POST UTME SKYLINE UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 5,000 shares of 10 par value at a premium of 5 per share. Calculate the total amount received from the issue of shares.
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 2
A company purchased a machine for ₦120,000 and sold it for ₦180,000. Calculate the gain or loss on the sale of the machine.
Correct A. ₦60,000
B. ₦80,000
C. ₦60,000 loss
D. ₦80,000 loss

Correct Answer: A

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Question 3
A company issued 10,000 debentures of ₦100 each at a discount of 5%. Calculate the total 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 4
A company purchased a machine for ₦150,000 and sold it for ₦200,000. Calculate the gain or loss on the sale of the machine.
Correct A. ₦50,000
B. ₦50,000 loss
C. ₦50,000 gain
D. ₦50,000 loss

Correct Answer: A

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Question 5
A company issued 5,000 shares of ₦10 par value at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000
Correct B. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000
C. Debit Rent Paid by ₦20,000 and Credit Rent Received by ₦20,000
D. Debit Rent Received by ₦20,000 and Credit Rent Paid by ₦20,000

Correct Answer: B

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Question 7
A company's balance sheet shows an increase in its current assets of ₦50,000 and a decrease in its current liabilities of ₦30,000. What is the effect on its net working capital?
Correct A. ₦20,000 increase
B. ₦20,000 decrease
C. ₦50,000 increase
D. ₦30,000 increase

Correct Answer: A

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Question 8
A company's profit and loss account shows a gross profit of ₦150,000 and a net profit of ₦80,000. What is the value of its operating expenses?
Correct A. ₦70,000
B. ₦60,000
C. ₦50,000
D. ₦40,000

Correct Answer: A

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Question 9
A company uses the double-entry system of accounting. What is the effect on its accounting equation when it purchases an asset of ₦50,000?
A. ₦50,000 increase in assets and ₦50,000 increase in liabilities
Correct B. ₦50,000 increase in assets and ₦50,000 decrease in equity
C. ₦50,000 increase in liabilities and ₦50,000 decrease in equity
D. ₦50,000 decrease in assets and ₦50,000 decrease in liabilities

Correct Answer: B

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Question 10
A company's trial balance shows a debit balance of ₦20,000 in the account 'Accrued Expenses' and a credit balance of ₦15,000 in the account 'Accrued Income'. What is the correct journal entry to correct this discrepancy?
A. Debit Accrued Income by ₦5,000 and Credit Accrued Expenses by ₦5,000
Correct B. Debit Accrued Expenses by ₦5,000 and Credit Accrued Income by ₦5,000
C. Debit Accrued Income by ₦20,000 and Credit Accrued Expenses by ₦20,000
D. Debit Accrued Expenses by ₦20,000 and Credit Accrued Income by ₦20,000

Correct Answer: B

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Question 11
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and it has a weightage of 30%. The cost of inventory B is ₦80,000, and it has a weightage of 40%. The cost of inventory C is ₦60,000, and it has a weightage of 30%. What is the total cost of the inventory?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 12
A company has a machine that depreciates by 10% per annum. The machine was purchased for ₦500,000. What is the value of the machine after 3 years?
A. ₦420,000
B. ₦450,000
Correct C. ₦480,000
D. ₦510,000

Correct Answer: C

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Question 13
A company uses the perpetual inventory system to value its inventory. The company has two types of inventory: A and B. The cost of inventory A is ₦120,000, and it has a weightage of 50%. The cost of inventory B is ₦80,000, and it has a weightage of 50%. What is the total cost of the inventory?
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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Question 14
A company has a machine that depreciates by 10% per annum. The machine was purchased for ₦500,000. What is the value of the machine after 2 years?
A. ₦450,000
Correct B. ₦480,000
C. ₦510,000
D. ₦540,000

Correct Answer: B

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Question 15
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and it has a weightage of 30%. The cost of inventory B is ₦80,000, and it has a weightage of 40%. The cost of inventory C is ₦60,000, and it has a weightage of 30%. What is the total cost of the inventory?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
Correct D. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid

Correct Answer: D

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Question 17
A company's financial statements for the year ended 31st December 2022, show the following balances: Share Capital ₦100,000, Retained Earnings ₦50,000, and Dividends ₦20,000. What is the total equity of the company?
Correct A. ₦170,000
B. ₦150,000
C. ₦170,000
D. ₦170,000

Correct Answer: A

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Question 18
A company's manufacturing account for the year ended 31st December 2022, shows the following balances: Cost of Goods Sold ₦500,000, Work-in-Progress ₦100,000, and Finished Goods ₦200,000. What is the total cost of goods available for sale?
Correct A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦500,000

Correct Answer: A

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Question 19
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. What is the total amount received from the issue of debentures?
A. ₦90,000
Correct B. ₦95,000
C. ₦100,000
D. ₦105,000

Correct Answer: B

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Question 20
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
Correct D. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid

Correct Answer: D

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Question 21
A company issued 10,000 9% debentures of ₦100 each. Calculate the total amount received from the issue of debentures.
A. ₦1,000,000
Correct B. ₦1,090,000
C. ₦1,090,000
D. ₦1,000,000

Correct Answer: B

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Question 22
A partnership was formed on January 1, 2022, between three individuals, A, B, and C, who invested ₦100,000, ₦150,000, and ₦200,000, respectively. The partnership's profit for the year was ₦500,000. If the profit-sharing ratio is 2:3:4, calculate the amount of profit that should be allocated to partner C.
A. ₦100,000
B. ₦120,000
Correct C. ₦160,000
D. ₦200,000

Correct Answer: C

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Question 23
A government agency is responsible for collecting taxes on behalf of the government. The agency's income statement for the year ended December 31, 2022, showed a revenue of ₦10,000,000 and an expense of ₦8,000,000. If the agency's financial year begins on January 1, 2022, what is the amount of the agency's net income for the year?
A. ₦1,000,000
Correct B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: B

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Question 24
A sole trader, XYZ, has the following transactions for the year ended December 31, 2022: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | Jan 1 | Capital | ₦50,000 | | | Jan 15 | Sales | | ₦20,000 | | Feb 1 | Purchase | ₦10,000 | | | Mar 1 | Rent | | ₦5,000 | | Apr 1 | Purchase | ₦15,000 | | | May 1 | Sales | | ₦30,000 | | Jun 1 | Purchase | ₦20,000 | | | Jul 1 | Rent | | ₦10,000 | | Aug 1 | Purchase | ₦25,000 | | | Sep 1 | Sales | | ₦40,000 | | Oct 1 | Purchase | ₦30,000 | | | Nov 1 | Rent | | ₦15,000 | | Dec 1 | Purchase | ₦35,000 | | What is the amount of the sole trader's net income for the year?
A. ₦100,000
B. ₦120,000
Correct C. ₦140,000
D. ₦160,000

Correct Answer: C

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Question 25
A company's trial balance as at December 31, 2022, showed the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | | | Accounts Receivable | ₦20,000 | | | Inventory | | ₦30,000 | | Prepaid Rent | | ₦10,000 | | Salaries Payable | ₦15,000 | | | Common Stock | | ₦100,000 | | Retained Earnings | | ₦50,000 | | Dividends | | ₦20,000 | | Net Income | ₦40,000 | | What is the amount of the company's total assets as at December 31, 2022?
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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