Practice post utme ims u accounting 2017 Past Questions

Question 1

A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount.

Correct A. ₦900,000

B. ₦950,000

C. ₦1,000,000

D. ₦1,050,000

Correct Answer: A

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Question 2

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦500 | | 3rd Jan | Cash | ₦200 | | | 4th Jan | Bank | | ₦300 | Prepare the bank reconciliation statement.

A. ₦1,200

Correct B. ₦1,300

C. ₦1,400

D. ₦1,500

Correct Answer: B

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Question 3

A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦1,000 | | | Bank | | ₦500 | | Purchases | ₦200 | | | Sales | | ₦300 | Prepare the ledger accounts.

A. ₦1,200

Correct B. ₦1,300

C. ₦1,400

D. ₦1,500

Correct Answer: B

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Question 4

A company's balance sheet shows the following balances: | Asset | Liability | Equity | | --- | --- | --- | | Cash | ₦1,000 | | | Bank | | ₦500 | | Purchases | ₦200 | | | Sales | | ₦300 | Prepare the income statement.

A. ₦1,200

Correct B. ₦1,300

C. ₦1,400

D. ₦1,500

Correct Answer: B

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Question 5

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦500 | | 3rd Jan | Cash | ₦200 | | | 4th Jan | Bank | | ₦300 | Prepare the bank reconciliation statement.

A. ₦1,200

Correct B. ₦1,300

C. ₦1,400

D. ₦1,500

Correct Answer: B

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Question 6

A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total amount received from debenture holders.

A. ₦500,000

Correct B. ₦550,000

C. ₦600,000

D. ₦650,000

Correct Answer: B

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Question 7

A company's trial balance showed an error of ₦5,000 in the debit side of the purchases account. The correct amount of purchases was ₦200,000. Calculate the correct amount of purchases.

A. ₦195,000

B. ₦200,000

Correct C. ₦205,000

D. ₦210,000

Correct Answer: C

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Question 8

A company's balance sheet showed an increase in stock from ₦50,000 to ₦70,000. Calculate the percentage increase in stock.

A. 40%

Correct B. 50%

C. 60%

D. 70%

Correct Answer: B

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Question 9

A company's profit and loss account showed a net profit of ₦150,000. The company's balance sheet showed a decrease in stock from ₦50,000 to ₦30,000. Calculate the amount of cash received from customers.

A. ₦180,000

B. ₦190,000

Correct C. ₦200,000

D. ₦210,000

Correct Answer: C

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Question 10

A company's balance sheet showed a decrease in cash from ₦20,000 to ₦10,000. Calculate the amount of cash paid to suppliers.

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

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Question 11

Determine the correct order of operations for the following expression: ( rac{1}{2} imes (3 + 4) div (2 - 1) )

Correct A. Parentheses, Exponents, Multiplication and Division, Addition and Subtraction

B. Parentheses, Multiplication and Division, Exponents, Addition and Subtraction

C. Parentheses, Exponents, Multiplication and Division, Addition and Subtraction

D. Parentheses, Multiplication and Division, Addition and Subtraction, Exponents

Correct Answer: A

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Question 12

A company's trial balance shows the following account balances: Accounts Payable ₦50,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦80,000. Determine the correct journal entry to record the sale of goods.

A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦100,000

B. Debit Cost of Goods Sold ₦80,000, Credit Sales Revenue ₦100,000

Correct C. Debit Accounts Payable ₦50,000, Debit Cost of Goods Sold ₦80,000, Credit Sales Revenue ₦130,000

D. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦100,000, Debit Cost of Goods Sold ₦80,000

Correct Answer: C

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Question 13

A single-entry system records the following transactions: Purchase of goods ₦20,000, Sales ₦30,000, Purchase of equipment ₦10,000. Determine the correct journal entry to record the purchase of equipment.

Correct A. Debit Purchase of equipment ₦10,000, Credit Cash ₦10,000

B. Debit Purchase of equipment ₦10,000, Credit Accounts Payable ₦10,000

C. Debit Purchase of equipment ₦10,000, Credit Cash ₦10,000, Debit Purchase of goods ₦10,000

D. Debit Purchase of equipment ₦10,000, Credit Cash ₦10,000, Credit Purchase of goods ₦10,000

Correct Answer: A

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Question 14

A company's bank reconciliation statement shows the following discrepancies: Bank balance ₦50,000, Cash balance ₦40,000, Outstanding checks ₦10,000. Determine the correct journal entry to record the outstanding checks.

