POST UTME AFE BABALOLA UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company maintains a cash book and a general ledger. The cash book shows a debit balance of ₦50,000, while the general ledger shows a credit balance of ₦30,000. What is the correct balance of the company's cash account?
A. ₦20,000
B. ₦30,000
C. ₦50,000
D. ₦80,000
Question 2
A company's trial balance as at 31st December 20X7 is as follows: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Bank £ 2,000, Cash £ 1,000, Common Stock £ 50,000, Dividends £ 5,000, Equipment £ 20,000, Interest Expense £ 2,000, Interest Income £ 1,000, Net Income £ 10,000, Prepaid Rent £ 5,000, Salaries Expense £ 10,000, Sales £ 50,000, Sales Returns £ 5,000, Taxes Payable £ 2,000, Utilities Expense £ 2,000. Prepare the balance sheet as at 31st December 20X7.
A. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000
B. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 21,000 Total Equity £ 71,000
C. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000
D. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 21,000 Total Equity £ 71,000
Question 3
A company issues 1,000 shares of stock at ₦10 per share. What is the total amount of cash received from the sale of these shares?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A company has an incomplete record of its transactions. The company's cash book shows a balance of ₦20,000 and the bank statement shows a balance of ₦25,000. The bank statement also shows a credit balance of ₦2,000 for a dishonored cheque. What is the correct balance of the company's cash book?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000
Question 5
A public sector organization has the following transactions for the year ended December 31, 2022: Depreciation on assets: ₦120,000 Salaries and wages: ₦150,000 Rent: ₦30,000 Utilities: ₦20,000 Total assets: ₦500,000 What is the total amount of expenses for the year ended December 31, 2022?
A. ₦320,000
B. ₦420,000
C. ₦520,000
D. ₦620,000
Question 6
In a partnership account, the capital of two partners, A and B, is ₦120,000 and ₦90,000 respectively. If the profit-sharing ratio is 5:3, what is the ratio of the capital of A to the capital of B?
A. 2:1
B. 3:2
C. 5:3
D. 1:2
Question 7
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Collected cash from customers of ₦20,000. What is the net change in cash?
A. ₦-20,000
B. ₦0
C. ₦20,000
D. ₦40,000
Question 8
A company's trial balance shows a debit balance of ₦50,000 in the accounts payable account. However, the company's ledger shows a credit balance of ₦20,000 in the accounts payable account. What is the correct journal entry to correct this discrepancy?
A. ₦20,000 debit to accounts payable and ₦20,000 credit to cash
B. ₦30,000 debit to accounts payable and ₦30,000 credit to cash
C. ₦50,000 debit to accounts payable and ₦50,000 credit to cash
D. ₦20,000 debit to accounts payable and ₦30,000 credit to cash
Question 9
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 10
A company's balance sheet shows the following balances: Cash ₦20,000, Accounts Receivable ₦50,000, Inventory ₦100,000, and Total Assets ₦250,000. What is the amount of Total Liabilities?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 11
A company purchases a building for ₦2,000,000 and sells it for ₦2,500,000. What is the gain on the sale of the building?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 12
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and Product B requires 3 hours of direct labor. If the company works 8 hours a day, what is the total number of units of Product A and Product B that can be produced in a day?
A. 10 units of Product A and 6 units of Product B
B. 12 units of Product A and 4 units of Product B
C. 15 units of Product A and 3 units of Product B
D. 18 units of Product A and 2 units of Product B
Question 13
A company uses the straight-line method of depreciation. If the cost of the asset is ₦200,000 and its residual value is ₦50,000, what is the annual depreciation charge if the asset is expected to last for 5 years?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 14
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Debit Issue Expenses £ 10,000
C. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000
D. Debit Share Capital £ 100,000, Debit Share Premium £ 50,000, Credit Issue Expenses £ 10,000
Question 15
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership has a net income of ₦120,000, how much will partner A receive as their share of the net income?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000

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