Practice Post UTME AAUA accounting 2020 Past Questions

Question 1

A company uses the single-entry system of accounting. The following transactions occurred during the year: Depreciation on a machine: ₦12,000 Interest on a loan: ₦8,000 Salaries: ₦150,000 Rent: ₦30,000 What is the total amount of expenses for the year?

Correct A. ₦200,000

B. ₦190,000

C. ₦180,000

D. ₦200,000

Correct Answer: A

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Question 2

A company has the following assets: Cash: ₦50,000 Accounts Receivable: ₦30,000 Inventory: ₦100,000 Property, Plant, and Equipment: ₦500,000 What is the total amount of assets?

Correct A. ₦680,000

B. ₦780,000

C. ₦680,000

D. ₦780,000

Correct Answer: A

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Question 3

A company uses the cash basis of accounting. The following transactions occurred during the year: Cash received from customers: ₦150,000 Cash paid to suppliers: ₦80,000 Cash paid to employees: ₦30,000 What is the net cash inflow for the year?

Correct A. ₦40,000

B. ₦40,000

C. ₦40,000

D. ₦40,000

Correct Answer: A

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Question 4

A company has the following liabilities: Accounts Payable: ₦20,000 Loans Payable: ₦100,000 Salaries Payable: ₦30,000 What is the total amount of liabilities?

Correct A. ₦150,000

B. ₦150,000

C. ₦150,000

D. ₦150,000

Correct Answer: A

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Question 5

A company uses the accrual basis of accounting. The following transactions occurred during the year: Revenue: ₦150,000 Expenses: ₦80,000 What is the net income for the year?

Correct A. ₦70,000

B. ₦70,000

C. ₦70,000

D. ₦70,000

Correct Answer: A

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Question 6

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. The issue expenses were ₦ 5,000. Prepare the journal entry for the issue of shares.

Correct A. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000

B. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000

C. Debit Share Capital ₦ 10,000, Credit Issue Expenses ₦ 5,000

D. Debit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000

Correct Answer: A

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Question 7

A company purchased a machine for ₦ 50,000. The machine was depreciated by 10% per annum. Calculate the value of the machine after 3 years.

Correct A. ₦ 30,000

B. ₦ 40,000

C. ₦ 45,000

D. ₦ 50,000

Correct Answer: A

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Question 8

A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Cash | | 500 | | 3 Jan | Cash | | 1,500 | Prepare the bank reconciliation statement.

Correct A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,000

B. Bank Balance ₦ 1,000, Cash Balance ₦ 1,500

C. Bank Balance ₦ 500, Cash Balance ₦ 1,500

D. Bank Balance ₦ 1,500, Cash Balance ₦ 500

Correct Answer: A

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Question 9

A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Cash | | 500 | | 3 Jan | Cash | | 1,500 | Prepare the bank reconciliation statement.

Correct A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,000

B. Bank Balance ₦ 1,000, Cash Balance ₦ 1,500

C. Bank Balance ₦ 500, Cash Balance ₦ 1,500

D. Bank Balance ₦ 1,500, Cash Balance ₦ 500

Correct Answer: A

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Question 10

A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Cash | | 500 | | 3 Jan | Cash | | 1,500 | Prepare the bank reconciliation statement.

Correct A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,000

B. Bank Balance ₦ 1,000, Cash Balance ₦ 1,500

C. Bank Balance ₦ 500, Cash Balance ₦ 1,500

D. Bank Balance ₦ 1,500, Cash Balance ₦ 500

Correct Answer: A

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Question 11

A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000, has a residual value of ₦20,000, and is expected to last for 5 years, what is the annual depreciation charge?

A. ₦20,000

Correct B. ₦22,000

C. ₦24,000

D. ₦26,000

Correct Answer: B

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Question 12

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 of the company?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 13

A company uses the weighted average method to value its inventory. The following data is available: 100 units of Item A at ₦20 each, 200 units of Item B at ₦30 each, and 300 units of Item C at ₦40 each. What is the average cost per unit?

A. ₦25

Correct B. ₦30

C. ₦35

D. ₦40

Correct Answer: B

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Question 14

A company's bank reconciliation statement shows a difference of ₦5,000 between the company's records and the bank's records. The company's records show a balance of ₦100,000, while the bank's records show a balance of ₦105,000. What is the reason for the difference?

A. NSF fee

Correct B. Bank error

C. Company error

D. Interest on overdraft

Correct Answer: B

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Question 15

A company uses the FIFO method to value its inventory. The following data is available: 100 units of Item A at ₦20 each, 200 units of Item B at ₦30 each, and 300 units of Item C at ₦40 each. If 500 units are sold, what is the total cost of goods sold?

A. ₦20,000

B. ₦22,000

Correct C. ₦24,000

D. ₦26,000

Correct Answer: C

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Question 16

A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the discrepancy?

A. The company has not recorded all its financial transactions.

B. The bank has made an error in its statement.

Correct C. The company has not updated its cash book to reflect the current bank balance.

D. The company has made an error in its cash book.

Correct Answer: C

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Question 17

A manufacturing company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, how many units of product A and product B should the company produce to maximize profit?

Correct A. 10 units of product A and 15 units of product B

B. 15 units of product A and 10 units of product B

C. 20 units of product A and 20 units of product B

D. 25 units of product A and 25 units of product B

Correct Answer: A

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Question 18

A company uses the double-entry system to record its financial transactions. The company's ledger shows the following balances: Debit Balance: ₦100,000; Credit Balance: ₦150,000. 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 19

A company uses the single-entry system to record its financial transactions. The company's journal shows the following entries: Debit: ₦50,000; Credit: ₦30,000. What is the company's net worth?

A. ₦20,000

B. ₦30,000

Correct C. ₦50,000

D. ₦70,000

Correct Answer: C

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Question 20

A company uses the control account system to record its financial transactions. The company's ledger shows the following balances: Control Account: ₦100,000; Subsidiary Ledger: ₦150,000. 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 21

A company's trading account for the year ended 31st December 2020 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2020 shows a current liability of ₦800,000. What is the amount of the company's net profit for the year?

A. ₦1,700,000

B. ₦1,600,000

C. ₦1,500,000

Correct D. ₦1,400,000

Correct Answer: D

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Question 22

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 ₦1,200,000 and the Assembly department has a total cost of ₦900,000. What is the total cost of production for the company?

Correct A. ₦2,100,000

B. ₦2,000,000

C. ₦1,900,000

D. ₦1,800,000

Correct Answer: A

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Question 23

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦800 | | 3rd Jan | Cash | | ₦1,200 | What is the balance of the company's cash account?

Correct A. ₦200

B. ₦300

C. ₦400

D. ₦500

Correct Answer: A

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Question 24

A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦800 | | 3rd Jan | Cash | | ₦1,200 | What is the balance of the company's bank account?

A. ₦1,200

B. ₦1,300

C. ₦1,400

Correct D. ₦1,500

Correct Answer: D

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Question 25

A company's balance sheet as at 31st December 2020 shows the following: | Asset | ₦ | Liability | ₦ | | --- | --- | --- | --- | | Cash | 1,000 | Bank Loan | 800 | | Bank | 1,200 | Share Capital | 1,200 | What is the company's net worth?

Correct A. ₦1,200

B. ₦1,300

C. ₦1,400

D. ₦1,500

Correct Answer: A

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