Practice post utme unn accounting 2023 Past Questions

Question 1

A company uses the perpetual inventory system. On January 1, 2023, it had 500 units of a product in stock, valued at ₦50 each. During the year, 300 units were sold, and 200 units were purchased at ₦60 each. The company uses the weighted average method to determine the cost of goods sold. What is the total cost of goods sold for the year?

A. ₦17,500

Correct B. ₦18,000

C. ₦18,500

D. ₦19,000

Correct Answer: B

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Question 2

A government agency is required to prepare a statement of cash flows. The agency's cash balance at the beginning of the year was ₦1,000,000. During the year, it received ₦2,500,000 in cash from customers, paid ₦1,800,000 in cash to suppliers, and invested ₦1,200,000 in a new project. What is the net increase in cash for the year?

Correct A. ₦500,000

B. ₦600,000

C. ₦700,000

D. ₦800,000

Correct Answer: A

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Question 3

A company uses the single-entry system. The company's journal entries for the year are as follows: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000; Debit Accounts Receivable ₦8,000, Credit Sales ₦12,000. What is the net increase in assets for the year?

A. ₦3,000

Correct B. ₦5,000

C. ₦7,000

D. ₦9,000

Correct Answer: B

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Question 4

A company uses the straight-line method to depreciate its assets. The company purchased a machine for ₦100,000 on January 1, 2023, and it is expected to have a residual value of ₦20,000 at the end of its useful life. The machine is expected to last for 5 years. What is the annual depreciation expense for the machine?

A. ₦16,000

B. ₦17,000

Correct C. ₦18,000

D. ₦19,000

Correct Answer: C

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Question 5

A company uses the FIFO method to determine the cost of goods sold. On January 1, 2023, it had 500 units of a product in stock, valued at ₦50 each. During the year, 300 units were sold, and 200 units were purchased at ₦60 each. What is the total cost of goods sold for the year?

A. ₦17,000

Correct B. ₦18,000

C. ₦19,000

D. ₦20,000

Correct Answer: B

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Question 6

A public sector organization has the following transactions for the year ended December 31, 2022: Depreciation on assets: ₦150,000 Salaries and wages: ₦500,000 Rent: ₦200,000 Utilities: ₦100,000 What is the total amount of expenses for the year?

Correct A. ₦950,000

B. ₦1,050,000

C. ₦1,200,000

D. ₦1,300,000

Correct Answer: A

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Question 7

A company uses the straight-line method of depreciation. The cost of the asset is ₦500,000 and its useful life is 5 years. What is the annual depreciation charge?

Correct A. ₦50,000

B. ₦100,000

C. ₦200,000

D. ₦500,000

Correct Answer: A

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Question 8

A trader purchases goods for ₦200,000 and sells them for ₦300,000. What is the profit made by the trader?

A. ₦50,000

B. ₦100,000

Correct C. ₦200,000

D. ₦300,000

Correct Answer: C

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Question 9

A company has the following trial balance: Debtors: ₦150,000 Creditors: ₦100,000 Capital: ₦500,000 What is the total amount of assets?

Correct A. ₦650,000

B. ₦750,000

C. ₦850,000

D. ₦950,000

Correct Answer: A

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Question 10

A company has the following transactions for the year ended December 31, 2022: Purchased goods for ₦200,000 Sold goods for ₦300,000 What is the profit made by the company?

A. ₦50,000

B. ₦100,000

Correct C. ₦200,000

D. ₦300,000

Correct Answer: C

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Question 11

In a self-balancing ledger, what is the purpose of the control account?

A. To record all transactions affecting the ledger account

Correct B. To provide a summary of the ledger account

C. To facilitate the preparation of the ledger account

D. To enable the reconciliation of the ledger account

Correct Answer: B

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Question 12

A company has the following transactions affecting its cash account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | 10,000 | 0 | | 2 Jan | Cash paid to suppliers | 0 | 5,000 | | 3 Jan | Cash received from sales | 8,000 | 0 | | 4 Jan | Cash paid to employees | 0 | 3,000 | What is the balance of the cash account on 4 Jan?

A. ₦12,000

Correct B. ₦15,000

C. ₦18,000

D. ₦20,000

Correct Answer: B

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Question 13

A manufacturing company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Purchase of raw materials | 10,000 | 0 | | 2 Jan | Purchase of machinery | 20,000 | 0 | | 3 Jan | Sale of goods | 0 | 30,000 | | 4 Jan | Payment of wages | 0 | 5,000 | What is the cost of goods sold?

A. ₦25,000

Correct B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: B

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Question 14

A company has the following transactions affecting its bank account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash deposited into bank | 10,000 | 0 | | 2 Jan | Cheque issued to supplier | 0 | 5,000 | | 3 Jan | Cash withdrawn from bank | 0 | 3,000 | | 4 Jan | Cheque deposited into bank | 8,000 | 0 | What is the balance of the bank account on 4 Jan?

