Practice Post UTME LASU accounting 2022 Past Questions

Question 1

A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?

Correct A. ₦24,000

B. ₦20,000

C. ₦18,000

D. ₦22,000

Correct Answer: A

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Question 2

A partnership has three partners: A, B, and C. The capital accounts of the partners are A: ₦100,000, B: ₦80,000, and C: ₦60,000. If the profit is ₦20,000, and the profit-sharing ratio is 2:3:1, what is the amount of profit to be distributed to partner A?

Correct A. ₦10,000

B. ₦12,000

C. ₦8,000

D. ₦14,000

Correct Answer: A

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Question 3

A company's trial balance has the following accounts: Accounts Payable: ₦50,000, Accounts Receivable: ₦30,000, and Sales Revenue: ₦100,000. If the company uses the cash basis of accounting, what is the amount of cash received from customers?

A. ₦70,000

B. ₦80,000

C. ₦90,000

Correct D. ₦100,000

Correct Answer: D

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Question 4

A company uses the percentage of completion method to account for construction contracts. If the contract price is ₦1,000,000, and the costs incurred to date are ₦600,000, what is the amount of revenue recognized if the percentage of completion is 75%?

Correct A. ₦750,000

B. ₦600,000

C. ₦450,000

D. ₦300,000

Correct Answer: A

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Question 5

A company's balance sheet has the following accounts: Cash: ₦50,000, Accounts Payable: ₦30,000, and Common Stock: ₦100,000. If the company uses the accrual basis of accounting, what is the amount of net income?

A. ₦20,000

B. ₦30,000

C. ₦40,000

Correct D. ₦50,000

Correct Answer: D

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Question 6

A public sector organization has a budget of ₦1,500,000 for a project. The organization has already spent ₦800,000 on personnel costs and ₦300,000 on equipment. What is the remaining budget for the project?

Correct A. ₦400,000

B. ₦500,000

C. ₦600,000

D. ₦700,000

Correct Answer: A

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Question 7

A company has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 5-Jan | Sales | | ₦20,000 | | 10-Jan | Purchases | ₦8,000 | | | 15-Jan | Cash | | ₦15,000 | What is the total amount of cash at the beginning of January?

Correct A. ₦10,000

B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: A

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Question 8

A partnership has two partners, A and B. The capital account of A is ₦50,000 and that of B is ₦30,000. The profit-sharing ratio is 3:2. What is the total amount of profit to be shared?

A. ₦80,000

B. ₦90,000

Correct C. ₦100,000

D. ₦110,000

Correct Answer: C

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Question 9

A company has the following bank statement and cash book balances: | Date | Bank Statement | Cash Book | | --- | --- | --- | | 1-Jan | ₦50,000 | ₦40,000 | | 5-Jan | ₦60,000 | ₦45,000 | | 10-Jan | ₦70,000 | ₦50,000 | What is the difference between the bank statement and cash book balances on 10-Jan?

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

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Question 10

A company has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 5-Jan | Sales | | ₦20,000 | | 10-Jan | Purchases | ₦8,000 | | | 15-Jan | Cash | | ₦15,000 | What is the total amount of cash at the end of January?

A. ₦10,000

B. ₦15,000

C. ₦20,000

Correct D. ₦25,000

Correct Answer: D

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Question 11

A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.

A. ₦10,000

Correct B. ₦12,500

C. ₦15,000

D. ₦17,500

Correct Answer: B

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Question 12

A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦30,000. Prepare a trial balance.

Correct A. Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦30,000

B. Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦40,000

C. Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦50,000

D. Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦60,000

Correct Answer: A

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Question 13

A company has the following transactions: Purchased office supplies on account for ₦5,000, Sold merchandise on account for ₦20,000, Purchased merchandise for ₦15,000 cash. Prepare a journal entry for the above transactions.

Correct A. Debit Office Supplies ₦5,000, Credit Cash ₦5,000

B. Debit Office Supplies ₦5,000, Credit Accounts Payable ₦5,000

C. Debit Cash ₦15,000, Credit Merchandise ₦15,000

D. Debit Accounts Payable ₦20,000, Credit Sales ₦20,000

Correct Answer: A

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Question 14

A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦30,000. Prepare a balance sheet.

Correct A. Assets ₦220,000, Liabilities ₦20,000, Equity ₦200,000

B. Assets ₦220,000, Liabilities ₦30,000, Equity ₦190,000

C. Assets ₦220,000, Liabilities ₦40,000, Equity ₦180,000

D. Assets ₦220,000, Liabilities ₦50,000, Equity ₦170,000

Correct Answer: A

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Question 15

A company has the following transactions: Purchased office supplies on account for ₦5,000, Sold merchandise on account for ₦20,000, Purchased merchandise for ₦15,000 cash. Prepare a statement of cash flows.

