POST UTME AFE BABALOLA UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME AFE BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it paid ₦20,000 in rent for the year. Prepare the necessary journal entry to correct the error.
Correct A. ₦15,000 debit to Rent Expense and ₦20,000 credit to Rent Expense
B. ₦5,000 debit to Rent Expense and ₦5,000 credit to Cash
C. ₦20,000 debit to Rent Expense and ₦20,000 credit to Cash
D. ₦15,000 credit to Rent Expense and ₦20,000 debit to Cash

Correct Answer: A

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Question 2
A partnership has two partners, A and B. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
A. ₦90,000
B. ₦60,000
Correct C. ₦72,000
D. ₦108,000

Correct Answer: C

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Question 3
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦150,000 and its current liabilities are ₦75,000, what is the company's quick ratio?
Correct A. 1.5
B. 2.5
C. 3.5
D. 4.5

Correct Answer: A

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Question 4
A company's trial balance shows a debit balance of ₦30,000 in the 'Salaries Expense' account. However, the company's accounting records show that it paid ₦40,000 in salaries for the year. Prepare the necessary journal entry to correct the error.
Correct A. ₦30,000 debit to Salaries Expense and ₦40,000 credit to Salaries Expense
B. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Cash
C. ₦40,000 debit to Salaries Expense and ₦40,000 credit to Cash
D. ₦30,000 credit to Salaries Expense and ₦40,000 debit to Cash

Correct Answer: A

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Question 5
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦200,000. What is the company's equity?
Correct A. ₦300,000
B. ₦200,000
C. ₦500,000
D. ₦300,000

Correct Answer: A

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Question 6
A company uses the double-entry system of accounting. The following transactions were recorded in the journal: Debit: Cash 1,000, Accounts Payable 500, Equipment 2,000 Credit: Common Stock 3,000, Revenue 1,500. What is the correct order of posting these transactions to the ledger accounts?
Correct A. Cash, Accounts Payable, Equipment, Common Stock, Revenue
B. Common Stock, Revenue, Cash, Accounts Payable, Equipment
C. Equipment, Accounts Payable, Cash, Common Stock, Revenue
D. Revenue, Common Stock, Accounts Payable, Cash, Equipment

Correct Answer: A

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Question 7
A company's trial balance shows the following accounts: Debit: Cash 10,000, Accounts Payable 5,000, Equipment 20,000 Credit: Common Stock 30,000, Revenue 15,000. What is the correct procedure to prepare the financial statements?
Correct A. Prepare the balance sheet and income statement
B. Prepare the income statement and balance sheet
C. Prepare the statement of cash flows and balance sheet
D. Prepare the statement of stockholders' equity and balance sheet

Correct Answer: A

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Question 8
A government agency uses the accrual basis of accounting. The following transactions were recorded in the journal: Debit: Salaries Expense 10,000, Accounts Payable 5,000 Credit: Salaries Payable 15,000, Revenue 20,000. What is the correct order of posting these transactions to the ledger accounts?
Correct A. Salaries Expense, Salaries Payable, Accounts Payable, Revenue
B. Revenue, Salaries Payable, Salaries Expense, Accounts Payable
C. Salaries Payable, Salaries Expense, Accounts Payable, Revenue
D. Accounts Payable, Salaries Payable, Salaries Expense, Revenue

Correct Answer: A

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Question 9
A company's bank reconciliation statement shows the following discrepancies: Bank Statement Balance 10,000, Cash Balance 12,000, Outstanding Checks 2,000, Deposits in Transit 1,000. What is the correct procedure to reconcile the bank statement and cash balance?
Correct A. Add the outstanding checks and deposits in transit to the bank statement balance
B. Subtract the outstanding checks and deposits in transit from the bank statement balance
C. Add the outstanding checks and deposits in transit to the cash balance
D. Subtract the outstanding checks and deposits in transit from the cash balance

Correct Answer: A

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Question 10
A government agency uses the accrual basis of accounting. The following transactions were recorded in the journal: Debit: Salaries Expense 10,000, Accounts Payable 5,000 Credit: Salaries Payable 15,000, Revenue 20,000. What is the correct procedure to prepare the financial statements?
Correct A. Prepare the balance sheet and income statement
B. Prepare the income statement and balance sheet
C. Prepare the statement of cash flows and balance sheet
D. Prepare the statement of stockholders' equity and balance sheet

Correct Answer: A

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Question 11
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦200,000. What is the effect on the company's net profit?
A. ₦1,700,000
Correct B. ₦1,300,000
C. ₦1,200,000
D. ₦1,000,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B. A's capital is ₦500,000 and B's capital is ₦300,000. The profit-sharing ratio is 3:2. What is A's share of the profit?
Correct A. ₦1,200,000
B. ₦900,000
C. ₦1,500,000
D. ₦2,100,000

Correct Answer: A

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Question 13
A company uses the straight-line method of depreciation. The cost of the asset is ₦1,000,000 and its residual value is ₦200,000. The asset is depreciated over 5 years. What is the annual depreciation charge?
Correct A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 14
A company's balance sheet shows a current asset of ₦500,000 and a current liability of ₦300,000. What is the company's working capital?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 15
A company's trial balance shows a debit balance of ₦200,000 in the accounts receivable account. What is the effect on the company's net profit?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 16
A company uses the double-entry system to record transactions. If the company's assets increase by ₦10,000 and its liabilities increase by ₦5,000, what is the effect on the company's equity?
A. ₦5,000 increase
B. ₦10,000 increase
Correct C. ₦15,000 increase
D. ₦20,000 increase

Correct Answer: C

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Question 17
A company's assets are valued at ₦100,000. If the company's assets depreciate by 10% in a year, what is the new value of the assets?
Correct A. ₦90,000
B. ₦95,000
C. ₦99,000
D. ₦105,000

Correct Answer: A

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Question 18
A company's trial balance shows the following balances: Accounts Payable ₦20,000, Sales Revenue ₦50,000, Cost of Goods Sold ₦30,000. What is the company's net income?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 19
A company uses the self-balancing ledger system to record transactions. If the company's assets increase by ₦10,000 and its liabilities increase by ₦5,000, what is the effect on the company's equity?
A. ₦5,000 increase
B. ₦10,000 increase
Correct C. ₦15,000 increase
D. ₦20,000 increase

Correct Answer: C

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Question 20
A company's assets are valued at ₦100,000. If the company's assets depreciate by 10% in a year, what is the new value of the assets?
Correct A. ₦90,000
B. ₦95,000
C. ₦99,000
D. ₦105,000

Correct Answer: A

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Question 21
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦9,50,000
Correct B. ₦9,80,000
C. ₦9,90,000
D. ₦10,00,000

Correct Answer: B

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Question 22
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. If the profit is divided in the ratio 3:2, what is the share of profit of partner A?
Correct A. ₦1,80,000
B. ₦2,00,000
C. ₦2,20,000
D. ₦2,40,000

Correct Answer: A

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Question 23
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦3,15,000
Correct B. ₦3,25,000
C. ₦3,35,000
D. ₦3,45,000

Correct Answer: B

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Question 24
A company issues 5,000 12% debentures of ₦50 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦2,50,000
Correct B. ₦2,60,000
C. ₦2,70,000
D. ₦2,80,000

Correct Answer: B

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Question 25
A partnership is formed between three partners, A, B, and C, with a capital of ₦150,000, ₦200,000, and ₦250,000 respectively. If the profit is divided in the ratio 2:3:4, what is the share of profit of partner B?
A. ₦1,20,000
Correct B. ₦1,40,000
C. ₦1,60,000
D. ₦1,80,000

Correct Answer: B

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