Practice post utme mountain top university accounting 2024 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies'. However, the company's accounting records show that the office supplies were valued at ₦20,000 at the end of the year. What is the correct journal entry to record the correction?

Correct A. ₦15,000 debit to Office Supplies and ₦20,000 credit to Office Supplies

B. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Supplies

C. ₦20,000 debit to Office Supplies and ₦15,000 credit to Office Supplies

D. ₦15,000 credit to Office Supplies and ₦20,000 debit to Office Supplies

Correct Answer: A

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Question 2

A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦100,000; Accounts Payable ₦50,000; and Common Stock ₦200,000. What is the total equity of the company?

Correct A. ₦250,000

B. ₦200,000

C. ₦150,000

D. ₦100,000

Correct Answer: A

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Question 3

A manufacturing company produces two products: A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while Product B requires 1 hour of direct labor and 2 hours of indirect labor. If the company produces 100 units of Product A and 50 units of Product B, what is the total direct labor cost?

A. ₦15,000

B. ₦20,000

Correct C. ₦25,000

D. ₦30,000

Correct Answer: C

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Question 4

A government agency uses the cash basis of accounting. The agency receives ₦100,000 in cash and spends ₦80,000 on expenses. What is the net increase in cash?

Correct A. ₦20,000

B. ₦80,000

C. ₦100,000

D. ₦120,000

Correct Answer: A

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Question 5

A company maintains a cash book that shows the following transactions: Cash ₦10,000; Bank ₦20,000; and Accounts Payable ₦30,000. What is the total cash balance?

A. ₦40,000

Correct B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: B

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Question 6

A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?

Correct A. ₦24,000

B. ₦20,000

C. ₦18,000

D. ₦22,000

Correct Answer: A

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Question 7

A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a profit of ₦150,000, how much will Partner A receive?

Correct A. ₦90,000

B. ₦60,000

C. ₦80,000

D. ₦70,000

Correct Answer: A

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Question 8

A company is preparing its financial statements for the year ended December 31, 2023. The company has the following transactions: Sale of goods for ₦100,000 Purchase of goods for ₦80,000 Payment of salaries for ₦20,000 What is the total amount of expenses for the year?

A. ₦100,000

B. ₦80,000

C. ₦20,000

Correct D. ₦120,000

Correct Answer: D

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Question 9

A company uses the weighted average method to value its inventory. The company has the following data: Beginning inventory: 100 units @ ₦10 each Purchases: 500 units @ ₦12 each Sales: 200 units @ ₦15 each What is the cost of goods sold?

A. ₦6,000

B. ₦8,000

Correct C. ₦10,000

D. ₦12,000

Correct Answer: C

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Question 10

A company has the following transactions: Sale of goods for ₦150,000 Purchase of goods for ₦120,000 Payment of salaries for ₦30,000 What is the total amount of revenue for the year?

Correct A. ₦180,000

B. ₦150,000

C. ₦120,000

D. ₦180,000

Correct Answer: A

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Question 11

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the likely reason for the discrepancy?

A. The company has not recorded a bank loan.

Correct B. The company has not recorded a bank overdraft.

C. The company has not recorded a bank deposit.

D. The company has not recorded a bank withdrawal.

Correct Answer: B

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Question 12

A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. If the profit-sharing ratio is 3:2, what is the total profit for the year?

A. ₦180,000

B. ₦200,000

Correct C. ₦220,000

D. ₦240,000

Correct Answer: C

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Question 13

A company uses the single-entry system of accounting. The cash book shows a balance of ₦80,000. However, the ledger shows a balance of ₦120,000. What is the likely reason for the discrepancy?

A. The company has not recorded a bank loan.

B. The company has not recorded a bank overdraft.

C. The company has not recorded a bank deposit.

Correct D. The company has not recorded a bank withdrawal.

Correct Answer: D

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Question 14

A company's trading account shows a profit of ₦150,000. However, the profit and loss account shows a loss of ₦80,000. What is the likely reason for the discrepancy?

A. The company has not recorded a bank loan.

B. The company has not recorded a bank overdraft.

Correct C. The company has not recorded a bank deposit.

