POST UTME AFE BABALOLA UNIVERSITY 2018 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet shows the following information:
| Assets | ₦ | Liabilities | ₦ | Equity | ₦ |
| --- | --- | --- | --- | --- | --- |
| Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 30,000 |
| Inventory | 15,000 | Creditors | 10,000 | Retained Earnings | 25,000 |
| Property, Plant and Equipment | 50,000 | | | | |
What is the total amount of the company's equity?
Question 2
A company issued 5,000 shares of ₹100 each at a premium of ₹20 per share. The company also issued 10% debentures of ₹100 each. Calculate the total amount received from the issue of shares and debentures.
Question 3
A company has the following ledger balances at December 31, 20X7.
Question 4
A company has the following transactions: Purchased office supplies for ₦20,000; Purchased office equipment for ₦50,000; Sold office equipment for ₦30,000. What is the net effect on the company's cash account?
Question 5
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company produces 100 units of product A and 50 units of product B, what is the total direct labor hours used?
Question 6
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset cost ₦250,000?
Question 7
A company's trial balance shows the following accounts: Sales ₦1,500,000, Cost of Goods Sold ₦800,000, and Net Income ₦700,000. What is the company's gross profit?
Question 8
A manufacturing company produces two products, X and Y. Product X requires 2 hours of labor and 3 units of raw material, while product Y requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product X and product Y should be produced to maximize profit?
Question 9
A company's trading account shows the following information:
| Sales | ₦ | Cost of Goods Sold | ₦ |
| --- | --- | --- | --- |
| ₦150,000 | | ₦100,000 | |
What is the company's gross profit?
Question 10
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from the issue of these shares.
Question 11
A business purchased a machine for ₦250,000 and depreciated it by 10% per annum. What is the value of the machine after 3 years?
Question 12
A company uses the weighted average method to value its inventory. The company has the following data for the year ended December 31, 2022: Cost of goods available for sale: ₦1,500,000; Net realizable value of ending inventory: ₦1,200,000; Beginning inventory: ₦800,000. What is the cost of goods sold for the year?
Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦10,000, what is the amount of the share premium account?
Question 14
The following is a trial balance for a manufacturing company. What is the amount of work-in-progress at the end of the year?
Question 15
The following is a statement of cash flows for a company. What is the amount of cash paid for interest?
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