POST UTME SKYLINE UNIVERSITY 2018 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 2018 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 double-entry system to record its transactions. The following journal entry is made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
Correct A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's trial balance shows the following balances: Accounts Receivable 10,000, Sales Revenue 20,000, Cost of Goods Sold 15,000. What is the net income of the company?
Correct A. 5,000
B. 10,000
C. 15,000
D. 20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company uses the single-entry system to record its transactions. The following entry is made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
Correct A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's balance sheet shows the following balances: Assets 100,000, Liabilities 50,000, Equity 50,000. What is the company's net income for the year?
Correct A. 20,000
B. 30,000
C. 40,000
D. 50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company uses the double-entry system to record its transactions. The following journal entry is made: Debit: Depreciation Expense 1,000, Credit: Accumulated Depreciation 1,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
Correct C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a partnership account, the capital of each partner is usually recorded at the beginning of the year as a _______.
A. Drawings Account
Correct B. Capital Account
C. Profit and Loss Account
D. Current Account

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A manufacturing company uses the process costing method. The following information is available: Opening work-in-progress (WIP) = ₦50,000; Direct materials used = ₦120,000; Direct labor = ₦80,000; Factory overhead = ₦60,000. Calculate the total cost of goods manufactured.
A. ₦310,000
B. ₦320,000
Correct C. ₦330,000
D. ₦340,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A government agency has the following transactions: Cash received from customers = ₦500,000; Cash paid to suppliers = ₦300,000; Cash paid to employees = ₦200,000. Prepare a cash flow statement for the agency.
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company has the following bank reconciliation statement: Bank balance = ₦100,000; Cash in hand = ₦20,000; Outstanding checks = ₦30,000; Deposits in transit = ₦40,000. Calculate the adjusted bank balance.
A. ₦140,000
B. ₦150,000
Correct C. ₦160,000
D. ₦170,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A partnership has the following capital accounts: A = ₦100,000; B = ₦80,000; C = ₦60,000. The profit for the year is ₦40,000. Prepare the partnership's profit and loss appropriation account.
A. ₦240,000
B. ₦260,000
Correct C. ₦280,000
D. ₦300,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's trading account for the year ended 31st December 2022, showed a profit of ₦120,000. The balance on the profit and loss account was ₦150,000. The balance on the capital account was ₦200,000. The balance on the drawings account was ₦30,000. What is the balance on the profit and loss account after the appropriation?
A. ₦80,000
Correct B. ₦100,000
C. ₦120,000
D. ₦150,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's balance sheet as at 31st December 2022, showed the following balances: Equity Share Capital ₦500,000, Profit and Loss Account ₦300,000, and Retained Earnings ₦200,000. What is the amount of the company's total equity?
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,300,000
D. ₦1,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's profit and loss account for the year ended 31st December 2022, showed a profit of ₦150,000. The balance on the capital account was ₦200,000. The balance on the drawings account was ₦30,000. What is the balance on the profit and loss account after the appropriation?
A. ₦80,000
Correct B. ₦100,000
C. ₦120,000
D. ₦150,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's balance sheet as at 31st December 2022, showed the following balances: Equity Share Capital ₦500,000, Profit and Loss Account ₦300,000, and Retained Earnings ₦200,000. What is the amount of the company's total equity?
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,300,000
D. ₦1,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's profit and loss account for the year ended 31st December 2022, showed a profit of ₦150,000. The balance on the capital account was ₦200,000. The balance on the drawings account was ₦30,000. What is the balance on the profit and loss account after the appropriation?
A. ₦80,000
Correct B. ₦100,000
C. ₦120,000
D. ₦150,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trial balance shows an error of ₦1,500 in the debit side of the purchases account. The error is due to the omission of a purchase return of ₦3,000. Prepare the necessary journal entry to rectify the error.
A. ₦1,500 debit to purchases account
B. ₦3,000 credit to purchases account
Correct C. ₦1,500 debit to purchases account and ₦3,000 credit to purchases account
D. ₦1,500 credit to purchases account

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's balance sheet as at 31st December 2022 shows an increase in the value of its non-current assets by ₦1,200,000. If the company's total liabilities increased by ₦800,000, what is the increase in shareholders' equity?
Correct A. ₦400,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,800,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's profit and loss account for the year ended 31st December 2022 shows a net profit of ₦1,500,000. If the company's total assets increased by ₦2,500,000 and its total liabilities increased by ₦1,000,000, what is the increase in shareholders' equity?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's balance sheet as at 31st December 2022 shows an increase in the value of its non-current assets by ₦1,200,000. If the company's total liabilities increased by ₦800,000, what is the increase in shareholders' equity?
Correct A. ₦400,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,800,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's profit and loss account for the year ended 31st December 2022 shows a net loss of ₦1,500,000. If the company's total assets decreased by ₦2,500,000 and its total liabilities decreased by ₦1,000,000, what is the decrease in shareholders' equity?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company produces two products, X and Y. The manufacturing process for X requires 2 hours of direct labor and 3 hours of indirect labor, while the manufacturing process for Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day, 5 days a week, and the direct labor rate is ₦150 per hour, what is the total weekly cost of direct labor for both products?
A. ₦12,000
Correct B. ₦15,000
C. ₦18,000
D. ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A partnership consists of three partners, A, B, and C. The capital contributions of the partners are as follows: A ₦100,000, B ₦80,000, and C ₦120,000. If the profit is divided in the ratio 2:3:4, what is the share of profit for partner A?
Correct A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company uses the cash book to record its transactions. The cash book shows the following entries: Debit: Cash ₦10,000, Credit: Sales ₦15,000. What is the net effect on the cash balance?
Correct A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A government agency uses the accrual basis of accounting. The agency receives ₦100,000 in cash from customers and records a revenue of ₦120,000. What is the net effect on the agency's cash balance?
A. ₦20,000 increase
Correct B. ₦20,000 decrease
C. ₦40,000 increase
D. ₦40,000 decrease

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following bank reconciliation statement: Opening balance ₦50,000, Deposits ₦20,000, Withdrawals ₦10,000, Bank errors ₦5,000. What is the corrected bank balance?
A. ₦65,000
Correct B. ₦70,000
C. ₦75,000
D. ₦80,000

Correct Answer: B

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