POST UTME AL-HIKMAH UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME AL-HIKMAH 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's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. Debit Rent Paid ₦300, Credit Rent Received ₦300
Correct B. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300
C. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Credit Profit and Loss ₦300
D. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Rent Received ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦120,000 and the Assembly department has a total cost of ₦150,000. What is the total cost of production for the company?
A. ₦270,000
B. ₦270,000 + ₦120,000
C. ₦270,000 + ₦150,000
Correct D. ₦270,000 + ₦120,000 + ₦150,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦10,000 + ₦5,000
C. ₦10,000 + ₦5,000 + ₦5,000
Correct D. ₦10,000 + ₦5,000 + ₦5,000 + ₦5,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's balance sheet shows a current asset of ₦50,000 and a non-current asset of ₦150,000. What is the total amount of assets?
A. ₦200,000
B. ₦200,000 + ₦50,000
C. ₦200,000 + ₦150,000
Correct D. ₦200,000 + ₦50,000 + ₦150,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. Debit Rent Paid ₦300, Credit Rent Received ₦300
Correct B. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300
C. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Credit Profit and Loss ₦300
D. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Rent Received ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company's manufacturing overheads are allocated to its products using the machine-hours method. If the total overheads for the year amount to ₦1,500,000 and the company operates 2,000 machines for 8,000 hours, while 1,500 machines operate for 6,000 hours, what is the overhead rate per machine-hour?
Correct A. ₦0.75
B. ₦0.90
C. ₦1.00
D. ₦1.25

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's financial statements for the year ended December 31, 2022, are as follows: Trading Profit: ₦2,500,000; Profit Before Tax: ₦3,200,000; Tax Expense: ₦800,000. What is the company's Net Profit for the year?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
Correct D. ₦3,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's balance sheet as at December 31, 2022, is as follows: Equity: ₦5,000,000; Long-term Debt: ₦3,000,000; Current Liabilities: ₦2,500,000. What is the company's Total Assets?
A. ₦10,500,000
B. ₦11,000,000
Correct C. ₦11,500,000
D. ₦12,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company uses the double-entry system of accounting. If it debits its Purchases Account for ₦1,500,000 and credits its Accounts Payable Account for the same amount, what is the effect on the company's Cash Balance?
A. ₦1,500,000 increase
B. ₦1,500,000 decrease
Correct C. ₦0 increase
D. ₦3,000,000 increase

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's financial statements for the year ended December 31, 2022, are as follows: Trading Profit: ₦2,500,000; Profit Before Tax: ₦3,200,000; Tax Expense: ₦800,000. What is the company's Net Profit for the year?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
Correct D. ₦3,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's manufacturing overheads include depreciation on machinery, salaries of production staff, and indirect materials. The company's total production cost for the year is ₦1,500,000. If the depreciation on machinery is ₦150,000 and the salaries of production staff are ₦200,000, what is the amount of indirect materials used?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦2,500,000 Returns outwards: ₦50,000 Returns inwards: ₦20,000 Cost of goods sold: ₦1,800,000 Opening inventory: ₦150,000 Closing inventory: ₦200,000 What is the gross profit for the year?
A. ₦700,000
Correct B. ₦750,000
C. ₦800,000
D. ₦850,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's balance sheet as at 31st December 2022 is as follows: Fixed assets: ₦1,500,000 Current assets: ₦1,200,000 Total assets: ₦2,700,000 Equity: ₦1,200,000 Long-term liabilities: ₦800,000 Short-term liabilities: ₦600,000 What is the amount of working capital?
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company issues 10,000 shares of ₦5 each at a premium of ₦3 per share. If the company receives a total of ₦150,000, what is the amount of share capital?
A. ₦100,000
B. ₦120,000
C. ₦140,000
Correct D. ₦160,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company issues 10,000 shares of ₦5 each at a premium of ₦3 per share. If the company receives a total of ₦150,000, what is the amount of share premium?
A. ₦20,000
B. ₦30,000
C. ₦40,000
Correct D. ₦50,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trading account shows a profit of ₦1,500,000. The profit and loss account shows a profit of ₦2,000,000. The balance sheet shows a net worth of ₦4,500,000. What is the amount of dividends paid to shareholders?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
Correct D. ₦3,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,200,000. The beginning inventory is ₦300,000. The ending inventory is ₦400,000. What is the cost of goods sold?
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's balance sheet shows a current ratio of 2:1. The current assets are ₦2,000,000 and the current liabilities are ₦1,000,000. What is the amount of non-current assets?
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's manufacturing account shows a cost of goods manufactured of ₦1,800,000. The beginning work-in-progress is ₦200,000. The ending work-in-progress is ₦300,000. What is the cost of goods sold?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
Correct D. ₦1,800,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's public sector accounting system shows a revenue of ₦1,200,000. The expenses are ₦900,000. What is the net surplus?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A public sector organization has a capital expenditure of ₦100,000,000 for the year. The organization uses the accrual basis of accounting. What is the accounting treatment for this expenditure?
A. Recognize as an expense in the income statement
B. Recognize as a liability in the balance sheet
Correct C. Recognize as an asset in the balance sheet
D. Recognize as a revenue in the income statement

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company has the following ledger accounts: Cash, Accounts Payable, Accounts Receivable, Common Stock, Dividends, Retained Earnings, Sales Revenue, and Cost of Goods Sold. Which of the following accounts is a contra-asset account?
Correct A. Accounts Payable
B. Accounts Receivable
C. Cost of Goods Sold
D. Sales Revenue

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. The partnership has a net income of ₦500,000 for the year. How much of the net income will Partner A receive?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company uses the straight-line method of depreciation for its assets. The asset has a cost of ₦200,000 and an estimated useful life of 5 years. What is the annual depreciation expense?
Correct A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following financial statements: Balance Sheet and Income Statement. Which of the following statements is NOT a financial statement?
A. Balance Sheet
B. Income Statement
Correct C. Cash Flow Statement
D. Statement of Changes in Equity

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support