POST UTME ACHIEVERS UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME ACHIEVERS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦25,000
C. ₦26,000
D. ₦28,000

Correct Answer: A

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 3
A company issues 10,000 shares of ₦10 par value at ₦15 per share. What is the amount received from the sale of these shares?
Correct A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: A

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Question 4
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's records and the bank's statement. The company's cash book shows a balance of ₦20,000, while the bank's statement shows a balance of ₦25,000. What is the reason for the difference?
A. Bank error
B. Company error
Correct C. Both bank and company error
D. Neither bank nor company error

Correct Answer: C

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Question 5
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the net income for the year is ₦120,000, what is A's share of the net income?
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 6
A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?
A. The company has made an error in recording a transaction.
B. The bank has made an error in recording a transaction.
Correct C. The company has deposited cash into the bank but has not recorded it in the cash book.
D. The company has withdrawn cash from the bank but has not recorded it in the cash book.

Correct Answer: C

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Question 7
A company uses the double-entry system of accounting. The following transactions are recorded in the ledger:
Correct A. The company has made a profit of ₦100,000.
B. The company has made a loss of ₦100,000.
C. The company has increased its assets by ₦100,000.
D. The company has decreased its liabilities by ₦100,000.

Correct Answer: A

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Question 8
A company's assets are valued at ₦500,000. The company's liabilities are ₦200,000. What is the company's net worth?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 9
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
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 10
A partnership is formed between two partners, A and B. A invests ₦50,000 and B invests ₦30,000. What is the ratio of A's and B's investments?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 11
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit balances. The accountant suspects that the error occurred in the journal entry for the purchase of office equipment. The journal entry was recorded as follows: Debit: Office Equipment ₦10,000, Credit: Cash ₦10,000. However, the accountant realizes that the office equipment was actually purchased for ₦15,000. What is the correct journal entry to correct the error?
A. Debit: Office Equipment ₦5,000, Credit: Cash ₦5,000
Correct B. Debit: Office Equipment ₦15,000, Credit: Cash ₦15,000
C. Debit: Office Equipment ₦5,000, Credit: Cash ₦15,000
D. Debit: Office Equipment ₦15,000, Credit: Cash ₦5,000

Correct Answer: B

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Question 12
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦100,000, which includes direct materials of ₦50,000 and direct labor of ₦30,000. The Assembly department has a total cost of ₦150,000, which includes direct materials of ₦75,000 and direct labor of ₦40,000. What is the total cost of production for the company?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 13
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦100,000 and its current liabilities are ₦50,000. What is the company's quick ratio?
Correct A. 1:1
B. 2:1
C. 3:1
D. 4:1

Correct Answer: A

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Question 14
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount of cash received from the issue of shares and debentures?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 15
A company's trial balance shows a discrepancy of ₦10,000 between the debit and credit balances. The accountant suspects that the error occurred in the journal entry for the sale of goods. The journal entry was recorded as follows: Debit: Sales ₦20,000, Credit: Cash ₦20,000. However, the accountant realizes that the sale was actually made on credit. What is the correct journal entry to correct the error?
A. Debit: Sales ₦10,000, Credit: Cash ₦10,000
B. Debit: Sales ₦20,000, Credit: Cash ₦20,000
Correct C. Debit: Sales ₦10,000, Credit: Cash ₦20,000
D. Debit: Sales ₦20,000, Credit: Cash ₦10,000

Correct Answer: C

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Question 16
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦30,000 is due to a dishonored cheque of ₦20,000 and an outstanding deposit of ₦10,000. What is the correct balance in the cash book?
Correct A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000

Correct Answer: A

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Question 17
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000. What is the net income of the company?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 18
A government agency has the following transactions: Revenue ₦100,000, Expenditure ₦80,000, Capital Expenditure ₦20,000. What is the net result of these transactions?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 19
A partnership has the following capital accounts: John ₦50,000, Mary ₦30,000, David ₦20,000. The profit-sharing ratio is 3:2:1. What is the share of profit of John?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 20
A manufacturing company has the following costs: Direct Materials ₦50,000, Direct Labor ₦30,000, Overhead ₦20,000. What is the total cost of production?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 21
A company's trial balance shows an error of ₦0.50 in the debit side of the purchases account. The correct amount is ₦1,500. What is the correct amount of the purchases account?
A. ₦1,500.50
Correct B. ₦1,500.00
C. ₦1,499.50
D. ₦1,499.00

Correct Answer: B

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Question 22
A company's cash book shows a balance of ₦0,000. The bank statement shows a balance of ₦0,500. What is the correct balance of the cash book?
Correct A. ₦0,500
B. ₦0,000
C. ₦0,500.50
D. ₦0,000.50

Correct Answer: A

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Question 23
A company's balance sheet shows an asset of ₦0,000. The trial balance shows an asset of ₦0,500. What is the correct amount of the asset?
Correct A. ₦0,500
B. ₦0,000
C. ₦0,500.50
D. ₦0,000.50

Correct Answer: A

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Question 24
A company's cash book shows a balance of ₦0,000. The bank statement shows a balance of ₦0,500. What is the correct balance of the cash book?
Correct A. ₦0,500
B. ₦0,000
C. ₦0,500.50
D. ₦0,000.50

Correct Answer: A

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Question 25
A company's balance sheet shows an asset of ₦0,000. The trial balance shows an asset of ₦0,500. What is the correct amount of the asset?
Correct A. ₦0,500
B. ₦0,000
C. ₦0,500.50
D. ₦0,000.50

Correct Answer: A

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