Practice post utme lautech accounting 2023 Past Questions

Question 1

A company uses the weighted average method to value its inventory. The following data is available for the year ended December 31, 2022: Cost of goods available for sale: ₦1,500,000 Net realizable value of closing inventory: ₦1,200,000 Cost of goods sold: ₦1,000,000 What is the value of the company's inventory at December 31, 2022?

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,500,000

D. ₦1,800,000

Correct Answer: B

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Question 2

A company has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦50,000 Purchased office furniture for ₦30,000 Sold office equipment for ₦20,000 What is the net increase in the company's assets for the year ended December 31, 2022?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 3

A company has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦50,000 Purchased office furniture for ₦30,000 Sold office equipment for ₦20,000 What is the net increase in the company's assets for the year ended December 31, 2022?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 4

A company has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦50,000 Purchased office furniture for ₦30,000 Sold office equipment for ₦20,000 What is the net increase in the company's assets for the year ended December 31, 2022?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 5

A company has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦50,000 Purchased office furniture for ₦30,000 Sold office equipment for ₦20,000 What is the net increase in the company's assets for the year ended December 31, 2022?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 6

In a partnership account, what is the correct method of calculating the capital of a partner who has been absent for the past three years?

A. Average capital method

B. Last year's capital method

Correct C. Pro-rata time method

D. Capital at the beginning of the year method

Correct Answer: C

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Question 7

A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge?

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 8

A company has the following transactions: Purchased goods for ₦100,000 on credit Sold goods for ₦120,000 on credit Purchased goods for ₦80,000 on credit Sold goods for ₦100,000 on credit What is the total value of goods sold?

A. ₦220,000

Correct B. ₦240,000

C. ₦260,000

D. ₦280,000

Correct Answer: B

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Question 9

A company has the following transactions: Purchased goods for ₦100,000 on credit Sold goods for ₦120,000 on credit Purchased goods for ₦80,000 on credit Sold goods for ₦100,000 on credit What is the total value of goods purchased?

A. ₦180,000

B. ₦200,000

Correct C. ₦220,000

D. ₦240,000

Correct Answer: C

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Question 10

A company has the following transactions: Purchased goods for ₦100,000 on credit Sold goods for ₦120,000 on credit Purchased goods for ₦80,000 on credit Sold goods for ₦100,000 on credit What is the total value of goods sold and purchased?

A. ₦220,000

B. ₦240,000

C. ₦260,000

Correct D. ₦280,000

Correct Answer: D

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Question 11

In a single-entry system, a company records the following transactions: (1) Cash received from customers (2) Goods sold to customers (3) Goods purchased from suppliers (4) Cash paid to suppliers What is the correct order of recording these transactions?

Correct A. (1), (2), (3), (4)

B. (1), (3), (2), (4)

C. (1), (2), (4), (3)

D. (1), (3), (4), (2)

Correct Answer: A

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Question 12

A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Assets: Cash, Accounts Receivable, Inventory Liabilities: Accounts Payable, Notes Payable Equity: Common Stock, Retained Earnings What is the correct order of recording these transactions?

Correct A. Assets, Liabilities, Equity

B. Liabilities, Assets, Equity

C. Equity, Assets, Liabilities

D. Assets, Equity, Liabilities

Correct Answer: A

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Question 13

A company has the following transactions: (1) Purchased goods for ₦100,000 (2) Sold goods for ₦120,000 (3) Paid cash to suppliers What is the correct journal entry for these transactions?

Correct A. Debit Purchases, Credit Cash ₦100,000; Debit Cash, Credit Sales ₦120,000

B. Debit Purchases, Credit Cash ₦120,000; Debit Cash, Credit Sales ₦100,000

C. Debit Purchases, Credit Cash ₦120,000; Debit Sales, Credit Cash ₦100,000

D. Debit Cash, Credit Purchases ₦100,000; Debit Sales, Credit Cash ₦120,000

Correct Answer: A

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Question 14

A company has the following transactions: (1) Purchased goods for ₦150,000 (2) Sold goods for ₦180,000 (3) Paid cash to suppliers What is the correct journal entry for these transactions?

