Practice post utme abu accounting 2025 Past Questions

Question 1

A company has two control accounts: Cash at Bank and Bank Overdraft. The Cash at Bank control account has a debit balance of ₦120,000 and a credit balance of ₦80,000. The Bank Overdraft control account has a debit balance of ₦150,000. What is the total debit balance of the two control accounts?

Correct A. ₦270,000

B. ₦220,000

C. ₦270,000

D. ₦220,000

Correct Answer: A

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Question 2

A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Net Income ₦30,000. What is the total amount of the company's assets?

A. ₦420,000

Correct B. ₦450,000

C. ₦420,000

D. ₦450,000

Correct Answer: B

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Question 3

A company's bank reconciliation statement shows a difference of ₦10,000 between the company's cash book balance and the bank's statement balance. The company's cash book balance is ₦120,000, and the bank's statement balance is ₦130,000. What is the reason for the difference?

A. Bank error

B. Company error

Correct C. Bank error

D. Company error

Correct Answer: C

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Question 4

A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦150,000 on credit, and paid cash for office expenses of ₦20,000. What is the net effect on the company's accounts payable?

Correct A. ₦30,000

B. ₦20,000

C. ₦30,000

D. ₦20,000

Correct Answer: A

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Question 5

A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000, and Net Income ₦30,000. What is the total amount of the company's liabilities?

A. ₦270,000

Correct B. ₦300,000

C. ₦270,000

D. ₦300,000

Correct Answer: B

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Question 6

A company uses the double-entry system to record its transactions. The company's accountant has recorded the following transactions in the journal: Debit: Cash ¡ 10,000, Credit: Bank ¡ 10,000. What is the effect of this transaction on the company's cash and bank balances?

A. The cash balance increases by ¡ 10,000 and the bank balance decreases by ¡ 10,000.

B. The cash balance decreases by ¡ 10,000 and the bank balance increases by ¡ 10,000.

C. The cash balance remains unchanged and the bank balance increases by ¡ 10,000.

Correct D. The cash balance increases by ¡ 10,000 and the bank balance remains unchanged.

Correct Answer: D

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Question 7

A company purchases a machine for ¡ 50,000. The machine has a useful life of 5 years and a residual value of ¡ 10,000. Calculate the annual depreciation using the straight-line method.

Correct A. ¡ 8,000

B. ¡ 9,000

C. ¡ 10,000

D. ¡ 11,000

Correct Answer: A

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Question 8

A company's cash book shows the following transactions: Debit: Cash ¡ 20,000, Credit: Bank ¡ 20,000. What is the effect of this transaction on the company's cash and bank balances?

A. The cash balance increases by ¡ 20,000 and the bank balance decreases by ¡ 20,000.

B. The cash balance decreases by ¡ 20,000 and the bank balance increases by ¡ 20,000.

C. The cash balance remains unchanged and the bank balance increases by ¡ 20,000.

Correct D. The cash balance increases by ¡ 20,000 and the bank balance remains unchanged.

Correct Answer: D

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Question 9

A company's bank statement shows the following transactions: Debit: Bank ¡ 30,000, Credit: Cash ¡ 30,000. What is the effect of this transaction on the company's cash and bank balances?

A. The cash balance increases by ¡ 30,000 and the bank balance decreases by ¡ 30,000.

B. The cash balance decreases by ¡ 30,000 and the bank balance increases by ¡ 30,000.

C. The cash balance remains unchanged and the bank balance increases by ¡ 30,000.

Correct D. The cash balance increases by ¡ 30,000 and the bank balance remains unchanged.

Correct Answer: D

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Question 10

A company's financial statements show the following: Trading Profit ¡ 100,000, Net Profit ¡ 150,000. What is the effect of this transaction on the company's profit?

A. The trading profit increases by ¡ 50,000.

Correct B. The net profit increases by ¡ 50,000.

C. The trading profit remains unchanged and the net profit increases by ¡ 50,000.

D. The trading profit decreases by ¡ 50,000 and the net profit remains unchanged.

Correct Answer: B

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Question 11

In a self-balancing ledger, what is the purpose of the 'Control Account'?

