POST UTME FUTA 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's trial balance showed the following balances: Accounts Payable ₦ 50,000, Sales Revenue ₦ 200,000, Cost of Goods Sold ₦ 150,000, and Common Stock ₦ 100,000. Prepare a balance sheet.
A. ₦ 50,000
B. ₦ 100,000
C. ₦ 150,000
D. ₦ 200,000
Question 2
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Receivable, Accounts Payable, Sales, and Cost of Goods Sold. If the company's trial balance shows a debit balance of ₦10,000 in the Cash account and a credit balance of ₦15,000 in the Accounts Payable account, what is the net effect on the company's equity?
A. Increase in equity by ₦5,000
B. Decrease in equity by ₦5,000
C. No effect on equity
D. Increase in equity by ₦10,000
Question 3
A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Bank | 15,000 | Share Capital | 30,000 | | Stock | 20,000 | | | | | 45,000 | | 50,000 | Calculate the amount of stock.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 4
A company purchased a machine for ₦ 80,000. 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.
A. ₦ 15,000
B. ₦ 16,000
C. ₦ 17,000
D. ₦ 18,000
Question 5
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
B. ₠ 15,000
C. ₠ 20,000
D. ₠ 25,000
Question 6
In a public sector accounting system, what is the primary purpose of the 'Object of Account' column in the Ledger Account?
A. To record the source of the transaction
B. To identify the account to be debited or credited
C. To specify the nature of the transaction
D. To indicate the date of the transaction
Question 7
A manufacturing company produces two products, X and Y. Product X requires 2 hours of labor and 3 units of raw material, while product Y requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, how many units of product X and product Y should be produced to maximize profit?
A. 20 units of X and 30 units of Y
B. 30 units of X and 20 units of Y
C. 25 units of X and 25 units of Y
D. 35 units of X and 15 units of Y
Question 8
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/2 | Sales | | 12,000 | | 1/3 | Purchase | 8,000 | | | 1/4 | Rent | | 2,000 | What is the net income of the company?
A. ₦4,000
B. ₦6,000
C. ₦8,000
D. ₦10,000
Question 9
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦8,000 | | 3rd Jan | Cash | | ₦2,000 | What is the correct balance of the cash account?
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000
Question 10
A company has two partners, A and B. Partner A has a capital of ₦500,000, and partner B has a capital of ₦300,000. The company's profit is ₦200,000. What is the correct distribution of the profit?
A. ₦60,000 to A and ₦140,000 to B
B. ₦80,000 to A and ₦120,000 to B
C. ₦100,000 to A and ₦100,000 to B
D. ₦120,000 to A and ₦80,000 to B
Question 11
A company has a control account that shows a balance of ₦200,000. The company's ledger account shows a balance of ₦250,000. What is the correct balance of the company's control account?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦250,000
Question 12
A company uses the accruals basis of accounting. If the company's sales revenue for the year is ₦1,500,000 and the cost of goods sold is ₦1,200,000, what is the gross profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 13
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Accounts Payable | | 8,000 | | Sales | | 12,000 | | Purchase | 8,000 | | | Rent | | 2,000 | What is the net income of the company?
A. ₦4,000
B. ₦6,000
C. ₦8,000
D. ₦10,000
Question 14
A company's accounting equation is Assets = Liabilities + Equity. If the company's assets are ₦200,000, liabilities are ₦100,000, and equity is ₦50,000, what is the company's net income?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 15
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Accounts Payable | | 8,000 | | Sales | | 12,000 | | Purchase | 8,000 | | | Rent | | 2,000 | What is the net income of the company?
A. ₦4,000
B. ₦6,000
C. ₦8,000
D. ₦10,000

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