POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following balance sheet: ₦100,000 in cash, ₦150,000 in accounts receivable, ₦200,000 in inventory, and ₦50,000 in equipment. What is the total amount of assets?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 2
A company uses the double entry system to record transactions. The company's ledger shows the following balances: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. If the company purchases office supplies for 1,000, what is the effect on the accounting equation?
A. Assets increase by 1,000, Liabilities increase by 1,000, and Equity increases by 1,000
B. Assets increase by 1,000, Liabilities decrease by 1,000, and Equity increases by 1,000
C. Assets decrease by 1,000, Liabilities increase by 1,000, and Equity decreases by 1,000
D. Assets decrease by 1,000, Liabilities decrease by 1,000, and Equity decreases by 1,000
Question 3
A company has the following balance sheet: ₦100,000 in cash, ₦150,000 in accounts receivable, ₦200,000 in inventory, and ₦50,000 in equipment. What is the total amount of assets?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 4
A company issued 5,000 debentures of ₦ 100 each at a discount of 5%. The issue expenses were ₦ 10,000. Calculate the amount received from the issue of debentures.
A. ₦ 475,000
B. ₦ 485,000
C. ₦ 495,000
D. ₦ 505,000
Question 5
A company's trading account for the year ended 31st December 2024 is as follows: Sales ₦1,500,000, Cost of Goods Sold ₥0,000,000, Gross Profit ₡1,500,000. Calculate the company's net profit.
A. ₦0,750,000
B. ₦1,000,000
C. ₦1,250,000
D. ₦1,500,000
Question 6
A manufacturing company uses a job costing system. The following data is available for a particular job: Direct Materials ₦0,000, Direct Labour ₣0,000, Overheads ₢0,000. Calculate the total cost of the job.
A. ₦0,250
B. ₦0,500
C. ₦0,750
D. ₦1,000
Question 7
A company's trading account for the year ended 31st December 2024 is as follows: Sales ₦1,500,000, Cost of Goods Sold ₥0,000,000, Gross Profit ₡1,500,000. Calculate the company's gross profit percentage.
A. 15%
B. 20%
C. 25%
D. 30%
Question 8
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Sales Revenue ₦200,000. What is the total amount of assets?
A. ₦280,000
B. ₦270,000
C. ₦260,000
D. ₦250,000
Question 9
A company uses the accrual method of accounting and has the following transactions: Sales Revenue ₦100,000, Cost of Goods Sold ₦50,000, and Accounts Payable ₦20,000. What is the company's net income?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 10
A company's balance sheet as at 31st December 2024 is as follows: Assets ₦1,500,000, Liabilities ₥0,000,000, Capital ₥1,500,000. Calculate the company's liquidity ratio.
A. 0.6
B. 0.7
C. 0.8
D. 0.9
Question 11
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation for the first year?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 12
A partnership prepares a balance sheet at the end of the year. The balance sheet shows the following balances: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. If the partnership's net income for the year is 20,000, what is the effect on the balance sheet?
A. Assets increase by 20,000, Liabilities increase by 20,000, and Equity increases by 20,000
B. Assets increase by 20,000, Liabilities decrease by 20,000, and Equity increases by 20,000
C. Assets decrease by 20,000, Liabilities increase by 20,000, and Equity decreases by 20,000
D. Assets decrease by 20,000, Liabilities decrease by 20,000, and Equity decreases by 20,000
Question 13
A company uses a self-balancing ledger to record transactions. The ledger shows the following balances: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. If the company purchases office supplies for 1,000, what is the effect on the accounting equation?
A. Assets increase by 1,000, Liabilities increase by 1,000, and Equity increases by 1,000
B. Assets increase by 1,000, Liabilities decrease by 1,000, and Equity increases by 1,000
C. Assets decrease by 1,000, Liabilities increase by 1,000, and Equity decreases by 1,000
D. Assets decrease by 1,000, Liabilities decrease by 1,000, and Equity decreases by 1,000
Question 14
A company has the following departmental accounts: Manufacturing Department, Sales Department, and Administrative Department. The company has the following transactions: Sale of goods for ₦100,000, Purchase of raw materials for ₦50,000, and Payment of salaries for ₦30,000. What is the total amount of the company's departmental expenses?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 15
A public sector organization has the following transactions: Purchase of office supplies for ₦10,000, Payment of salaries for ₦50,000, and Receipt of revenue for ₦30,000. What is the total amount of the organization's cash outflows?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

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