POST UTME OAU 2017 Accounting | Objective

Are you preparing for POST UTME OAU 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 cash book to record its transactions. The cash book shows a balance of ₦10,000. However, the bank statement shows a balance of ₦8,000. What is the reason for the difference?
A. The company has not recorded a deposit of ₦2,000.
B. The company has not recorded a withdrawal of ₦2,000.
Correct C. The bank has charged a service fee of ₦2,000.
D. The company has not recorded a loan of ₦2,000.

Correct Answer: C

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Question 2
A company uses the double entry system to record its transactions. The company purchases office equipment for ₦50,000. What is the effect on the accounting equation?
A. Assets increase by ₦50,000 and liabilities decrease by ₦50,000.
Correct B. Assets increase by ₦50,000 and equity increases by ₦50,000.
C. Assets decrease by ₦50,000 and liabilities increase by ₦50,000.
D. Assets decrease by ₦50,000 and equity decreases by ₦50,000.

Correct Answer: B

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Question 3
A company uses the single entry system to record its transactions. The company receives a cash payment of ₦20,000. What is the effect on the accounting equation?
A. Assets increase by ₦20,000 and liabilities decrease by ₦20,000.
Correct B. Assets increase by ₦20,000 and equity increases by ₦20,000.
C. Assets decrease by ₦20,000 and liabilities increase by ₦20,000.
D. Assets decrease by ₦20,000 and equity decreases by ₦20,000.

Correct Answer: B

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Question 4
A company purchases a machine for ₦100,000. The machine has a useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation charge?
A. ₦16,000
Correct B. ₦18,000
C. ₦20,000
D. ₦22,000

Correct Answer: B

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Question 5
A company has the following assets: Cash ₦50,000, Accounts Receivable ₦20,000, Inventory ₦30,000, and Property, Plant, and Equipment ₦100,000. What is the total value of the assets?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 6
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The company also issued 5,000 debentures of 100 each. Calculate the total amount of share capital and debenture capital.
A. ₦150,000
B. ₦250,000
Correct C. ₦350,000
D. ₦450,000

Correct Answer: C

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Question 7
A partnership has three partners: A, B, and C. The capital accounts of the partners are as follows: A = ₦100,000, B = ₦80,000, and C = ₦120,000. The profit-sharing ratio is 3:2:1. Calculate the profit-sharing ratio in terms of the capital accounts.
Correct A. 3:2:1
B. 2:3:1
C. 1:2:3
D. 3:1:2

Correct Answer: A

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Question 8
A company has the following ledger accounts: Cash = ₦50,000, Accounts Payable = ₦30,000, and Common Stock = ₦100,000. The company also has a loan from a bank of ₦20,000. Calculate the total amount of assets.
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 9
A company has the following financial statements: Balance Sheet and Income Statement. The Balance Sheet shows Total Assets = ₦500,000 and Total Liabilities = ₦300,000. The Income Statement shows Net Income = ₦150,000. Calculate the Return on Equity (ROE).
A. 30%
B. 40%
Correct C. 50%
D. 60%

Correct Answer: C

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Question 10
A company has the following financial statements: Balance Sheet and Income Statement. The Balance Sheet shows Total Assets = ₦500,000 and Total Liabilities = ₦300,000. The Income Statement shows Net Income = ₦150,000. Calculate the Debt-to-Equity Ratio.
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 11
A company's trading account for the year ended 31st December 2022 is as follows: Debit: Sales £ 120,000 Purchases £ 80,000 Credit: Cost of Goods Sold £ 90,000 What is the company's gross profit for the year?
Correct A. £ 30,000
B. £ 40,000
C. £ 50,000
D. £ 60,000

Correct Answer: A

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Question 12
A company's balance sheet as at 31st December 2022 is as follows: Assets: £ 100,000 (Cash) £ 200,000 (Debtors) Liabilities: £ 50,000 (Creditors) What is the company's net worth?
A. £ 50,000
Correct B. £ 100,000
C. £ 150,000
D. £ 200,000

Correct Answer: B

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Question 13
A company's profit and loss account for the year ended 31st December 2022 is as follows: Turnover £ 200,000 Cost of Goods Sold £ 150,000 Gross Profit £ 50,000 Operating Expenses £ 20,000 Profit Before Tax £ 30,000 Tax £ 10,000 Profit After Tax £ 20,000 What is the company's net profit?
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 for the year ended 31st December 2022 is as follows: Cash at Bank £ 10,000 Cash in Hand £ 5,000 What is the company's total cash?
A. £ 15,000
Correct B. £ 20,000
C. £ 25,000
D. £ 30,000

Correct Answer: B

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Question 15
A company's bank reconciliation statement for the year ended 31st December 2022 is as follows: Bank Statement £ 20,000 Cash Book £ 25,000 What is the company's bank balance?
A. £ 15,000
B. £ 20,000
Correct C. £ 25,000
D. £ 30,000

Correct Answer: C

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Question 16
In a partnership account, the capital of a partner is increased by ₦50,000. The partner's current profit-sharing ratio is 3:5. If the partner's initial capital was ₦120,000, what is the new profit-sharing ratio?
A. 2:4
Correct B. 3:6
C. 4:6
D. 5:7

Correct Answer: B

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Question 17
A company issued 10,000 shares of ₦5 each at a premium of ₦3. If the company's share capital is ₦250,000, what is the amount received from the issue of shares?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 18
A company's balance sheet shows a debit balance of ₦50,000 in the suspense account. The company's cash account has a credit balance of ₦20,000. What is the amount to be transferred from the suspense account to the cash account?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 19
A government agency has a budget of ₦1,000,000 for a project. The agency has already spent ₦800,000 on the project. What is the percentage of the budget that has been spent?
Correct A. 80%
B. 85%
C. 90%
D. 95%

Correct Answer: A

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Question 20
A company's trial balance shows a discrepancy of ₦10,000. The company's accountant has identified the error as a mistake in the posting of a transaction. What is the correct amount of the transaction?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 21
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 22
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, and Common Stock ₦ 100,000. Prepare a balance sheet for the company.
A. ₦ 180,000
B. ₦ 200,000
Correct C. ₦ 220,000
D. ₦ 240,000

Correct Answer: C

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Question 23
A government agency received ₦ 1 million from the federal government to construct a road. The agency spent ₦ 500,000 on labor and ₦ 300,000 on materials. What is the balance in the agency's account?
A. ₦ 200,000
Correct B. ₦ 300,000
C. ₦ 400,000
D. ₦ 500,000

Correct Answer: B

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Question 24
A company purchased a machine for ₦ 10,000 and depreciated it by 10% per annum for 5 years. Calculate the total depreciation.
A. ₦ 2,500
B. ₦ 3,000
Correct C. ₦ 3,500
D. ₦ 4,000

Correct Answer: C

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Question 25
A company's assets were valued at ₦ 500,000, liabilities were ₦ 200,000, and equity was ₦ 300,000. What is the company's net worth?
A. ₦ 100,000
B. ₦ 200,000
Correct C. ₦ 300,000
D. ₦ 400,000

Correct Answer: C

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