POST UTME FUTA 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
Correct A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000

Correct Answer: A

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Question 2
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount on the debentures.
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 3
A public sector organization has the following transactions for the year: ₦100,000 received from customers ₦150,000 paid to suppliers ₦20,000 paid to employees ₦30,000 received from government grant Prepare a statement of cash flows for the year.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 4
A company has the following trial balance: ₦100,000 Cash ₦50,000 Accounts Receivable ₦20,000 Prepaid Rent ₦30,000 Salaries Expense ₦40,000 Rent Expense ₦50,000 Utilities Expense Identify the error in the trial balance.
A. ₦50,000
Correct B. ₦30,000
C. ₦20,000
D. ₦10,000

Correct Answer: B

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Question 5
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦750,000, calculate the amount of profit that will be shared by B.
A. ₦300,000
Correct B. ₦325,000
C. ₦350,000
D. ₦375,000

Correct Answer: B

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Question 6
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦300,000. The company purchases additional inventory at a cost of ₦600,000. If the total cost of the closing inventory is ₦750,000, what is the cost of goods sold?
A. ₦750,000
Correct B. ₦900,000
C. ₦1,200,000
D. ₦1,500,000

Correct Answer: B

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Question 7
A company has the following transactions during the year:
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

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Question 8
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,200,000, and the total cost of the opening inventory is ₦200,000. The company purchases additional inventory at a cost of ₦400,000. If the total cost of the closing inventory is ₦600,000, what is the cost of goods sold?
A. ₦600,000
Correct B. ₦800,000
C. ₦1,000,000
D. ₦1,200,000

Correct Answer: B

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Question 9
A company has the following transactions during the year:
A. ₦150,000
B. ₦250,000
Correct C. ₦350,000
D. ₦450,000

Correct Answer: C

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Question 10
A company uses the LIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦300,000. The company purchases additional inventory at a cost of ₦600,000. If the total cost of the closing inventory is ₦750,000, what is the cost of goods sold?
A. ₦900,000
B. ₦1,000,000
C. ₦1,200,000
Correct D. ₦1,500,000

Correct Answer: D

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Question 11
A company issued 10,000 shares of 1 par value at a premium of 2 per share. If the shares were sold for 5 each, calculate the total amount received from the sale of shares.
A. ₦20,000,000
Correct B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000

Correct Answer: B

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Question 12
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to an outstanding cheque of ₦5,000. Calculate the correct balance of the company's cash.
Correct A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000

Correct Answer: A

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Question 13
A company issued 5% debentures of ₦100,000 at a premium of 10%. If the debentures were issued for 5 years, calculate the annual interest payable.
A. ₦5,000
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 14
A company's assets are valued at ₦500,000. The company's liabilities are ₦200,000. Calculate the company's net worth.
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 15
A company's cash book shows a balance of ₦20,000. The company's bank statement shows a balance of ₦30,000. The difference is due to an outstanding cheque of ₦5,000. Calculate the correct balance of the company's cash.
Correct A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: A

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Question 16
A company issued 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures and the amount of discount.
Correct A. ₦950,000 and ₦50,000
B. ₦990,000 and ₦5,000
C. ₦950,000 and ₦5,000
D. ₦990,000 and ₦50,000

Correct Answer: A

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Question 17
A partnership is formed between two partners, A and B. A contributes ₦200,000 and B contributes ₦300,000. The profit is to be shared in the ratio 2:3. If the total profit is ₦120,000, calculate the share of profit of each partner.
Correct A. A: ₦40,000, B: ₦80,000
B. A: ₦60,000, B: ₦60,000
C. A: ₦80,000, B: ₦40,000
D. A: ₦60,000, B: ₦60,000

Correct Answer: A

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Question 18
A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦90,000 per annum
B. ₦80,000 per annum
C. ₦100,000 per annum
D. ₦110,000 per annum

Correct Answer: A

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Question 19
A company issued 10,000 9% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the amount received from the issue of preference shares and the amount of premium.
Correct A. ₦200,000 and ₦20,000
B. ₦220,000 and ₦20,000
C. ₦200,000 and ₦20,000
D. ₦220,000 and ₦20,000

Correct Answer: A

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Question 20
A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the reducing balance method.
Correct A. ₦90,000 per annum
B. ₦80,000 per annum
C. ₦100,000 per annum
D. ₦110,000 per annum

Correct Answer: A

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Question 21
In a partnership account, the capital of one partner is increased by ₦50,000, while the capital of another partner is decreased by ₦30,000. What is the net effect on the total capital of the partnership?
A. ₦20,000 increase
B. ₦20,000 decrease
Correct C. ₦20,000 no change
D. ₦20,000 unknown

Correct Answer: C

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Question 22
A company uses the single-entry system of accounting. The company's assets increased by ₦100,000 and liabilities decreased by ₦50,000. What is the net increase in equity?
A. ₦50,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 23
A company's trial balance shows an error of ₦20,000. The error is due to an incorrect posting of an account. What is the correct procedure to rectify the error?
A. Repost the account
B. Reconcile the account
Correct C. Correct the error in the trial balance
D. Reopen the account

Correct Answer: C

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Question 24
A company's financial statements show a net income of ₦500,000. However, the company's cash flow statement shows a net decrease of ₦200,000. What is the reason for the discrepancy?
A. Accruals and deferrals
Correct B. Non-cash items
C. Changes in working capital
D. Error in accounting

Correct Answer: B

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Question 25
A company uses a self-balancing ledger to record its transactions. What is the advantage of using this system?
A. Easy to maintain
B. Reduces errors
C. Increases efficiency
Correct D. All of the above

Correct Answer: D

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