Practice post utme ims u accounting 2021 Past Questions

Question 1

In a partnership account, what is the correct method of valuing the goodwill of a partnership when a new partner joins?

Correct A. Average of the book value and the market value

B. Market value

C. Book value

D. Cost of the new partner's investment

Correct Answer: A

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Question 2

A company has the following transactions: Purchased office equipment for ₦50,000, sold goods for ₦120,000, and paid salaries of ₦30,000. What is the total amount of the company's expenses?

A. ₦80,000

Correct B. ₦90,000

C. ₦100,000

D. ₦110,000

Correct Answer: B

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Question 3

A company's trial balance shows the following: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. What is the total amount of the company's assets?

A. ₦180,000

B. ₦200,000

Correct C. ₦220,000

D. ₦240,000

Correct Answer: C

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Question 4

A company's income statement shows the following: Revenue ₦150,000, Cost of Goods Sold ₦80,000, and Gross Profit ₦70,000. What is the company's net income?

A. ₦50,000

B. ₦60,000

Correct C. ₦70,000

D. ₦80,000

Correct Answer: C

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Question 5

A company's balance sheet shows the following: Cash ₦20,000, Accounts Payable ₦50,000, and Common Stock ₦100,000. What is the company's total liabilities?

A. ₦150,000

Correct B. ₦170,000

C. ₦190,000

D. ₦210,000

Correct Answer: B

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Question 6

A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The difference between the two balances is ₦5,000. What is the reason for this difference?

A. The company has not yet deposited the cash into the bank.

B. The company has not yet received the cash from the bank.

Correct C. The company has written a cheque that has not yet been presented for payment.

D. The company has made an error in its cash book.

Correct Answer: C

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Question 7

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The total amount received from the issue of shares is ₦1,050,000. What is the amount received from the issue of shares?

A. ₦1,000,000

Correct B. ₦1,050,000

C. ₦1,100,000

D. ₦1,150,000

Correct Answer: B

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Question 8

A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset has a useful life of 5 years, what is the annual depreciation charge?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 9

A company's bank statement shows a credit balance of ₦50,000. The company's cash book shows a debit balance of ₦40,000. The difference between the two balances is ₦10,000. What is the reason for this difference?

A. The company has not yet deposited the cash into the bank.

B. The company has not yet received the cash from the bank.

Correct C. The company has written a cheque that has not yet been presented for payment.

D. The company has made an error in its cash book.

Correct Answer: C

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Question 10

A company issues 500 shares of ₦20 each at a premium of ₦5 per share. The total amount received from the issue of shares is ₦1,200,000. What is the amount received from the issue of shares?

A. ₦1,000,000

Correct B. ₦1,050,000

C. ₦1,100,000

D. ₦1,150,000

Correct Answer: B

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Question 11

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the end of the period. The Assembly department has a balance of ₦150,000 in its WIP account at the end of the period. If the company's total manufacturing costs for the period were ₦500,000, what is the amount of the company's total manufacturing costs that were incurred in the Cutting department?

A. ₦120,000

B. ₦150,000

Correct C. ₦200,000

D. ₦250,000

Correct Answer: C

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Question 12

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the end of the period. The Assembly department has a balance of ₦150,000 in its WIP account at the end of the period. If the company's total manufacturing costs for the period were ₦500,000, what is the amount of the company's total manufacturing costs that were incurred in the Assembly department?

A. ₦120,000

B. ₦150,000

C. ₦200,000

Correct D. ₦250,000

Correct Answer: D

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Question 13

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the end of the period. The Assembly department has a balance of ₦150,000 in its WIP account at the end of the period. If the company's total manufacturing costs for the period were ₦500,000, what is the amount of the company's total manufacturing costs that were incurred in both the Cutting and Assembly departments?

A. ₦120,000

B. ₦150,000

Correct C. ₦270,000

D. ₦300,000

Correct Answer: C

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Question 14

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the end of the period. The Assembly department has a balance of ₦150,000 in its WIP account at the end of the period. If the company's total manufacturing costs for the period were ₦500,000, what is the amount of the company's total manufacturing costs that were incurred in the Cutting department?

A. ₦120,000

B. ₦150,000

Correct C. ₦200,000

D. ₦250,000

Correct Answer: C

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Question 15

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the end of the period. The Assembly department has a balance of ₦150,000 in its WIP account at the end of the period. If the company's total manufacturing costs for the period were ₦500,000, what is the amount of the company's total manufacturing costs that were incurred in the Assembly department?

A. ₦120,000

B. ₦150,000

C. ₦200,000

Correct D. ₦250,000

Correct Answer: D

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Question 16

A company's cash book shows a balance of ₦120,000, but the bank statement shows a balance of ₦100,000. The bank reconciliation statement shows a difference of ₦15,000 due to outstanding cheques. What is the correct balance in the company's cash book?

A. ₦135,000

Correct B. ₦125,000

C. ₦115,000

D. ₦105,000

Correct Answer: B

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Question 17

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦240,000, how much will partner A receive?

Correct A. ₦180,000

B. ₦120,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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Question 18

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Net Income ₦30,000. What is the correct balance in the company's retained earnings account?

A. ₦50,000

Correct B. ₦30,000

C. ₦20,000

D. ₦10,000

Correct Answer: B

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Question 19

A company uses the double-entry system of accounting. If a customer pays ₦10,000 cash for a sale, and the company records a debit to Cash and a credit to Sales Revenue, what is the correct journal entry?

Correct A. Debit: Cash ₦10,000, Credit: Sales Revenue ₦10,000

B. Debit: Sales Revenue ₦10,000, Credit: Cash ₦10,000

C. Debit: Cash ₦10,000, Credit: Accounts Payable ₦10,000

D. Debit: Accounts Payable ₦10,000, Credit: Cash ₦10,000

Correct Answer: A

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Question 20

A company's ledger shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Net Income ₦30,000. What is the correct balance in the company's retained earnings account?

A. ₦50,000

Correct B. ₦30,000

C. ₦20,000

D. ₦10,000

Correct Answer: B

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Question 21

A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦300,000?

A. ₦50,000

B. ₦60,000

Correct C. ₦62,500

D. ₦65,000

Correct Answer: C

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Question 22

A company's trial balance shows a discrepancy of ₦10,000. The company's accountant suspects that the error occurred due to an incorrect posting of a transaction. Which of the following steps should the accountant take to correct the error?

Correct A. Repost the transaction

B. Reconcile the bank statement

C. Adjust the trial balance

D. Revalue the assets

Correct Answer: A

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Question 23

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the partnership's net profit for the year is ₦200,000, how much will partner A receive as their share of the profit?

Correct A. ₦150,000

B. ₦160,000

C. ₦170,000

D. ₦180,000

Correct Answer: A

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Question 24

A company prepares its financial statements for the year ended December 31, 2021. The company's trading account shows a profit of ₦500,000, and the profit and loss account shows a net profit of ₦750,000. What is the company's net profit for the year?

A. ₦1,250,000

B. ₦1,300,000

Correct C. ₦1,350,000

D. ₦1,400,000

Correct Answer: C

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Question 25

A company's balance sheet shows an increase in its current assets of ₦100,000 and an increase in its current liabilities of ₦50,000. What is the company's working capital for the year?

A. ₦50,000

B. ₦75,000

Correct C. ₦100,000

D. ₦125,000

Correct Answer: C

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