Correct A. Debit Purchases, Credit Cash ₦150,000; Debit Cash, Credit Sales ₦180,000

B. Debit Purchases, Credit Cash ₦180,000; Debit Cash, Credit Sales ₦150,000

C. Debit Purchases, Credit Cash ₦180,000; Debit Sales, Credit Cash ₦150,000

D. Debit Cash, Credit Purchases ₦150,000; Debit Sales, Credit Cash ₦180,000

Correct Answer: A

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Question 15

A company has the following transactions: (1) Purchased goods for ₦200,000 (2) Sold goods for ₦240,000 (3) Paid cash to suppliers What is the correct journal entry for these transactions?

Correct A. Debit Purchases, Credit Cash ₦200,000; Debit Cash, Credit Sales ₦240,000

B. Debit Purchases, Credit Cash ₦240,000; Debit Cash, Credit Sales ₦200,000

C. Debit Purchases, Credit Cash ₦240,000; Debit Sales, Credit Cash ₦200,000

D. Debit Cash, Credit Purchases ₦200,000; Debit Sales, Credit Cash ₦240,000

Correct Answer: A

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Question 16

A company uses the double-entry system of accounting. The company's trial balance shows the following accounts: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's assets?

Correct A. ₦35,000

B. ₦40,000

C. ₦45,000

D. ₦50,000

Correct Answer: A

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Question 17

A company's cash book shows the following transactions: Debit 1,000 to Cash and Credit 1,000 to Accounts Payable. What is the effect of this transaction on the company's cash balance?

Correct A. ₦0

B. ₦1,000

C. ₦2,000

D. ₦3,000

Correct Answer: A

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Question 18

A company's bank reconciliation statement shows the following discrepancies: 500 in unrecorded deposits and 200 in unrecorded checks. What is the net effect of these discrepancies on the company's cash balance?

Correct A. ₦300

B. ₦400

C. ₦500

D. ₦600

Correct Answer: A

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Question 19

A company uses the single-entry system of accounting. The company's journal shows the following transactions: Debit 1,000 to Cash and Credit 1,000 to Accounts Payable. What is the effect of this transaction on the company's cash balance?

Correct A. ₦0

B. ₦1,000

C. ₦2,000

D. ₦3,000

Correct Answer: A

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Question 20

A government agency uses the accrual basis of accounting. The agency's financial statements show the following accounts: Revenues 100,000, Expenses 80,000, and Net Income 20,000. What is the agency's total assets?

Correct A. ₦120,000

B. ₦140,000

C. ₦160,000

D. ₦180,000

Correct Answer: A

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Question 21

A company's trial balance shows an error of ₦1,500 in the debit side of the purchases account. The correct amount of purchases is ₦120,000. What is the correct amount of purchases?

Correct A. ₦121,500

B. ₦120,500

C. ₦119,500

D. ₦118,500

Correct Answer: A

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Question 22

A bank reconciliation statement shows that a customer's account has a balance of ₦15,000 in the bank's records, but the customer's passbook shows a balance of ₦18,000. The bank's records also show a debit of ₦2,000 for a cheque that has been returned unpaid. What is the correct balance of the customer's account?

A. ₦16,000

B. ₦17,000

Correct C. ₦18,000

D. ₦19,000

Correct Answer: C

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Question 23

A company's cash book shows a balance of ₦10,000. The bank statement shows a balance of ₦12,000. The cash book also shows a debit of ₦2,000 for a cheque that has been returned unpaid. What is the correct balance of the company's cash?

A. ₦11,000

Correct B. ₦12,000

C. ₦13,000

D. ₦14,000

Correct Answer: B

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Question 24

A company's trial balance shows an error of ₦3,000 in the credit side of the sales account. The correct amount of sales is ₦150,000. What is the correct amount of sales?

Correct A. ₦153,000

B. ₦152,000

C. ₦151,000

D. ₦150,000

Correct Answer: A

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Question 25

A company's control account shows a balance of ₦20,000. The ledger account shows a balance of ₦25,000. What is the correct balance of the company's control account?

A. ₦20,000

B. ₦22,000

Correct C. ₦25,000

D. ₦28,000

Correct Answer: C

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