POST UTME COVENANT UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME COVENANT 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
Determine the correct journal entry for the following transaction: On January 1, 2020, the partnership of A and B acquired a building for ₦500,000. The building was valued at ₦600,000 on December 31, 2020. The partnership also incurred a loss of ₦20,000 on the sale of an asset.
A. Debit Building ₦500,000, Credit Cash ₦500,000
B. Debit Building ₦600,000, Credit Cash ₦500,000
Correct C. Debit Building ₦500,000, Credit Cash ₦600,000
D. Debit Building ₦600,000, Credit Cash ₦600,000

Correct Answer: C

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦200,000, and Common Stock ₦300,000. Determine the correct balance for the Retained Earnings account.
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 3
A partnership of A and B has the following capital balances: A ₦200,000, B ₦300,000. The partnership also has a profit of ₦50,000. Determine the correct distribution of the profit.
A. A ₦25,000, B ₦25,000
B. A ₦30,000, B ₦20,000
C. A ₦20,000, B ₦30,000
Correct D. A ₦25,000, B ₦25,000

Correct Answer: D

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Question 4
A company's balance sheet shows the following balances: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. Determine the correct 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's income statement shows the following balances: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦500,000, and Net Income ₦200,000. Determine the correct Gross Profit Margin.
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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Question 6
A company issued 10,000, 10% preference shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 7
A company purchased a machine for ₦120,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, calculate the annual depreciation.
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 8
A company issued 5,000, 12% debentures of ₦100 each at a discount of ₦5 per debenture. Calculate the total amount received from the issue of these debentures.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 9
A company purchased a machine for ₦150,000. Depreciation is calculated using the reducing balance method. If the machine is expected to last for 5 years, calculate the annual depreciation.
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 10
A company issued 10,000, 10% preference shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 11
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the cost of goods sold.
A. ₦1,300,000
Correct B. ₦1,350,000
C. ₦1,400,000
D. ₦1,450,000

Correct Answer: B

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Question 12
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦1,000,000. Calculate the company's capital.
Correct A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0

Correct Answer: A

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Question 13
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦1,200,000; Gross Profit: ₦300,000; Operating Expenses: ₦100,000; Net Profit: ₦200,000. Calculate the company's gross profit percentage.
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 14
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦500,000; Liabilities: ₦1,000,000. Calculate the company's capital.
Correct A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0

Correct Answer: A

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Question 15
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦1,200,000; Gross Profit: ₦300,000; Operating Expenses: ₦100,000; Net Profit: ₦200,000. Calculate the company's net profit percentage.
A. 13.33%
B. 16.67%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 16
A company's cash book shows a balance of ₦120,000, but the bank statement shows a balance of ₦150,000. The bank statement also shows a debit of ₦20,000 for a dishonored cheque. What is the correct balance in the company's cash book?
A. ₦140,000
Correct B. ₦130,000
C. ₦120,000
D. ₦110,000

Correct Answer: B

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Question 17
A company's trial balance shows a debit balance of ₦50,000 in the account 'Accrued Expenses'. However, the company's ledger shows a credit balance of ₦20,000 in the same account. What is the correct balance in the account 'Accrued Expenses'?
Correct A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000

Correct Answer: A

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Question 18
A company's assets are valued at ₦500,000, ₦300,000, and ₦200,000. The company's liabilities are ₦100,000 and ₦50,000. What is the company's net worth?
A. ₦650,000
Correct B. ₦550,000
C. ₦450,000
D. ₦350,000

Correct Answer: B

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Question 19
A company's partnership agreement states that the profits and losses are to be shared in the ratio 3:2. If the company's profits for the year are ₦120,000, how much will each partner receive?
A. ₦60,000
Correct B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: B

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Question 20
A company's ledger shows a debit balance of ₦50,000 in the account 'Accrued Expenses'. However, the company's trial balance shows a credit balance of ₦20,000 in the same account. What is the correct balance in the account 'Accrued Expenses'?
Correct A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000

Correct Answer: A

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Question 21
A company uses a job costing system to account for its manufacturing operations. The following information is available for the year ended December 31, 2017:
A. ₦125,000
Correct B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: B

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Question 22
A company's trial balance at December 31, 2017, showed the following balances:
A. ₦1,500,000
B. ₦1,600,000
Correct C. ₦1,700,000
D. ₦1,800,000

Correct Answer: C

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Question 23
A company's bank reconciliation statement at December 31, 2017, showed the following balances:
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 24
A company's cash book at December 31, 2017, showed the following balances:
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,400,000
D. ₦1,600,000

Correct Answer: C

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Question 25
A company's manufacturing accounts at December 31, 2017, showed the following balances:
A. ₦2,000,000
B. ₦2,500,000
Correct C. ₦3,000,000
D. ₦3,500,000

Correct Answer: C

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