Practice post utme futo accounting 2017 Past Questions

Question 1

A company's trial balance shows an error of ₦500 in the debit side of the account. If the error is corrected by transferring the amount to the credit side of the account, what is the effect on the company's net profit?

A. ₦500 increase in net profit

Correct B. ₦500 decrease in net profit

C. ₦500 increase in net loss

D. ₦500 decrease in net loss

Correct Answer: B

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Question 2

A manufacturing company uses a job costing system. The following information is available for the month of January: Cost of raw materials purchased ₦1,500,000; direct labor cost ₦800,000; factory overheads ₦600,000; and selling price per unit ₦2,000. If 5,000 units were produced and sold, what is the gross profit for the month?

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,500,000

D. ₦2,000,000

Correct Answer: B

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Question 3

A government agency prepares a budget for the year. The budget includes the following items: Salaries ₦1,200,000; Office expenses ₦400,000; and Capital expenditure ₦800,000. If the total budget is ₦2,500,000, what is the percentage of the budget allocated to salaries?

Correct A. 48%

B. 50%

C. 52%

D. 54%

Correct Answer: A

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Question 4

A company's trial balance shows the following balances: Cash ₦1,000,000; Accounts receivable ₦500,000; and Inventory ₦800,000. If the company's net working capital is ₦1,500,000, what is the amount of cash that should be reported as a current asset?

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,300,000

D. ₦1,400,000

Correct Answer: B

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Question 5

A company's balance sheet shows the following information: Total assets ₦5,000,000; Total liabilities ₦2,500,000; and Total equity ₦2,500,000. If the company's debt-to-equity ratio is 1:1, what is the amount of debt that should be reported as a current liability?

A. ₦1,250,000

Correct B. ₦1,500,000

C. ₦1,750,000

D. ₦2,000,000

Correct Answer: B

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Question 6

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount.

A. ₦450,000

Correct B. ₦475,000

C. ₦500,000

D. ₦525,000

Correct Answer: B

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Question 7

A company's trial balance as at 31st December, 2022, showed the following balances: Capital, ₦500,000; Profit and Loss Account, ₦200,000; Drawings, ₦50,000. Prepare the Balance Sheet as at 31st December, 2022.

A. ₦750,000

B. ₦800,000

Correct C. ₦850,000

D. ₦900,000

Correct Answer: C

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Question 8

A company's cash book showed the following transactions: 1st January, 2022, Cash, ₦10,000; 5th January, 2022, Bank, ₦5,000; 10th January, 2022, Cash, ₦20,000. Prepare the Cash Book and Bank Reconciliation Statement as at 31st January, 2022.

A. ₦35,000

B. ₦40,000

Correct C. ₦45,000

D. ₦50,000

Correct Answer: C

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Question 9

A company issued 10,000, 5% preference shares of ₦10 each at a premium of 20%. Calculate the amount received from shareholders and the amount of premium.

A. ₦100,000

B. ₦110,000

Correct C. ₦120,000

D. ₦130,000

Correct Answer: C

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Question 10

A company's incomplete records showed the following transactions: 1st January, 2022, Cash, ₦10,000; 5th January, 2022, Bank, ₦5,000; 10th January, 2022, Cash, ₦20,000. Prepare the Single Entry System as at 31st January, 2022.

A. ₦35,000

B. ₦40,000

Correct C. ₦45,000

D. ₦50,000

Correct Answer: C

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Question 11

A company uses the single entry system. The following transactions occurred during the year: Purchased goods for ₦120,000, sold goods for ₦180,000, and paid salaries of ₦60,000. Prepare the ledger accounts for purchases, sales, and salaries.

Correct A. Purchases: Debit: ₦120,000, Credit: ₦0; Sales: Debit: ₦0, Credit: ₦180,000; Salaries: Debit: ₦60,000, Credit: ₦0

B. Purchases: Debit: ₦0, Credit: ₦120,000; Sales: Debit: ₦180,000, Credit: ₦0; Salaries: Debit: ₦60,000, Credit: ₦0

C. Purchases: Debit: ₦120,000, Credit: ₦0; Sales: Debit: ₦0, Credit: ₦180,000; Salaries: Debit: ₦0, Credit: ₦60,000

D. Purchases: Debit: ₦0, Credit: ₦120,000; Sales: Debit: ₦0, Credit: ₦180,000; Salaries: Debit: ₦60,000, Credit: ₦0

Correct Answer: A

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Question 12

A partnership is formed between two individuals, A and B. A invests ₦200,000 and B invests ₦300,000. The profit is divided in the ratio 2:3. Calculate the profit sharing ratio.

Correct A. A: ₦400,000, B: ₦600,000

B. A: ₦600,000, B: ₦400,000

C. A: ₦300,000, B: ₦500,000

D. A: ₦500,000, B: ₦300,000

Correct Answer: A

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Question 13

A company manufactures goods. The following costs are incurred: Direct Materials: ₦120,000, Direct Labour: ₦80,000, Factory Overheads: ₦60,000. Calculate the total cost of production.

