POST UTME AFE BABALOLA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. ₦380,000
C. ₦420,000
D. ₦460,000
Question 2
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦15,000. The company's trial balance shows a credit balance of ₦20,000. What is the correct journal entry to record the difference?
A. ₦5,000 debit to Profit and Loss Account
B. ₦5,000 credit to Profit and Loss Account
C. ₦5,000 debit to Cash Account
D. ₦5,000 credit to Cash Account
Question 3
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦4,500,000
B. ₦4,750,000
C. ₦5,000,000
D. ₦5,250,000
Question 4
A company's profit and loss account shows a net profit of ₦300,000. Calculate the company's net worth if its share capital is ₦500,000 and its retained earnings are ₦200,000.
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 5
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
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 6
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
D. ₦80,000
Question 7
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
C. ₦1,550,000
D. ₦1,650,000
Question 8
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
C. ₦1,700,000
D. ₦1,800,000
Question 9
A company uses the double-entry system to record transactions. If a customer pays ₦1,500 cash for a service, and the company owes the customer ₦500 as a refund, what is the journal entry to record this transaction?
A. Debit Cash ₦1,500, Credit Refund Liability ₦500
B. Debit Refund Liability ₦500, Credit Cash ₦1,500
C. Debit Cash ₦1,000, Credit Refund Liability ₦500
D. Debit Refund Liability ₦1,500, Credit Cash ₦500
Question 10
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
C. ₦14,000
D. ₦16,000
Question 11
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
D. ₦400,000
Question 12
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
C. ₦30,000
D. ₦35,000
Question 13
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦15,000. The company's trial balance shows a credit balance of ₦20,000. What is the correct journal entry to record the difference?
A. ₦5,000 debit to Profit and Loss Account
B. ₦5,000 credit to Profit and Loss Account
C. ₦5,000 debit to Cash Account
D. ₦5,000 credit to Cash Account
Question 14
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
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company issued 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000

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