POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2019 Accounting | Objective

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Question 1 View Details
A 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 cost of raw materials is ₦120,000, and the cost of work-in-progress is ₦150,000. The finished goods inventory has a cost of ₦180,000. If the company uses a 40% weight for raw materials, a 30% weight for work-in-progress, and a 30% weight for finished goods, what is the total value of the inventory?
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 2 View Details
A company has a machine that depreciates by 10% per year. If the initial cost of the machine is ₦500,000, what is the value of the machine after 3 years?
Correct A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: A

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Question 3 View Details
A company has two departments: manufacturing and sales. The manufacturing department has a balance of ₦100,000 in the control account, and the sales department has a balance of ₦150,000 in the control account. If the company has a total of ₦250,000 in the control account, what is the balance in the manufacturing department?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 4 View Details
A company has two partners: A and B. Partner A has a capital of ₦200,000, and partner B has a capital of ₦300,000. If the company makes a profit of ₦50,000, what is the share of the profit for partner A?
Correct A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: A

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Question 5 View Details
A company has a trial balance that shows a total debit balance of ₦500,000 and a total credit balance of ₦550,000. What is the error in the trial balance?
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 6 View Details
A company uses the single entry system of accounting. The following transactions occurred during the year: Depreciation on a machine: ₦120,000 Purchase of office supplies: ₦30,000 Salaries paid: ₦150,000 Rent paid: ₦60,000 What is the total amount of expenses recorded in the single entry system?
A. ₦360,000
B. ₦420,000
Correct C. ₦360,000
D. ₦420,000

Correct Answer: C

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Question 7 View Details
A company uses the double entry system of accounting. The following transactions occurred during the year: Purchase of a machine for ₦500,000 Purchase of office supplies for ₦30,000 Salaries paid: ₦150,000 Rent paid: ₦60,000 What is the total amount of assets recorded in the double entry system?
A. ₦680,000
B. ₦690,000
Correct C. ₦680,000
D. ₦690,000

Correct Answer: C

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Question 8 View Details
A company uses the self-balancing ledger system of accounting. The following transactions occurred during the year: Purchase of a machine for ₦500,000 Purchase of office supplies for ₦30,000 Salaries paid: ₦150,000 Rent paid: ₦60,000 What is the total amount of assets recorded in the self-balancing ledger system?
A. ₦680,000
B. ₦690,000
Correct C. ₦680,000
D. ₦690,000

Correct Answer: C

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Question 9 View Details
A company uses the public sector accounting system. The following transactions occurred during the year: Purchase of a machine for ₦500,000 Purchase of office supplies for ₦30,000 Salaries paid: ₦150,000 Rent paid: ₦60,000 What is the total amount of assets recorded in the public sector accounting system?
A. ₦680,000
B. ₦690,000
Correct C. ₦680,000
D. ₦690,000

Correct Answer: C

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Question 10 View Details
A company uses the incomplete records system of accounting. The following transactions occurred during the year: Purchase of a machine for ₦500,000 Purchase of office supplies for ₦30,000 Salaries paid: ₦150,000 Rent paid: ₦60,000 What is the total amount of assets recorded in the incomplete records system?
A. ₦680,000
B. ₦690,000
Correct C. ₦680,000
D. ₦690,000

Correct Answer: C

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Question 11 View Details
A company produces two products, X and Y. Product X has a selling price of ₦250, a variable cost of ₦120, and a fixed cost of ₦15,000. Product Y has a selling price of ₦300, a variable cost of ₦180, and a fixed cost of ₦20,000. If the company sells 200 units of Product X and 150 units of Product Y, what is the total profit?
A. ₦45,000
Correct B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: B

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Question 12 View Details
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Bank | | 10,000 | | 3 Jan | Cash | 5,000 | | | 4 Jan | Bank | | 5,000 | | 5 Jan | Cash | | 8,000 | What is the balance in the cash book?
A. ₦3,000
B. ₦5,000
Correct C. ₦8,000
D. ₦10,000

Correct Answer: C

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Question 13 View Details
A partnership is formed by three individuals, A, B, and C, who contribute ₦50,000, ₦30,000, and ₦20,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2:1. If the partnership makes a profit of ₦20,000, how much will each partner receive?
A. ₦12,000
Correct B. ₦15,000
C. ₦18,000
D. ₦20,000

Correct Answer: B

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Question 14 View Details
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. What is the value of the machine after 3 years?
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 15 View Details
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank | 10,000 | | | 2 Jan | Cash | | 10,000 | | 3 Jan | Bank | 5,000 | | | 4 Jan | Cash | | 5,000 | | 5 Jan | Bank | | 8,000 | What is the balance in the bank statement?
A. ₦3,000
B. ₦5,000
Correct C. ₦8,000
D. ₦10,000

Correct Answer: C

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Question 16 View Details
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
Correct B. ₦450,000
C. ₦475,000
D. ₦475,000

Correct Answer: B

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Question 17 View Details
A company's trial balance showed an error of ₦5,000 in the accounts payable account. The correct balance should have been ₦25,000. What is the effect of this error on the company's net income?
A. ₦5,000 increase
Correct B. ₦5,000 decrease
C. ₦5,000 increase
D. ₦5,000 decrease

Correct Answer: B

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Question 18 View Details
A company's balance sheet showed a decrease in inventory of ₦20,000 and an increase in accounts payable of ₦15,000. What is the effect on the company's net working capital?
A. ₦5,000 increase
Correct B. ₦5,000 decrease
C. ₦5,000 increase
D. ₦5,000 decrease

Correct Answer: B

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Question 19 View Details
A company issued 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the amount received from the share issue.
A. ₦200,000
Correct B. ₦220,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 20 View Details
A company's trial balance showed an error of ₦10,000 in the accounts receivable account. The correct balance should have been ₦30,000. What is the effect of this error on the company's net income?
A. ₦10,000 increase
Correct B. ₦10,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease

Correct Answer: B

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Question 21 View Details
A company's trial balance shows an error of \pm 500 in the accounts payable account. If the company's total assets are \1,500,000 and its total liabilities are \800,000, what is the correct amount of the company's equity?
Correct A. \700,000
B. \800,000
C. \900,000
D. \1,000,000

Correct Answer: A

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Question 22 View Details
A company's financial statements for the year ended December 31, 2022, are as follows: Revenue \1,200,000, Cost of Goods Sold \800,000, Gross Profit \400,000, Operating Expenses \200,000, Net Income \200,000. What is the company's gross margin percentage?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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Question 23 View Details
A company has the following departmental accounts: Manufacturing Department: Cost of Goods Sold \1,000,000, Depreciation \200,000, Gross Profit \800,000; Selling Department: Cost of Goods Sold \500,000, Operating Expenses \200,000, Net Income \100,000. What is the company's total gross profit?
A. \1,600,000
Correct B. \1,800,000
C. \2,000,000
D. \2,200,000

Correct Answer: B

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Question 24 View Details
A company has issued 10,000 shares of \1 par value at \5 per share. If the company has 5,000 shares outstanding, what is the company's total shareholders' equity?
A. \25,000
Correct B. \50,000
C. \75,000
D. \100,000

Correct Answer: B

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Question 25 View Details
A company has the following balance sheet: Assets \1,500,000, Liabilities \800,000, Equity \700,000. If the company has a 10% dividend payout ratio, what is the company's net income?
A. \70,000
B. \80,000
Correct C. \90,000
D. \100,000

Correct Answer: C

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