POST UTME VERITAS UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME VERITAS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method.
A. ₦50,000
Correct B. ₦62,500
C. ₦75,000
D. ₦87,500

Correct Answer: B

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Question 2
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000

Correct Answer: B

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Question 3
A manufacturing company has the following cost of production: ₦100,000 for direct materials, ₦50,000 for direct labor, and ₦20,000 for indirect expenses. Calculate the total cost of production.
A. ₦170,000
Correct B. ₦180,000
C. ₦190,000
D. ₦200,000

Correct Answer: B

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Question 4
A company has the following balance sheet: ₦500,000 in assets, ₦200,000 in liabilities, and ₦300,000 in equity. Calculate the ratio of debt to equity.
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 5
A company issued 5,000 debentures of ₦1,000 each at a premium of ₦50 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦5,250,000
Correct B. ₦5,300,000
C. ₦5,350,000
D. ₦5,400,000

Correct Answer: B

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Question 6
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 12 hours and machine B operates for 15 hours, what is the total number of units of product X produced?
Correct A. 40
B. 50
C. 60
D. 70

Correct Answer: A

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Question 7
A company has two departments, A and B. Department A has 5 employees, each earning ₦150,000 per month, while department B has 3 employees, each earning ₦200,000 per month. If the company pays a total of ₦1,500,000 in salaries for the month, how much is spent on department B?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 8
A company has a cash book that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash received from customers | ₦100,000 | | | 02/01 | Cash paid to suppliers | | ₦50,000 | | 03/01 | Cash received from customers | ₦150,000 | | | 04/01 | Cash paid to employees | | ₦75,000 | What is the total cash balance at the end of the month?
A. ₦175,000
Correct B. ₦225,000
C. ₦275,000
D. ₦325,000

Correct Answer: B

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Question 9
A company has a bank statement that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Bank deposit | ₦100,000 | | | 02/01 | Bank withdrawal | | ₦50,000 | | 03/01 | Bank deposit | ₦150,000 | | | 04/01 | Bank withdrawal | | ₦75,000 | What is the total bank balance at the end of the month?
A. ₦175,000
Correct B. ₦225,000
C. ₦275,000
D. ₦325,000

Correct Answer: B

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Question 10
A company has a cash book that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash received from customers | ₦100,000 | | | 02/01 | Cash paid to suppliers | | ₦50,000 | | 03/01 | Cash received from customers | ₦150,000 | | | 04/01 | Cash paid to employees | | ₦75,000 | What is the total cash balance at the end of the month?
A. ₦175,000
Correct B. ₦225,000
C. ₦275,000
D. ₦325,000

Correct Answer: B

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Question 11
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦100 each. During the year, 500 units were sold, and 200 units were purchased at ₦120 each. The company uses the weighted average method to value its inventory. What is the total cost of goods sold for the year?
A. ₦60,000
Correct B. ₦62,000
C. ₦64,000
D. ₦66,000

Correct Answer: B

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Question 12
A company's trial balance as of December 31, 2022, shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the net income for the year?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 13
A company uses the accrual method of accounting. On December 31, 2022, it had the following accounts: Accounts Receivable ₦100,000, Accounts Payable ₦50,000, and Salaries Expense ₦20,000. What is the total amount of cash received from customers during the year?
A. ₦120,000
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 14
A company's balance sheet as of December 31, 2022, shows the following balances: Cash ₦50,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total amount of assets?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 15
A company's income statement for the year ended December 31, 2022, shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the gross profit margin?
Correct A. 30%
B. 40%
C. 50%
D. 60%

Correct Answer: A

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Question 16
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
Correct C. ₦1,000,000
D. ₦1,050,000

Correct Answer: C

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Question 17
A firm's trial balance shows an error of ₦50,000 due to a mistake in the posting of a transaction. The error is discovered after the balance sheet has been prepared. Prepare a correcting entry to rectify the error.
A. Debit Cash ₦50,000, Credit Profit and Loss Account ₦50,000
Correct B. Debit Profit and Loss Account ₦50,000, Credit Cash ₦50,000
C. Debit Profit and Loss Account ₦50,000, Credit Capital ₦50,000
D. Debit Capital ₦50,000, Credit Profit and Loss Account ₦50,000

Correct Answer: B

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Question 18
A company's balance sheet shows a current ratio of 2:3. If the current assets are ₦120,000 and the current liabilities are ₦60,000, what is the amount of the company's long-term liabilities?
A. ₦30,000
B. ₦60,000
Correct C. ₦90,000
D. ₦120,000

Correct Answer: C

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Question 19
A firm's profit and loss account shows a net profit of ₦150,000. If the firm's capital is ₦200,000 and the drawings of the proprietor are ₦30,000, what is the amount of the proprietor's capital at the end of the year?
A. ₦170,000
B. ₦180,000
C. ₦190,000
Correct D. ₦200,000

Correct Answer: D

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Question 20
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the amount of the company's equity?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 21
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
Correct B. ₠ 52,500
C. ₠ 55,000
D. ₠ 57,500

Correct Answer: B

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Question 22
A company's trial balance showed an error of ₠ 1,000 in the debit side. The error was corrected by adjusting the accounts. If the error was due to an overstatement of an asset, what would be the effect on the company's net profit?
A. Increase in net profit
Correct B. Decrease in net profit
C. No effect on net profit
D. Increase in net loss

Correct Answer: B

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Question 23
A company's bank statement showed a balance of ₠ 10,000. However, the company's cash book showed a balance of ₠ 12,000. What is the reason for the difference?
A. Bank charges
B. Interest on overdraft
Correct C. Cheques issued but not yet presented
D. Cheques deposited but not yet credited

Correct Answer: C

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Question 24
A company's single entry system showed a balance of ₠ 20,000. However, the company's trial balance showed a balance of ₠ 22,000. What is the reason for the difference?
A. Error in journalizing
B. Error in posting
C. Error in trial balance preparation
Correct D. Error in single entry system preparation

Correct Answer: D

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Question 25
A company's manufacturing account showed a loss of ₠ 5,000. However, the company's trading account showed a profit of ₠ 3,000. What is the reason for the difference?
Correct A. Error in cost of goods sold
B. Error in selling price
C. Error in overheads
D. Error in depreciation

Correct Answer: A

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