POST UTME FUTO 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following balances: Assets ₦ 200,000, Liabilities ₦ 100,000, Equity ₦ 100,000. Prepare the company's income statement.
A. Revenue ₦ 150,000, Cost of Goods Sold ₦ 50,000, Gross Profit ₦ 100,000
B. Revenue ₦ 100,000, Cost of Goods Sold ₦ 50,000, Gross Profit ₦ 50,000
C. Revenue ₦ 150,000, Cost of Goods Sold ₦ 50,000, Gross Profit ₦ 100,000
D. Revenue ₦ 100,000, Cost of Goods Sold ₦ 50,000, Gross Profit ₦ 50,000
Question 2
A manufacturing company has a departmental account for its production department. The account shows the following transactions: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 20,000, Labour ₦ 30,000; Credit: Finished Goods ₦ 80,000, Cost of Goods Sold ₦ 40,000. Calculate the net realizable value of the Finished Goods.
A. ₦ 60,000
B. ₦ 70,000
C. ₦ 80,000
D. ₦ 90,000
Question 3
A company's Balance Sheet shows the following balances: Share Capital ₦500,000, Retained Earnings ₦200,000, Accounts Payable ₦50,000. Prepare the company's Balance Sheet.
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 4
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's profit for the year is ₦1,800,000. Calculate the amount of profit that will be distributed to partner A.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,100,000
Question 5
A company has the following trial balance: Debit: ₦1,500,000; Credit: ₦1,800,000. Prepare a corrected trial balance.
A. Debit: ₦1,500,000; Credit: ₦1,500,000
B. Debit: ₦1,800,000; Credit: ₦1,800,000
C. Debit: ₦1,500,000; Credit: ₦1,800,000
D. Debit: ₦1,800,000; Credit: ₦1,500,000
Question 6
A company issued 10,000 shares of ₠ 1 each at a premium of ₠ 2 per share. The issue expenses were ₠ 20,000. Prepare the journal entry for the issue of shares.
A. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 20,000
B. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000, Credit Issue Expenses ₠ 20,000
C. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000
D. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000
Question 7
A company's trial balance shows a debit balance of ₦120,000 in the account 'Rent Received' and a credit balance of ₦80,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?
A. ₦40,000 debit to Rent Paid and ₦40,000 credit to Rent Received
B. ₦40,000 debit to Rent Received and ₦40,000 credit to Rent Paid
C. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
D. ₦20,000 debit to Rent Received and ₦20,000 credit to Rent Paid
Question 8
A company has the following transactions: Purchase of land: ₦1,500,000 Purchase of building: ₦3,000,000 What is the total amount of the company's assets after these transactions?
A. ₦4,500,000
B. ₦5,000,000
C. ₦5,500,000
D. ₦6,000,000
Question 9
A company's trial balance shows the following balances: Debit: ₦ 100,000, Credit: ₦ 80,000. Prepare the company's balance sheet.
A. Assets ₦ 100,000, Liabilities ₦ 80,000, Equity ₦ 20,000
B. Assets ₦ 80,000, Liabilities ₦ 100,000, Equity ₦ 20,000
C. Assets ₦ 100,000, Liabilities ₦ 80,000, Equity ₦ 20,000
D. Assets ₦ 80,000, Liabilities ₦ 80,000, Equity ₦ 20,000
Question 10
A company has a trading profit of ₦150,000 and a non-trading income of ₦20,000. The company's tax rate is 30%. What is the amount of corporation tax payable?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A company's income statement for the year ended December 31, 2022, showed the following: Sales: ₦2,000,000; Cost of goods sold: ₦1,200,000; Gross profit: ₦800,000; Operating expenses: ₦200,000; Net income: ₦600,000. What is the gross profit margin?
A. 40%
B. 50%
C. 60%
D. 70%
Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. If the profit-sharing ratio is 3:2, calculate the profit to be distributed to each partner.
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 13
A company uses the single entry system of accounting. The company's assets increased by ₦150,000 and its liabilities increased by ₦75,000. What is the net increase in the company's equity?
A. ₦75,000
B. ₦150,000
C. ₦225,000
D. ₦300,000
Question 14
A government agency is responsible for the collection of taxes. The agency's trial balance as at 31st December 2022 is as follows: Debit: Cash ¡ 500,000 Accounts Payable ¡ 200,000 Taxes Collected ¡ 300,000 Credit: Accounts Receivable ¡ 150,000 Common Stock ¡ 400,000 Taxes Payable ¡ 250,000 What is the agency's net income for the year 2022?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 15
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. The machine is expected to last for 5 years. What is the annual depreciation charge?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

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