POST UTME SKYLINE UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME SKYLINE 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 perpetual inventory system. On January 1, 2018, it had 500 units of a product on hand at a cost of ₦120 per unit. During the year, 300 units were sold at ₦200 each. On December 31, 2018, 200 units were on hand at a cost of ₦150 per unit. What is the cost of goods sold for the year?
A. ₦36,000
Correct B. ₦42,000
C. ₦48,000
D. ₦54,000

Correct Answer: B

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Question 2
A company's cash book shows a balance of ₦100,000 on January 1, 2018. During the year, it received ₦200,000 in cash and paid ₦150,000 in cash. The bank statement shows a balance of ₦120,000 on December 31, 2018. What is the difference between the cash book balance and the bank statement balance?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 3
A company uses the straight-line method of depreciation. It purchased a machine on January 1, 2018, for ₦200,000. The machine has a useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation expense?
A. ₦36,000
B. ₦40,000
C. ₦44,000
Correct D. ₦48,000

Correct Answer: D

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Question 4
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the ratio of Net Income to Sales Revenue?
A. 0.30
Correct B. 0.35
C. 0.40
D. 0.45

Correct Answer: B

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Question 5
A company's balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total amount of liabilities and equity?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 6
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. £ 10,000
B. £ 50,000
Correct C. £ 10,500
D. £ 11,000

Correct Answer: C

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Question 7
A company's cash book shows a balance of £ 1,500. The bank statement shows a balance of £ 2,000. The company's cash book shows a debit balance of £ 800. What is the correct balance of the company's cash book?
A. £ 1,300
B. £ 1,500
Correct C. £ 1,700
D. £ 2,000

Correct Answer: C

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Question 8
A company issued 5,000 shares of £ 1 each at a premium of £ 0.25 per share. The company also issued 2,000 debentures of £ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. £ 12,500
B. £ 13,000
Correct C. £ 13,500
D. £ 14,000

Correct Answer: C

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Question 9
A company's cash book shows a balance of £ 2,000. The bank statement shows a balance of £ 1,500. The company's cash book shows a credit balance of £ 500. What is the correct balance of the company's cash book?
A. £ 1,500
B. £ 2,000
Correct C. £ 2,500
D. £ 3,000

Correct Answer: C

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Question 10
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The company also issued 5,000 debentures of £ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. £ 15,000
B. £ 16,000
Correct C. £ 17,000
D. £ 18,000

Correct Answer: C

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Question 11
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦15,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B. The capital contributions of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit share of partner A.
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 13
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 14
A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦220,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 15
A company's cash book shows a balance of ₦180,000. However, the bank statement shows a balance of ₦160,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦475,000
Correct B. ₦475,500
C. ₦476,000
D. ₦476,500

Correct Answer: B

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Question 17
A firm's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 1,200 | What is the balance of the firm's cash book?
Correct A. ₦1,200
B. ₦1,800
C. ₦2,000
D. ₦2,200

Correct Answer: A

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Question 18
A partnership firm's capital accounts are as follows: | Partner | Capital | Drawing | Balance | | --- | --- | --- | --- | | A | 10,000 | 2,000 | 8,000 | | B | 8,000 | 1,500 | 6,500 | | C | 12,000 | 3,000 | 9,000 | What is the total profit sharing ratio of the partners?
Correct A. 3:2:4
B. 4:3:2
C. 2:3:4
D. 4:2:3

Correct Answer: A

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Question 19
A company's assets are as follows: | Asset | Cost | Accumulated Depreciation | Book Value | | --- | --- | --- | --- | | Machinery | 50,000 | 10,000 | 40,000 | | Furniture | 20,000 | 5,000 | 15,000 | | Vehicles | 30,000 | 8,000 | 22,000 | What is the total book value of the company's assets?
A. ₦77,000
B. ₦77,500
Correct C. ₦78,000
D. ₦78,500

Correct Answer: C

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Question 20
A company's bank statement shows the following transactions: | Date | Debit | Credit | | --- | --- | --- | | 1st Jan | 1,000 | | | 2nd Jan | | 500 | | 3rd Jan | | 800 | | 4th Jan | | 1,200 | What is the balance of the company's bank account?
Correct A. ₦1,200
B. ₦1,800
C. ₦2,000
D. ₦2,200

Correct Answer: A

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Question 21
A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance of ₦5,000 in the 'Rent and Utilities' account, what is the corresponding credit entry in the 'Cash' account?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 22
A company's balance sheet shows a decrease in the 'Accounts Payable' account from ₦50,000 to ₦30,000. What is the corresponding increase in the 'Cash' account?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 23
A company's trial balance shows a credit balance of ₦10,000 in the 'Salaries and Wages' account. What is the corresponding debit entry in the 'Accounts Payable' account?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 24
A company's balance sheet shows a decrease in the 'Equipment' account from ₦100,000 to ₦80,000. What is the corresponding decrease in the 'Depreciation Expense' account?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 25
A company's trial balance shows a debit balance of ₦20,000 in the 'Rent and Utilities' account. What is the corresponding credit entry in the 'Accrued Expenses' account?
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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