POST UTME FUTA 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦300,000. The company purchases additional inventory at a cost of ₦600,000. If the total cost of the closing inventory is ₦750,000, what is the cost of goods sold?
A. ₦750,000
B. ₦900,000
C. ₦1,200,000
D. ₦1,500,000
Question 2
A company's balance sheet as at 31st December 2023 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦300,000; Debtors: ₦200,000; Creditors: ₦100,000. Calculate the company's net worth.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 3
A company uses the single-entry system. If the company's assets are ₦100,000, liabilities are ₦50,000, and equity is ₦30,000, what is the company's net income?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 4
A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000 per annum
B. ₦80,000 per annum
C. ₦100,000 per annum
D. ₦110,000 per annum
Question 5
A company's balance sheet as at 31st December 2023 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦300,000; Debtors: ₦200,000; Creditors: ₦100,000. Calculate the company's net worth.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 6
A company issued 10,000 shares of 1 par value at a premium of 2 per share. If the shares were sold for 5 each, calculate the total amount received from the sale of shares.
A. ₦20,000,000
B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000
Question 7
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000, and the Sales department has a budget of ₦800,000. If the company's total budget is ₦2,500,000, what is the ratio of the Manufacturing department's budget to the Sales department's budget?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 8
A company uses the LIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦300,000. The company purchases additional inventory at a cost of ₦600,000. If the total cost of the closing inventory is ₦750,000, what is the cost of goods sold?
A. ₦900,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000
Question 9
In a partnership account, the capital of one partner is increased by ₦50,000, while 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
C. ₦20,000 no change
D. ₦20,000 unknown
Question 10
A company has the following trial balance: ₦100,000 Cash ₦50,000 Accounts Receivable ₦20,000 Prepaid Rent ₦30,000 Salaries Expense ₦40,000 Rent Expense ₦50,000 Utilities Expense Identify the error in the trial balance.
A. ₦50,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 11
A company's financial statements show a net income of ₦500,000. However, the company's cash flow statement shows a net decrease of ₦200,000. What is the reason for the discrepancy?
A. Accruals and deferrals
B. Non-cash items
C. Changes in working capital
D. Error in accounting
Question 12
A company uses the perpetual inventory system. If the beginning inventory is 100 units at ₦20 each, and 200 units are purchased at ₦25 each, what is the total cost of goods available for sale?
A. ₦5,500
B. ₦6,000
C. ₦5,200
D. ₦5,800
Question 13
A company uses the single-entry system of accounting. The company's assets increased by ₦100,000 and liabilities decreased by ₦50,000. What is the net increase in equity?
A. ₦50,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 14
A company uses a self-balancing ledger to record its transactions. What is the advantage of using this system?
A. Easy to maintain
B. Reduces errors
C. Increases efficiency
D. All of the above
Question 15
A company's assets are valued at ₦500,000. The company's liabilities are ₦200,000. Calculate the company's net worth.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

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