A. ₦10,000

B. ₦12,000

Correct C. ₦15,000

D. ₦18,000

Correct Answer: C

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Question 15

A public sector organization has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Purchase of goods | 10,000 | 0 | | 2 Jan | Sale of services | 0 | 20,000 | | 3 Jan | Payment of salaries | 0 | 15,000 | | 4 Jan | Receipt of grants | 0 | 10,000 | What is the total revenue of the organization on 4 Jan?

A. ₦25,000

B. ₦30,000

C. ₦35,000

Correct D. ₦40,000

Correct Answer: D

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Question 16

The following transactions were recorded by a government agency in a single day: (i) Cash received from the public for the purchase of a bond, ₦1,000,000; (ii) Cash paid to a contractor for the construction of a road, ₦500,000; (iii) Cash received from the sale of a vehicle, ₦200,000; (iv) Cash paid to an employee as salary, ₦300,000; (v) Cash received from the sale of a plot of land, ₦800,000. Determine the net increase in cash for the day.

Correct A. ₦1,500,000

B. ₦1,000,000

C. ₦500,000

D. ₦200,000

Correct Answer: A

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Question 17

A company uses the double-entry system of accounting. The following transactions were recorded: (i) Purchased office equipment for ₦100,000; (ii) Sold goods for ₦150,000; (iii) Purchased raw materials for ₦80,000. Prepare the journal entries for the above transactions.

Correct A. Debit Office Equipment, Credit Cash ₦100,000; Debit Sales, Credit Cash ₦150,000; Debit Raw Materials, Credit Cash ₦80,000

B. Debit Office Equipment, Credit Cash ₦80,000; Debit Sales, Credit Cash ₦150,000; Debit Raw Materials, Credit Cash ₦100,000

C. Debit Office Equipment, Credit Cash ₦150,000; Debit Sales, Credit Cash ₦100,000; Debit Raw Materials, Credit Cash ₦80,000

D. Debit Office Equipment, Credit Cash ₦100,000; Debit Sales, Credit Cash ₦80,000; Debit Raw Materials, Credit Cash ₦150,000

Correct Answer: A

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Question 18

A company's assets were valued at ₦500,000 at the beginning of the year. At the end of the year, the assets were valued at ₦600,000. Calculate the depreciation for the year.

Correct A. ₦50,000

B. ₦100,000

C. ₦200,000

D. ₦300,000

Correct Answer: A

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Question 19

A company's trial balance showed the following balances: Debit: ₦100,000; Credit: ₦150,000. Determine the correct balance for the company.

A. ₦50,000

Correct B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: B

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Question 20

A company's cash book showed the following transactions: (i) Cash received from the public for the purchase of a bond, ₦1,000,000; (ii) Cash paid to a contractor for the construction of a road, ₦500,000; (iii) Cash received from the sale of a vehicle, ₦200,000; (iv) Cash paid to an employee as salary, ₦300,000; (v) Cash received from the sale of a plot of land, ₦800,000. Determine the net increase in cash for the day.

Correct A. ₦1,500,000

B. ₦1,000,000

C. ₦500,000

D. ₦200,000

Correct Answer: A

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Question 21

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 15,000. Prepare the journal entry for the issue of shares.

A. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 15,000

Correct B. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 15,000

C. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 10,000, Credit Issue Expenses ₦ 15,000

D. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 10,000, Credit Issue Expenses ₦ 15,000

Correct Answer: B

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Question 22

A company's trial balance showed an error of ₦ 1,000 due to an omission of a transaction. The error was discovered and corrected by passing a correcting entry. What is the effect of this correcting entry on the company's retained earnings?

A. Increases Retained Earnings by ₦ 1,000

Correct B. Decreases Retained Earnings by ₦ 1,000

C. Has no effect on Retained Earnings

D. Increases Retained Earnings by ₦ 2,000

Correct Answer: B

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Question 23

A company's bank statement showed a balance of ₦ 5,000, while the company's cash book showed a balance of ₦ 3,000. The difference of ₦ 2,000 was due to outstanding checks. What is the correct balance of the company's cash?

A. ₦ 3,000

B. ₦ 5,000

Correct C. ₦ 2,000

D. ₦ 7,000

Correct Answer: C

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Question 24

A company has two departments: A and B. Department A has a balance of ₦ 10,000, while Department B has a balance of ₦ 5,000. The company's control account shows a balance of ₦ 15,000. What is the correct balance of the company's control account?

A. ₦ 10,000

Correct B. ₦ 15,000

C. ₦ 5,000

D. ₦ 20,000

Correct Answer: B

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Question 25

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 15,000. Prepare the journal entry for the issue of shares.

A. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 15,000

Correct B. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 15,000

C. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 10,000, Credit Issue Expenses ₦ 15,000

D. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 10,000, Credit Issue Expenses ₦ 15,000

Correct Answer: B

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