Practice Post UTME AAUA accounting 2018 Past Questions

Question 1

A company's trading account shows a profit of ₦150,000. The balance sheet shows a decrease in inventory of ₦20,000 and an increase in accounts payable of ₦15,000. What is the net profit for the period?

A. ₦120,000

Correct B. ₦125,000

C. ₦130,000

D. ₦135,000

Correct Answer: B

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Question 2

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The proceeds from the issue are used to pay off a loan of ₦500,000. What is the amount of share capital?

A. ₦10,000

B. ₦15,000

C. ₦20,000

Correct D. ₦25,000

Correct Answer: D

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Question 3

A company's balance sheet shows a decrease in cash of ₦50,000 and an increase in accounts receivable of ₦20,000. What is the net decrease in working capital?

A. ₦30,000

B. ₦35,000

C. ₦40,000

Correct D. ₦45,000

Correct Answer: D

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Question 4

A company's trading account shows a profit of ₦200,000. The balance sheet shows a decrease in inventory of ₦30,000 and an increase in accounts payable of ₦25,000. What is the net profit for the period?

A. ₦155,000

B. ₦160,000

C. ₦165,000

Correct D. ₦170,000

Correct Answer: D

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Question 5

A company issues 500 shares of ₦20 each at a premium of ₦10 per share. The proceeds from the issue are used to pay off a loan of ₦750,000. What is the amount of share capital?

A. ₦10,000

B. ₦15,000

C. ₦20,000

Correct D. ₦25,000

Correct Answer: D

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Question 6

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 7

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦150,000, Cost of Goods Sold ₦80,000, and Common Stock ₦100,000. What is the net income?

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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Question 8

A manufacturing company produces two products: A and B. Product A requires 2 hours of direct labor and Product B requires 3 hours of direct labor. If the company works 40 hours in a week, how many units of Product A can be produced?

A. 20 units

Correct B. 25 units

C. 30 units

D. 35 units

Correct Answer: B

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Question 9

A company uses the perpetual inventory system. If the beginning inventory is ₦80,000, purchases during the period are ₦120,000, and sales are ₦200,000, what is the ending inventory?

A. ₦60,000

B. ₦70,000

Correct C. ₦80,000

D. ₦90,000

Correct Answer: C

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Question 10

A government agency has the following transactions: Salaries ₦100,000, Rent ₦20,000, Utilities ₦10,000, and Miscellaneous ₦5,000. What is the total expense?

A. ₦135,000

B. ₦140,000

C. ₦145,000

Correct D. ₦150,000

Correct Answer: D

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Question 11

A company uses the straight-line method to depreciate its assets. 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?

Correct A. ₦40,000

B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: A

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Question 12

A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, and Cost of Goods Sold ₦200,000. What is the company's net income?

Correct A. ₦300,000

B. ₦200,000

C. ₦100,000

D. ₦50,000

Correct Answer: A

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Question 13

A company uses the double-entry system of accounting. If the company purchases office supplies for ₦10,000 and pays cash, what is the journal entry?

Correct A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000

B. Debit Cash ₦10,000, Credit Office Supplies ₦10,000

C. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000

D. Debit Accounts Payable ₦10,000, Credit Office Supplies ₦10,000

Correct Answer: A

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Question 14

A company's ledger shows the following balances: Accounts Receivable ₦150,000, Sales Revenue ₦600,000, and Cost of Goods Sold ₦250,000. What is the company's net income?

Correct A. ₦350,000

B. ₦250,000

C. ₦150,000

D. ₦100,000

Correct Answer: A

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Question 15

A company uses the straight-line method to depreciate its assets. If the asset's useful life is 10 years and the residual value is ₦20,000, what is the annual depreciation charge if the asset's cost is ₦300,000?

Correct A. ₦28,000

B. ₦30,000

C. ₦32,000

D. ₦35,000

Correct Answer: A

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Question 16

A company has two self-balancing ledgers: the Sales Ledger and the Purchase Ledger. The Sales Ledger shows a debit balance of ₦150,000, while the Purchase Ledger shows a credit balance of ₦120,000. What is the net effect on the company's cash balance?

Correct A. ₦30,000 debit

B. ₦30,000 credit

C. ₦60,000 debit

D. ₦60,000 credit

Correct Answer: A

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Question 17

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦12,000, what is the amount of the share capital?

A. ₦10,000

Correct B. ₦12,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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Question 18

A company has an incomplete record of its transactions. The company's cash book shows a debit balance of ₦50,000, while the company's bank statement shows a credit balance of ₦60,000. What is the net effect on the company's cash balance?

Correct A. ₦10,000 debit

B. ₦10,000 credit

C. ₦20,000 debit

D. ₦20,000 credit

Correct Answer: A

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Question 19

A company issues 500 debentures of ₦100 each at a premium of ₦20 per debenture. If the company receives a cash payment of ₦50,000, what is the amount of the debenture capital?

A. ₦40,000

Correct B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: B

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Question 20

A company has a cash book that shows a debit balance of ₦80,000. The company's bank statement shows a credit balance of ₦90,000. What is the net effect on the company's cash balance?

Correct A. ₦10,000 debit

B. ₦10,000 credit

C. ₦20,000 debit

D. ₦20,000 credit

Correct Answer: A

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Question 21

A public sector organization has the following transactions for the year ended December 31, 2022: Cash received from customers: ₦1,500,000 Cash paid to suppliers: ₦800,000 Cash paid to employees: ₦300,000 Cash received from government grant: ₦200,000 Cash paid for rent: ₦100,000 Cash paid for utilities: ₦50,000 What is the net cash inflow from operating activities?

Correct A. ₦250,000

B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: A

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Question 22

A company uses the double-entry system of accounting. The following transactions occurred during the year: Debit: Raw materials: ₦100,000, Wages: ₦50,000, Rent: ₦20,000 Credit: Purchases: ₦150,000, Salaries: ₦60,000, Utilities: ₦25,000 What is the net effect on the company's cash balance?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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Question 23

A manufacturing company has the following transactions for the year ended December 31, 2022: Cost of goods sold: ₦500,000 Selling expenses: ₦150,000 Administrative expenses: ₦100,000 What is the net profit for the year?

A. ₦450,000

Correct B. ₦500,000

C. ₦550,000

D. ₦600,000

Correct Answer: B

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Question 24

A company has the following balance sheet as at December 31, 2022: Assets: ₦1,000,000, Liabilities: ₦500,000, Equity: ₦500,000 What is the company's current ratio?

A. 1:1

Correct B. 2:1

C. 3:1

D. 4:1

Correct Answer: B

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Question 25

A company uses the double-entry system of accounting. The following transactions occurred during the year: Debit: Raw materials: ₦100,000, Wages: ₦50,000, Rent: ₦20,000 Credit: Purchases: ₦150,000, Salaries: ₦60,000, Utilities: ₦25,000 What is the net effect on the company's cash balance?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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