POST UTME BABCOCK UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows a current asset of ₦300,000 and a current liability of ₦250,000. What is the net working capital?
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦250,000
Question 2
A government agency has a budget of ₦1,000,000 for the year. The agency has spent ₦800,000 so far. What percentage of the budget has the agency spent?
A. 80%
B. 85%
C. 90%
D. 95%
Question 3
A firm's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The firm's cash book also shows a debit balance of ₦10,000 in the 'bank' account. What is the correct balance in the firm's cash book?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 4
A company's profit and loss account shows a trading profit of ₦300,000 and a non-trading income of ₦50,000. What is the total profit?
A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦400,000
Question 5
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦475,000
B. ₦450,000
C. ₦475,000
D. ₦450,000
Question 6
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the share holders.
A. ₦200,000
B. ₦220,000
C. ₦200,000
D. ₦220,000
Question 7
A company purchased a piece of equipment for 10,000 cash. Prepare the journal entry to record the purchase of this equipment.
A. Debit Equipment 10,000; Credit Cash 10,000
B. Debit Cash 10,000; Credit Equipment 10,000
C. Debit Equipment 10,000; Credit Accounts Payable 10,000
D. Debit Accounts Payable 10,000; Credit Equipment 10,000
Question 8
A company issued a 10% debenture at par. Prepare the journal entry to record the issuance of this debenture.
A. Debit Cash 100; Credit Debentures 100
B. Debit Debentures 100; Credit Cash 100
C. Debit Cash 100; Credit Interest Expense 10
D. Debit Interest Expense 10; Credit Debentures 100
Question 9
A company's balance sheet shows a current asset of ₦200,000 and a current liability of ₦150,000. What is the net working capital?
A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦250,000
Question 10
A company purchased a piece of equipment for 10,000 cash. Prepare the journal entry to record the purchase of this equipment.
A. Debit Equipment 10,000; Credit Cash 10,000
B. Debit Cash 10,000; Credit Equipment 10,000
C. Debit Equipment 10,000; Credit Accounts Payable 10,000
D. Debit Accounts Payable 10,000; Credit Equipment 10,000
Question 11
A company has issued 5,000 shares of ₦10 each. The company has also issued 2,000 debentures of ₦100 each. What is the total amount received from share and debenture holders?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A public sector organization has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦120,000; sold office equipment for ₦80,000; purchased office supplies for ₦30,000; and sold office supplies for ₦20,000. Prepare the statement of changes in equity for the year.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
A company issued a 10% debenture at par. Prepare the journal entry to record the issuance of this debenture.
A. Debit Cash 100; Credit Debentures 100
B. Debit Debentures 100; Credit Cash 100
C. Debit Cash 100; Credit Interest Expense 10
D. Debit Interest Expense 10; Credit Debentures 100
Question 14
A company's trial balance shows a debit balance of ₦200,000 in the account 'Salaries and Wages' and a credit balance of ₦150,000 in the account 'Salaries and Wages Payable'. What is the correct journal entry to rectify this error?
A. ₦50,000 debit to Salaries and Wages Payable and ₦50,000 credit to Salaries and Wages
B. ₦50,000 debit to Salaries and Wages and ₦50,000 credit to Salaries and Wages Payable
C. ₦200,000 debit to Salaries and Wages and ₦150,000 credit to Salaries and Wages Payable
D. ₦150,000 debit to Salaries and Wages Payable and ₦200,000 credit to Salaries and Wages
Question 15
A company's profit and loss account shows a trading profit of ₦400,000 and a non-trading income of ₦75,000. What is the total profit?
A. ₦475,000
B. ₦400,000
C. ₦325,000
D. ₦500,000

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