POST UTME UI 2018 Accounting | Objective

Are you preparing for POST UTME UI 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.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a debit balance of ₦50,000 in the account 'Accrued Expenses'. The company's accountant has prepared the following journal entry to correct the error: Debit: Accrued Expenses ₦50,000 Credit: Accrued Income ₦50,000 What is the correct journal entry to correct the error?
A. Debit: Accrued Expenses ₦50,000 Credit: Accrued Income ₦50,000
Correct B. Debit: Accrued Income ₦50,000 Credit: Accrued Expenses ₦50,000
C. Debit: Accrued Expenses ₦50,000 Credit: Accrued Income ₦50,000
D. Debit: Accrued Income ₦50,000 Credit: Accrued Expenses ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company uses the self-balancing ledger system. The following transactions are recorded in the ledger: Debit: Office Supplies ₦10,000 Credit: Cash ₦10,000 What is the effect of this transaction on the company's cash balance?
A. The cash balance decreases by ₦10,000
Correct B. The cash balance increases by ₦10,000
C. The cash balance remains the same
D. The cash balance increases by ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's trial balance shows a debit balance of ₦20,000 in the account 'Accrued Expenses'. The company's accountant has prepared the following journal entry to correct the error: Debit: Accrued Expenses ₦20,000 Credit: Accrued Income ₦20,000 What is the correct journal entry to correct the error?
A. Debit: Accrued Expenses ₦20,000 Credit: Accrued Income ₦20,000
Correct B. Debit: Accrued Income ₦20,000 Credit: Accrued Expenses ₦20,000
C. Debit: Accrued Expenses ₦20,000 Credit: Accrued Income ₦20,000
D. Debit: Accrued Income ₦20,000 Credit: Accrued Expenses ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company uses the self-balancing ledger system. The following transactions are recorded in the ledger: Debit: Office Supplies ₦15,000 Credit: Cash ₦15,000 What is the effect of this transaction on the company's cash balance?
A. The cash balance decreases by ₦15,000
Correct B. The cash balance increases by ₦15,000
C. The cash balance remains the same
D. The cash balance increases by ₦30,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's trial balance shows a debit balance of ₦30,000 in the account 'Accrued Expenses'. The company's accountant has prepared the following journal entry to correct the error: Debit: Accrued Expenses ₦30,000 Credit: Accrued Income ₦30,000 What is the correct journal entry to correct the error?
A. Debit: Accrued Expenses ₦30,000 Credit: Accrued Income ₦30,000
Correct B. Debit: Accrued Income ₦30,000 Credit: Accrued Expenses ₦30,000
C. Debit: Accrued Expenses ₦30,000 Credit: Accrued Income ₦30,000
D. Debit: Accrued Income ₦30,000 Credit: Accrued Expenses ₦30,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a partnership with a capital of ₦500,000, the profit-sharing ratio is 3:2:1 between partners A, B, and C respectively. If the profit for the year is ₦200,000, calculate the amount of profit that will be shared by partner C.
A. ₦40,000
B. ₦60,000
Correct C. ₦80,000
D. ₦120,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company uses the straight-line method of depreciation. If the cost of a machine is ₦150,000 and its residual value is ₦20,000, calculate the annual depreciation charge for a machine that is used for 5 years.
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company has the following trial balance as at 31st December, 2022. Prepare a balance sheet as at that date.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company uses the weighted average method of inventory valuation. If the cost of goods available for sale is ₦500,000, the cost of goods sold is ₦400,000, and the net realizable value of the closing inventory is ₦50,000, calculate the cost of goods sold using the weighted average method.
A. ₦350,000
Correct B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company has the following manufacturing account for the year ended 31st December, 2022. Prepare a statement of profit or loss for the year.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
Determine the amount of depreciation for a machine that cost ₦120,000 and has a useful life of 5 years, using the straight-line method. If the machine is sold for ₦30,000 after 3 years, what is the amount of loss on disposal?
Correct A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦40,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦240,000, how much will each partner receive?
A. ₦180,000
Correct B. ₦120,000
C. ₦100,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A government agency has a budget of ₦1,500,000 for a project. If the project is completed 6 months ahead of schedule, and the agency saves 10% of the budget, how much will be spent on the project?
Correct A. ₦1,350,000
B. ₦1,400,000
C. ₦1,450,000
D. ₦1,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company uses the perpetual inventory system. If the cost of goods sold is ₦500,000, and the beginning inventory is ₦200,000, what is the cost of goods available for sale?
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A partnership has two partners, A and B, who share profits in the ratio 5:3. If the total profit for the year is ₦300,000, and A withdraws ₦20,000 from the business, how much will B receive?
A. ₦150,000
Correct B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trial balance shows an error of \pm \frac{1}{2} in the account 'Sales Returns'. If the correct balance is \\,500, what is the correct balance in the 'Sales' account?
A. \\,499.50
B. \\,500.50
Correct C. \\,501.00
D. \\,502.50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A manufacturing company uses the weighted average method to assign overhead costs to jobs. The company has two departments: Machining and Assembly. The Machining department has a total overhead cost of \\,50,000 and 10,000 machine hours, while the Assembly department has a total overhead cost of \\,30,000 and 5,000 machine hours. If the company has a total of 15,000 machine hours, what is the overhead cost per machine hour?
Correct A. \\,3.33
B. \\,4.00
C. \\,4.50
D. \\,5.00

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company has two partners: A and B. Partner A has a 60% interest in the company and Partner B has a 40% interest. If the company's net income is \\,100,000, how much will Partner A receive in cash dividends?
Correct A. \\,60,000
B. \\,70,000
C. \\,80,000
D. \\,90,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's balance sheet shows a current ratio of 2.5:1. If the company's total current assets are \\,150,000 and its total current liabilities are \\,60,000, what is the company's quick ratio?
A. 1.25:1
Correct B. 1.50:1
C. 2.00:1
D. 2.50:1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's trial balance shows an error of \pm \frac{1}{4} in the account 'Purchases'. If the correct balance is \\,80,000, what is the correct balance in the 'Cost of Goods Sold' account?
A. \\,79,750
B. \\,80,000
Correct C. \\,80,250
D. \\,80,500

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's trading account shows a profit of ₦120,000. The balance on the profit and loss account is ₦80,000. The balance on the capital account is ₦200,000. What is the balance on the drawings account?
A. ₦40,000
Correct B. ₦60,000
C. ₦80,000
D. ₦100,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A partnership has two partners, A and B. A's capital is ₦150,000 and B's capital is ₦200,000. The profit-sharing ratio is 2:3. What is the amount of profit to be shared by partner A?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's balance sheet shows a current liability of ₦150,000 and a non-current liability of ₦200,000. What is the total amount of liabilities?
A. ₦300,000
B. ₦350,000
C. ₦400,000
Correct D. ₦450,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company's profit and loss account shows a net profit of ₦120,000. The balance on the retained earnings account is ₦80,000. What is the balance on the dividends account?
A. ₦40,000
Correct B. ₦60,000
C. ₦80,000
D. ₦100,000

Correct Answer: B

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