Practice Post UTME IMS U accounting 2023 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the rent expense for the year was ₦20,000. What is the correct journal entry to correct the error?

A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000

Correct B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000

C. Debit Rent Expense ₦5,000, Credit Rent Expense ₦5,000

D. Debit Rent Expense ₦5,000, Credit Cash ₦20,000

Correct Answer: B

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Question 2

A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation expense if the asset is used for 5 years?

A. ₦20,000

B. ₦24,000

Correct C. ₦28,000

D. ₦32,000

Correct Answer: C

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Question 3

A company's balance sheet shows a current asset of ₦50,000 in the 'Accounts Receivable' account. However, the company's accounting records indicate that the accounts receivable for the year were ₦60,000. What is the correct journal entry to correct the error?

Correct A. Debit Accounts Receivable ₦10,000, Credit Cash ₦10,000

B. Debit Accounts Receivable ₦10,000, Credit Sales Revenue ₦10,000

C. Debit Accounts Receivable ₦10,000, Credit Accounts Payable ₦10,000

D. Debit Accounts Receivable ₦10,000, Credit Cash ₦60,000

Correct Answer: A

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Question 4

A company's trial balance shows a credit balance of ₦15,000 in the 'Salaries Expense' account. However, the company's accounting records indicate that the salaries expense for the year was ₦20,000. What is the correct journal entry to correct the error?

A. Credit Salaries Expense ₦5,000, Debit Cash ₦5,000

Correct B. Credit Salaries Expense ₦5,000, Debit Salaries Payable ₦5,000

C. Credit Salaries Expense ₦5,000, Debit Salaries Expense ₦5,000

D. Credit Salaries Expense ₦5,000, Debit Cash ₦20,000

Correct Answer: B

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Question 5

A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation expense if the asset is used for 5 years?

A. ₦20,000

B. ₦24,000

Correct C. ₦28,000

D. ₦32,000

Correct Answer: C

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Question 6

A company uses the double-declaration method to value its assets. The company's accountant has prepared the following trial balance as of December 31, 2022:

A. ₦125,000

Correct B. ₦150,000

C. ₦175,000

D. ₦200,000

Correct Answer: B

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Question 7

A manufacturing company uses the weighted average method to value its inventory. The company has the following data for the year ended December 31, 2022:

A. ₦250,000

B. ₦275,000

Correct C. ₦300,000

D. ₦325,000

Correct Answer: C

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Question 8

A company uses the accrual method to value its accounts payable. The company has the following data for the year ended December 31, 2022:

A. ₦75,000

B. ₦80,000

Correct C. ₦85,000

D. ₦90,000

Correct Answer: C

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Question 9

A company uses the straight-line method to depreciate its assets. The company has the following data for the year ended December 31, 2022:

A. ₦20,000

B. ₦22,000

Correct C. ₦24,000

D. ₦26,000

Correct Answer: C

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Question 10

A company uses the FIFO method to value its inventory. The company has the following data for the year ended December 31, 2022:

A. ₦180,000

B. ₦190,000

Correct C. ₦200,000

D. ₦210,000

Correct Answer: C

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Question 11

A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment'. The company's accounting policy requires that office supplies be valued at cost and office equipment be valued at cost less depreciation. What is the correct journal entry to record the correction of the error?

Correct A. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Equipment

B. ₦10,000 debit to Office Supplies and ₦10,000 credit to Office Equipment

C. ₦5,000 debit to Office Equipment and ₦5,000 credit to Office Supplies

D. ₦10,000 debit to Office Equipment and ₦10,000 credit to Office Supplies

Correct Answer: A

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Question 12

A manufacturing company uses the process cost method to account for its production costs. The company has the following information for the month of January: direct materials cost of ₦120,000, direct labor cost of ₦150,000, and overhead cost of ₦80,000. What is the total production cost for the month?

Correct A. ₦350,000

B. ₦450,000

C. ₦350,000 + ₦80,000

D. ₦450,000 + ₦80,000

Correct Answer: A

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Question 13

A company's balance sheet shows a current ratio of 2:1 and a quick ratio of 1:1. What is the company's acid-test ratio?

Correct A. 1:1

B. 2:1

C. 3:1

D. 4:1

Correct Answer: A

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Question 14

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?

A. ₦10,000

Correct B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: B

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Question 15

A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment'. The company's accounting policy requires that office supplies be valued at cost and office equipment be valued at cost less depreciation. What is the correct journal entry to record the correction of the error?

Correct A. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Equipment

B. ₦10,000 debit to Office Supplies and ₦10,000 credit to Office Equipment

C. ₦5,000 debit to Office Equipment and ₦5,000 credit to Office Supplies

D. ₦10,000 debit to Office Equipment and ₦10,000 credit to Office Supplies

Correct Answer: A

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Question 16

A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, what is the total number of units of product X produced?

A. 60

Correct B. 72

C. 80

D. 90

Correct Answer: B

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Question 17

A company's trial balance contains the following accounts: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 10,000. What is the total amount of assets?

Correct A. 35,000

B. 40,000

C. 45,000

D. 50,000

Correct Answer: A

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Question 18

A government agency has the following transactions: Cash received from taxpayers 100,000, Cash paid to suppliers 50,000, Cash received from interest on investments 20,000, and Cash paid to employees 30,000. What is the net increase in cash?

A. 40,000

Correct B. 50,000

C. 60,000

D. 70,000

Correct Answer: B

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Question 19

A company has the following errors in its financial statements: An overstatement of 10,000 in accounts receivable and an understatement of 5,000 in accounts payable. What is the net effect of these errors on the company's net income?

A. 5,000 understatement

Correct B. 10,000 understatement

C. 15,000 understatement

D. 20,000 understatement

Correct Answer: B

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Question 20

A company's balance sheet contains the following accounts: Cash 20,000, Accounts Payable 10,000, Common Stock 50,000, and Retained Earnings 30,000. What is the total amount of liabilities and equity?

A. 110,000

B. 120,000

Correct C. 130,000

D. 140,000

Correct Answer: C

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Question 21

A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. The company's accountant suspects that the discrepancy is due to an error in the journal entries. Which of the following steps should the accountant take first?

Correct A. Verify the journal entries for the past month

B. Reconcile the bank statement with the cash book

C. Check for any unrecorded transactions

D. Recompute the trial balance

Correct Answer: A

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Question 22

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a credit balance of ₦10,000 in the 'Drawings' account. What is the amount of profit to be distributed to each partner?

Correct A. ₦6,000 to A and ₦4,000 to B

B. ₦8,000 to A and ₦2,000 to B

C. ₦10,000 to A and ₦0 to B

D. ₦0 to A and ₦10,000 to B

Correct Answer: A

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Question 23

A company's cash book shows a debit balance of ₦20,000. The company's bank statement shows a credit balance of ₦15,000. What is the reason for the discrepancy?

Correct A. The company has not recorded a deposit of ₦5,000

B. The company has not recorded a withdrawal of ₦5,000

C. The bank has charged a fee of ₦5,000

D. The company has not reconciled the bank statement

Correct Answer: A

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Question 24

A government agency has a budget of ₦100,000 for the year. The agency has spent ₦80,000 so far. What is the percentage of the budget that has been spent?

Correct A. 80%

B. 60%

C. 40%

D. 20%

Correct Answer: A

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Question 25

A company's trial balance shows a credit balance of ₦10,000 in the 'Accrued Expenses' account. What is the effect of this account on the company's financial position?

A. The company has a current asset

Correct B. The company has a current liability

C. The company has a non-current asset

D. The company has a non-current liability

Correct Answer: B

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