POST UTME FUTO 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 2
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
C. ₦1,200,000
D. ₦1,500,000
Question 3
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
C. ₦200,000
D. ₦250,000
Question 4
A company's control account for the year ended 31st December 2020 is as follows: Purchases: ₦1,200,000; Returns Inwards: ₦15,000. Calculate the total purchases for the year.
A. ₦1,215,000
B. ₦1,220,000
C. ₦1,225,000
D. ₦1,230,000
Question 5
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
B. ₦5,000 decrease
C. No effect
D. ₦10,000 increase
Question 6
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
C. ₦110,000
D. ₦120,000
Question 7
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦30,000
C. ₦20,000
D. ₦18,000
Question 8
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
C. ₦360,000
D. ₦480,000
Question 9
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦18,000
Question 10
A company has a manufacturing overhead of ₦200,000, which is allocated to the production department using the direct labor hours method. If the production department has 10,000 direct labor hours, what is the overhead rate?
A. ₦20 per hour
B. ₦25 per hour
C. ₦30 per hour
D. ₦35 per hour
Question 11
In a self-balancing ledger, what is the purpose of the control account?
A. To record all transactions affecting the ledger
B. To provide a summary of the ledger's balances
C. To facilitate the preparation of the trial balance
D. To ensure the ledger is balanced at all times
Question 12
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
C. ₦140,000
D. ₦160,000
Question 13
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
B. ₦250,000
C. ₦220,000
D. ₦250,000
Question 14
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
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 15
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
B. Decrease in profit
C. No effect on profit
D. Increase in loss

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