Practice Post UTME BELLS UNIVERSITY accounting 2024 Past Questions

Question 1

A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000 for the year, while the Sales department has a budget of ₦2,000,000. If the company's total budget for the year is ₦4,500,000, what is the ratio of the Manufacturing department's budget to the Sales department's budget?

Correct A. 1:2

B. 2:3

C. 3:4

D. 4:5

Correct Answer: A

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Question 2

A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦150,000 in cash from the issue of shares, what is the amount of share capital?

A. ₦150,000

Correct B. ₦200,000

C. ₦250,000

D. ₦300,000

Correct Answer: B

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Question 3

A company purchases a machine for ₦500,000 and sells it for ₦750,000. If the company incurs a loss of ₦20,000 on the sale, what is the profit percentage?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 4

A company has a trial balance that shows a debit balance of ₦10,000 in the account 'Rent Received'. If the company's accounting policy is to recognize revenue when earned, what is the correct treatment for the 'Rent Received' account?

A. Debit the 'Rent Received' account

Correct B. Credit the 'Rent Received' account

C. Debit the 'Rent Paid' account

D. Credit the 'Rent Paid' account

Correct Answer: B

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Question 5

A company issues 5,000 debentures of ₦100 each at a discount of ₦5 per debenture. If the company receives ₦400,000 in cash from the issue of debentures, what is the amount of debenture capital?

A. ₦400,000

B. ₦450,000

Correct C. ₦500,000

D. ₦550,000

Correct Answer: C

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Question 6

A company's trial balance shows a debit balance of ₦50,000 in the account 'Office Supplies'. However, the company's accountant claims that the correct balance should be a credit of ₦20,000. What is the correct treatment for this discrepancy?

A. Debit the Office Supplies account by ₦50,000 and credit the Miscellaneous Expenses account by ₦50,000.

Correct B. Credit the Office Supplies account by ₦20,000 and debit the Miscellaneous Expenses account by ₦20,000.

C. Debit the Office Supplies account by ₦50,000 and credit the Office Expenses account by ₦20,000.

D. Credit the Office Supplies account by ₦20,000 and debit the Office Expenses account by ₦50,000.

Correct Answer: B

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Question 7

A manufacturing company uses the process costing method to value its products. The company's production costs for the month are as follows: direct materials ₦120,000, direct labor ₦150,000, and manufacturing overhead ₦80,000. If the company produces 10,000 units of product during the month, what is the total cost per unit?

A. ₦22.00

Correct B. ₦24.00

C. ₦26.00

D. ₦28.00

Correct Answer: B

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Question 8

A company's bank reconciliation statement shows a difference of ₦10,000 between the company's cash book balance and the bank's statement balance. The company's accountant has identified the following errors: a deposit of ₦5,000 was not recorded in the cash book, and a withdrawal of ₦3,000 was recorded twice in the cash book. What is the correct adjustment to be made to the company's cash book balance?

Correct A. Debit the Cash account by ₦8,000 and credit the Bank Overdraft account by ₦8,000.

B. Credit the Cash account by ₦8,000 and debit the Bank Overdraft account by ₦8,000.

C. Debit the Cash account by ₦5,000 and credit the Bank Overdraft account by ₦5,000.

D. Credit the Cash account by ₦5,000 and debit the Bank Overdraft account by ₦5,000.

Correct Answer: A

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Question 9

A government agency is responsible for collecting taxes on behalf of the government. The agency's cash book shows a balance of ₦500,000, but the government's records show a balance of ₦600,000. What is the correct treatment for this discrepancy?

A. Debit the Cash account by ₦100,000 and credit the Government Revenue account by ₦100,000.

Correct B. Credit the Cash account by ₦100,000 and debit the Government Revenue account by ₦100,000.

C. Debit the Cash account by ₦500,000 and credit the Government Revenue account by ₦500,000.

D. Credit the Cash account by ₦500,000 and debit the Government Revenue account by ₦500,000.

Correct Answer: B

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Question 10

A company uses the self-balancing ledger system to record its transactions. The company's ledger shows the following balances: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, and Inventory ₦300,000. What is the total value of the company's assets?

A. ₦650,000

B. ₦700,000

Correct C. ₦750,000

D. ₦800,000

Correct Answer: C

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Question 11

A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Accounts Receivable, and Common Stock. If the company's cash account has a debit balance of ₦50,000 and its accounts payable account has a credit balance of ₦30,000, what is the total amount of the company's assets?

