POST UTME AFE BABALOLA UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. Calculate the amount received from the issue of shares.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000
Question 2
A company issued 5,000 ₦ 100 debentures at a premium of ₦ 10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦ 525,000
B. ₦ 535,000
C. ₦ 545,000
D. ₦ 555,000
Question 3
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦130,000. The difference can be attributed to the following reasons: A) Bank charges of ₦5,000, B) Unpresented cheques of ₦10,000, C) Cash deposited in error of ₦5,000, D) Uncredited deposit of ₦10,000.
A. ₦5,000
B. ₦10,000
C. ₦5,000
D. ₦10,000
Question 4
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the amount of the company's retained earnings?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 5
A company's manufacturing account showed the following: Cost of goods sold ₦1,000,000, Work-in-progress ₦200,000, and Closing stock ₦300,000. Calculate the value of finished goods.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 6
A company uses the straight-line method to depreciate its assets. The asset's cost is ₦120,000 and its useful life is 5 years. If the asset is sold after 3 years for ₦60,000, what is the amount of depreciation expense for the 3rd year?
A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦40,000
Question 7
A company's trial balance showed the following: Sales ₦1,000,000, Cost of goods sold ₦800,000, and Gross profit ₦200,000. Calculate the operating profit.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A company's cash book showed a balance of ₦ 10,000. The company's bank statement showed a balance of ₦ 12,000. The difference between the two balances is ₦ 2,000. Prepare the necessary journal entry to reconcile the two balances.
A. Debit Cash ₦ 2,000, Credit Bank ₦ 2,000
B. Debit Bank ₦ 2,000, Credit Cash ₦ 2,000
C. Debit Cash ₦ 1,000, Credit Bank ₦ 1,000
D. Debit Bank ₦ 1,000, Credit Cash ₦ 1,000
Question 9
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. The company's equity is ₦200,000. Calculate the company's return on equity.
A. 100%
B. 200%
C. 100%
D. 200%
Question 10
A company's cash book shows the following transactions: a) Cash received from customers ₦150,000 b) Cash paid to suppliers ₦80,000 c) Cash paid to employees ₦120,000 d) Cash received from bank ₦200,000 Determine the total cash balance of the company.
A. ₦250,000
B. ₦270,000
C. ₦290,000
D. ₦310,000
Question 11
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦10,000
D. ₦15,000
Question 12
A company issued 10,000 shares of ₦10 each at a premium of ₦5. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 13
A company's balance sheet showed the following: Share capital ₦500,000, Reserves ₦200,000, and Accumulated profits ₦300,000. Calculate the total amount of shareholders' funds.
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 14
A company's ledger showed a balance of ₦ 50,000 in the account 'Sales'. The company's trial balance showed a balance of ₦ 60,000 in the same account. Prepare the necessary journal entry to correct the discrepancy.
A. Debit Sales ₦ 10,000, Credit Profit and Loss ₦ 10,000
B. Debit Profit and Loss ₦ 10,000, Credit Sales ₦ 10,000
C. Debit Sales ₦ 20,000, Credit Profit and Loss ₦ 20,000
D. Debit Profit and Loss ₦ 20,000, Credit Sales ₦ 20,000
Question 15
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. The difference can be attributed to the following reasons: A) Interest on drawings of ₦20,000, B) Depreciation of ₦30,000, C) Provision for taxation of ₦20,000, D) Provision for doubtful debts of ₦30,000.
A. ₦20,000
B. ₦30,000
C. ₦20,000
D. ₦30,000

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