Practice post utme summit university accounting 2025 Past Questions

Question 1

A company uses the double-entry system of accounting. The following transactions occurred during the month of January:

A. Debit Cash 1,000 and Credit Accounts Receivable 1,000

Correct B. Debit Accounts Receivable 1,000 and Credit Cash 1,000

C. Debit Cash 1,000 and Credit Inventory 1,000

D. Debit Accounts Payable 1,000 and Credit Cash 1,000

Correct Answer: B

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Question 2

A manufacturing company produces two products, A and B. The production process involves the following costs:

Correct A. Direct Materials 10,000, Direct Labor 5,000, and Manufacturing Overhead 3,000

B. Direct Materials 5,000, Direct Labor 10,000, and Manufacturing Overhead 3,000

C. Direct Materials 10,000, Direct Labor 3,000, and Manufacturing Overhead 5,000

D. Direct Materials 5,000, Direct Labor 3,000, and Manufacturing Overhead 10,000

Correct Answer: A

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Question 3

A company purchases a machine for 10,000. The machine has a useful life of 5 years and a salvage value of 2,000. Calculate the annual depreciation:

Correct A. 1,600

B. 1,800

C. 2,000

D. 2,400

Correct Answer: A

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Question 4

A partnership has two partners, A and B. The capital accounts of the partners are as follows:

Correct A. A 10,000, B 20,000

B. A 20,000, B 10,000

C. A 15,000, B 15,000

D. A 25,000, B 5,000

Correct Answer: A

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Question 5

A government agency receives a grant of 100,000. The grant is to be used for a specific project. The project is completed in 6 months. Calculate the amount of the grant that should be recognized as revenue for the 6-month period:

Correct A. 16,667

B. 20,000

C. 25,000

D. 30,000

Correct Answer: A

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Question 6

A company uses the double-entry system of accounting. The trial balance shows the following balances: Debitors ₦ 50,000, Creditors ₦ 30,000, Capital ₦ 100,000. The company's accountant wants to prepare a balance sheet. What is the correct order of preparation?

Correct A. Assets, Liabilities, Capital

B. Liabilities, Assets, Capital

C. Capital, Liabilities, Assets

D. Assets, Capital, Liabilities

Correct Answer: A

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Question 7

A manufacturing company produces two products, A and B. Product A has a selling price of ₦ 50, a variable cost of ₦ 20, and a fixed cost of ₦ 10,000. Product B has a selling price of ₦ 100, a variable cost of ₦ 30, and a fixed cost of ₦ 20,000. If the company sells 100 units of Product A and 50 units of Product B, what is the total profit?

A. ₦ 30,000

B. ₦ 40,000

Correct C. ₦ 50,000

D. ₦ 60,000

Correct Answer: C

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Question 8

A company has the following ledger accounts: Cash ₦ 50,000, Bank ₦ 30,000, Accounts Payable ₦ 20,000, Accounts Receivable ₦ 40,000. What is the total amount of assets?

Correct A. ₦ 140,000

B. ₦ 160,000

C. ₦ 180,000

D. ₦ 200,000

Correct Answer: A

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Question 9

A government agency has the following transactions: Receipts ₦ 100,000, Expenditures ₦ 80,000. What is the net surplus?

Correct A. ₦ 20,000

B. ₦ 30,000

C. ₦ 40,000

D. ₦ 50,000

Correct Answer: A

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Question 10

A company uses the single-entry system of accounting. The journal shows the following transactions: Debitors ₦ 50,000, Creditors ₦ 30,000. What is the net effect on the company's assets?

Correct A. Increase by ₦ 20,000

B. Decrease by ₦ 20,000

C. No effect

D. Increase by ₦ 10,000

Correct Answer: A

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Question 11

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' while the corresponding credit balance in the account 'Rent Paid' is ₦20,000. What is the correct journal entry to rectify this error?

Correct A. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000

B. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000 and also Debit Rent Received by ₦15,000

C. Credit Rent Paid by ₦5,000 and Debit Rent Received by ₦5,000

D. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000 and also Credit Rent Paid by ₦15,000

Correct Answer: A

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Question 12

A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset is expected to last for 5 years?

A. ₦16,000

B. ₦20,000

Correct C. ₦24,000

D. ₦28,000

Correct Answer: C

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Question 13

A company's bank statement shows a balance of ₦50,000 while the cash book balance is ₦60,000. The bank statement also shows a debit of ₦10,000 for 'Bank Charges' which is not recorded in the cash book. What is the correct bank reconciliation statement?

