POST UTME VERITAS UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME VERITAS 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 maintains a cash book and a general ledger. The cash book shows a balance of ₦150,000, while the general ledger shows a balance of ₦200,000. The bank statement shows a balance of ₦180,000. What is the cause of the discrepancy?
A. The company has not recorded a deposit of ₦30,000.
Correct B. The company has not recorded a withdrawal of ₦30,000.
C. The bank has charged a service fee of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: B

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Question 2
A company prepares a trial balance as at 31st December, 2017. The trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦20,000, Equipment ₦80,000, Retained Earnings ₦40,000, Sales Revenue ₦200,000, Salaries Expense ₦30,000, and Utilities Expense ₦20,000. What is the net income for the year?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 3
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦150,000, while the general ledger shows a balance of ₦200,000. The bank statement shows a balance of ₦180,000. What is the cause of the discrepancy?
A. The company has not recorded a deposit of ₦30,000.
Correct B. The company has not recorded a withdrawal of ₦30,000.
C. The bank has charged a service fee of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: B

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Question 4
A company prepares a trial balance as at 31st December, 2017. The trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦20,000, Equipment ₦80,000, Retained Earnings ₦40,000, Sales Revenue ₦200,000, Salaries Expense ₦30,000, and Utilities Expense ₦20,000. What is the net income for the year?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 5
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦150,000, while the general ledger shows a balance of ₦200,000. The bank statement shows a balance of ₦180,000. What is the cause of the discrepancy?
A. The company has not recorded a deposit of ₦30,000.
Correct B. The company has not recorded a withdrawal of ₦30,000.
C. The bank has charged a service fee of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: B

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Question 6
A partnership is formed by two individuals, A and B, who contribute ₦100,000 and ₦150,000 respectively. The partnership agreement states that the profits will be shared in the ratio 3:2. If the total profit for the year is ₦250,000, calculate the amount of profit that will be shared by A.
A. ₦150,000
Correct B. ₦120,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 7
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦120,000, calculate the amount of premium received.
Correct A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: A

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Question 8
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. If the machine is depreciated for 5 years, calculate the total depreciation.
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 9
A company has a building valued at ₦1,000,000. If the building is revalued at ₦1,200,000, calculate the increase in value.
Correct A. ₦200,000
B. ₦150,000
C. ₦180,000
D. ₦220,000

Correct Answer: A

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Question 10
A company has a debt of ₦500,000 due in 5 years. If the company wants to settle the debt by paying an annual installment of ₦100,000, calculate the total amount paid.
Correct A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: A

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Question 11
Determine the amount of depreciation on a machine that cost ₦150,000 and has a useful life of 5 years, with a residual value of ₦20,000. The machine is depreciated using the straight-line method. Calculate the annual depreciation charge.
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 12
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
Correct B. ₦10,500
C. ₦11,000
D. ₦11,500

Correct Answer: B

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Question 13
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be shared by A and B.
A. ₦18,000
Correct B. ₦20,000
C. ₦22,000
D. ₦24,000

Correct Answer: B

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Question 14
A company issued 5% debentures of ₦1,000 each. The company pays interest annually. Calculate the annual interest payable on the debentures.
A. ₦50
Correct B. ₦100
C. ₦150
D. ₦200

Correct Answer: B

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Question 15
A company purchased a machine for ₦200,000. The machine is depreciated using the reducing balance method. Calculate the value of the machine after 3 years, given that the annual depreciation rate is 20%.
A. ₦128,000
Correct B. ₦144,000
C. ₦160,000
D. ₦176,000

Correct Answer: B

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Question 16
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 12 hours and machine B operates for 15 hours, what is the total number of units of product X produced?
Correct A. 30
B. 40
C. 50
D. 60

Correct Answer: A

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Question 17
A company's trial balance shows the following accounts: Accounts Payable (₦100,000), Accounts Receivable (₦80,000), Common Stock (₦200,000), and Retained Earnings (₦150,000). What is the total amount of assets?
A. ₦430,000
Correct B. ₦450,000
C. ₦470,000
D. ₦490,000

Correct Answer: B

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Question 18
A company uses the weighted average method to assign overhead costs to jobs. The total overhead costs for the month are ₦120,000, and the total direct labor hours for the month are 1,000 hours. If Job A requires 100 hours of direct labor and Job B requires 200 hours of direct labor, what is the overhead cost per direct labor hour?
A. ₦120
Correct B. ₦150
C. ₦180
D. ₦200

Correct Answer: B

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Question 19
A company's balance sheet shows the following accounts: Cash (₦150,000), Accounts Payable (₦100,000), Common Stock (₦200,000), and Retained Earnings (₦150,000). What is the total amount of liabilities and equity?
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 20
A company uses the FIFO method to value its inventory. The beginning inventory is 100 units at ₦10 per unit, and the purchases during the month are 200 units at ₦15 per unit. What is the total cost of goods sold?
A. ₦3,500
B. ₦4,000
Correct C. ₦4,500
D. ₦5,000

Correct Answer: C

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Question 21
A company uses the weighted average method to value its inventory. The following information is available for the year ended December 31, 2022: Cost of goods available for sale: ₦1,500,000 Net realizable value of goods on hand: ₦1,200,000 Cost of goods sold: ₦1,000,000 What is the value of inventory at December 31, 2022?
Correct A. ₦1,200,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦800,000

Correct Answer: A

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Question 22
A company's trial balance as at December 31, 2022, is as follows: Debit ₦1,000,000 Credit ₦1,200,000 What is the correct journal entry to rectify the error?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 23
A company uses the perpetual inventory system. The following information is available for the year ended December 31, 2022: Purchases: ₦1,000,000 Sales: ₦1,200,000 What is the value of inventory at December 31, 2022?
Correct A. ₦1,200,000
B. ₦1,000,000
C. ₦800,000
D. ₦600,000

Correct Answer: A

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Question 24
A company's control account for the year ended December 31, 2022, is as follows: ₦1,000,000 What is the correct journal entry to rectify the error?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 25
A company uses the self-balancing ledger system. The following information is available for the year ended December 31, 2022: Purchases: ₦1,000,000 Sales: ₦1,200,000 What is the value of inventory at December 31, 2022?
Correct A. ₦1,200,000
B. ₦1,000,000
C. ₦800,000
D. ₦600,000

Correct Answer: A

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