POST UTME FUTA 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000
Question 2
A company's balance sheet shows a total assets of ₦1,500,000 and a total liabilities of ₦1,000,000. What is the company's equity?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 3
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Purchases | | ₦150,000 | | Wages | ₦20,000 | | | Rent | | ₦30,000 | What is the total of the trial balance?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 4
In a partnership account, the capital of one partner is increased by ₦50,000 and the capital of another partner is decreased by ₦20,000. If the original capital of the first partner was ₦150,000 and the original capital of the second partner was ₦80,000, what is the new capital of the first partner?
A. ₦170,000
B. ₦160,000
C. ₦180,000
D. ₦190,000
Question 5
A trader purchases goods on credit for ₦150,000. He sells the goods for ₦200,000 and incurs a commission of ₦5,000. What is his profit?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 6
A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦12,000, Net Income ₦100,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦600,000, and Utilities Expense ₦30,000. What is the correct order of the accounts in the general ledger?
A. Assets, Liabilities, Equity, Revenues, Expenses, Dividends
B. Assets, Liabilities, Equity, Revenues, Dividends, Expenses
C. Assets, Liabilities, Equity, Revenues, Expenses, Dividends
D. Assets, Liabilities, Equity, Dividends, Revenues, Expenses
Question 7
A partnership has two partners, A and B, with the following capital accounts:
A. A: ₦ 50,000; B: ₦ 30,000
B. A: ₦ 30,000; B: ₦ 50,000
C. A: ₦ 40,000; B: ₦ 20,000
D. A: ₦ 20,000; B: ₦ 40,000
Question 8
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦12,000, Net Income ₦100,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦600,000, and Utilities Expense ₦30,000. What is the correct order of the accounts in the general ledger?
A. Assets, Liabilities, Equity, Revenues, Expenses, Dividends
B. Assets, Liabilities, Equity, Revenues, Dividends, Expenses
C. Assets, Liabilities, Equity, Revenues, Expenses, Dividends
D. Assets, Liabilities, Equity, Dividends, Revenues, Expenses
Question 9
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct journal entry to correct this error?
A. ₦1,500 debit to Rent Received and ₦1,500 credit to Cash
B. ₦1,500 debit to Rent Received and ₦1,500 credit to Profit or Loss
C. ₦1,500 debit to Cash and ₦1,500 credit to Rent Received
D. ₦1,500 debit to Rent Received and ₦1,500 credit to Accounts Payable
Question 10
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Goods | | ₦15,000 | | 3 | Cash | | ₦5,000 | What is the total amount of cash received?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 11
A company issued 5,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 12
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Goods | | ₦15,000 | | 3 | Cash | | ₦5,000 | What is the total amount of cash received?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦12,000, Net Income ₦100,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦600,000, and Utilities Expense ₦30,000. What is the correct order of the accounts in the general ledger?
A. Assets, Liabilities, Equity, Revenues, Expenses, Dividends
B. Assets, Liabilities, Equity, Revenues, Dividends, Expenses
C. Assets, Liabilities, Equity, Revenues, Expenses, Dividends
D. Assets, Liabilities, Equity, Dividends, Revenues, Expenses
Question 14
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurs a direct labor cost of ₦10,000 and a direct material cost of ₦15,000. The Assembly department incurs a direct labor cost of ₦8,000 and a direct material cost of ₦12,000. What is the total cost of production for the company?
A. ₦43,000
B. ₦51,000
C. ₦59,000
D. ₦67,000
Question 15
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Cash | | ₦20,000 | | 4 Jan | Bank | ₦30,000 | | | 5 Jan | Cash | | ₦25,000 | What is the balance of the cash account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

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