Practice Post UTME LEAD CITY UNIVERSITY accounting 2019 Past Questions

Question 1

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank reconciliation statement shows a difference of ₦20,000 due to outstanding checks. What is the correct balance in the company's cash book?

Correct A. ₦140,000

B. ₦130,000

C. ₦120,000

D. ₦110,000

Correct Answer: A

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Question 2

A company's trading account shows a profit of ₦500,000. The company's cost of goods sold is ₦2,000,000. The company's sales revenue is ₦3,000,000. What is the company's gross profit?

Correct A. ₦1,000,000

B. ₦500,000

C. ₦750,000

D. ₦1,500,000

Correct Answer: A

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Question 3

A company's balance sheet shows a total asset value of ₦5,000,000. The company's total liabilities are ₦2,000,000. What is the company's equity?

Correct A. ₦3,000,000

B. ₦2,000,000

C. ₦1,000,000

D. ₦4,000,000

Correct Answer: A

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Question 4

A company's manufacturing account shows a cost of goods manufactured of ₦1,500,000. The company's direct labor cost is ₦500,000. What is the company's direct labor cost as a percentage of the cost of goods manufactured?

A. 33%

Correct B. 25%

C. 50%

D. 75%

Correct Answer: B

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Question 5

A government agency's budget shows a revenue of ₦10,000,000. The agency's expenditure is ₦8,000,000. What is the agency's surplus?

Correct A. ₦2,000,000

B. ₦1,000,000

C. ₦3,000,000

D. ₦4,000,000

Correct Answer: A

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Question 6

A company's trial balance shows a discrepancy of ₦25,000 between the debit and credit sides. The accountant suspects that the error occurred in the journal entry for the purchase of office equipment. The accountant has identified the following transactions as possible causes of the error:

A. Purchase of office equipment for ₦30,000

B. Purchase of office equipment for ₦20,000

Correct C. Purchase of office equipment for ₦25,000

D. Purchase of office equipment for ₦15,000

Correct Answer: C

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Question 7

A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. The company's accountant has identified the following transactions as possible causes of the discrepancy:

A. Deposited ₦10,000 into the bank account

Correct B. Withdrawn ₦10,000 from the bank account

C. Deposited ₦20,000 into the bank account

D. Withdrawn ₦20,000 from the bank account

Correct Answer: B

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Question 8

A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. The company's accountant has identified the following transactions as possible causes of the discrepancy:

A. Sold assets for ₦100,000

Correct B. Purchased assets for ₦100,000

C. Issued shares for ₦100,000

D. Paid dividends of ₦100,000

Correct Answer: B

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Question 9

A company's profit and loss account shows a net profit of ₦100,000. However, the company's balance sheet shows a net loss of ₦50,000. The company's accountant has identified the following transactions as possible causes of the discrepancy:

A. Sold assets for ₦150,000

Correct B. Purchased assets for ₦150,000

C. Issued shares for ₦150,000

D. Paid dividends of ₦150,000

Correct Answer: B

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Question 10

A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. The company's accountant has identified the following transactions as possible causes of the discrepancy:

A. Sold assets for ₦100,000

Correct B. Purchased assets for ₦100,000

C. Issued shares for ₦100,000

D. Paid dividends of ₦100,000

Correct Answer: B

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Question 11

A company issued 10,000 shares of ₥ 1 each at a premium of ₥ 0.50 per share. The issue expenses were ₥ 10,000. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital ₥ 100,000, Credit Share Premium ₥ 50,000, Credit Issue Expenses ₥ 10,000

B. Debit Share Capital ₥ 100,000, Credit Share Premium ₥ 50,000

C. Debit Share Capital ₥ 100,000, Credit Issue Expenses ₥ 10,000

D. Debit Share Premium ₥ 50,000, Credit Issue Expenses ₥ 10,000

Correct Answer: A

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Question 12

A company purchased a machine for ₥ 50,000. The machine is expected to have a useful life of 5 years and a residual value of ₥ 5,000. Calculate the annual depreciation using the straight-line method.

