Practice post utme rsu accounting 2021 Past Questions

Question 1

A company issued 10,000 shares of ₦ 10 each at a premium of ₦ 5 per share. The issue expenses were ₦ 50,000. Calculate the amount of share capital.

A. ₦ 100,000

Correct B. ₦ 150,000

C. ₦ 200,000

D. ₦ 250,000

Correct Answer: B

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Question 2

A company's cash book showed a balance of ₦ 15,000. However, the bank statement showed a balance of ₦ 20,000. The bank charged a service fee of ₦ 500. Calculate the correct balance.

A. ₦ 18,500

B. ₦ 19,500

Correct C. ₦ 20,500

D. ₦ 21,500

Correct Answer: C

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Question 3

A manufacturing company produced 10,000 units of a product at a cost of ₦ 50 per unit. However, due to a defect, 2,000 units were rejected. Calculate the total production cost.

A. ₦ 400,000

B. ₦ 450,000

Correct C. ₦ 500,000

D. ₦ 550,000

Correct Answer: C

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Question 4

A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 10 per debenture. The issue expenses were ₦ 25,000. Calculate the amount of debenture capital.

A. ₦ 500,000

Correct B. ₦ 550,000

C. ₦ 600,000

D. ₦ 650,000

Correct Answer: B

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Question 5

A company's cash book showed a balance of ₦ 20,000. However, the bank statement showed a balance of ₦ 25,000. The bank charged a service fee of ₦ 750. Calculate the correct balance.

A. ₦ 22,750

B. ₦ 23,750

Correct C. ₦ 24,750

D. ₦ 25,750

Correct Answer: C

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Question 6

A company uses a cash book to record all its cash transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?

A. The company has not recorded all its cash transactions.

B. The bank has charged the company a fee.

Correct C. The company has deposited cash into the bank but has not yet recorded it in the cash book.

D. The company has withdrawn cash from the bank but has not yet recorded it in the cash book.

Correct Answer: C

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Question 7

A company prepares its trial balance and discovers that the debit and credit balances of the accounts do not tally. What is the first step to take?

Correct A. Check the accounts for errors.

B. Reconcile the trial balance with the general ledger.

C. Prepare a new trial balance.

D. Investigate the discrepancy.

Correct Answer: A

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Question 8

A company prepares its final accounts and discovers that the profit for the year is ₦50,000. However, the company has a cash surplus of ₦20,000. What is the reason for the difference?

A. The company has not recorded all its revenues.

B. The company has not recorded all its expenses.

Correct C. The company has a cash surplus due to the sale of assets.

D. The company has a cash deficit due to the purchase of assets.

Correct Answer: C

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Question 9

A company uses a self-balancing ledger to record its transactions. The ledger shows a balance of ₦100,000. However, the company's bank statement shows a balance of ₦80,000. What is the reason for the difference?

A. The company has not recorded all its cash transactions.

B. The bank has charged the company a fee.

Correct C. The company has deposited cash into the bank but has not yet recorded it in the ledger.

D. The company has withdrawn cash from the bank but has not yet recorded it in the ledger.

Correct Answer: C

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Question 10

A company prepares its trial balance and discovers that the debit and credit balances of the accounts do not tally. What is the next step to take?

A. Reconcile the trial balance with the general ledger.

Correct B. Prepare a new trial balance.

C. Investigate the discrepancy.

D. Check the accounts for errors.

Correct Answer: B

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Question 11

A company's accounting policy requires that depreciation be calculated using the straight-line method. If the company purchased a machine for ₦120,000 and it 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 12

A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labor and 1 hour of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company worked a total of 120 hours of direct labor and 60 hours of indirect labor, how many units of product X and product Y were produced?

Correct A. 20 units of X and 15 units of Y

B. 25 units of X and 10 units of Y

C. 30 units of X and 5 units of Y

D. 35 units of X and 0 units of Y

Correct Answer: A

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Question 13

A company's balance sheet as at December 31, 2020, showed total assets of ₦500,000 and total liabilities of ₦200,000. If the company's net income for the year was ₦150,000, what was the total equity as at December 31, 2021?

