POST UTME SUMMIT UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME SUMMIT 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 straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 2
A company's trial balance shows the following balances: Debitors ₦50,000, Creditors ₦30,000, Capital ₦100,000, Profit and Loss Account ₦20,000. What is the total amount of assets?
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 3
A company's bank statement shows a balance of ₦80,000, but the company's cash book shows a balance of ₦90,000. What is the reason for the discrepancy?
A. Bank charges
B. Cheque returned unpaid
Correct C. Deposit in transit
D. Withdrawal in transit

Correct Answer: C

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Question 4
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦120,000, its residual value is ₦0, and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 5
A company's cash book shows the following transactions: Cheque No. 101 for ₦10,000, Cheque No. 102 for ₦5,000, Bank deposit of ₦8,000. What is the total amount of cash transactions?
Correct A. ₦23,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 7
A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 40 hours of direct labor and 60 hours of indirect labor per week, how many units of product X and product Y should be produced?
Correct A. 10 units of X and 15 units of Y
B. 15 units of X and 10 units of Y
C. 20 units of X and 5 units of Y
D. 5 units of X and 20 units of Y

Correct Answer: A

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Question 8
A company's trial balance shows the following accounts: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Net Income ₦40,000. What is the company's total assets?
Correct A. ₦250,000
B. ₦220,000
C. ₦280,000
D. ₦300,000

Correct Answer: A

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Question 9
A company uses the perpetual inventory system. If the company purchases 100 units of inventory at ₦50 per unit and sells 50 units at ₦60 per unit, what is the company's cost of goods sold?
A. ₦2,500
Correct B. ₦2,000
C. ₦3,000
D. ₦2,500

Correct Answer: B

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Question 10
A company's single-entry accounting system shows the following transactions: Cash ₦10,000, Accounts Payable ₦20,000, Sales Revenue ₦30,000, and Cost of Goods Sold ₦15,000. What is the company's net income?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 11
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 12
A company's trading account for the year ended 31 December 20X7 is as follows:
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 13
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦5,000
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 14
A company's balance sheet as at 31 December 20X7 is as follows:
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 15
A company's manufacturing account for the year ended 31 December 20X7 is as follows:
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 16
In a manufacturing company, the following transactions occurred during the month of January: Purchased raw materials worth ₦150,000 on credit. Purchased machinery worth ₦500,000 for cash. Sold goods worth ₦300,000 for cash. Paid salaries worth ₦100,000 for the month. What is the total amount of assets acquired by the company during the month?
A. ₦650,000
Correct B. ₦750,000
C. ₦850,000
D. ₦950,000

Correct Answer: B

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Question 17
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦20,000 Capital: ₦100,000 What is the total amount of equity in the company?
Correct A. ₦130,000
B. ₦130,000
C. ₦130,000
D. ₦130,000

Correct Answer: A

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Question 18
A company has the following trial balance: Debtors: ₦50,000 Creditors: ₦20,000 Capital: ₦100,000 What is the total amount of assets in the company?
Correct A. ₦170,000
B. ₦170,000
C. ₦170,000
D. ₦170,000

Correct Answer: A

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Question 19
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦20,000 Capital: ₦100,000 What is the total amount of liabilities in the company?
Correct A. ₦70,000
B. ₦70,000
C. ₦70,000
D. ₦70,000

Correct Answer: A

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Question 20
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦20,000 Capital: ₦100,000 What is the total amount of equity in the company?
Correct A. ₦130,000
B. ₦130,000
C. ₦130,000
D. ₦130,000

Correct Answer: A

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Question 21
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 record the correction of this error?
A. Debit Rent Paid ₦5,000, Credit Rent Received ₦5,000
B. Debit Rent Paid ₦15,000, Credit Rent Received ₦15,000
C. Debit Rent Received ₦20,000, Credit Rent Paid ₦20,000
Correct D. Debit Rent Received ₦5,000, Credit Rent Paid ₦5,000

Correct Answer: D

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Question 22
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 23
A company's balance sheet shows a current asset of ₦50,000 in the account 'Accounts Receivable' and a current liability of ₦30,000 in the account 'Accounts Payable'. What is the net working capital?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 24
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries Expense' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to record the correction of this error?
A. Debit Salaries Payable ₦5,000, Credit Salaries Expense ₦5,000
B. Debit Salaries Expense ₦10,000, Credit Salaries Payable ₦10,000
C. Debit Salaries Payable ₦15,000, Credit Salaries Expense ₦15,000
Correct D. Debit Salaries Expense ₦5,000, Credit Salaries Payable ₦5,000

Correct Answer: D

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Question 25
A company uses the double-declining balance method of depreciation. If the cost of the asset is ₦150,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦30,000
B. ₦25,000
Correct C. ₦28,000
D. ₦32,000

Correct Answer: C

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