Practice Post UTME AAUA accounting 2023 Past Questions

Question 1

In a partnership account, if the capital of one partner is increased by ₦50,000 and the capital of another partner is decreased by ₦30,000, what is the net effect on the total capital of the partnership?

A. ₦20,000 increase

B. ₦20,000 decrease

Correct C. ₦20,000 no change

D. ₦20,000 unknown

Correct Answer: C

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Question 2

A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the reason for the discrepancy?

A. Bank error

Correct B. Company error

C. Theft

D. Other

Correct Answer: B

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Question 3

A trader maintains the following ledger accounts: Purchases, Sales, and Capital. The journal entries are as follows: Debit Purchases ₦50,000, Credit Sales ₦60,000, Debit Capital ₦20,000, Credit Purchases ₦30,000. What is the net effect on the trader's capital?

Correct A. ₦10,000 increase

B. ₦10,000 decrease

C. ₦10,000 no change

D. ₦10,000 unknown

Correct Answer: A

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Question 4

A company's trial balance shows the following balances: Purchases ₦80,000, Sales ₦100,000, Capital ₦50,000. What is the net effect on the company's profit?

Correct A. ₦20,000 increase

B. ₦20,000 decrease

C. ₦20,000 no change

D. ₦20,000 unknown

Correct Answer: A

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Question 5

A company's bank reconciliation statement shows the following discrepancies: Bank debit balance ₦120,000, Company debit balance ₦150,000. What is the reason for the discrepancy?

A. Bank error

Correct B. Company error

C. Theft

D. Other

Correct Answer: B

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Question 6

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

Correct A. ₦24,000

B. ₦20,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

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Question 7

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the profit for the year is ₦180,000, how much will A receive?

Correct A. ₦120,000

B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: A

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Question 8

A company prepares its financial statements using the accrual basis of accounting. If the company has accounts payable of ₦150,000 and accounts receivable of ₦200,000, what is the net working capital?

A. ₦50,000

Correct B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: B

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Question 9

A company uses the double-entry system of accounting. If the company has a debit balance of ₦100,000 in the accounts payable account and a credit balance of ₦150,000 in the accounts receivable account, what is the net effect on the company's working capital?

Correct A. ₦50,000 increase

B. ₦50,000 decrease

C. ₦100,000 increase

D. ₦100,000 decrease

Correct Answer: A

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Question 10

A company prepares its financial statements using the cash basis of accounting. If the company has cash inflows of ₦200,000 and cash outflows of ₦150,000, what is the net cash flow?

Correct A. ₦50,000

B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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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 ₦0, what is the annual depreciation charge if the asset's cost is ₦1,500,000?

Correct A. ₦300,000

B. ₦250,000

C. ₦200,000

D. ₦150,000

Correct Answer: A

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Question 12

A company's cash book shows a balance of ₦500,000. The bank statement shows a balance of ₦550,000. The difference is due to a bank error. If the company's cash book balance is ₦50,000 less than the bank statement balance, what is the bank error?

A. ₦25,000

Correct B. ₦50,000

C. ₦75,000

D. ₦100,000

Correct Answer: B

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Question 13

A company's ledger shows a credit balance of ₦200,000 in the account 'Sales'. If the company's trial balance shows a debit balance of ₦150,000 in the account 'Sales', what is the error?

A. ₦50,000

B. ₦100,000

Correct C. ₦150,000

D. ₦200,000

Correct Answer: C

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Question 14

A company uses the weighted average method to value its inventory. If the total cost of goods available for sale is ₦1,000,000, the total cost of goods sold is ₦800,000, and the total cost of beginning inventory is ₦200,000, what is the cost of ending inventory?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 15

A company's manufacturing account shows a cost of goods manufactured of ₦500,000 and a cost of goods sold of ₦400,000. If the company's beginning inventory is ₦100,000, what is the cost of ending inventory?

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 16

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 ₦180,000. The bank statement shows a balance of ₦200,000. What is the correct explanation for the discrepancy?

Correct A. The company has not yet recorded a deposit of ₦50,000.

B. The company has not yet recorded a withdrawal of ₦30,000.

C. The company has not yet recorded a bank charge of ₦20,000.

D. The company has not yet recorded a loan of ₦10,000.

Correct Answer: A

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Question 17

A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦120,000. The company's bank statement shows a balance of ₦150,000. What is the correct explanation for the discrepancy?

Correct A. The company has not yet recorded a deposit of ₦30,000.

B. The company has not yet recorded a withdrawal of ₦20,000.

C. The company has not yet recorded a bank charge of ₦10,000.

D. The company has not yet recorded a loan of ₦5,000.

Correct Answer: A

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Question 18

A company uses the self-balancing ledger system. The company's ledger shows a balance of ₦180,000. The company's bank statement shows a balance of ₦200,000. What is the correct explanation for the discrepancy?

Correct A. The company has not yet recorded a deposit of ₦20,000.

B. The company has not yet recorded a withdrawal of ₦10,000.

C. The company has not yet recorded a bank charge of ₦5,000.

D. The company has not yet recorded a loan of ₦2,000.

Correct Answer: A

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Question 19

A company prepares a trading account for the year ended December 31, 2022. The company's sales for the year were ₦500,000, and the company's purchases for the year were ₦400,000. What is the company's gross profit for the year?

A. ₦100,000

Correct B. ₦150,000

C. ₦200,000

D. ₦250,000

Correct Answer: B

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Question 20

A company prepares a balance sheet as at December 31, 2022. The company's assets at the beginning of the year were ₦300,000, and the company's liabilities at the beginning of the year were ₦100,000. The company's assets at the end of the year were ₦500,000, and the company's liabilities at the end of the year were ₦200,000. What is the company's equity at the end of the year?

A. ₦300,000

B. ₦400,000

Correct C. ₦500,000

D. ₦600,000

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; Net realizable value of goods sold: ₦1,000,000. Calculate the cost of goods sold using the weighted average method.

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,500,000

D. ₦1,800,000

Correct Answer: B

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Question 22

A company's balance sheet as at December 31, 2022, is as follows: ₦ Cash ₦1,000,000; ₦ Accounts Payable ₦500,000; ₦ Common Stock ₦2,000,000. If the company issues 10,000 shares of common stock at ₦100 per share, what is the new balance of common stock?

A. ₦2,500,000

B. ₦3,000,000

C. ₦3,500,000

Correct D. ₦4,000,000

Correct Answer: D

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Question 23

A company uses the FIFO 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; Net realizable value of goods sold: ₦1,000,000. Calculate the cost of goods sold using the FIFO method.

Correct A. ₦1,000,000

B. ₦1,200,000

C. ₦1,500,000

D. ₦1,800,000

Correct Answer: A

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Question 24

A company's income statement for the year ended December 31, 2022, is as follows: ₦ Sales ₦5,000,000; ₦ Cost of Goods Sold ₦3,000,000; ₦ Gross Profit ₦2,000,000. If the company's tax rate is 25%, what is the company's net income?

A. ₦1,500,000

B. ₦1,750,000

C. ₦2,000,000

Correct D. ₦2,250,000

Correct Answer: D

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Question 25

A company's balance sheet as at December 31, 2022, is as follows: ₦ Cash ₦1,000,000; ₦ Accounts Payable ₦500,000; ₦ Common Stock ₦2,000,000. If the company issues 10,000 shares of common stock at ₦100 per share, what is the new balance of common stock?

A. ₦2,500,000

B. ₦3,000,000

C. ₦3,500,000

Correct D. ₦4,000,000

Correct Answer: D

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