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?
A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000
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.
A. ₹5,50,000
B. ₹5,00,000
C. ₹6,00,000
D. ₹6,50,000
Question 3
A company has the following ledger balances at December 31, 20X7.
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
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?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
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?
A. 250
B. 300
C. 350
D. 400
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?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
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?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
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?
A. X = 30, Y = 40
B. X = 40, Y = 30
C. X = 50, Y = 20
D. X = 20, Y = 50
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?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
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.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
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?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
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?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
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?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
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?
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 15
The following is a statement of cash flows for a company. What is the amount of cash paid for interest?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: