POST UTME FUTA 2020 Accounting | Objective

Are you preparing for POST UTME FUTA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. Calculate the amount received from the issue of shares.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
Correct D. ₦ 150,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
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
Correct B. ₦ 100,000
C. ₦ 150,000
D. ₦ 200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
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
Correct C. ₦ 17,000
D. ₦ 18,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A partnership has two partners, A and B. Partner A invested ₦ 50,000 and Partner B invested ₦ 30,000. The profit-sharing ratio is 3:2. Calculate the amount of profit to be distributed to Partner A.
A. ₦ 30,000
B. ₦ 35,000
Correct C. ₦ 40,000
D. ₦ 45,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 5 per debenture. The issue expenses were ₦ 20,000. Calculate the amount received from the issue of debentures.
A. ₦ 500,000
Correct B. ₦ 510,000
C. ₦ 520,000
D. ₦ 530,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A partnership is dissolved when a partner dies. What is the accounting treatment for the deceased partner's share of profits?
A. The deceased partner's share of profits is written off immediately.
Correct B. The deceased partner's share of profits is transferred to the partner's capital account.
C. The deceased partner's share of profits is transferred to the partner's current account.
D. The deceased partner's share of profits is transferred to the partner's drawings account.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
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
Correct B. ₠ 15,000
C. ₠ 20,000
D. ₠ 25,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A manufacturing company produces 10,000 units of a product at a cost of ₠ 50 per unit. The selling price is ₠ 80 per unit. What is the profit per unit?
A. ₠ 30
B. ₠ 40
Correct C. ₠ 50
D. ₠ 60

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's trial balance shows a discrepancy of ₠ 1,000. What is the accounting treatment for the discrepancy?
Correct A. The discrepancy is written off as an expense.
B. The discrepancy is transferred to the partner's capital account.
C. The discrepancy is transferred to the partner's current account.
D. The discrepancy is transferred to the partner's drawings account.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
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
Correct B. ₠ 15,000
C. ₠ 20,000
D. ₠ 25,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The company also issued 2,000 debentures of 100 each. Calculate the total amount of share capital and debenture capital.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | | 4 Jan | Bank | | 200 | Calculate the balance of the cash book.
Correct A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
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
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | | 4 Jan | Bank | | 200 | Calculate the balance of the cash book.
Correct A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
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
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | | 4 Jan | Bank | | 200 | Calculate the balance of the cash book.
Correct A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
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
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦150,000, what is the amount of capital that partner A has?
Correct A. ₦90,000
B. ₦60,000
C. ₦120,000
D. ₦180,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
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
Correct C. 25 units of X and 25 units of Y
D. 35 units of X and 15 units of Y

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
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
Correct B. Decrease in equity by ₦5,000
C. No effect on equity
D. Increase in equity by ₦10,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's trial balance shows the following accounts: Sales (₦100,000), Cost of Goods Sold (₦60,000), and Net Income (₦40,000). If the company's accounting period is 12 months, what is the company's net income per month?
Correct A. ₦3,333
B. ₦4,000
C. ₦5,000
D. ₦6,667

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
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
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
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
Correct 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

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦10,000, what is the annual depreciation charge if the asset's cost is ₦150,000?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
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?
Correct A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support