POST UTME AFE BABALOLA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method to depreciate its assets. The following data is available for the year ended December 31, 2021: Cost of asset: ₦200,000; Residual value: ₦20,000; Useful life: 10 years. What is the annual depreciation for the year?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 2
A company uses the straight-line method of depreciation. The company's asset has a cost of ₦100,000 and a useful life of 5 years. Determine the annual depreciation charge.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 3
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
B. ₦3,25,000
C. ₦3,35,000
D. ₦3,45,000
Question 4
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?
A. ₦1,200,000
B. ₦900,000
C. ₦1,500,000
D. ₦2,100,000
Question 5
A company uses the double-entry system. The following transactions are recorded: Debit: ₦15,000, Credit: ₦12,000. What is the net effect on the owner's capital?
A. ₦3,000 increase
B. ₦3,000 decrease
C. ₦2,000 increase
D. ₦2,000 decrease
Question 6
A company uses the double-entry system of accounting. The following transactions occurred during the year: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦150,000. 3. Purchased raw materials for ₦80,000. 4. Paid salaries of ₦50,000. 5. Collected cash from customers for ₦200,000. Determine the total amount of assets acquired by the company during the year.
A. ₦250,000
B. ₦270,000
C. ₦290,000
D. ₦310,000
Question 7
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?
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
Question 8
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?
A. ₦90,000
B. ₦95,000
C. ₦99,000
D. ₦105,000
Question 9
A company maintains a cash book and bank reconciliation statement. The cash book shows a balance of ₦150,000, while the bank statement shows a balance of ₦180,000. The difference is due to a bank error. Calculate the correct balance in the cash book.
A. ₦170,000
B. ₦190,000
C. ₦200,000
D. ₦210,000
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?
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
Question 11
A company's balance sheet as at December 31, 2021, is as follows: Assets: ₦1,500,000; Liabilities: ₦800,000; Equity: ₦700,000. What is the company's current ratio?
A. 1.88
B. 2.25
C. 2.50
D. 3.00
Question 12
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.
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
Question 13
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?
A. ₦300,000
B. ₦200,000
C. ₦500,000
D. ₦300,000
Question 14
A company uses the weighted average method to value its inventory. The following data is available for the year ended December 31, 2021: 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. ₦700,000
B. ₦900,000
C. ₦1,200,000
D. ₦1,500,000
Question 15
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?
A. ₦1,80,000
B. ₦2,00,000
C. ₦2,20,000
D. ₦2,40,000

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