POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Accounts Payable | | ₦8,000 | | Sales Revenue | | ₦12,000 | | Cost of Goods Sold | ₦6,000 | | What is the net income of the company?
A. ₦4,000
B. ₦6,000
C. ₦8,000
D. ₦10,000
Question 2
A company uses the asset valuation account to record transactions. If the company purchases a machine for ₦50,000 and sells it for ₦40,000, what is the loss on sale?
A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000
Question 3
A company uses the single-entry system of accounting. The journal entries show the following: Debitors ₦ 50,000, Creditors ₦ 30,000, Capital ₦ 100,000. What is the total amount of assets?
A. ₦80,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 4
A company has the following incomplete records: Opening balance of cash ₦ 50,000, Cash received from customers ₦ 70,000, Cash paid to suppliers ₦ 30,000. What is the closing balance of cash?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 5
A company uses the single-entry system of accounting. The following transactions were recorded during the year:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company prepares its final accounts for the year ended December 31, 2022. The trading account shows a profit of ₦ 100,000, and the profit and loss account shows a profit of ₦ 150,000. What is the total profit for the year?
A. ₦ 150,000
B. ₦ 200,000
C. ₦ 250,000
D. ₦ 300,000
Question 7
In a partnership account, the capital of a partner who leaves the firm is transferred to the remaining partners in the ratio of their current profit-sharing ratio. If the capital of the departing partner is ₦5,000 and the current profit-sharing ratio of the remaining partners is 3:2, what is the amount of capital that the partner who has a 3:2 ratio will receive?
A. ₦3,000
B. ₦4,000
C. ₦6,000
D. ₦8,000
Question 8
A government agency prepares its financial statements for the year ended December 31, 2022. The statement of financial position shows a total assets of ₦ 500,000, and the statement of cash flows shows a net cash inflow of ₦ 200,000. What is the total equity for the year?
A. ₦ 300,000
B. ₦ 400,000
C. ₦ 500,000
D. ₦ 600,000
Question 9
A company uses the double-entry system to record its transactions. The company's ledger contains the following entries: Debit: Raw Materials ₦ 10,000; Credit: Purchases ₦ 10,000. What is the effect of this transaction on the company's balance sheet?
A. Increase in Raw Materials and decrease in Purchases
B. Increase in Purchases and decrease in Raw Materials
C. No effect on Raw Materials and Purchases
D. Increase in Raw Materials and increase in Purchases
Question 10
A company has the following transactions in its cash book: Cash received from customers: ₦200,000; Cash paid to suppliers: ₦150,000; Cash paid to employees: ₦100,000. Calculate the net increase in cash for the period.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 11
A company has the following transactions during the year:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 12
A company uses the depreciation account to record transactions. If the company purchases a machine for ₦50,000 and depreciates it by 20% per annum, what is the value of the machine after 2 years?
A. ₦40,000
B. ₦42,000
C. ₦44,000
D. ₦46,000
Question 13
A company's balance sheet shows the following balances: | Asset | Liability | Equity | | --- | --- | --- | | Cash | ₦10,000 | | | Accounts Payable | | ₦8,000 | | Sales Revenue | | ₦12,000 | | Cost of Goods Sold | ₦6,000 | | What is the total amount of assets?
A. ₦16,000
B. ₦18,000
C. ₦20,000
D. ₦22,000
Question 14
A company uses the double-entry system of accounting. The trial balance shows the following balances: Debitors ₦ 50,000, Creditors ₦ 30,000, Capital ₦ 100,000. What is the total amount of assets?
A. ₦80,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 15
A company uses the double-entry system to record transactions. If the company purchases office supplies for ₦12,000, what is the effect on the accounting equation?
A. ₦12,000 is debited to Office Supplies and ₦12,000 is credited to Cash.
B. ₦12,000 is debited to Office Supplies and ₦12,000 is credited to Accounts Payable.
C. ₦12,000 is debited to Cash and ₦12,000 is credited to Office Supplies.
D. ₦12,000 is debited to Office Supplies and ₦12,000 is credited to Accounts Receivable.

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