POST UTME FUTO 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. ₦20,000
C. ₦15,000
D. ₦30,000
Question 2
A company's trading account shows a profit of ₦150,000. However, the profit and loss account shows a loss of ₦50,000. What is the correct explanation for the discrepancy?
A. The company has a non-trading income of ₦200,000 that has not been included in the trading account.
B. The company has a non-trading expense of ₦200,000 that has not been included in the trading account.
C. The company has a trading income of ₦200,000 that has not been included in the trading account.
D. The company has a trading expense of ₦200,000 that has not been included in the trading account.
Question 3
In a manufacturing company, the following transactions occurred during the month of January: Purchased raw materials worth ₦120,000 on credit from a supplier. Purchased a machine worth ₦150,000 in cash. Sold goods worth ₦180,000 for cash. Paid salaries amounting to ₦60,000. What is the total amount of cash received and paid by the company during the month?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000
Question 4
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
C. ₦390,000
D. ₦410,000
Question 5
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.
D. Decreases liabilities and increases equity.
Question 6
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
B. ₦50,000
C. ₦45,000
D. ₦40,000
Question 7
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?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 8
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?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 9
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦110,000. The bank charges a service fee of ₦1,500 and a minimum balance fee of ₦500. What is the correct explanation for the discrepancy?
A. The company has an outstanding cheque of ₦10,000.
B. The company has deposited ₦10,000 into its account but the bank has not yet credited it.
C. The company has a loan of ₦10,000 from the bank that has not been deducted from the cash book balance.
D. The company has paid a bill of ₦10,000 that has not been deducted from the cash book balance.
Question 10
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 11
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?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 12
A company uses a trial balance. The trial balance shows the following balances: Debit Balance: ₦20,000, Credit Balance: ₦30,000. What is the correct procedure to prepare the financial statements?
A. Prepare the balance sheet and income statement from the trial balance.
B. Adjust the trial balance to match the financial statements.
C. Prepare a statement of changes in equity from the trial balance.
D. Prepare a cash flow statement from the trial balance.
Question 13
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
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 14
A company uses a double-entry system. The journal shows the following transactions: Debit: ₦10,000, Credit: ₦15,000. What is the correct procedure to record the transaction in the ledger?
A. Debit the asset account and credit the liability account.
B. Credit the asset account and debit the liability account.
C. Debit the revenue account and credit the expense account.
D. Credit the revenue account and debit the expense account.
Question 15
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
B. ₦50,000
C. ₦40,000
D. ₦30,000

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