POST UTME BSU 2017 Accounting | Objective

Are you preparing for POST UTME BSU 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 issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦12,500
Correct B. ₦15,000
C. ₦17,500
D. ₦20,000

Correct Answer: B

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Question 2
A firm's cash book shows a balance of ₦25,000. The bank statement shows a balance of ₦30,000. The difference is due to an outstanding cheque of ₦5,000. What is the correct balance in the firm's cash book?
A. ₦20,000
B. ₦22,500
Correct C. ₦25,000
D. ₦27,500

Correct Answer: C

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Question 3
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to an outstanding cheque of ₦10,000. What is the correct balance in the company's cash book?
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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Question 4
A company issued 5,000 shares of ₦5 each at a premium of ₦1 per share. Calculate the total amount received from the issue of shares.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 5
A company's cash book shows a balance of ₦75,000. The bank statement shows a balance of ₦80,000. The difference is due to an outstanding cheque of ₦15,000. What is the correct balance in the company's cash book?
A. ₦60,000
B. ₦65,000
Correct C. ₦75,000
D. ₦80,000

Correct Answer: C

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Question 6
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
A. ₦950,000
B. ₦1,000,000
Correct C. ₦1,050,000
D. ₦1,100,000

Correct Answer: C

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Question 7
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
A. ₦50,000
Correct B. ₦45,000
C. ₦40,000
D. ₦35,000

Correct Answer: B

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Question 8
A company has a capital of ₦1,000,000 and a reserve of ₦200,000. Calculate the ratio of capital to reserve.
Correct A. 1:2
B. 2:1
C. 3:1
D. 1:5

Correct Answer: A

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Question 9
A company issues 5,000, 10% preference shares of ₦50 each at a premium of ₦10 per share. Calculate the amount received from the issue of preference shares.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 10
A company purchases a machine for ₦300,000 and depreciates it by 10% per annum using the reducing balance method. Calculate the book value of the machine after 2 years.
Correct A. ₦216,000
B. ₦220,000
C. ₦224,000
D. ₦228,000

Correct Answer: A

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Question 11
A company's trial balance shows a credit balance in the accounts payable account of ₦12,000. However, the company's balance sheet shows a debit balance of ₦8,000 in the same account. What is the correct explanation for this discrepancy?
A. The company has not recorded the payment of accounts payable.
B. The company has recorded the payment of accounts payable but has not updated the accounts payable account.
C. The company has incorrectly recorded the accounts payable account as a debit instead of a credit.
Correct D. The company has incorrectly recorded the accounts payable account as a credit instead of a debit.

Correct Answer: D

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Question 12
A manufacturing company uses the weighted average method to value its inventory. The company has the following data for the current period: Cost of goods available for sale: ₦100,000 Beginning inventory: ₦20,000 Purchases: ₦60,000 Cost of goods sold: ₦40,000 What is the cost of goods sold using the weighted average method?
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

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Question 13
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issues 5,000 debentures of ₦100 each. What is the total amount of share capital and debentures issued?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 14
A company uses the straight-line method to depreciate its assets. The company's assets have a useful life of 10 years and a residual value of ₦10,000. What is the annual depreciation charge for the company's assets?
A. ₦9,000
Correct B. ₦10,000
C. ₦11,000
D. ₦12,000

Correct Answer: B

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Question 15
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?
A. 1:1
Correct B. 1.5:1
C. 2:1
D. 3:1

Correct Answer: B

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Question 16
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. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 17
A company has a trial balance as follows: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare a balance sheet.
Correct A. Assets ₦250,000, Liabilities ₦50,000, Equity ₦200,000
B. Assets ₦200,000, Liabilities ₦50,000, Equity ₦150,000
C. Assets ₦150,000, Liabilities ₦50,000, Equity ₦100,000
D. Assets ₦100,000, Liabilities ₦50,000, Equity ₦50,000

Correct Answer: A

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Question 18
A company has the following ledger accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000. Prepare a trial balance.
Correct A. Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000
B. Cash ₦20,000, Accounts Payable ₦50,000, Sales Revenue ₦100,000
C. Cash ₦50,000, Accounts Payable ₦100,000, Sales Revenue ₦20,000
D. Cash ₦100,000, Accounts Payable ₦20,000, Sales Revenue ₦50,000

Correct Answer: A

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Question 19
A company issued 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 20
A company has a balance sheet as follows: Assets ₦200,000, Liabilities ₦100,000, Equity ₦50,000. Prepare a statement of changes in equity.
Correct A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 21
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦200 each. During the year, 500 units were sold, and 200 units were purchased at ₦250 each. The company uses the weighted average method to value its inventory. What is the total value of the inventory at December 31, 2022?
A. ₦120,000
Correct B. ₦125,000
C. ₦130,000
D. ₦135,000

Correct Answer: B

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Question 22
A company's trial balance as of December 31, 2022, shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the total amount of assets on the balance sheet?
A. ₦750,000
B. ₦800,000
Correct C. ₦850,000
D. ₦900,000

Correct Answer: C

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Question 23
A company uses the accrual method of accounting. On December 31, 2022, it had the following accounts: Accounts Payable ₦100,000, Accounts Receivable ₦150,000, and Sales Revenue ₦500,000. What is the total amount of current liabilities?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 24
A company's balance sheet as of December 31, 2022, shows the following accounts: Cash ₦100,000, Accounts Payable ₦150,000, and Common Stock ₦500,000. What is the total amount of total liabilities?
A. ₦650,000
B. ₦700,000
Correct C. ₦750,000
D. ₦800,000

Correct Answer: C

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Question 25
A company uses the FIFO method to value its inventory. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦200 each. During the year, 500 units were sold, and 200 units were purchased at ₦250 each. What is the total value of the inventory at December 31, 2022?
A. ₦120,000
B. ₦125,000
Correct C. ₦130,000
D. ₦135,000

Correct Answer: C

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