POST UTME FUTO 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's income statement for the year ended December 31, 2022, showed the following: Sales: ₦2,000,000; Cost of goods sold: ₦1,200,000; Gross profit: ₦800,000; Operating expenses: ₦200,000; Net income: ₦600,000. What is the gross profit margin?
A. 40%
B. 50%
C. 60%
D. 70%
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦80,000 and ₦60,000 respectively. The profit-sharing ratio is 3:2. What is the share of profit of A?
A. ₦36,000
B. ₦40,000
C. ₦48,000
D. ₦52,000
Question 3
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's profit for the year is ₦1,800,000. Calculate the amount of profit that will be distributed to partner A.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,100,000
Question 4
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare the company's Trading and Profit and Loss Account for the year.
A. Trading Account: ₦50,000; Profit and Loss Account: ₦50,000
B. Trading Account: ₦50,000; Profit and Loss Account: ₦100,000
C. Trading Account: ₦100,000; Profit and Loss Account: ₦50,000
D. Trading Account: ₦100,000; Profit and Loss Account: ₦100,000
Question 5
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦20,000 for a dishonored cheque. The cash book shows a debit of ₦15,000 for a bank charge. What is the correct adjustment to be made to the cash book balance?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 6
A company purchases a machine for ₦1,200,000 and depreciates it using the straight-line method over a useful life of 5 years. Calculate the annual depreciation charge.
A. ₦240,000
B. ₦240,000
C. ₦240,000
D. ₦240,000
Question 7
A company has the following assets: Land: ₦1,500,000 Building: ₦3,000,000 Machinery: ₦2,000,000 What is the total value of the company's assets?
A. ₦6,500,000
B. ₦6,500,000
C. ₦6,500,000
D. ₦6,500,000
Question 8
A company's trial balance shows a debit balance of ₦120,000 in the account 'Rent Received' and a credit balance of ₦80,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?
A. ₦40,000 debit to Rent Paid and ₦40,000 credit to Rent Received
B. ₦40,000 debit to Rent Received and ₦40,000 credit to Rent Paid
C. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
D. ₦20,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Question 9
A company's trial balance shows a debit balance of ₦120,000 in the account 'Rent Received' and a credit balance of ₦80,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?
A. ₦40,000 debit to Rent Paid and ₦40,000 credit to Rent Received
B. ₦40,000 debit to Rent Received and ₦40,000 credit to Rent Paid
C. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
D. ₦20,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Question 10
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The total amount received from the issue of shares is ₦250,000. What is the amount received from the issue of shares at a premium?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 11
A company's Balance Sheet shows the following balances: Share Capital ₦500,000, Retained Earnings ₦200,000, Accounts Payable ₦50,000. Prepare the company's Balance Sheet.
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 12
A manufacturing company has a departmental account for its production department. The account shows the following transactions: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 20,000, Labour ₦ 30,000; Credit: Finished Goods ₦ 80,000, Cost of Goods Sold ₦ 40,000. Calculate the net realizable value of the Finished Goods.
A. ₦ 60,000
B. ₦ 70,000
C. ₦ 80,000
D. ₦ 90,000
Question 13
A company has the following transactions: Purchase of land: ₦1,500,000 Purchase of building: ₦3,000,000 What is the total amount of the company's assets after these transactions?
A. ₦4,500,000
B. ₦5,000,000
C. ₦5,500,000
D. ₦6,000,000
Question 14
A company issued 10,000 debentures of ₦100 each at a premium of ₦20 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦2,000,000
B. ₦2,100,000
C. ₦2,200,000
D. ₦2,300,000
Question 15
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦20,000 for a dishonored cheque. The cash book shows a debit of ₦15,000 for a bank charge. What is the correct adjustment to be made to the bank statement balance?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

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