A. Debit Cash ₦10,000, Credit Bank balance ₦10,000

B. Debit Cash ₦10,000, Credit Outstanding checks ₦10,000

Correct C. Debit Outstanding checks ₦10,000, Credit Cash ₦10,000

D. Debit Outstanding checks ₦10,000, Credit Bank balance ₦10,000

Correct Answer: C

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Question 15

A government agency's financial statements show the following account balances: Revenue ₦100,000, Expenditure ₦80,000, Cash balance ₦50,000. Determine the correct journal entry to record the revenue.

Correct A. Debit Revenue ₦100,000, Credit Cash ₦100,000

B. Debit Cash ₦100,000, Credit Revenue ₦100,000

C. Debit Revenue ₦100,000, Credit Expenditure ₦80,000

D. Debit Expenditure ₦80,000, Credit Revenue ₦100,000

Correct Answer: A

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Question 16

SHARED STIMULUS

The company's total assets increased by ₦20,000 during the year.

A company uses the incomplete records method to record its transactions. The following transactions occurred during the year:

A. ₦100,000

Correct B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: B

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Question 17

SHARED STIMULUS

The company's total revenue is ₦15,000.

A manufacturing company produces two products, A and B. The selling price of product A is ₦50 per unit, and the variable cost is ₦20 per unit. The selling price of product B is ₦75 per unit, and the variable cost is ₦30 per unit. If the company produces 100 units of product A and 50 units of product B, what is the total contribution margin?

A. ₦3,500

B. ₦4,000

Correct C. ₦4,500

D. ₦5,000

Correct Answer: C

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Question 18

SHARED STIMULUS

The asset's residual value is ₦10,000.

A company uses the straight-line method of depreciation. The asset's cost is ₦100,000, and its useful life is 5 years. What is the annual depreciation expense?

A. ₦20,000

B. ₦25,000

Correct C. ₦30,000

D. ₦35,000

Correct Answer: C

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Question 19

SHARED STIMULUS

The company's total assets are ₦200,000.

A company prepares a trial balance. The following accounts are listed:

A. ₦100,000

Correct B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: B

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Question 20

SHARED STIMULUS

The company's net income is ₦80,000.

A company discovers an error in its accounting records. The error is a mistake in the calculation of the cost of goods sold. The correct cost of goods sold is ₦50,000, but the company recorded it as ₦60,000. What is the effect of this error on the company's net income?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

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 error. The company's accountant wants to reconcile the two balances. What is the first step the accountant should take?

A. Verify the cash book and bank statement balances

Correct B. Contact the bank to investigate the error

C. Reconcile the two balances by adjusting the cash book

D. Reconcile the two balances by adjusting the bank statement

Correct Answer: B

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Question 22

A government agency is responsible for collecting taxes on behalf of the government. The agency's accounting system is based on the accrual basis of accounting. What is the primary purpose of the accrual basis of accounting?

Correct A. To match revenues and expenses with the period in which they are earned or incurred

B. To match revenues and expenses with the period in which they are paid or received

C. To match revenues and expenses with the period in which they are recorded

D. To match revenues and expenses with the period in which they are budgeted

Correct Answer: A

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Question 23

A company's financial statements show a net income of ₦500,000. The company's accountant wants to prepare a cash flow statement. What is the first step the accountant should take?

A. Prepare a statement of cash flows using the indirect method

Correct B. Prepare a statement of cash flows using the direct method

C. Prepare a statement of changes in equity

D. Prepare a balance sheet

Correct Answer: B

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Question 24

A company's accounting system is based on the cash basis of accounting. The company's accountant wants to prepare a statement of financial position. What is the primary difference between the cash basis of accounting and the accrual basis of accounting?

A. The cash basis of accounting matches revenues and expenses with the period in which they are earned or incurred

Correct B. The cash basis of accounting matches revenues and expenses with the period in which they are paid or received

C. The cash basis of accounting matches revenues and expenses with the period in which they are recorded

D. The cash basis of accounting matches revenues and expenses with the period in which they are budgeted

Correct Answer: B

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Question 25

A company's accounting system is based on the accrual basis of accounting. The company's accountant wants to prepare a statement of financial position. What is the primary purpose of the accrual basis of accounting?

Correct A. To match revenues and expenses with the period in which they are earned or incurred

B. To match revenues and expenses with the period in which they are paid or received

C. To match revenues and expenses with the period in which they are recorded

D. To match revenues and expenses with the period in which they are budgeted

Correct Answer: A

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