Correct A. ₦260,000

B. ₦300,000

C. ₦320,000

D. ₦360,000

Correct Answer: A

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Question 14

A company uses the double entry system. The following transactions occurred during the year: Purchased goods for ₦120,000, sold goods for ₦180,000, and paid salaries of ₦60,000. Prepare the ledger accounts for purchases, sales, and salaries.

Correct A. Purchases: Debit: ₦120,000, Credit: ₦0; Sales: Debit: ₦0, Credit: ₦180,000; Salaries: Debit: ₦60,000, Credit: ₦0

B. Purchases: Debit: ₦0, Credit: ₦120,000; Sales: Debit: ₦180,000, Credit: ₦0; Salaries: Debit: ₦60,000, Credit: ₦0

C. Purchases: Debit: ₦120,000, Credit: ₦0; Sales: Debit: ₦0, Credit: ₦180,000; Salaries: Debit: ₦0, Credit: ₦60,000

D. Purchases: Debit: ₦0, Credit: ₦120,000; Sales: Debit: ₦0, Credit: ₦180,000; Salaries: Debit: ₦60,000, Credit: ₦0

Correct Answer: A

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Question 15

A company prepares its final accounts. The trading account shows a profit of ₦120,000, and the profit and loss account shows a profit of ₦180,000. Calculate the balance sheet profit.

Correct A. ₦300,000

B. ₦120,000

C. ₦180,000

D. ₦60,000

Correct Answer: A

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Question 16

A company's trial balance shows an error of ₦1,500 in the debit side of the purchases account. The error is due to the omission of a purchase return of ₦3,000. Prepare the necessary journal entry to correct the error.

A. ₦1,500 debit to purchases account

B. ₦3,000 credit to purchases account

Correct C. ₦1,500 debit to purchases account and ₦3,000 credit to purchases account

D. ₦1,500 credit to purchases account

Correct Answer: C

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Question 17

A government ministry has the following transactions for the year ended December 31, 2022: - Received ₦1,200,000 from the federal government for a project. - Paid ₦800,000 to a contractor for work done. - Paid ₦300,000 to a supplier for materials purchased. - Received ₦200,000 from a donor for a charity event. Prepare the ministry's cash flow statement for the year ended December 31, 2022.

Correct A. ₦1,200,000 (₦800,000) (₦300,000) (₦200,000)

B. ₦1,200,000 (₦800,000) (₦300,000)

C. ₦1,200,000 (₦800,000)

D. ₦1,200,000

Correct Answer: A

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Question 18

A company's balance sheet as at December 31, 2022, is as follows: - Assets: ₦2,500,000 (₦1,500,000) (₦1,000,000). - Liabilities: ₦1,000,000 (₦500,000) (₦500,000). - Equity: ₦1,500,000 (₦1,000,000) (₦500,000). Determine the company's net worth as at December 31, 2022.

A. ₦1,000,000

Correct B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: B

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Question 19

A company's trial balance as at December 31, 2022, is as follows: - Debit: ₦2,000,000 (₦1,000,000) (₦1,000,000). - Credit: ₦1,500,000 (₦750,000) (₦750,000). Determine the company's net profit as at December 31, 2022.

Correct A. ₦500,000

B. ₦750,000

C. ₦1,000,000

D. ₦1,500,000

Correct Answer: A

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Question 20

A company's balance sheet as at December 31, 2022, is as follows: - Assets: ₦2,500,000 (₦1,500,000) (₦1,000,000). - Liabilities: ₦1,000,000 (₦500,000) (₦500,000). - Equity: ₦1,500,000 (₦1,000,000) (₦500,000). Determine the company's net worth as at December 31, 2022.

A. ₦1,000,000

Correct B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: B

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Question 21

A company's trial balance as at December 31, 2022, is as follows: - Debit: ₦2,000,000 (₦1,000,000) (₦1,000,000). - Credit: ₦1,500,000 (₦750,000) (₦750,000). Determine the company's net profit as at December 31, 2022.

Correct A. ₦500,000

B. ₦750,000

C. ₦1,000,000

D. ₦1,500,000

Correct Answer: A

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Question 22

A company's balance sheet as at December 31, 2022, is as follows: - Assets: ₦2,500,000 (₦1,500,000) (₦1,000,000). - Liabilities: ₦1,000,000 (₦500,000) (₦500,000). - Equity: ₦1,500,000 (₦1,000,000) (₦500,000). Determine the company's net worth as at December 31, 2022.

A. ₦1,000,000

Correct B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: B

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Question 23

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the reason for the difference?

A. The company has not yet received a payment from a customer.

B. The company has not yet paid a supplier.

Correct C. The bank has charged a fee for the month.

D. The company has deposited cash into the bank.

Correct Answer: C

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Question 24

A manufacturing company uses the process cost method to account for its production costs. If the company has a total production cost of ₦500,000 and a direct labor cost of ₦200,000, what is the indirect labor cost?

Correct A. ₦150,000

B. ₦200,000

C. ₦250,000

D. ₦300,000

Correct Answer: A

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Question 25

A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Accounts Payable | | ₦15,000 | | 3 | Sales | | ₦20,000 | | 4 | Cash | | ₦25,000 | What is the net effect of these transactions on the company's cash balance?

Correct A. ₦10,000

B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: A

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