POST UTME BABCOCK UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 2
A company uses the FIFO method to value its inventory. If the company purchases 100 units of inventory at ₦50 each, and the previous balance was 50 units at ₦60 each, what is the cost of goods sold?
A. ₦5,000
B. ₦6,000
C. ₦7,000
D. ₦8,000
Question 3
A government agency is responsible for collecting taxes on behalf of the state. The agency's accounting records show that it has collected ₦1,000,000 in taxes but has not yet remitted the funds to the state. What is the correct accounting treatment for this situation?
A. Recognize the taxes as revenue and record a liability for the amount owed to the state.
B. Record the taxes as an asset and recognize the liability for the amount owed to the state.
C. Do nothing, as the taxes have not yet been remitted.
D. Write off the taxes as a loss in the current period.
Question 4
A company has the following balance sheet as of December 31, 2022:
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 5
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦315,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 6
A company has the following transactions in its cash book: Debit: ₦10,000, Credit: ₦15,000. What is the net effect of these transactions on the company's cash balance?
A. ₦5,000 decrease
B. ₦5,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase
Question 7
A public sector organization has a budget of ₦10 million for the year. The organization has already spent ₦3 million on salaries and ₦2 million on rent. What is the remaining budget for the organization?
A. ₦5 million
B. ₦4 million
C. ₦3 million
D. ₦2 million
Question 8
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦120,000. The company's trial balance also shows a debit balance of ₦150,000. What is the reason for the difference in the two balances?
A. The company has not recorded all its transactions.
B. The company has recorded some transactions incorrectly.
C. The company has not updated its cash book to reflect the current balance.
D. The company has not prepared a trial balance.
Question 9
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 10
A company uses the self-balancing ledger system. The company's assets increased by ₦30,000 and its liabilities increased by ₦20,000. What is the net increase in the company's equity?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A company's cash book contains the following transactions: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 10,000. What is the company's net cash flow?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 12
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 13
A company issues 1,000 shares of common stock at ₦10 per share. If the company has a par value of ₦5 per share, what is the total amount of cash received from the sale of these shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 14
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while Product B requires 1 hour of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 100 units of Product A and 50 units of Product B, what is the total labor cost for the day?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 15
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, how many units of product X and Y can be produced?
A. 10 units of X and 6 units of Y
B. 8 units of X and 8 units of Y
C. 12 units of X and 4 units of Y
D. 6 units of X and 10 units of Y

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: