POST UTME BABCOCK UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's public sector accounting records show a revenue of ₦500,000 and an expenditure of ₦400,000. Calculate the company's surplus.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 2
A company has the following transactions: Purchased office supplies for ₦50,000; purchased office equipment for ₦150,000; and sold office equipment for ₦100,000. What is the net effect on the company's cash balance?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 3
A firm's cash book shows the following transactions: Debit: Cash ₹ 1,00,000, Credit: Bank ₹ 50,000. What is the net effect on the firm's cash balance?
A. ₹ 50,000
B. ₹ 1,00,000
C. ₹ 1,50,000
D. ₹ 2,00,000
Question 4
A company purchased a building for ₦1,500,000. The building depreciates at 5% per annum. Calculate the value of the building after 2 years.
A. ₦1,387,500
B. ₦1,387,500
C. ₦1,387,500
D. ₦1,387,500
Question 5
A company's assets are valued at ₦500,000, liabilities are ₦200,000, and equity is ₦300,000. Calculate the company's net asset value.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 6
A company uses the cash book to record all its financial transactions. The cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the reason for the discrepancy?
A. The company has not recorded all its financial transactions.
B. The bank has made an error in its statement.
C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded all its cash transactions.
Question 7
A company's trial balance shows the following balances: Debit: ₹ 1,00,000, Credit: ₹ 50,000. What is the net effect on the company's cash balance?
A. ₹ 50,000
B. ₹ 1,00,000
C. ₹ 1,50,000
D. ₹ 2,00,000
Question 8
A partnership is formed between two individuals, A and B. The partnership agreement states that the profits will be shared in the ratio 3:2. However, the partnership has incurred a loss of ₦50,000. How will the loss be shared between A and B?
A. A will bear 60% of the loss and B will bear 40%.
B. A will bear 55% of the loss and B will bear 45%.
C. A will bear 50% of the loss and B will bear 50%.
D. A will bear 65% of the loss and B will bear 35%.
Question 9
A company issued 10% debentures of ₦100,000 at a premium of 10%. Calculate the annual interest payable on the debentures.
A. ₦10,000
B. ₦11,000
C. ₦12,000
D. ₦13,000
Question 10
A company has the following transactions: Purchases: ₦250,000 Depreciation on a machine: ₦15,000 Interest on a loan: ₦8,000 Salaries: ₦120,000 Rent: ₦30,000 What is the total amount of expenses recorded in the company's accounting system?
A. ₦403,000
B. ₦403,000
C. ₦403,000
D. ₦403,000
Question 11
A company has the following trial balance: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. What is the company's net income?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 12
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and an estimated useful life of 10 years. What is the annual depreciation expense?
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 13
A company's depreciation policy is to depreciate assets by 10% per annum using the straight-line method. If an asset is valued at ₦100,000, calculate the depreciation for the first year.
A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000
Question 14
A company has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | 1/1 | Purchase of goods | ₦100,000 | | 1/15 | Payment of accounts payable | ₦50,000 | | 2/1 | Purchase of goods | ₦150,000 | | 2/15 | Payment of accounts payable | ₦75,000 | What is the balance of the accounts payable at the end of February?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 15
A company has the following transactions: Purchased office supplies for ₦50,000; purchased office equipment for ₦150,000; and sold office equipment for ₦100,000. What is the net effect on the company's cash balance?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

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: