POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2023 Accounting | Objective

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Question 1
A company has two departments: Manufacturing and Sales. The Manufacturing department has a balance of ₦150,000 in its control account, while the Sales department has a balance of ₦200,000. If the company's total assets are ₦1,500,000, what is the balance in the Sales department's control account after the company's financial statements are prepared?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 2
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, what is the amount of share capital?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 3
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. What is the amount of bank overdraft?
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 4
A company has a manufacturing department that produces goods worth ₦500,000. The department's overheads are ₦150,000, and the department's direct expenses are ₦100,000. What is the department's contribution to profit?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 5
A company issues 5% debentures of ₦100 each at a premium of ₦10 per share. If the company receives ₦500,000 in cash, what is the amount of debenture capital?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 6
A company produces two products, X and Y, using two machines, A and B. Machine A produces 3 units of X and 2 units of Y per hour, while machine B produces 2 units of X and 3 units of Y per hour. If the company operates for 8 hours, what is the total number of units of X and Y produced?
Correct A. 48 units of X and 36 units of Y
B. 36 units of X and 48 units of Y
C. 40 units of X and 40 units of Y
D. 60 units of X and 60 units of Y

Correct Answer: A

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Question 7
A company has the following trial balance: Debit 100,000, Credit 120,000. What is the correct journal entry to rectify the error?
Correct A. Debit 20,000, Credit 20,000
B. Debit 20,000, Credit 0
C. Debit 0, Credit 20,000
D. Debit 0, Credit 0

Correct Answer: A

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Question 8
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the profit for the year is 100,000, what is the share of profit of partner A?
Correct A. 60,000
B. 40,000
C. 50,000
D. 70,000

Correct Answer: A

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Question 9
A company has the following balance sheet: Assets 500,000, Liabilities 200,000, Equity 300,000. What is the current ratio?
A. 2.5
Correct B. 3.0
C. 2.0
D. 1.5

Correct Answer: B

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Question 10
A company has the following income statement: Revenue 1,000,000, Cost of Goods Sold 600,000, Gross Profit 400,000, Operating Expenses 200,000, Net Income 200,000. What is the gross margin percentage?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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Question 11
A company maintains a cash book and a bank account. The cash book shows a balance of ₦250,000, while the bank statement shows a balance of ₦280,000. The bank statement also shows a debit of ₦15,000 for a bank charge. What is the correct balance in the cash book after reconciliation?
A. ₦265,000
Correct B. ₦270,000
C. ₦275,000
D. ₦280,000

Correct Answer: B

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Question 12
A company uses the single-entry system of accounting. The company's assets increased by ₦100,000, and its liabilities increased by ₦50,000. What is the net increase in the company's equity?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 13
A company produces a product that requires 2 kg of raw material A and 3 kg of raw material B to produce 10 kg of the final product. If the cost of raw material A is ₦50 per kg and the cost of raw material B is ₦75 per kg, what is the cost of producing 50 kg of the final product?
A. ₦1,250,000
B. ₦1,375,000
Correct C. ₦1,500,000
D. ₦1,625,000

Correct Answer: C

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Question 14
A company has two departments: A and B. Department A has a sales revenue of ₦500,000 and a cost of goods sold of ₦300,000. Department B has a sales revenue of ₦750,000 and a cost of goods sold of ₦450,000. What is the total gross profit of the company?
A. ₦1,250,000
B. ₦1,375,000
Correct C. ₦1,500,000
D. ₦1,625,000

Correct Answer: C

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Question 15
A company uses the self-balancing ledger system. The company's assets are ₦500,000, and its liabilities are ₦200,000. What is the company's net worth?
A. ₦300,000
B. ₦350,000
Correct C. ₦400,000
D. ₦450,000

Correct Answer: C

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Question 16
A company issues 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
Correct D. ₦500,000

Correct Answer: D

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Question 17
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦90,720
B. ₦108,000
C. ₦120,000
D. ₦135,600

Correct Answer: A

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Question 18
A government agency prepares a budget for the year. The budget includes an allocation of ₦500,000 for salaries, ₦200,000 for rent, and ₦300,000 for equipment. What is the total budget for the year?
Correct A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: A

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Question 19
A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. What is the total equity of the company?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 20
A company purchases a machine for ₦150,000 and depreciates it by 15% per annum. Calculate the value of the machine after 2 years.
Correct A. ₦114,750
B. ₦127,500
C. ₦150,000
D. ₦162,750

Correct Answer: A

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Question 21
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
A. ₦20,000
Correct B. ₦24,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 22
A manufacturing company has the following transactions for the month of January: Purchased raw materials worth ₦50,000, sold goods worth ₦150,000, and incurred expenses of ₦20,000. What is the total cost of goods sold?
A. ₦120,000
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 23
A company has the following balance sheet as at December 31, 2022: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the return on equity?
Correct A. 50%
B. 60%
C. 70%
D. 80%

Correct Answer: A

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Question 24
A company issues 10,000 shares at ₦10 per share. If the company has 5,000 shares outstanding, what is the total amount received from the issue of shares?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 25
A company has the following income statement for the year ended December 31, 2022: Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Profit ₦150,000. What is the gross profit margin?
A. 30%
Correct B. 40%
C. 50%
D. 60%

Correct Answer: B

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