POST UTME FUTO 2020 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 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
Correct C. ₦120,000
D. ₦150,000

Correct Answer: C

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Question 2
A company's trial balance showed an error of ₦5,000 due to an incorrect posting. The error was discovered and corrected. What is the effect on the company's net profit?
A. ₦5,000 increase
Correct B. ₦5,000 decrease
C. No effect
D. ₦10,000 increase

Correct Answer: B

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Question 3
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 and the Assembly department incurred costs of ₦180,000. What is the total cost of production?
A. ₦300,000
B. ₦240,000
Correct C. ₦360,000
D. ₦480,000

Correct Answer: C

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Question 4
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.
A. ₦90,000
B. ₦100,000
Correct C. ₦110,000
D. ₦120,000

Correct Answer: C

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Question 5
A company issued 10,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦9,000,000
Correct B. ₦9,500,000
C. ₦10,000,000
D. ₦10,500,000

Correct Answer: B

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Question 6
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 and ₦300,000 respectively. The profit-sharing ratio is 3:2. Calculate the total profit for the year, given that the total profit is ₦1,200,000.
A. ₦900,000
B. ₦1,000,000
Correct C. ₦1,200,000
D. ₦1,500,000

Correct Answer: C

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Question 7
A company uses the following accounts: Cash, Accounts Payable, Accounts Receivable, Sales Revenue, Cost of Goods Sold, and Common Stock. Prepare a trial balance for the company, given the following balances: Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦500,000.
Correct A. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
B. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
C. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
D. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000

Correct Answer: A

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Question 8
A company has the following departmental accounts: Production, Marketing, and Administration. The production department has a cost of ₦150,000, the marketing department has a cost of ₦50,000, and the administration department has a cost of ₦20,000. Calculate the total departmental cost for the company.
A. ₦220,000
Correct B. ₦250,000
C. ₦220,000
D. ₦250,000

Correct Answer: B

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Question 9
A company uses the following accounts: Cash, Accounts Payable, Accounts Receivable, Sales Revenue, Cost of Goods Sold, and Common Stock. Prepare a trial balance for the company, given the following balances: Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦500,000.
Correct A. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
B. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
C. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000
D. Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, Common Stock ₦500,000

Correct Answer: A

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Question 10
A company has the following departmental accounts: Production, Marketing, and Administration. The production department has a cost of ₦150,000, the marketing department has a cost of ₦50,000, and the administration department has a cost of ₦20,000. Calculate the total departmental cost for the company.
A. ₦220,000
Correct B. ₦250,000
C. ₦220,000
D. ₦250,000

Correct Answer: B

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Question 11
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦30,000 is due to an outstanding cheque of ₦15,000 and an unrecorded deposit of ₦15,000. What is the correct balance in the cash book?
A. ₦120,000
Correct B. ₦135,000
C. ₦150,000
D. ₦165,000

Correct Answer: B

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Question 12
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. What is the total amount of assets?
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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Question 13
A company uses the straight-line method of depreciation for its assets. If the asset cost ₦50,000 and has a useful life of 5 years, what is the annual depreciation?
A. ₦10,000
Correct B. ₦8,333
C. ₦6,667
D. ₦5,000

Correct Answer: B

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Question 14
A partnership has two partners, John and Jane. John's capital contribution is ₦50,000 and Jane's capital contribution is ₦30,000. If the partnership has a profit of ₦20,000, how much will each partner receive?
A. John: ₦10,000, Jane: ₦10,000
Correct B. John: ₦12,500, Jane: ₦7,500
C. John: ₦15,000, Jane: ₦5,000
D. John: ₦18,750, Jane: ₦1,250

Correct Answer: B

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Question 15
A company uses the single-entry accounting method. If the company has a cash balance of ₦20,000 and a credit balance of ₦10,000, what is the total amount of assets?
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

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Question 16
A company uses a job costing system to account for its manufacturing operations. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its work-in-progress account, while the Assembly department has a balance of ₦80,000 in its work-in-progress account. The company's total work-in-progress balance is ₦180,000. What is the total cost of goods manufactured by the company?
A. ₦200,000
Correct B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: B

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Question 17
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 18
A company uses a perpetual inventory system. The company's beginning inventory balance is ₦80,000, and the company purchases goods for ₦120,000 during the period. The company also sells goods for ₦200,000 during the period. What is the company's ending inventory balance?
A. ₦100,000
B. ₦120,000
Correct C. ₦140,000
D. ₦160,000

Correct Answer: C

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Question 19
A company's control account for Accounts Payable shows a balance of ₦150,000. The company's ledger account for Accounts Payable shows a balance of ₦120,000. What is the difference between the two balances?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 20
A company's trial balance shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦4,750,000
B. ₦4,900,000
C. ₦5,000,000
D. ₦5,100,000

Correct Answer: A

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Question 22
A company's trial balance showed an error of ₦10,000 in the debit side of the purchases account. What is the effect on the profit and loss account?
A. Increase in profit
Correct B. Decrease in profit
C. No effect on profit
D. Increase in loss

Correct Answer: B

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Question 23
A manufacturing company uses a job costing system. The following data are extracted from the ledger accounts: Work in Progress (WIP) ₦50,000, Finished Goods (FG) ₦100,000, Cost of Goods Sold (COGS) ₦150,000. Calculate the value of production.
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 24
A company's single entry system shows the following transactions: Cash ₦20,000, Creditors ₦30,000, Capital ₦40,000. What is the total amount of transactions?
A. ₦90,000
B. ₦100,000
C. ₦110,000
Correct D. ₦120,000

Correct Answer: D

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Question 25
A public sector organization has the following transactions: Revenue ₦100,000, Expenditure ₦120,000, Capital ₦80,000. What is the net result?
Correct A. ₦80,000
B. ₦100,000
C. ₦120,000
D. ₦140,000

Correct Answer: A

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