POST UTME AFE BABALOLA UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
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
Correct B. ₦10,000
C. ₦5,000
D. ₦10,000

Correct Answer: B

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Question 2
A manufacturing company produces 10,000 units of a product per month. The selling price of each unit is ₦200. The variable cost per unit is ₦80, and the fixed cost per month is ₦50,000. Calculate the contribution margin per unit.
A. ₦20
Correct B. ₦120
C. ₦20
D. ₦120

Correct Answer: B

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Question 3
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
Correct B. ₦15,000
C. ₦10,000
D. ₦15,000

Correct Answer: B

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Question 4
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
Correct B. ₦30,000
C. ₦20,000
D. ₦30,000

Correct Answer: B

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Question 5
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.
Correct A. 100%
B. 200%
C. 100%
D. 200%

Correct Answer: A

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Question 6
A company uses the single entry system of accounting. The following transactions were recorded during the year: a) Purchase of office equipment for ₦120,000 b) Sale of goods for ₦250,000 c) Payment of salaries ₦150,000 d) Purchase of raw materials ₦180,000 Determine the total assets of the company at the end of the year.
A. ₦550,000
B. ₦680,000
C. ₦720,000
Correct D. ₦780,000

Correct Answer: D

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Question 7
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
Correct D. ₦310,000

Correct Answer: D

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Question 8
A company's bank statement shows the following transactions: a) Deposit of ₦100,000 c) Withdrawal of ₦50,000 d) Cheque deposited ₦80,000 Determine the total bank balance of the company.
A. ₦130,000
B. ₦150,000
C. ₦170,000
Correct D. ₦190,000

Correct Answer: D

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Question 9
A company's trial balance shows the following balances: a) Sales ₦500,000 c) Cost of goods sold ₦300,000 d) Net profit ₦200,000 Determine the total assets of the company.
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

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Question 10
A company's balance sheet shows the following balances: a) Assets ₦1,000,000 c) Liabilities ₦500,000 d) Equity ₦500,000 Determine the total assets of the company.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
Correct D. ₦1,800,000

Correct Answer: D

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Question 11
A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦1,000,000
Correct B. ₦1,010,000
C. ₦1,020,000
D. ₦1,030,000

Correct Answer: B

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Question 12
A company's trial balance shows a discrepancy of ₦5,000. The accountant suspects an error in the journal entries. Prepare a list of possible errors and their effects on the trial balance.
Correct A. Error in recording cash transactions
B. Error in recording accounts payable
C. Error in recording accounts receivable
D. Error in recording depreciation

Correct Answer: A

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Question 13
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over 5 years. Calculate the annual depreciation charge.
Correct A. ₦100,000
B. ₦50,000
C. ₦75,000
D. ₦25,000

Correct Answer: A

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Question 14
A company issues 5,000, 10% preference shares of ₦10 each at a premium of 20%. Calculate the amount received from shareholders.
A. ₦50,000
Correct B. ₦52,500
C. ₦55,000
D. ₦57,500

Correct Answer: B

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Question 15
A company's balance sheet shows a current ratio of 2:1. If the current assets are ₦200,000 and the current liabilities are ₦100,000, calculate the total assets.
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦475,000
B. ₦450,000
C. ₦475,000
D. ₦450,000

Correct Answer: A

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Question 17
A company's trial balance showed an error of ₦10,000 in the debit side of the account 'Rent Received'. The correct balance should be ₦20,000. What is the correct balance of the account 'Rent Paid'?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦40,000

Correct Answer: A

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Question 18
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
Correct B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: B

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Question 19
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
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 20
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
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 21
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?
Correct A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦40,000

Correct Answer: A

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Question 22
A company's trial balance shows the following account balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 23
A company uses the cash basis of accounting. During the year, it received ₦100,000 in cash and paid ₦80,000 in cash. What is the company's net cash flow for the year?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 24
A company's bank statement shows a balance of ₦50,000, but its cash book shows a balance of ₦60,000. What is the reason for the difference?
A. Bank error
B. Cash book error
Correct C. Deposits in transit
D. Checks outstanding

Correct Answer: C

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Question 25
A company's trial balance shows the following account balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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