Correct A. Cash Flows from Operations ₦35,000, Cash Flows from Investing ₦15,000, Cash Flows from Financing ₦0

B. Cash Flows from Operations ₦30,000, Cash Flows from Investing ₦15,000, Cash Flows from Financing ₦0

C. Cash Flows from Operations ₦25,000, Cash Flows from Investing ₦15,000, Cash Flows from Financing ₦0

D. Cash Flows from Operations ₦20,000, Cash Flows from Investing ₦15,000, Cash Flows from Financing ₦0

Correct Answer: A

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Question 16

A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦150,000, Retained Earnings ₦30,000. Prepare a statement of stockholders' equity.

Correct A. Common Stock ₦150,000, Retained Earnings ₦30,000, Total Stockholders' Equity ₦180,000

B. Common Stock ₦150,000, Retained Earnings ₦40,000, Total Stockholders' Equity ₦190,000

C. Common Stock ₦150,000, Retained Earnings ₦50,000, Total Stockholders' Equity ₦200,000

D. Common Stock ₦150,000, Retained Earnings ₦60,000, Total Stockholders' Equity ₦210,000

Correct Answer: A

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Question 17

A company has the following transactions: Purchased office supplies on account for ₦5,000, Sold merchandise on account for ₦20,000, Purchased merchandise for ₦15,000 cash. Prepare a journal entry for the above transactions.

A. Debit Office Supplies ₦5,000, Credit Cash ₦5,000

B. Debit Office Supplies ₦5,000, Credit Accounts Payable ₦5,000

C. Debit Cash ₦15,000, Credit Merchandise ₦15,000

D. Debit Accounts Payable ₦20,000, Credit Sales ₦20,000

Correct Answer: VIEW ANSWER

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Question 18

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.

A. ₦ 20,000

Correct B. ₦ 30,000

C. ₦ 40,000

D. ₦ 50,000

Correct Answer: B

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Question 19

A manufacturing company uses a job costing system. The company incurred the following costs during the month of January: direct materials ₦ 10,000, direct labor ₦ 8,000, and overhead ₦ 6,000. If the company produced 500 units during the month, what is the total cost per unit?

A. ₦ 24

B. ₦ 26

Correct C. ₦ 28

D. ₦ 30

Correct Answer: C

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Question 20

A company's trial balance as at 31st December, 2022 is as follows: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Equipment ₦ 80,000, Interest Expense ₦ 5,000, Interest Income ₦ 2,000, Net Income ₦ 20,000, Notes Payable ₦ 20,000, Prepaid Rent ₦ 15,000, Salaries Expense ₦ 40,000, Sales Revenue ₦ 150,000, Utilities Expense ₦ 10,000. Prepare the company's balance sheet as at 31st December, 2022.

A. ₦ 150,000

B. ₦ 160,000

Correct C. ₦ 170,000

D. ₦ 180,000

Correct Answer: C

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Question 21

A company's income statement for the year ended 31st December, 2022 is as follows: Sales Revenue ₦ 150,000, Cost of Goods Sold ₦ 80,000, Gross Profit ₦ 70,000, Operating Expenses ₦ 30,000, Net Income ₦ 40,000. Prepare the company's statement of cash flows for the year ended 31st December, 2022.

A. ₦ 40,000

B. ₦ 50,000

C. ₦ 60,000

Correct D. ₦ 70,000

Correct Answer: D

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Question 22

A company's balance sheet as at 31st December, 2022 is as follows: Cash ₦ 20,000, Accounts Receivable ₦ 30,000, Inventory ₦ 40,000, Prepaid Rent ₦ 15,000, Property, Plant and Equipment ₦ 80,000, Total Assets ₦ 185,000. Prepare the company's statement of stockholders' equity for the year ended 31st December, 2022.

A. ₦ 20,000

B. ₦ 30,000

C. ₦ 40,000

Correct D. ₦ 50,000

Correct Answer: D

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Question 23

A company's income statement for the year ended 31st December, 2022 is as follows: Sales Revenue ₦ 150,000, Cost of Goods Sold ₦ 80,000, Gross Profit ₦ 70,000, Operating Expenses ₦ 30,000, Net Income ₦ 40,000. Prepare the company's statement of retained earnings for the year ended 31st December, 2022.

A. ₦ 40,000

B. ₦ 50,000

C. ₦ 60,000

Correct D. ₦ 70,000

Correct Answer: D

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Question 24

A company's balance sheet as at 31st December, 2022 is as follows: Cash ₦ 20,000, Accounts Receivable ₦ 30,000, Inventory ₦ 40,000, Prepaid Rent ₦ 15,000, Property, Plant and Equipment ₦ 80,000, Total Assets ₦ 185,000. Prepare the company's statement of cash flows for the year ended 31st December, 2022.

A. ₦ 40,000

B. ₦ 50,000

C. ₦ 60,000

D. ₦ 70,000

Correct Answer: VIEW ANSWER

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Question 25

A company issued 5,000, 10% 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

Correct B. ₦500,000

C. ₦750,000

D. ₦1,000,000

Correct Answer: B

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