POST UTME AFE BABALOLA UNIVERSITY 2025 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 2025 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 ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference is due to a bank error. What is the correct balance in the cash book?
A. ₦30,000
Correct B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: B

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Question 2
A single entry system is used by a small business. The journal entry for the month of January is as follows: Debit: ₦10,000, Credit: ₦15,000. What is the correct balance in the owner's capital account?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 3
A company's trading account shows a profit of ₦50,000. However, the profit and loss account shows a loss of ₦20,000. What is the correct balance in the profit and loss account?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 4
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the correct balance in the owner's equity account?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 5
A company uses a double entry system. The journal entry for the month of January is as follows: Debit: ₦20,000, Credit: ₦30,000. What is the correct balance in the accounts payable account?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 6
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦120,000, calculate the amount of capital contributed by partner A.
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 7
A company uses the single-entry system of accounting. The following transactions were recorded during the year: Debit: ₦10,000 for rent, ₦5,000 for salaries, ₦3,000 for office supplies Credit: ₦15,000 for purchases, ₦8,000 for returns inwards, ₦2,000 for dividends What is the net profit for the year?
A. ₦1,000
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

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Question 8
A manufacturing company has the following departmental expenses: Selling department: ₦20,000 Administration department: ₦15,000 Production department: ₦30,000 What is the total departmental expense?
A. ₦65,000
B. ₦70,000
C. ₦75,000
Correct D. ₦80,000

Correct Answer: D

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Question 9
A company has the following trial balance: Debit: ₦50,000 - Rent ₦30,000 - Salaries ₦20,000 - Office supplies Credit: ₦60,000 - Purchases ₦40,000 - Returns inwards ₦10,000 - Dividends What is the net profit for the year?
A. ₦1,000
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

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Question 10
A company has the following errors in its accounting records: Error 1: Overstatement of rent by ₦5,000 Error 2: Omission of office supplies by ₦3,000 Error 3: Understatement of purchases by ₦2,000 What is the total error?
A. ₦10,000
B. ₦12,000
C. ₦14,000
Correct D. ₦16,000

Correct Answer: D

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Question 11
A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting Department has a balance of ₦120,000 in Work-in-Progress (WIP) at the beginning of the year. During the year, the department incurs costs of ₦150,000 for direct materials and ₦80,000 for direct labor. The department also incurs an overhead cost of ₦60,000. At the end of the year, the department has a balance of ₦80,000 in WIP. What is the total cost of goods manufactured by the Cutting Department?
A. ₦320,000
Correct B. ₦380,000
C. ₦420,000
D. ₦460,000

Correct Answer: B

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Question 12
A company prepares its trial balance on December 31st. The trial balance shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Retained Earnings ₦300,000, Sales Revenue ₦1,200,000, and Wages Expense ₦100,000. What is the net income of the company?
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 13
A company uses the single-entry system to record its transactions. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦1,500,000, and Credit Wages Expense ₦150,000. What is the net income of the company?
A. ₦1,350,000
B. ₦1,450,000
Correct C. ₦1,550,000
D. ₦1,650,000

Correct Answer: C

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Question 14
A company prepares its balance sheet as of December 31st. The balance sheet shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Retained Earnings ₦300,000, Sales Revenue ₦1,200,000, and Wages Expense ₦100,000. What is the total assets of the company?
A. ₦1,500,000
B. ₦1,600,000
Correct C. ₦1,700,000
D. ₦1,800,000

Correct Answer: C

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Question 15
A company uses the double-entry system to record its transactions. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦1,500,000, and Credit Wages Expense ₦150,000. What is the net income of the company?
A. ₦1,350,000
B. ₦1,450,000
Correct C. ₦1,550,000
D. ₦1,650,000

Correct Answer: C

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Question 16
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦150,000, ₦50,000, and ₦100,000, respectively. During the year, the company purchased equipment for ₦80,000 and sold goods worth ₦120,000. The company's net income for the year was ₦60,000. Prepare the company's statement of changes in equity for the year.
A. ₦150,000
Correct B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 17
A partnership has two partners, A and B. The capital contributions of A and B are ₦200,000 and ₦300,000, respectively. The profit-sharing ratio is 2:3. The partnership's net income for the year is ₦120,000. Calculate the amount of profit to be distributed to A and B.
A. ₦80,000
B. ₦100,000
Correct C. ₦120,000
D. ₦140,000

Correct Answer: C

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Question 18
A company uses the perpetual inventory system. The company's beginning inventory was 500 units at ₦20 each. During the year, the company purchased 1,000 units at ₦25 each and sold 800 units at ₦30 each. Calculate the company's cost of goods sold.
A. ₦18,000
B. ₦20,000
Correct C. ₦22,000
D. ₦24,000

Correct Answer: C

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Question 19
A company uses the straight-line method of depreciation. The company's asset has a cost of ₦100,000 and an estimated useful life of 5 years. Calculate the annual depreciation expense.
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

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Question 20
A company uses the FIFO method of inventory valuation. The company's beginning inventory was 500 units at ₦20 each. During the year, the company purchased 1,000 units at ₦25 each and sold 800 units at ₦30 each. Calculate the company's ending inventory value.
A. ₦10,000
B. ₦12,000
Correct C. ₦14,000
D. ₦16,000

Correct Answer: C

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Question 21
A company's financial statements for the year ended 31st December 2024, showed a trading profit of ₦1,500,000, but a net loss of ₦200,000. The company's share capital was ₦5,000,000, and its reserves were ₦1,500,000. The company also had a loan of ₦2,000,000 from a bank. Calculate the company's retained earnings at the end of the year.
Correct A. ₦3,800,000
B. ₦4,000,000
C. ₦4,200,000
D. ₦4,500,000

Correct Answer: A

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Question 22
A manufacturing company uses a job costing system. The company has the following costs for the month of January 2025: direct materials ₦150,000, direct labor ₦200,000, and overheads ₦300,000. The company produced 1,000 units during the month. Calculate the cost per unit.
A. ₦650
Correct B. ₦750
C. ₦850
D. ₦950

Correct Answer: B

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Question 23
A company's balance sheet as at 31st December 2024, showed the following: Share capital ₦5,000,000, Reserves ₦1,500,000, and a loan of ₦2,000,000 from a bank. The company also had a profit of ₦1,500,000 for the year. Calculate the company's retained earnings at the end of the year.
Correct A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000

Correct Answer: A

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Question 24
A company issued 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦15,000
B. ₦20,000
C. ₦25,000
Correct D. ₦30,000

Correct Answer: D

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Question 25
A company's financial statements for the year ended 31st December 2024, showed a trading profit of ₦1,500,000, but a net loss of ₦200,000. The company's share capital was ₦5,000,000, and its reserves were ₦1,500,000. The company also had a loan of ₦2,000,000 from a bank. Calculate the company's retained earnings at the end of the year.
Correct A. ₦3,800,000
B. ₦4,000,000
C. ₦4,200,000
D. ₦4,500,000

Correct Answer: A

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