POST UTME AFE BABALOLA UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦50,000
Question 2
A company has the following transactions in its public sector accounting: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from government | 100,000 | | | 2 Jan | Cash paid to suppliers | | 50,000 | | 3 Jan | Cash received from customers | | 20,000 | | 4 Jan | Cash paid to employees | 30,000 | | | 5 Jan | Cash received from government | | 10,000 | What is the total cash inflows?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 3
A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦120,000, and paid ₦50,000 in cash. The remaining balance of ₦70,000 was financed by a loan from the bank. What is the correct journal entry for the purchase of office equipment?
A. Debit Office Equipment ₦120,000, Credit Cash ₦50,000, Credit Bank Loan ₦70,000
B. Debit Office Equipment ₦120,000, Credit Cash ₦70,000, Credit Bank Loan ₦50,000
C. Debit Office Equipment ₦120,000, Credit Cash ₦120,000
D. Debit Office Equipment ₦120,000, Credit Bank Loan ₦120,000
Question 4
A company purchased a machine for £ 10,000. The machine has a useful life of 5 years and a residual value of £ 2,000. Calculate the annual depreciation using the straight-line method.
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,400
Question 5
A manufacturing company uses the process costing method. The following data were collected for the month of January 2023: Direct Materials: Raw materials purchased: ₦1,500,000 Raw materials used: ₦1,200,000 Direct Labour: Labour cost: ₦1,000,000 Labour hours worked: 10,000 hours Overheads: Variable overheads: ₦800,000 Fixed overheads: ₦600,000 Determine the cost of production per unit.
A. ₦1,200
B. ₦1,300
C. ₦1,400
D. ₦1,500
Question 6
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were issued for ₦ 120,000. Calculate the amount of premium received.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 7
A manufacturing company uses a job costing system. The following data is extracted from the company's records: Job No. 101: ₦10,000 direct materials, ₦5,000 direct labor, and ₦2,000 overheads Job No. 102: ₦8,000 direct materials, ₦4,000 direct labor, and ₦1,500 overheads What is the total cost of production for Job No. 101?
A. ₦17,000
B. ₦17,500
C. ₦18,000
D. ₦18,500
Question 8
A company uses the single entry system. The following transactions occurred during the year: Depreciation on building: ₦120,000 Depreciation on machinery: ₦80,000 Salaries: ₦240,000 Rent: ₦150,000 Interest on loan: ₦60,000 What is the total amount of expenses for the year?
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 9
A company has the following transactions in its incomplete records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | 100,000 | | | 2 Jan | Cash paid to suppliers | | 50,000 | | 3 Jan | Cash received from bank | | 20,000 | | 4 Jan | Cash paid to employees | 30,000 | | | 5 Jan | Cash received from customers | | 10,000 | What is the total cash inflows?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 10
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were issued for ₦ 120,000. Calculate the amount of premium received.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 11
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the amount of its non-current liabilities?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?
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. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 13
A company's assets are valued at ₦1,500,000. The company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦150,000, what is the annual depreciation charge?
A. ₦270,000
B. ₦300,000
C. ₦250,000
D. ₦200,000
Question 14
A public sector organization has the following transactions: Received ₦1,500,000 from the government Paid ₦800,000 to suppliers Paid ₦200,000 to employees What is the net increase in assets?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 15
A company has the following transactions in its departmental accounts: | Date | Department | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Sales | 100,000 | | | 2 Jan | Marketing | | 50,000 | | 3 Jan | Production | 30,000 | | | 4 Jan | Administration | | 20,000 | | 5 Jan | Research and Development | | 10,000 | What is the total departmental expenses?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

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