POST UTME FUTA 2021 Accounting | Objective

Are you preparing for POST UTME FUTA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system to record transactions. The following journal entry is made: Debit Cash 1,000, Credit Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
Correct A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Has no effect on the accounting equation

Correct Answer: A

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Question 2
A company has the following ledger accounts: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000. What is the total amount of assets?
Correct A. 15,000
B. 20,000
C. 25,000
D. 30,000

Correct Answer: A

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Question 3
A company has the following bank statement: Debit 1,000, Credit 500. What is the net change in cash?
Correct A. 500
B. 1,000
C. 1,500
D. 2,000

Correct Answer: A

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Question 4
A company uses the straight-line method of depreciation. The asset cost 10,000 and has a useful life of 5 years. What is the annual depreciation expense?
Correct A. 2,000
B. 2,500
C. 3,000
D. 3,500

Correct Answer: A

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Question 5
A company has the following trial balance: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000. What is the total amount of assets?
Correct A. 15,000
B. 20,000
C. 25,000
D. 30,000

Correct Answer: A

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Question 6
A company issues 10,000, 10% preference shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of these shares.
A. ₦0,500
B. ₦1,000
Correct C. ₦1,050
D. ₦1,500

Correct Answer: C

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Question 7
A company has a capital structure consisting of ₦0.5 million ordinary shares of ₡0 each and ₡0 million 10% preference shares of ₥0 each. Calculate the ratio of ordinary shares to preference shares.
Correct A. 1:10
B. 1:100
C. 1:50
D. 1:500

Correct Answer: A

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Question 8
A company's balance sheet shows a debit balance of ₦0.5 million in the profit and loss account. The company's capital structure consists of ₡0 million 10% preference shares and ₣0 million ordinary shares. Calculate the amount of retained earnings.
A. ₡0 million
Correct B. ₢0 million
C. ₣0 million
D. ₤0 million

Correct Answer: B

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Question 9
A company issues 5,000, 10% debentures of ₡00 each at a discount of ₥ per debenture. Calculate the total amount received from the issue of these debentures.
A. ₤5,000
B. ₥0,000
Correct C. ₥5,000
D. ₦0,000

Correct Answer: C

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Question 10
A company's trial balance shows a credit balance of ₡0 million in the sales account. The company's capital structure consists of ₢0 million ordinary shares and ₣0 million 10% preference shares. Calculate the amount of retained earnings.
A. ₢0 million
B. ₣0 million
Correct C. ₤0 million
D. ₥0 million

Correct Answer: C

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Question 11
A company's trial balance shows an error of ₦5,000 due to an incorrect posting in the ledger. The error is discovered during the preparation of the balance sheet. What is the correct procedure to rectify this error?
A. Correct the error by making an adjusting entry in the ledger.
Correct B. Correct the error by making an adjusting entry in the journal.
C. Correct the error by making an adjusting entry in the trial balance.
D. Correct the error by making an adjusting entry in the financial statements.

Correct Answer: B

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Question 12
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000; Accounts Payable ₦50,000; and Common Stock ₦200,000. What is the total equity of the company?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 13
A company's cash book shows the following transactions: Cash received from customers ₦100,000; Cash paid to suppliers ₦50,000; and Cash received from bank ₦20,000. What is the total cash balance of the company?
A. ₦170,000
B. ₦180,000
C. ₦190,000
Correct D. ₦200,000

Correct Answer: D

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Question 14
A government agency prepares its financial statements in accordance with the Public Sector Accounting Standards (PSAS). The agency's financial statements show a net loss of ₦500,000. What is the correct treatment of this loss?
Correct A. The loss is transferred to the retained earnings account.
B. The loss is transferred to the general reserve account.
C. The loss is transferred to the capital reserve account.
D. The loss is transferred to the appropriations account.

Correct Answer: A

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Question 15
A company's financial statements show a net income of ₦1,000,000. The company's tax rate is 25%. What is the amount of income tax payable?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
Correct C. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid
D. ₦20,000 debit to Rent Received and ₦15,000 credit to Rent Paid

Correct Answer: C

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Question 17
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the correct distribution of profit?
Correct A. ₦60,000 to A and ₦40,000 to B
B. ₦45,000 to A and ₦30,000 to B
C. ₦60,000 to A and ₦20,000 to B
D. ₦45,000 to A and ₦25,000 to B

Correct Answer: A

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Question 18
A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦10,000 in the account 'Purchases' and a credit balance of ₦15,000 in the account 'Sales'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Purchases and ₦5,000 credit to Sales
Correct B. ₦10,000 debit to Purchases and ₦10,000 credit to Sales
C. ₦15,000 debit to Purchases and ₦20,000 credit to Sales
D. ₦20,000 debit to Purchases and ₦15,000 credit to Sales

Correct Answer: B

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Question 19
A company's trial balance shows a debit balance of ₦20,000 in the account 'Wages' and a credit balance of ₦25,000 in the account 'Salaries'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Wages and ₦5,000 credit to Salaries
B. ₦10,000 debit to Wages and ₦10,000 credit to Salaries
Correct C. ₦20,000 debit to Wages and ₦25,000 credit to Salaries
D. ₦25,000 debit to Wages and ₦20,000 credit to Salaries

Correct Answer: C

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Question 20
A company uses a control account to record its transactions. The control account shows a debit balance of ₦15,000 in the account 'Purchases' and a credit balance of ₦20,000 in the account 'Sales'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Purchases and ₦5,000 credit to Sales
B. ₦10,000 debit to Purchases and ₦10,000 credit to Sales
Correct C. ₦15,000 debit to Purchases and ₦20,000 credit to Sales
D. ₦20,000 debit to Purchases and ₦15,000 credit to Sales

Correct Answer: C

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Question 21
A company's trial balance shows a debit balance of ₦25,000 in the account 'Rent Paid' and a credit balance of ₦30,000 in the account 'Rent Received'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Correct C. ₦25,000 debit to Rent Paid and ₦30,000 credit to Rent Received
D. ₦30,000 debit to Rent Paid and ₦25,000 credit to Rent Received

Correct Answer: C

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Question 22
A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦20,000 in the account 'Purchases' and a credit balance of ₦25,000 in the account 'Sales'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Purchases and ₦5,000 credit to Sales
B. ₦10,000 debit to Purchases and ₦10,000 credit to Sales
Correct C. ₦20,000 debit to Purchases and ₦25,000 credit to Sales
D. ₦25,000 debit to Purchases and ₦20,000 credit to Sales

Correct Answer: C

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Question 23
A company issued 5,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
B. ₦475,000
C. ₦475,000
Correct D. ₦475,000

Correct Answer: D

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Question 24
A company has a profit of ₦1,000,000. If the company's tax rate is 25%, calculate the amount of tax payable.
A. ₦250,000
B. ₦250,000
C. ₦250,000
Correct D. ₦250,000

Correct Answer: D

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Question 25
A company has a capital of ₦500,000 and a profit of ₦200,000. If the company's capital is to be increased by 20%, calculate the new capital.
A. ₦600,000
B. ₦600,000
C. ₦600,000
Correct D. ₦600,000

Correct Answer: D

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