POST UTME BELLS UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME BELLS 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 is preparing its financial statements for the year ended December 31, 2022. The company has a cash book that shows a balance of ₦1,500,000 as at December 31, 2022. The bank statement shows a balance of ₦1,800,000 as at December 31, 2022. The company's cash book also shows a debit balance of ₦200,000 in the suspense account. What is the correct amount of the bank reconciliation statement?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 2
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦1,200,000 and the Assembly department has a total cost of ₦900,000. The company produces 10,000 units of product A and 5,000 units of product B. What is the total cost of product A?
Correct A. ₦12,000,000
B. ₦11,000,000
C. ₦10,500,000
D. ₦10,000,000

Correct Answer: A

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Question 3
A company uses the straight-line method of depreciation to value its assets. The company has a machine that cost ₦500,000 and has a useful life of 5 years. What is the annual depreciation charge?
A. ₦100,000
Correct B. ₦80,000
C. ₦60,000
D. ₦50,000

Correct Answer: B

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Question 4
A company has a control account that shows a balance of ₦1,000,000. The company's ledger account shows a balance of ₦800,000. What is the correct amount of the control account?
Correct A. ₦1,000,000
B. ₦800,000
C. ₦900,000
D. ₦1,200,000

Correct Answer: A

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Question 5
A company has a self-balancing ledger that shows a balance of ₦500,000. The company's ledger account shows a balance of ₦400,000. What is the correct amount of the self-balancing ledger?
Correct A. ₦500,000
B. ₦400,000
C. ₦450,000
D. ₦550,000

Correct Answer: A

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Question 6
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 ₦ 100 debentures. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
Correct D. ₦ 150,000

Correct Answer: D

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance of the cash account?
Correct A. ₦ 1,200
B. ₦ 1,500
C. ₦ 1,800
D. ₦ 2,000

Correct Answer: A

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Question 8
A company's balance sheet as at 31st December is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Total | 80,000 | Total | 80,000 | What is the value of the company's stock?
Correct A. ₦ 40,000
B. ₦ 50,000
C. ₦ 60,000
D. ₦ 70,000

Correct Answer: A

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Question 9
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance of the bank account?
A. ₦ 500
Correct B. ₦ 800
C. ₦ 1,000
D. ₦ 1,200

Correct Answer: B

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Question 10
A company's balance sheet as at 31st December is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Total | 80,000 | Total | 80,000 | What is the value of the company's retained earnings?
Correct A. ₦ 10,000
B. ₦ 20,000
C. ₦ 30,000
D. ₦ 40,000

Correct Answer: A

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Question 11
A company's manufacturing department uses a job costing system. The following information is available for the year ended December 31, 2022: Cost of raw materials purchased: ₦1,500,000 Direct labor cost: ₦750,000 Overhead cost: ₦300,000 Total cost of goods manufactured: ₦2,550,000 What is the value of the work-in-progress (WIP) at the end of the year?
A. ₦1,500,000
B. ₦750,000
C. ₦300,000
Correct D. ₦2,550,000

Correct Answer: D

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Question 12
A company's balance sheet as at December 31, 2022, is as follows: Assets: Cash: ₦500,000 Accounts receivable: ₦200,000 Inventory: ₦300,000 Total assets: ₦1,000,000 Liabilities: Accounts payable: ₦150,000 Long-term debt: ₦250,000 Total liabilities: ₦400,000 What is the company's equity?
Correct A. ₦600,000
B. ₦400,000
C. ₦300,000
D. ₦200,000

Correct Answer: A

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Question 13
A company's income statement for the year ended December 31, 2022, is as follows: Revenue: ₦1,500,000 Cost of goods sold: ₦900,000 Gross profit: ₦600,000 Operating expenses: ₦150,000 Net income: ₦450,000 What is the company's gross profit margin?
Correct A. 60%
B. 50%
C. 40%
D. 30%

Correct Answer: A

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Question 14
A company's balance sheet as at December 31, 2022, is as follows: Assets: Cash: ₦500,000 Accounts receivable: ₦200,000 Inventory: ₦300,000 Total assets: ₦1,000,000 Liabilities: Accounts payable: ₦150,000 Long-term debt: ₦250,000 Total liabilities: ₦400,000 What is the company's current ratio?
Correct A. 2.5
B. 2.0
C. 1.5
D. 1.0

Correct Answer: A

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Question 15
A company's income statement for the year ended December 31, 2022, is as follows: Revenue: ₦1,500,000 Cost of goods sold: ₦900,000 Gross profit: ₦600,000 Operating expenses: ₦150,000 Net income: ₦450,000 What is the company's operating profit margin?
Correct A. 30%
B. 25%
C. 20%
D. 15%

Correct Answer: A

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

Correct Answer: C

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Question 17
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The company's profit and loss account for the year ended 31st December 2022, showed a net profit of ₦2,500,000. Calculate the company's revenue for the year.
A. ₦3,500,000
B. ₦4,000,000
Correct C. ₦4,500,000
D. ₦5,000,000

Correct Answer: C

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Question 18
A company's balance sheet as at 31st December 2022, showed a total equity of ₦5,000,000. The company's profit and loss account for the year ended 31st December 2022, showed a net profit of ₦2,500,000. Calculate the company's retained earnings as at 31st December 2022.
A. ₦2,000,000
Correct B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000

Correct Answer: B

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Question 19
A company issued 10,000, 10% shares of ₦10 each at a premium of ₦5 per share. Calculate the amount received from shareholders.
A. ₦105,000
B. ₦110,000
Correct C. ₦115,000
D. ₦120,000

Correct Answer: C

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Question 20
A company's balance sheet as at 31st December 2022, showed a total assets of ₦10,000,000. The company's profit and loss account for the year ended 31st December 2022, showed a net loss of ₦1,500,000. Calculate the company's retained earnings as at 31st December 2022.
Correct A. ₦8,500,000
B. ₦8,000,000
C. ₦7,500,000
D. ₦7,000,000

Correct Answer: A

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Question 21
A company uses the perpetual inventory system. On January 1, 2020, it had 1,000 units of inventory with a cost of ₦100 per unit. On December 31, 2020, it had 1,500 units of inventory with a cost of ₦120 per unit. If the company uses the weighted average method to value its inventory, what is the total value of inventory on December 31, 2020?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 22
A company has the following transactions related to its manufacturing department:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 23
A company has the following trial balance as of December 31, 2020:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 24
A company has the following transactions related to its departmental accounts:
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 25
A company has the following balance sheet as of December 31, 2020:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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