POST UTME BABCOCK UNIVERSITY 2018 Accounting | Objective

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Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000
Question 2
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 3
The following is a diagram of a circuit: { "type": "svg", "category": "physics", "elements": [ { "type": "circuit", "label": "A", "position": "left" }, { "type": "resistor", "label": "B", "position": "right" } ], "connections": [ [ "A", "B" ] ], "style": "black_and_white_textbook" }
A. The circuit is a series circuit.
B. The circuit is a parallel circuit.
C. The circuit is a combination of series and parallel circuits.
D. The circuit is a closed circuit.
Question 4
A company's trading account shows a profit of ₦1,200,000. The company's profit and loss account shows a net profit of ₦1,500,000. Calculate the company's net worth.
A. ₦2,700,000
B. ₦2,500,000
C. ₦2,300,000
D. ₦2,100,000
Question 5
A company's financial statements show the following: Total assets ₦100,000, Total liabilities ₦50,000, and Total equity ₦50,000. Calculate the company's return on equity.
A. 50%
B. 60%
C. 70%
D. 80%
Question 6
A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦130,000. What is the reason for the difference?
A. The company has not recorded a deposit of ₦10,000.
B. The company has not recorded a withdrawal of ₦10,000.
C. The bank has charged a fee of ₦10,000.
D. The company has not recorded a loan of ₦10,000.
Question 7
A company has the following ledger accounts:
A. Debit Sales 10,000 and Credit Cost of Goods Sold 10,000
B. Debit Cost of Goods Sold 10,000 and Credit Sales 10,000
C. Debit Sales 10,000 and Credit Accounts Receivable 10,000
D. Debit Accounts Receivable 10,000 and Credit Sales 10,000
Question 8
A company's trial balance showed the following balances: Debitors £ 10,000, Creditors £ 5,000, Capital £ 20,000. Prepare the company's balance sheet.
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 9
A company has the following public sector accounting transactions:
A. Debit Revenue 10,000 and Credit Expenditure 10,000
B. Debit Expenditure 10,000 and Credit Revenue 10,000
C. Debit Assets 10,000 and Credit Liabilities 10,000
D. Debit Liabilities 10,000 and Credit Assets 10,000
Question 10
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its useful life is 5 years. What is the annual depreciation charge?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 11
A company's departmental accounts for the year ended 31st December 20X7 showed the following: Sales £ 200,000, Cost of goods sold £ 150,000, Gross profit £ 50,000. Calculate the operating profit.
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the accounts receivable account. However, the company's balance sheet shows a credit balance of ₦20,000 in the same account. What is the correct journal entry to rectify this discrepancy?
A. ₦15,000 debit to accounts receivable and ₦20,000 credit to accounts receivable
B. ₦15,000 credit to accounts receivable and ₦20,000 debit to accounts receivable
C. ₦35,000 debit to accounts receivable
D. ₦35,000 credit to accounts receivable
Question 13
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
A. ₦50,000
B. ₦45,000
C. ₦40,000
D. ₦35,000
Question 14
The following is a trial balance for a partnership between A and B: Debit Cr. Credit Cash 100,000 100,000 Bank 50,000 50,000 Accounts Receivable 20,000 20,000 Equipment 80,000 80,000 Accounts Payable 10,000 10,000 Salaries Expense 40,000 40,000 Rent Expense 20,000 20,000 Utilities Expense 10,000 10,000 Total 270,000 270,000 What is the correct order of closing entries for this partnership?
A. Prepare a trial balance, then prepare the closing entries for the income statement and balance sheet.
B. Prepare the closing entries for the income statement, then prepare a trial balance, then prepare the closing entries for the balance sheet.
C. Prepare a trial balance, then prepare the closing entries for the balance sheet, then prepare the closing entries for the income statement.
D. Prepare the closing entries for the income statement, then prepare the closing entries for the balance sheet, then prepare a trial balance.
Question 15
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and paid salaries of ₦20,000. Prepare the journal entries for these transactions.
A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000
C. Debit Office Supplies ₦10,000, Credit Sales ₦10,000
D. Debit Office Supplies ₦10,000, Credit Salaries ₦10,000

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