Practice post utme uniosun accounting 2018 Past Questions

Question 1

A company's manufacturing overheads for the year ended December 31, 2022, were as follows: Direct Materials: ₦120,000 Direct Labour: ₦150,000 Indirect Labour: ₦80,000 Indirect Materials: ₦60,000 Depreciation: ₦40,000 Rent and Rates: ₦20,000 Insurance: ₦15,000 Power and Fuel: ₦30,000 Total: ₦515,000 Calculate the manufacturing overhead absorption rate per unit of production.

A. ₦10 per unit

B. ₦12 per unit

Correct C. ₦15 per unit

D. ₦18 per unit

Correct Answer: C

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Question 2

A company's balance sheet as at December 31, 2022, showed the following: Share Capital: ₦500,000 Retained Earnings: ₦300,000 Accumulated Depreciation: ₦100,000 Total Assets: ₦1,200,000 Determine the company's gearing ratio.

Correct A. 1:2

B. 1:3

C. 1:4

D. 1:5

Correct Answer: A

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Question 3

A company's profit and loss account for the year ended December 31, 2022, showed the following: Sales: ₦1,500,000 Cost of Goods Sold: ₦1,000,000 Gross Profit: ₦500,000 Operating Expenses: ₦200,000 Net Profit: ₦300,000 Determine the company's gross profit margin.

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

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Question 4

A company's balance sheet as at December 31, 2022, showed the following: Share Capital: ₦500,000 Retained Earnings: ₦300,000 Accumulated Depreciation: ₦100,000 Total Assets: ₦1,200,000 Determine the company's return on equity.

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

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Question 5

A company's profit and loss account for the year ended December 31, 2022, showed the following: Sales: ₦1,500,000 Cost of Goods Sold: ₦1,000,000 Gross Profit: ₦500,000 Operating Expenses: ₦200,000 Net Profit: ₦300,000 Determine the company's operating profit margin.

A. 20%

B. 25%

Correct C. 30%

D. 35%

Correct Answer: C

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Question 6

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

A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

C. ₦30,000 debit to Rent Received and ₦25,000 credit to Rent Paid

Correct D. ₦25,000 debit to Rent Paid and ₦30,000 credit to Rent Received

Correct Answer: D

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Question 7

A partnership is formed between two partners, A and B. The capital contributions are ₦50,000 by A and ₦30,000 by B. The profit-sharing ratio is 3:2. What is the ratio of A's capital to B's capital?

A. 1:1

Correct B. 3:2

C. 2:3

D. 1:2

Correct Answer: B

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Question 8

A company uses the single-entry system of accounting. The journal entries for the year are as follows: Debit Sales ₦100,000, Credit Purchases ₦80,000, Debit Rent ₦20,000, Credit Salaries ₦30,000. What is the net profit for the year?

Correct A. ₦10,000

B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: A

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Question 9

A company's trial balance shows a debit balance of ₦50,000 in the account 'Accrued Expenses' and a credit balance of ₦60,000 in the account 'Accrued Income'. What is the correct journal entry to rectify this error?

A. ₦10,000 debit to Accrued Expenses and ₦10,000 credit to Accrued Income

B. ₦10,000 debit to Accrued Income and ₦10,000 credit to Accrued Expenses

C. ₦60,000 debit to Accrued Expenses and ₦50,000 credit to Accrued Income

Correct D. ₦50,000 debit to Accrued Income and ₦60,000 credit to Accrued Expenses

Correct Answer: D

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Question 10

A company's balance sheet shows a current asset of ₦100,000 and a current liability of ₦80,000. What is the net working capital?

Correct A. ₦10,000

B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: A

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Question 11

A company's accounting records show that its total assets increased by ₦1,500,000 and its total liabilities increased by ₦1,200,000. What is the increase in the company's equity?

Correct A. ₦300,000

B. ₦200,000

C. ₦500,000

D. ₦1,000,000

Correct Answer: A

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Question 12

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 net income of ₦240,000, how much will partner A receive as their share of the net income?

Correct A. ₦144,000

B. ₦120,000

C. ₦160,000

D. ₦180,000

Correct Answer: A

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Question 13

A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Sales | | ₦15,000 | | 3 | Purchase | ₦8,000 | | | 4 | Cash | | ₦12,000 | What is the total cash balance at the end of the month?

Correct A. ₦12,000

B. ₦10,000

C. ₦8,000

D. ₦6,000

Correct Answer: A

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Question 14

A company's bank reconciliation statement shows the following: | Date | Debit | Credit | | --- | --- | --- | | 1 | ₦5,000 | | | 2 | | ₦3,000 | | 3 | ₦2,000 | | | 4 | | ₦1,000 | What is the bank balance according to the bank reconciliation statement?

