POST UTME FUTO 2018 Accounting | Objective

Are you preparing for POST UTME FUTO exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, and Common Stock. The ledger shows a balance of ₦10,000 in the Cash account, ₦5,000 in the Accounts Payable account, and ₦20,000 in the Common Stock account. What is the total value of the company's assets?
Correct A. ₦35,000
B. ₦30,000
C. ₦25,000
D. ₦20,000

Correct Answer: A

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Question 2
A government agency is required to prepare a trial balance at the end of each month. The trial balance shows the following accounts: Revenue, Expenses, and Assets. The trial balance shows a balance of ₦100,000 in the Revenue account, ₦50,000 in the Expenses account, and ₦200,000 in the Assets account. What is the total value of the agency's liabilities?
Correct A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000

Correct Answer: A

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Question 3
A company uses a cash book to record its cash transactions. The cash book shows the following entries: Cash received from customers, Cash paid to suppliers, and Cash invested in assets. The cash book shows a balance of ₦50,000 in the Cash received from customers account, ₦20,000 in the Cash paid to suppliers account, and ₦30,000 in the Cash invested in assets account. What is the total value of the company's cash balance?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 4
A company uses a bank reconciliation statement to reconcile its bank statement with its cash book. The bank statement shows a balance of ₦100,000, while the cash book shows a balance of ₦120,000. The bank reconciliation statement shows a difference of ₦20,000. What is the reason for the difference?
A. Bank charges
B. Interest earned
C. Deposits in transit
Correct D. Cheques issued but not yet presented

Correct Answer: D

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Question 5
A company uses a single-entry system to record its transactions. The single-entry system shows the following entries: Cash received from customers, Cash paid to suppliers, and Cash invested in assets. The single-entry system shows a balance of ₦50,000 in the Cash received from customers account, ₦20,000 in the Cash paid to suppliers account, and ₦30,000 in the Cash invested in assets account. What is the total value of the company's cash balance?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 6
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The bank reconciliation statement shows a difference of ₦30,000. What is the reason for this difference?
Correct A. The company has outstanding checks.
B. The bank has made an error in its statement.
C. The company has deposited cash into the bank but has not yet been credited.
D. The company has issued a bank draft that has not yet been cashed.

Correct Answer: A

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦80,000 and ₦60,000 respectively. The profit-sharing ratio is 3:2. What is the share of profit of partner A?
Correct A. ₦36,000
B. ₦48,000
C. ₦60,000
D. ₦72,000

Correct Answer: A

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Question 8
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities.
B. Decreases assets and increases liabilities.
C. Increases liabilities and decreases equity.
Correct D. Decreases liabilities and increases equity.

Correct Answer: D

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Question 9
A manufacturing company has the following costs: Direct Materials ₦100,000, Direct Labor ₦80,000, Factory Overhead ₦120,000. What is the total cost of production?
A. ₦300,000
B. ₦320,000
Correct C. ₦340,000
D. ₦360,000

Correct Answer: C

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Question 10
A departmentalized company has the following departmental expenses: Manufacturing ₦150,000, Selling ₦80,000, Administrative ₦120,000. What is the total departmental expense?
A. ₦350,000
B. ₦370,000
Correct C. ₦390,000
D. ₦410,000

Correct Answer: C

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Question 11
A company's trial balance shows an error of ₦5,000 in the debit side of the 'Office Equipment' account. The correct balance should be ₦20,000. What is the correct balance of the 'Office Equipment' account?
A. ₦25,000
Correct B. ₦20,000
C. ₦15,000
D. ₦30,000

Correct Answer: B

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Question 12
A company's cash book shows a debit balance of ₦10,000 in the 'Bank' account. However, the bank statement shows a credit balance of ₦5,000. What is the correct balance of the 'Bank' account?
Correct A. ₦15,000
B. ₦10,000
C. ₦5,000
D. ₦20,000

Correct Answer: A

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Question 13
A company's balance sheet shows an error of ₦10,000 in the 'Capital' account. The correct balance should be ₦50,000. What is the correct balance of the 'Capital' account?
A. ₦60,000
Correct B. ₦50,000
C. ₦40,000
D. ₦30,000

Correct Answer: B

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Question 14
A company's trial balance shows an error of ₦5,000 in the credit side of the 'Sales' account. The correct balance should be ₦50,000. What is the correct balance of the 'Sales' account?
A. ₦55,000
Correct B. ₦50,000
C. ₦45,000
D. ₦40,000

Correct Answer: B

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Question 15
A company's cash book shows a credit balance of ₦20,000 in the 'Bank' account. However, the bank statement shows a debit balance of ₦10,000. What is the correct balance of the 'Bank' account?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 16
A company has two partners, A and B. The capital of A is ₦500,000 and that of B is ₦300,000. The profit-sharing ratio is 3:2. Calculate the profit to be shared by A.
Correct A. ₦450,000
B. ₦300,000
C. ₦400,000
D. ₦350,000

Correct Answer: A

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Question 17
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. Prepare a balance sheet.
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 18
A company's income statement for the year ended December 31, 2022, shows the following: Sales Revenue ₦1,500,000, Cost of Goods Sold ₦900,000, Operating Expenses ₦300,000, and Net Income ₦200,000. Prepare a statement of cash flows.
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 19
A company has two partners, A and B. The capital of A is ₦500,000 and that of B is ₦300,000. The profit-sharing ratio is 3:2. If the company made a profit of ₦200,000, how much will A receive?
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 20
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. If the company's net income is ₦200,000, what is the total amount of dividends that can be paid to shareholders?
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 21
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the company's cash book?
Correct A. ₦180,000
B. ₦150,000
C. ₦120,000
D. ₦30,000

Correct Answer: A

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Question 22
A company uses the self-balancing ledger system. The ledger shows the following balances: Debtors ₦50,000, Creditors ₦30,000, and Capital ₦20,000. What is the total value of the company's assets?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 23
A company's assets are depreciated using the straight-line method. The asset's original value is ₦100,000, and it is expected to last for 5 years. What is the annual depreciation charge?
A. ₦20,000
B. ₦15,000
C. ₦10,000
Correct D. ₦5,000

Correct Answer: D

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Question 24
A government agency is responsible for collecting taxes. The agency's budget for the year is ₦500 million. The agency has collected ₦300 million in taxes so far. What is the percentage of the budget that has been collected?
A. 60%
Correct B. 50%
C. 40%
D. 30%

Correct Answer: B

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Question 25
A manufacturing company produces 10,000 units of a product per month. The company's selling price is ₦50 per unit, and the variable cost is ₦20 per unit. The company's fixed costs are ₦500,000 per month. What is the company's profit per unit?
Correct A. ₦30
B. ₦20
C. ₦10
D. ₦5

Correct Answer: A

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