A. ₦50,000 (Bank Statement Balance) + ₦10,000 (Bank Charges) = ₦60,000

B. ₦50,000 (Bank Statement Balance) - ₦10,000 (Bank Charges) = ₦40,000

Correct C. ₦60,000 (Cash Book Balance) - ₦10,000 (Bank Charges) = ₦50,000

D. ₦60,000 (Cash Book Balance) + ₦10,000 (Bank Charges) = ₦70,000

Correct Answer: C

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Question 14

A company's trial balance shows a debit balance of ₦30,000 in the account 'Salaries' while the corresponding credit balance in the account 'Salaries Payable' is ₦20,000. What is the correct journal entry to rectify this error?

Correct A. Debit Salaries Payable by ₦10,000 and Credit Salaries by ₦10,000

B. Debit Salaries Payable by ₦10,000 and Credit Salaries by ₦10,000 and also Debit Salaries by ₦30,000

C. Credit Salaries Payable by ₦10,000 and Debit Salaries by ₦10,000

D. Debit Salaries Payable by ₦10,000 and Credit Salaries by ₦10,000 and also Credit Salaries Payable by ₦20,000

Correct Answer: A

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Question 15

A company uses the straight-line method of depreciation. If the cost of an asset is ₦180,000 and its residual value is ₦30,000, what is the annual depreciation charge if the asset is expected to last for 6 years?

A. ₦20,000

B. ₦24,000

Correct C. ₦28,000

D. ₦32,000

Correct Answer: C

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Question 16

A company's bank statement shows a balance of ₦70,000 while the cash book balance is ₦80,000. The bank statement also shows a credit of ₦15,000 for 'Interest Received' which is not recorded in the cash book. What is the correct bank reconciliation statement?

A. ₦70,000 (Bank Statement Balance) + ₦15,000 (Interest Received) = ₦85,000

B. ₦70,000 (Bank Statement Balance) - ₦15,000 (Interest Received) = ₦55,000

Correct C. ₦80,000 (Cash Book Balance) - ₦15,000 (Interest Received) = ₦65,000

D. ₦80,000 (Cash Book Balance) + ₦15,000 (Interest Received) = ₦95,000

Correct Answer: C

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Question 17

A company's trial balance shows a debit balance of ₦25,000 in the account 'Rent Paid' while the corresponding credit balance in the account 'Rent Received' is ₦30,000. What is the correct journal entry to rectify this error?

A. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000

B. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000 and also Debit Rent Paid by ₦25,000

C. Credit Rent Received by ₦5,000 and Debit Rent Paid by ₦5,000

D. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000 and also Credit Rent Received by ₦30,000

Correct Answer: VIEW ANSWER

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Question 18

Determine the amount of depreciation for a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method, assuming a residual value of ₦50,000.

A. ₦40,000

Correct B. ₦45,000

C. ₦50,000

D. ₦55,000

Correct Answer: B

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Question 19

A company's trial balance shows a debit balance of ₦120,000 in the account 'Office Equipment'. However, the company's accounting records show that the office equipment has a book value of ₦80,000. What is the amount of the error?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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Question 20

A government agency is required to prepare a cash flow statement in accordance with the cash basis of accounting. Which of the following items would NOT be included in the cash flow statement?

A. Cash received from customers

B. Cash paid to suppliers

Correct C. Depreciation expense

D. Increase in accounts payable

Correct Answer: C

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Question 21

A company's balance sheet shows a current ratio of 2:1. If the company's total current assets are ₦500,000 and its total current liabilities are ₦200,000, what is the amount of the company's current assets that are not included in the current ratio?

A. ₦100,000

Correct B. ₦150,000

C. ₦200,000

D. ₦250,000

Correct Answer: B

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Question 22

A company's profit and loss account shows a profit of ₦150,000. However, the company's balance sheet shows a decrease in retained earnings of ₦100,000. What is the amount of the company's dividends paid?

A. ₦50,000

B. ₦75,000

Correct C. ₦100,000

D. ₦125,000

Correct Answer: C

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Question 23

A public sector organization has the following transactions for the month of January: Purchased office supplies for ₦10,000 cash Paid salaries of ₦50,000 by cheque Received cash from customers of ₦25,000 Paid rent of ₦15,000 by bank transfer What is the total cash received by the organization in January?

A. ₦30,000

Correct B. ₦35,000

C. ₦40,000

D. ₦45,000

Correct Answer: B

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Question 24

A company uses the straight-line method of depreciation. The cost of the asset is ₦120,000 and its useful life is 5 years. What is the annual depreciation charge?

A. ₦20,000

Correct B. ₦24,000

C. ₦28,000

D. ₦32,000

Correct Answer: B

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Question 25

A single entry system is used by a business. The following transactions are recorded: Cash received from customers ₦15,000 Cash paid to suppliers ₦8,000 Cash paid to employees ₦12,000 What is the total cash received by the business?

A. ₦3,000

Correct B. ₦5,000

C. ₦7,000

D. ₦9,000

Correct Answer: B

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