Correct A. ₦80,000

B. ₦70,000

C. ₦90,000

D. ₦60,000

Correct Answer: A

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Question 12

A business has the following incomplete records: Debit: ₦20,000, Credit: ₦15,000. What is the net effect on the business's financial position?

A. Increase in assets

B. Decrease in liabilities

C. Increase in equity

Correct D. Decrease in assets

Correct Answer: D

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Question 13

A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank's statement balance. What is the reason for this difference?

A. Bank error

Correct B. Company error

C. Theft

D. Interest earned

Correct Answer: B

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Question 14

A business uses the double-entry system to record its transactions. The journal entry for the purchase of equipment is: Debit: ₦20,000, Credit: ₦15,000. What is the effect on the business's financial position?

Correct A. Increase in assets

B. Decrease in liabilities

C. Increase in equity

D. Decrease in assets

Correct Answer: A

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Question 15

A company's ledger has the following accounts: Cash, Accounts Payable, Accounts Receivable, and Common Stock. If the company's cash account has a debit balance of ₦50,000 and its accounts payable account has a credit balance of ₦30,000, what is the total amount of the company's assets?

Correct A. ₦80,000

B. ₦70,000

C. ₦90,000

D. ₦60,000

Correct Answer: A

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Question 16

A company uses the straight-line method of depreciation for its assets. If the asset's cost 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 17

A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?

A. Bank charges

B. Cheque returned unpaid

Correct C. Deposit in transit

D. Outstanding cheque

Correct Answer: C

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Question 18

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. What is the net income?

A. ₦50,000

B. ₦75,000

Correct C. ₦100,000

D. ₦125,000

Correct Answer: C

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Question 19

A government agency is required to prepare a cash flow statement. What is the purpose of this statement?

Correct A. To show the inflows and outflows of cash

B. To show the profitability of the agency

C. To show the financial position of the agency

D. To show the investment activities of the agency

Correct Answer: A

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Question 20

A company uses the accrual basis of accounting. What is the effect of this method on the financial statements?

Correct A. Increases revenue and decreases expenses

B. Decreases revenue and increases expenses

C. Increases expenses and decreases revenue

D. Has no effect on the financial statements

Correct Answer: A

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Question 21

A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies'. However, the company's accountant is certain that the correct balance should be a credit balance of ₦5,000. What is the likely cause of this error?

A. The company's accountant made an error in posting the journal entry.

B. The company's bookkeeper made an error in recording the transaction.

Correct C. The company's trial balance was not properly reconciled.

D. The company's accounting software malfunctioned.

Correct Answer: C

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Question 22

A bank statement shows a balance of ₦20,000, but the company's cash book shows a balance of ₦15,000. What is the likely cause of this discrepancy?

A. The bank made an error in recording the transaction.

B. The company's bookkeeper made an error in recording the transaction.

Correct C. The bank's statement was not properly reconciled with the company's cash book.

D. The company's accounting software malfunctioned.

Correct Answer: C

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Question 23

A government agency's financial statements show a surplus of ₦10,000,000. However, the agency's budget shows a deficit of ₦5,000,000. What is the likely cause of this discrepancy?

Correct A. The agency's financial statements were not properly reconciled with the budget.

B. The agency's accounting software malfunctioned.

C. The agency's budget was not properly updated.

D. The agency's financial statements were not properly audited.

Correct Answer: A

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Question 24

A company's trading account shows a profit of ₦50,000. However, the company's profit and loss account shows a loss of ₦20,000. What is the likely cause of this discrepancy?

Correct A. The company's trading account was not properly reconciled with the profit and loss account.

B. The company's accounting software malfunctioned.

C. The company's profit and loss account was not properly updated.

D. The company's trading account was not properly audited.

Correct Answer: A

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Question 25

A company's balance sheet shows a total asset value of ₦100,000,000. However, the company's profit and loss account shows a total equity value of ₦80,000,000. What is the likely cause of this discrepancy?

Correct A. The company's balance sheet was not properly reconciled with the profit and loss account.

B. The company's accounting software malfunctioned.

C. The company's profit and loss account was not properly updated.

D. The company's balance sheet was not properly audited.

Correct Answer: A

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