Practice post utme esut accounting 2018 Past Questions

Question 1

A company's trading account for the year ended 31st December 2022 is as follows: Debtors: ₦120,000 Cash at bank: ₦150,000 Sales: ₦1,200,000 Purchases: ₦900,000 Discount allowed: ₦20,000 Discount received: ₦5,000 What is the company's net profit for the year?

A. ₦250,000

Correct B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: B

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Question 2

A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash at bank: ₦150,000 Debtors: ₦120,000 Stock: ₦200,000 Total assets: ₦470,000 Liabilities: Creditors: ₦100,000 Capital: ₦200,000 Total liabilities: ₦300,000 What is the company's net worth?

Correct A. ₦170,000

B. ₦170,000

C. ₦170,000

D. ₦170,000

Correct Answer: A

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Question 3

A company's manufacturing account for the year ended 31st December 2022 is as follows: Materials consumed: ₦300,000 Labour: ₦200,000 Overheads: ₦150,000 Total cost: ₦650,000 What is the company's profit for the year?

A. ₦100,000

B. ₦150,000

Correct C. ₦200,000

D. ₦250,000

Correct Answer: C

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Question 4

A company's company account for the year ended 31st December 2022 is as follows: Share capital: ₦200,000 Reserves: ₦150,000 Profit for the year: ₦100,000 Total equity: ₦450,000 What is the company's return on equity?

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

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Question 5

A company's depreciation account for the year ended 31st December 2022 is as follows: Depreciable assets: ₦500,000 Depreciation rate: 10% Total depreciation: ₦50,000 What is the company's accumulated depreciation?

Correct A. ₦50,000

B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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Question 6

A company issued 5,000, 10% debentures of ₦100 each on January 1, 2018. The debentures are redeemable at ₦110 each after 5 years. Calculate the interest on debentures for the year ended December 31, 2018.

A. ₦25,000

Correct B. ₦50,000

C. ₦75,000

D. ₦100,000

Correct Answer: B

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Question 7

A company's trial balance as at December 31, 2018, showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's balance sheet as at December 31, 2018.

Correct A. ₦50,000

B. ₦30,000

C. ₦500,000

D. ₦300,000

Correct Answer: A

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Question 8

A company's balance sheet as at December 31, 2018, showed the following balances: Cash ₦20,000, Accounts Payable ₦50,000, and Common Stock ₦100,000. Prepare the company's statement of cash flows for the year ended December 31, 2018.

A. ₦20,000

B. ₦50,000

Correct C. ₦100,000

D. ₦150,000

Correct Answer: C

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Question 9

A company issued 10,000 shares of ₦10 each on January 1, 2018. The company's profit for the year ended December 31, 2018, was ₦200,000. Calculate the company's dividend per share for the year ended December 31, 2018.

A. ₦2

Correct B. ₦5

C. ₦10

D. ₦20

Correct Answer: B

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Question 10

A company's trial balance as at December 31, 2018, showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's income statement for the year ended December 31, 2018.

A. ₦50,000

B. ₦30,000

Correct C. ₦500,000

D. ₦300,000

Correct Answer: C

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Question 11

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?

Correct A. 60

B. 72

C. 80

D. 90

Correct Answer: A

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Question 12

A firm has the following transactions during the year: Debit: Raw Materials ₦ 100,000; Work-in-Progress ₦ 50,000; Finished Goods ₦ 30,000; Sales ₦ 200,000; Drawings ₦ 20,000 Credit: Purchases ₦ 150,000; Wages ₦ 40,000; Rent ₦ 10,000; Capital ₦ 100,000 What is the net profit of the firm?

Correct A. ₦ 30,000

B. ₦ 40,000

C. ₦ 50,000

D. ₦ 60,000

Correct Answer: A

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Question 13

A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦ 120,000, what is the amount of profit that partner A will receive?

Correct A. ₦ 60,000

B. ₦ 72,000

C. ₦ 80,000

D. ₦ 90,000

Correct Answer: A

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Question 14

A firm has the following trial balance: Debit: Raw Materials ₦ 50,000; Work-in-Progress ₦ 30,000; Finished Goods ₦ 20,000; Sales ₦ 150,000; Drawings ₦ 10,000 Credit: Purchases ₦ 100,000; Wages ₦ 20,000; Rent ₦ 5,000; Capital ₦ 80,000 What is the net profit of the firm?

Correct A. ₦ 20,000

B. ₦ 30,000

C. ₦ 40,000

D. ₦ 50,000

Correct Answer: A

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Question 15

A company has two departments, A and B, which produce two products, X and Y. 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?

Correct A. 60

B. 72

C. 80

D. 90

Correct Answer: A

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Question 16

In a self-balancing ledger, the control account is used to record the total of all subsidiary accounts. What is the purpose of the control account?

Correct A. To record the total of all subsidiary accounts

B. To record the total of all control accounts

C. To record the total of all assets

D. To record the total of all liabilities

Correct Answer: A

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Question 17

A company uses the accrual basis of accounting. At the end of the year, the company has accounts receivable of ₦100,000 and accounts payable of ₦50,000. What is the net effect on the company's cash balance?

Correct A. +₦50,000

B. +₦100,000

C. -₦50,000

D. -₦100,000

Correct Answer: A

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Question 18

A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation expense?

A. +₦90,000

B. +₦100,000

Correct C. +₦110,000

D. +₦120,000

Correct Answer: C

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Question 19

A company uses the straight-line method of depreciation. The company purchases a machine for ₦200,000. The machine has a useful life of 10 years and a residual value of ₦20,000. What is the annual depreciation expense?

A. +₦18,000

Correct B. +₦20,000

C. +₦22,000

D. +₦24,000

Correct Answer: B

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Question 20

A company uses the double-declining balance method of depreciation. The company purchases a machine for ₦300,000. The machine has a useful life of 8 years and a residual value of ₦30,000. What is the annual depreciation expense?

A. +₦37,500

B. +₦40,000

Correct C. +₦42,500

D. +₦45,000

Correct Answer: C

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Question 21

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

A. ₦ 210,000

Correct B. ₦ 220,000

C. ₦ 230,000

D. ₦ 240,000

Correct Answer: B

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Question 22

A partnership business had a capital of ₦ 50,000 divided between two partners, A and B, in the ratio 3:2. If the profits were divided in the same ratio, calculate the share of profit of A and B.

Correct A. A: ₦ 18,000, B: ₦ 12,000

B. A: ₦ 20,000, B: ₦ 10,000

C. A: ₦ 22,000, B: ₦ 8,000

D. A: ₦ 24,000, B: ₦ 6,000

Correct Answer: A

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Question 23

A company purchased a machine for ₦ 10,000 and depreciated it by 10% at the end of the first year. Calculate the value of the machine at the end of the first year.

Correct A. ₦ 9,000

B. ₦ 9,500

C. ₦ 10,000

D. ₦ 10,500

Correct Answer: A

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Question 24

A company has a manufacturing department that produces two products, X and Y. The selling price of X is ₦ 10 per unit, and the selling price of Y is ₦ 20 per unit. The company produces 500 units of X and 300 units of Y. Calculate the total revenue from the sale of these products.

A. ₦ 10,000

B. ₦ 12,000

Correct C. ₦ 14,000

D. ₦ 16,000

Correct Answer: C

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Question 25

A company has a departmental account for the manufacturing department. The department incurred expenses of ₦ 50,000 and earned revenue of ₦ 100,000. Calculate the profit or loss of the department.

Correct A. Profit of ₦ 50,000

B. Loss of ₦ 50,000

C. Profit of ₦ 50,000

D. Loss of ₦ 50,000

Correct Answer: A

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