D. The company has not recorded a bank withdrawal.

Correct Answer: C

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Question 15

A company's balance sheet shows a total assets of ₦500,000. However, the total liabilities and equity is ₦600,000. What is the likely reason for the discrepancy?

A. The company has not recorded a bank loan.

B. The company has not recorded a bank overdraft.

C. The company has not recorded a bank deposit.

Correct D. The company has not recorded a bank withdrawal.

Correct Answer: D

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Question 16

A company uses the perpetual inventory system and records purchases and sales of inventory using the periodic inventory system. What is the impact on the financial statements?

A. The cost of goods sold is overstated.

Correct B. The cost of goods sold is understated.

C. The inventory balance is overstated.

D. The inventory balance is understated.

Correct Answer: B

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Question 17

A company issues 1,000 shares of 10 par value common stock at 15 per share. What is the amount of cash received from the sale of the shares?

Correct A. ₦15,000

B. ₦10,000

C. ₦1,000

D. ₦15,000,000

Correct Answer: A

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Question 18

A company purchases a machine for ₦50,000 and depreciates it using the straight-line method over a 5-year useful life. What is the annual depreciation expense?

Correct A. ₦10,000

B. ₦5,000

C. ₦20,000

D. ₦15,000

Correct Answer: A

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Question 19

A company issues 500 shares of 5 par value common stock at 10 per share. What is the amount of additional paid-in capital?

A. ₦2,500

B. ₦5,000

Correct C. ₦10,000

D. ₦15,000

Correct Answer: C

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Question 20

A company purchases a machine for ₦100,000 and depreciates it using the straight-line method over a 10-year useful life. What is the annual depreciation expense?

Correct A. ₦10,000

B. ₦5,000

C. ₦20,000

D. ₦15,000

Correct Answer: A

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Question 21

A company has two partners, A and B, who share profits in the ratio 3:2. The capital of the company is divided in the ratio 5:3. If the total profit for the year is ₦120,000 and the total capital is ₦300,000, calculate the amount of profit that partner A will receive.

Correct A. ₦18,000

B. ₦24,000

C. ₦30,000

D. ₦36,000

Correct Answer: A

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Question 22

A company maintains a cash book and a general ledger. The cash book shows a debit balance of ₦10,000, while the general ledger shows a credit balance of ₦5,000. What is the correct journal entry to reconcile the two accounts?

A. Debit Cash A/c ₦15,000, Credit Bank A/c ₦5,000

Correct B. Debit Cash A/c ₦15,000, Credit Bank A/c ₦10,000

C. Debit Cash A/c ₦10,000, Credit Bank A/c ₦5,000

D. Debit Cash A/c ₦5,000, Credit Bank A/c ₦10,000

Correct Answer: B

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Question 23

A company has two partners, A and B, who share profits in the ratio 3:2. The capital of the company is divided in the ratio 5:3. If the total profit for the year is ₦120,000 and the total capital is ₦300,000, calculate the amount of capital that partner A will receive.

Correct A. ₦15,000

B. ₦20,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

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Question 24

A company's trial balance shows the following balances: Debitors ₦50,000, Creditors ₦30,000, Capital ₦100,000. What is the correct journal entry to close the accounts?

Correct A. Debit Debitors A/c ₦50,000, Credit Capital A/c ₦50,000

B. Debit Creditors A/c ₦30,000, Credit Capital A/c ₦30,000

C. Debit Debitors A/c ₦50,000, Credit Creditors A/c ₦30,000

D. Debit Capital A/c ₦100,000, Credit Debitors A/c ₦50,000

Correct Answer: A

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Question 25

A company's cash book shows the following transactions: Cash received from customers ₦20,000, Cash paid to suppliers ₦10,000, Cash received from bank ₦5,000. What is the correct journal entry to record these transactions?

Correct A. Debit Cash A/c ₦25,000, Credit Bank A/c ₦5,000

B. Debit Cash A/c ₦20,000, Credit Suppliers A/c ₦10,000

C. Debit Cash A/c ₦25,000, Credit Customers A/c ₦20,000

D. Debit Bank A/c ₦5,000, Credit Cash A/c ₦5,000

Correct Answer: A

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