Correct A. ₥ 9,500

B. ₥ 10,000

C. ₥ 9,000

D. ₥ 8,500

Correct Answer: A

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Question 13

A company's trial balance showed a discrepancy of ₥ 1,000. The company's accountant discovered that the discrepancy was due to an error in the recording of a transaction. Prepare the necessary journal entry to correct the error.

Correct A. Debit Cash ₥ 1,000, Credit Bank ₥ 1,000

B. Debit Bank ₥ 1,000, Credit Cash ₥ 1,000

C. Debit Bank ₥ 1,000, Credit Profit and Loss ₥ 1,000

D. Debit Profit and Loss ₥ 1,000, Credit Bank ₥ 1,000

Correct Answer: A

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Question 14

A company's manufacturing department produced 1,000 units of a product at a cost of ₥ 10 per unit. The company's selling price is ₥ 20 per unit. Calculate the contribution margin per unit.

A. ₥ 10

Correct B. ₥ 15

C. ₥ 20

D. ₥ 25

Correct Answer: B

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Question 15

A company's ledger showed the following balances: Cash ₥ 10,000, Bank ₥ 5,000, Accounts Payable ₥ 8,000, Sales Revenue ₥ 15,000. Prepare the necessary journal entries to close the ledger accounts.

A. Debit Cash ₥ 10,000, Credit Bank ₥ 5,000, Debit Accounts Payable ₥ 8,000, Credit Sales Revenue ₥ 15,000

B. Debit Bank ₥ 5,000, Credit Cash ₥ 10,000, Debit Accounts Payable ₥ 8,000, Credit Sales Revenue ₥ 15,000

Correct C. Debit Accounts Payable ₥ 8,000, Credit Sales Revenue ₥ 15,000

D. Debit Sales Revenue ₥ 15,000, Credit Accounts Payable ₥ 8,000

Correct Answer: C

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Question 16

A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000, and the cost of purchases is ₦1,200,000. The company uses a perpetual inventory system. What is the cost of ending inventory using the weighted average method?

A. ₦600,000

Correct B. ₦700,000

C. ₦800,000

D. ₦900,000

Correct Answer: B

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Question 17

A company has the following transactions during the year:

A. ₦1,000,000

B. ₦1,200,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

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Question 18

A company has the following ledger balances at the end of the year:

A. ₦1,000,000

B. ₦1,200,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

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Question 19

A company has the following transactions during the year:

A. ₦1,000,000

B. ₦1,200,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

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Question 20

A company has the following ledger balances at the end of the year:

A. ₦1,000,000

B. ₦1,200,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

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Question 21

In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' module?

A. To ensure compliance with financial regulations

B. To facilitate the preparation of financial statements

C. To enable the management to make informed decisions

Correct D. To monitor and control the use of public funds

Correct Answer: D

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Question 22

A company has issued 1,000 shares of 10 par value. If the market value of the shares is 15, what is the total value of the shares?

A. ₦15,000

B. ₦10,000

C. ₦20,000

Correct D. ₦25,000

Correct Answer: D

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Question 23

A manufacturing company has the following costs: direct materials 10,000, direct labor 8,000, and overhead 12,000. What is the total cost of production?

A. ₦30,000

B. ₦20,000

C. ₦40,000

Correct D. ₦50,000

Correct Answer: D

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Question 24

A company has the following balance sheet: assets 100,000, liabilities 50,000, and equity 50,000. What is the return on equity (ROE)?

A. 100%

Correct B. 50%

C. 200%

D. 300%

Correct Answer: B

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Question 25

A company has the following income statement: revenue 100,000, cost of goods sold 50,000, and operating expenses 20,000. What is the net income?

A. ₦30,000

B. ₦40,000

C. ₦50,000

Correct D. ₦60,000

Correct Answer: D

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