POST UTME RSU 2018 Accounting | Objective

Are you preparing for POST UTME RSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
In a public sector accounting system, what is the primary objective of the accounting process?
A. To provide financial information for decision-making
B. To ensure compliance with government regulations
C. To facilitate the preparation of the national budget
Correct D. To promote transparency and accountability

Correct Answer: D

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Question 2
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Received cash from customers of ₦20,000. What is the total amount of cash received?
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

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Question 3
A company has the following ledger accounts: Cash, Accounts Payable, and Common Stock. What type of ledger is this?
Correct A. General Ledger
B. Subsidiary Ledger
C. Control Account
D. Self-Balancing Ledger

Correct Answer: A

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Question 4
A company has the following trial balance: Debit: ₦100,000; Credit: ₦120,000. What is the error in the trial balance?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 5
A company has the following journal entry: Debit: Office Supplies, ₦10,000; Credit: Accounts Payable, ₦10,000. What is the effect of this journal entry on the accounting equation?
Correct A. Increases Assets and Decreases Liabilities
B. Increases Assets and Increases Liabilities
C. Decreases Assets and Decreases Liabilities
D. Decreases Assets and Increases Liabilities

Correct Answer: A

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Question 6
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 7
A public sector organization has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦500,000 Cash paid to suppliers: ₦200,000 Cash received from government grant: ₦150,000 Cash paid for salaries: ₦100,000 Cash paid for rent: ₦50,000 Cash paid for utilities: ₦20,000 What is the total cash received by the organization?
Correct A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000

Correct Answer: A

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Question 8
A company's trial balance as at December 31, 2022 is as follows: Debtors: ₦150,000 Creditors: ₦80,000 Capital: ₦200,000 Profit: ₦50,000 What is the total amount of assets?
Correct A. ₦380,000
B. ₦420,000
C. ₦480,000
D. ₦520,000

Correct Answer: A

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Question 9
A company uses the following accounting equation: Assets = Capital + Profit If the company's assets are ₦500,000 and its capital is ₦200,000, what is the amount of profit?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 10
A company's balance sheet as at December 31, 2022 is as follows: Assets: ₦500,000 Capital: ₦200,000 Profit: ₦50,000 What is the amount of liabilities?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 12
A trader purchases goods for ₦ 15,000 and sells them for ₦ 20,000. Calculate the profit made by the trader.
A. ₦ 2,500
B. ₦ 5,000
Correct C. ₦ 7,500
D. ₦ 10,000

Correct Answer: C

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Question 13
A company issues 5% debentures of ₦ 1,000 each at a premium of ₦ 50. Calculate the total amount received from the issue of debentures.
A. ₦ 5,250
B. ₦ 5,500
Correct C. ₦ 5,750
D. ₦ 6,000

Correct Answer: C

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Question 14
A company's trial balance shows the following balances: Accounts Payable ₦ 10,000, Accounts Receivable ₦ 5,000, and Common Stock ₦ 20,000. Prepare a balance sheet.
A. ₦ 35,000
B. ₦ 40,000
C. ₦ 45,000
Correct D. ₦ 50,000

Correct Answer: D

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Question 15
A company's income statement shows the following: Sales ₦ 100,000, Cost of Goods Sold ₦ 60,000, and Net Income ₦ 20,000. Calculate the company's gross profit margin.
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 16
In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' module?
A. To monitor and control cash flows
B. To prepare and present financial statements
Correct C. To ensure compliance with budgetary allocations
D. To perform internal audits

Correct Answer: C

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Question 17
A manufacturing company uses the 'Job Costing' method to account for its production costs. What is the primary advantage of this method?
Correct A. It provides a detailed breakdown of production costs
B. It simplifies the accounting process
C. It reduces the need for inventory valuation
D. It increases the accuracy of financial reporting

Correct Answer: A

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Question 18
A company uses the 'Accrual Accounting' method to account for its revenues and expenses. What is the primary difference between this method and the 'Cash Accounting' method?
Correct A. Accrual Accounting recognizes revenues and expenses when earned, while Cash Accounting recognizes them when received or paid
B. Accrual Accounting is more complex than Cash Accounting
C. Accrual Accounting is only used by large companies
D. Accrual Accounting is not allowed under IFRS

Correct Answer: A

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Question 19
A company has incomplete records and uses the 'Single Entry' method to account for its transactions. What is the primary limitation of this method?
A. It is difficult to prepare a trial balance
B. It is not suitable for large companies
Correct C. It does not provide a complete picture of the company's financial position
D. It is not allowed under IFRS

Correct Answer: C

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Question 20
A company prepares a trial balance to ensure that the debits equal the credits. What is the primary purpose of this process?
Correct A. To identify and correct errors in the accounting records
B. To prepare financial statements
C. To determine the company's net income
D. To calculate the company's cash flows

Correct Answer: A

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Question 21
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount of interest payable annually.
A. ₦50,000
B. ₦25,000
C. ₦12,500
Correct D. ₦62,500

Correct Answer: D

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Question 22
A partnership has two partners, A and B. A invested ₦50,000 and B invested ₦30,000. The profit is to be divided in the ratio 2:1. What is the share of profit of A?
Correct A. ₦80,000
B. ₦60,000
C. ₦40,000
D. ₦20,000

Correct Answer: A

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Question 23
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 2,000 shares at a premium of ₦20 per share, what is the amount of premium received?
A. ₦40,000
B. ₦80,000
Correct C. ₦120,000
D. ₦160,000

Correct Answer: C

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Question 24
A company has a capital of ₦500,000 divided into 5,000 shares of ₦100 each. If the company issues 1,000 shares at a premium of ₦10 per share, what is the amount of premium received?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 25
A company has a capital of ₦200,000 divided into 2,000 shares of ₦100 each. If the company issues 500 shares at a premium of ₦5 per share, what is the amount of premium received?
A. ₦2,500
B. ₦5,000
Correct C. ₦7,500
D. ₦10,000

Correct Answer: C

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