Correct A. Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000
B. Debit Bad Debt Expense ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
C. Debit Allowance for Doubtful Accounts ₦20,000, Credit Bad Debt Expense ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct the error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦5,000, Credit Cash ₦20,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company uses the cash basis of accounting and records its revenues and expenses when cash is received or paid. However, the company's accounting records show that it has earned ₦50,000 in revenue but has not yet received the cash. What is the correct journal entry to record the revenue?
A. Debit Cash ₦50,000, Credit Revenue ₦50,000
Correct B. Debit Revenue ₦50,000, Credit Accounts Receivable ₦50,000
C. Debit Cash ₦50,000, Credit Accounts Receivable ₦50,000
D. Debit Revenue ₦50,000, Credit Cash ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's balance sheet shows a current asset of ₦100,000 in the 'Accounts Receivable' account. However, the company's accounting records show that it has written off ₦20,000 of the accounts receivable as uncollectible. What is the correct journal entry to record the write-off?
Correct A. Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000
B. Debit Bad Debt Expense ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
C. Debit Allowance for Doubtful Accounts ₦20,000, Credit Bad Debt Expense ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company has the following ledger accounts: Cash ₦50,000, Accounts Receivable ₦20,000, Accounts Payable ₦15,000. What is the company's total current assets?
Correct A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has two partners, A and B, who share profits in the ratio 3:2. The company's profit for the year is ₦1,500,000. Calculate the amount of profit that will be distributed to partner A.
Correct A. ₦1,350,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A government agency is required to prepare a statement of cash flows using the indirect method. The agency's net income for the year is ₦500,000, and its net cash flows from operating activities are ₦750,000. Calculate the agency's net increase in cash and cash equivalents.
Correct A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, and Common Stock ₦500,000. Prepare the company's balance sheet.
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
Correct D. ₦2,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support