POST UTME BABCOCK UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The company has the following transactions: debit cash 10,000 and credit accounts payable 10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities.
B. Decreases assets and increases liabilities.
C. Increases liabilities and decreases assets.
D. Has no effect on the accounting equation.
Question 2
A company has the following transactions related to its public sector accounting: The company received ₦ 100,000 from the government as a grant. The company also spent ₦ 50,000 on salaries and ₦ 30,000 on rent. Calculate the net surplus of the company.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 3
A company has the following transactions related to its partnership accounts: Partnership A invested ₦ 50,000 and Partnership B invested ₦ 30,000. The company made a profit of ₦ 20,000. Calculate the share of profit of Partnership A and Partnership B.
A. Partnership A: ₦ 10,000, Partnership B: ₦ 10,000
B. Partnership A: ₦ 12,000, Partnership B: ₦ 8,000
C. Partnership A: ₦ 15,000, Partnership B: ₦ 5,000
D. Partnership A: ₦ 18,000, Partnership B: ₦ 2,000
Question 4
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦100,000. What is the correct journal entry to record the closing of the accounts?
A. ₦500,000 debit to Sales Revenue and ₦500,000 credit to Retained Earnings
B. ₦300,000 debit to Cost of Goods Sold and ₦300,000 credit to Retained Earnings
C. ₦150,000 debit to Accounts Payable and ₦150,000 credit to Retained Earnings
D. ₦100,000 debit to Net Income and ₦100,000 credit to Retained Earnings
Question 5
A manufacturing company uses a job costing system. The company has the following costs: direct materials 100,000, direct labor 150,000, and overhead 200,000. What is the total cost of production?
A. 550,000
B. 450,000
C. 650,000
D. 750,000
Question 6
A government agency uses the accrual basis of accounting. The agency has the following transactions: revenue 100,000 and expenses 50,000. What is the net income of the agency?
A. 50,000
B. 100,000
C. 150,000
D. 200,000
Question 7
A company has the following transactions related to its manufacturing department: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Raw Materials Purchased | ₦100,000 | | | 2nd Jan | Labour Cost | ₦50,000 | | | 3rd Jan | Work-in-Progress | | ₦150,000 | What is the total cost of goods manufactured?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 8
A company uses the weighted average method to value its inventory. The company has two types of inventory: raw materials and work-in-progress. The raw materials are valued at ₦120,000 and the work-in-progress is valued at ₦180,000. If the total value of the inventory is ₦300,000, what is the value of the raw materials as a percentage of the total value of the inventory?
A. 40%
B. 50%
C. 60%
D. 70%
Question 9
A company uses the single-entry system of accounting. The company's cash account shows a balance of ₦125,000. The company's bank statement shows a balance of ₦120,000. The company's cash book shows a debit balance of ₦15,000. What is the correct journal entry to record the discrepancy?
A. ₦15,000 debit to Cash and ₦15,000 credit to Bank
B. ₦15,000 debit to Bank and ₦15,000 credit to Cash
C. ₦15,000 debit to Bank and ₦15,000 credit to Profit or Loss
D. ₦15,000 debit to Cash and ₦15,000 credit to Profit or Loss
Question 10
A company's trial balance contains the following accounts: Trading Account, Profit and Loss Account, Balance Sheet, Control Account, and Partnership Account. Which of the following accounts is NOT a type of final account?
A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Manufacturing Account
Question 11
A manufacturing company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials inventory has a cost of ₦ 50,000 and a net realizable value of ₦ 60,000. The work-in-progress inventory has a cost of ₦ 30,000 and a net realizable value of ₦ 40,000. The finished goods inventory has a cost of ₦ 20,000 and a net realizable value of ₦ 25,000. Calculate the weighted average cost of the inventory.
A. ₦ 35,000
B. ₦ 40,000
C. ₦ 45,000
D. ₦ 50,000
Question 12
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 13
A company has the following transactions related to its company accounts: The company issued 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. The company also issued 5,000 10% debentures of ₦ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 105,000
B. ₦ 110,000
C. ₦ 115,000
D. ₦ 120,000
Question 14
A company uses the single-entry system of accounting. The company has the following transactions: debit cash 10,000 and credit accounts payable 10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities.
B. Decreases assets and increases liabilities.
C. Increases liabilities and decreases assets.
D. Has no effect on the accounting equation.
Question 15
A company has the following transactions: purchased goods for ₦400,000, sold goods for ₦600,000, and paid salaries of ₦200,000. What is the net effect on the company's cash balance?
A. ₦200,000 increase
B. ₦200,000 decrease
C. ₦400,000 increase
D. ₦400,000 decrease

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