A. ₦550,000

B. ₦600,000

Correct C. ₦650,000

D. ₦700,000

Correct Answer: C

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Question 14

A company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs: Type A (100 units, ₦50 per unit), Type B (200 units, ₦75 per unit), and Type C (300 units, ₦100 per unit), what is the total value of the inventory?

A. ₦210,000

B. ₦240,000

Correct C. ₦270,000

D. ₦300,000

Correct Answer: C

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Question 15

A company's income statement for the year ended December 31, 2020, showed a net income of ₦150,000. If the company's balance sheet as at December 31, 2020, showed total assets of ₦500,000 and total liabilities of ₦200,000, what was the total equity as at December 31, 2020?

A. ₦300,000

Correct B. ₦350,000

C. ₦400,000

D. ₦450,000

Correct Answer: B

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Question 16

A public sector organization has the following transactions for the year: Debit: Cash ¡ 500,000, Accounts Payable ¡ 200,000, Equipment ¡ 300,000 Credit: Accounts Receivable ¡ 400,000, Salaries Payable ¡ 150,000, Revenue ¡ 700,000 What is the net cash outflow from operating activities?

Correct A. ¡ 100,000

B. ¡ 200,000

C. ¡ 300,000

D. ¡ 400,000

Correct Answer: A

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Question 17

A company has the following trial balance: Debit: Cash ¡ 100,000 Accounts Payable ¡ 50,000 Equipment ¡ 200,000 Credit: Accounts Receivable ¡ 150,000 Salaries Payable ¡ 75,000 Revenue ¡ 250,000 What is the net income?

A. ¡ 25,000

Correct B. ¡ 50,000

C. ¡ 75,000

D. ¡ 100,000

Correct Answer: B

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Question 18

A partnership has the following capital accounts: Partner A: ¡ 100,000 Partner B: ¡ 150,000 The partnership has the following transactions: Partner A withdraws ¡ 20,000 Partner B withdraws ¡ 30,000 What is the new capital balance of Partner A?

Correct A. ¡ 80,000

B. ¡ 90,000

C. ¡ 100,000

D. ¡ 110,000

Correct Answer: A

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Question 19

A company has the following balance sheet: Assets: Cash ¡ 100,000 Accounts Receivable ¡ 150,000 Equipment ¡ 200,000 Liabilities: Accounts Payable ¡ 50,000 Salaries Payable ¡ 75,000 What is the total assets?

A. ¡ 350,000

B. ¡ 400,000

Correct C. ¡ 450,000

D. ¡ 500,000

Correct Answer: C

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Question 20

A public sector organization has the following transactions for the year: Debit: Cash ¡ 500,000, Accounts Payable ¡ 200,000, Equipment ¡ 300,000 Credit: Accounts Receivable ¡ 400,000, Salaries Payable ¡ 150,000, Revenue ¡ 700,000 What is the net cash inflow from investing activities?

A. ¡ 100,000

B. ¡ 200,000

C. ¡ 300,000

Correct D. ¡ 400,000

Correct Answer: D

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Question 21

A company purchases a machine for ₦1,500,000 and depreciates it by 20% per annum using the straight-line method. Calculate the depreciation for the first year.

Correct A. ₦300,000

B. ₦200,000

C. ₦150,000

D. ₦250,000

Correct Answer: A

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Question 22

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 ₦1,200,000, calculate the profit share of partner A.

Correct A. ₦900,000

B. ₦600,000

C. ₦700,000

D. ₦800,000

Correct Answer: A

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Question 23

A company prepares its final accounts for the year ended 31st December 2020. The company's trading account shows a gross profit of ₦2,500,000 and a net profit of ₦1,800,000. Calculate the company's profit margin.

Correct A. 45%

B. 50%

C. 55%

D. 60%

Correct Answer: A

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Question 24

A company uses the weighted average method to value its inventory. The company's inventory at the beginning of the year is ₦1,000,000 and at the end of the year is ₦1,200,000. If the company purchases goods worth ₦1,500,000 during the year, calculate the cost of goods sold.

Correct A. ₦2,500,000

B. ₦2,200,000

C. ₦2,000,000

D. ₦1,800,000

Correct Answer: A

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Question 25

A company's balance sheet shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. Calculate the company's equity.

Correct A. ₦3,000,000

B. ₦2,500,000

C. ₦3,500,000

D. ₦4,000,000

Correct Answer: A

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