A. To record all transactions of a particular account

Correct B. To reconcile the balance of a particular account

C. To verify the accuracy of a particular account

D. To prepare the trial balance

Correct Answer: B

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Question 12

A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1000 | | | 2nd Jan | Cash | 500 | | | 3rd Jan | Cash | | 2000 | What is the balance of the cash account?

A. ₦1500

B. ₦2500

Correct C. ₦3000

D. ₦3500

Correct Answer: C

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Question 13

A manufacturing company produces two products, A and B. The selling price of A is ₦200 per unit, and the selling price of B is ₦300 per unit. The company sells 100 units of A and 80 units of B. If the total revenue is ₦48,000, what is the total cost of production?

A. ₦24,000

B. ₦28,000

Correct C. ₦32,000

D. ₦36,000

Correct Answer: C

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Question 14

A departmental account is prepared for a company's manufacturing department. The department's expenses for the year are as follows: | Particulars | Amount | | --- | --- | | Raw materials | ₦100,000 | | Labour | ₦150,000 | | Depreciation | ₦20,000 | | Total | ₦270,000 | What is the department's contribution to the company's profit?

A. ₦20,000

B. ₦30,000

C. ₦40,000

Correct D. ₦50,000

Correct Answer: D

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Question 15

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1000 | | | 2nd Jan | Cash | 500 | | | 3rd Jan | Cash | | 2000 | What is the bank reconciliation statement?

A. ₦1500

B. ₦2500

Correct C. ₦3000

D. ₦3500

Correct Answer: C

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Question 16

A company uses the double entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable ₦100,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, and Retained Earnings ₦200,000. What is the total amount of the company's assets?

A. ₦780,000

B. ₦680,000

Correct C. ₦780,000

D. ₦680,000

Correct Answer: C

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Question 17

A manufacturing company uses the weighted average method to calculate its inventory cost. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The following information is available: Raw Materials ₦100,000, Work-in-Progress ₦150,000, Finished Goods ₦200,000. What is the total value of the company's inventory?

A. ₦450,000

B. ₦550,000

Correct C. ₦450,000

D. ₦550,000

Correct Answer: C

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Question 18

A company uses the straight-line method to depreciate its assets. The company's asset has a cost of ₦500,000 and an estimated useful life of 5 years. What is the annual depreciation expense?

A. ₦100,000

B. ₦50,000

Correct C. ₦100,000

D. ₦50,000

Correct Answer: C

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Question 19

A company uses the FIFO method to value its inventory. The company has the following inventory transactions: Beginning Inventory ₦100,000, Purchase 1 ₦150,000, Purchase 2 ₦200,000. What is the cost of goods sold?

A. ₦350,000

B. ₦450,000

Correct C. ₦350,000

D. ₦450,000

Correct Answer: C

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Question 20

A company uses the weighted average method to calculate its inventory cost. The company has the following inventory transactions: Beginning Inventory ₦100,000, Purchase 1 ₦150,000, Purchase 2 ₦200,000. What is the total value of the company's inventory?

A. ₦450,000

B. ₦550,000

Correct C. ₦450,000

D. ₦550,000

Correct Answer: C

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Question 21

Determine the amount of depreciation for a machine with a cost of ₦250,000, a useful life of 5 years, and a residual value of ₦50,000. The machine is depreciated using the straight-line method.

A. ₦30,000

Correct B. ₦40,000

C. ₦50,000

D. ₦60,000

Correct Answer: B

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Question 22

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Sales | | ₦15,000 | | 3 Jan | Purchases | ₦8,000 | | | 4 Jan | Cash | | ₦12,000 | What is the balance in the cash book?

A. ₦2,000

B. ₦4,000

Correct C. ₦6,000

D. ₦8,000

Correct Answer: C

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Question 23

A manufacturing company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦120 per unit. The company produces 200 units of X and 150 units of Y. The total cost of production is ₦150,000. What is the profit?

A. ₦15,000

B. ₦20,000

Correct C. ₦25,000

D. ₦30,000

Correct Answer: C

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Question 24

A. 1.67

Correct B. 2.00

C. 2.33

D. 3.00

Correct Answer: B

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Question 25

A company's profit and loss account shows the following: | Revenue | ₦1,000,000 | | Cost of Goods Sold | ₦800,000 | | Gross Profit | ₦200,000 | | Operating Expenses | ₦150,000 | | Net Profit | ₦50,000 | What is the company's gross profit margin?

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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