Correct A. ₦4,000

B. ₦5,000

C. ₦6,000

D. ₦7,000

Correct Answer: A

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Question 15

A company's accounting records show the following: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | ₦10,000 | | | 2 | Sales | | ₦15,000 | | 3 | Purchase | ₦8,000 | | | 4 | Cash | | ₦12,000 | What is the net income of the company?

Correct A. ₦7,000

B. ₦8,000

C. ₦9,000

D. ₦10,000

Correct Answer: A

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Question 16

A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The reconciliation statement shows a difference of ₦5,000. What is the correct explanation for the difference?

Correct A. The company has an outstanding cheque of ₦5,000.

B. The bank has charged a service fee of ₦5,000.

C. The company has deposited an amount of ₦5,000 into the bank but it has not been credited yet.

D. The company has an overdraft facility of ₦5,000.

Correct Answer: A

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Question 17

A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦10,000. The trial balance shows a credit balance of ₦15,000. What is the correct explanation for the difference?

A. The company has an outstanding invoice of ₦5,000.

B. The company has an outstanding payment of ₦5,000.

Correct C. The company has an error in its ledger of ₦5,000.

D. The company has an error in its trial balance of ₦5,000.

Correct Answer: C

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Question 18

A company's trial balance shows a debit balance of ₦20,000. The balance sheet shows a credit balance of ₦25,000. What is the correct explanation for the difference?

A. The company has an outstanding asset of ₦5,000.

B. The company has an outstanding liability of ₦5,000.

Correct C. The company has an error in its trial balance of ₦5,000.

D. The company has an error in its balance sheet of ₦5,000.

Correct Answer: C

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Question 19

A company's balance sheet shows a credit balance of ₦30,000. The statement of profit or loss shows a debit balance of ₦25,000. What is the correct explanation for the difference?

A. The company has an outstanding revenue of ₦5,000.

B. The company has an outstanding expense of ₦5,000.

C. The company has an error in its balance sheet of ₦5,000.

Correct D. The company has an error in its statement of profit or loss of ₦5,000.

Correct Answer: D

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Question 20

A company's statement of profit or loss shows a debit balance of ₦40,000. The balance sheet shows a credit balance of ₦45,000. What is the correct explanation for the difference?

A. The company has an outstanding revenue of ₦5,000.

B. The company has an outstanding expense of ₦5,000.

Correct C. The company has an error in its statement of profit or loss of ₦5,000.

D. The company has an error in its balance sheet of ₦5,000.

Correct Answer: C

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Question 21

A company's cash book shows a debit balance of ₦50,000. The bank statement shows a credit balance of ₦55,000. The reconciliation statement shows a difference of ₦5,000. What is the correct explanation for the difference?

Correct A. The company has an outstanding cheque of ₦5,000.

B. The bank has charged a service fee of ₦5,000.

C. The company has deposited an amount of ₦5,000 into the bank but it has not been credited yet.

D. The company has an overdraft facility of ₦5,000.

Correct Answer: A

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Question 22

A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦60,000. The trial balance shows a credit balance of ₦65,000. What is the correct explanation for the difference?

A. The company has an outstanding invoice of ₦5,000.

B. The company has an outstanding payment of ₦5,000.

Correct C. The company has an error in its ledger of ₦5,000.

D. The company has an error in its trial balance of ₦5,000.

Correct Answer: C

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Question 23

A company's trial balance shows a debit balance of ₦70,000. The balance sheet shows a credit balance of ₦75,000. What is the correct explanation for the difference?

A. The company has an outstanding asset of ₦5,000.

B. The company has an outstanding liability of ₦5,000.

C. The company has an error in its trial balance of ₦5,000.

D. The company has an error in its balance sheet of ₦5,000.

Correct Answer: VIEW ANSWER

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Question 24

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to an outstanding cheque of ₦20,000 and an unrecorded deposit of ₦10,000. What is the correct balance in the cash book?

A. ₦130,000

B. ₦140,000

Correct C. ₦150,000

D. ₦160,000

Correct Answer: C

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Question 25

A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received'. However, the company's accounts payable ledger shows a credit balance of ₦60,000 in the account 'Rent Paid'. What is the correct treatment of this discrepancy?

A. Debit the Rent Received account by ₦10,000

Correct B. Credit the Rent Paid account by ₦10,000

C. Debit the Rent Received account by ₦60,000

D. Credit the Rent Paid account by ₦50,000

Correct Answer: B

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