POST UTME FUTA 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000
Question 2
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
D. ₦1,500,000
Question 3
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
B. Non-cash items
C. Changes in working capital
D. Error in accounting
Question 4
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
D. All of the above
Question 5
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.
A. ₦950,000 and ₦50,000
B. ₦990,000 and ₦5,000
C. ₦950,000 and ₦5,000
D. ₦990,000 and ₦50,000
Question 6
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
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 7
A company's balance sheet as at 31st December 2023 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦300,000; Debtors: ₦200,000; Creditors: ₦100,000. Calculate the company's net worth.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 8
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
C. ₦20,000 no change
D. ₦20,000 unknown
Question 9
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.
A. ₦90,000 per annum
B. ₦80,000 per annum
C. ₦100,000 per annum
D. ₦110,000 per annum
Question 10
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.
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦25,000
Question 12
A company has the following transactions during the year:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 13
A company has a budget of ₦1,000,000 for the year. If the company's actual expenses are ₦800,000, what is the company's budget variance?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 14
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
C. Correct the error in the trial balance
D. Reopen the account
Question 15
A company's balance sheet as at 31st December 2023 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦300,000; Debtors: ₦200,000; Creditors: ₦100,000. Calculate the company's net worth.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

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