POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Accounting | Objective

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Question 1
A manufacturing company uses the weighted average method to value its inventory. The company has two types of inventory: raw materials and work-in-progress. The raw materials are valued at ₦120,000 and the work-in-progress is valued at ₦180,000. The company has a total of 10,000 units of raw materials and 5,000 units of work-in-progress. If the company uses a cost formula of 2/3 direct materials + 1/3 direct labor, what is the total value of the inventory?
A. ₦240,000
Correct B. ₦300,000
C. ₦360,000
D. ₦420,000

Correct Answer: B

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Question 2
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Accounts Receivable ₦90,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦150,000, Interest Expense ₦30,000, Interest Income ₦10,000, Net Income ₦50,000, Retained Earnings ₦200,000, Salaries Expense ₦60,000, Sales ₦800,000, Taxes Expense ₦40,000, and Wages Expense ₦80,000. What is the total amount of assets?
Correct A. ₦1,030,000
B. ₦1,050,000
C. ₦1,070,000
D. ₦1,090,000

Correct Answer: A

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Question 3
A company uses the straight-line method to depreciate its assets. The company's assets have a total cost of ₦500,000 and an estimated useful life of 10 years. If the company uses a residual value of ₦50,000, what is the annual depreciation expense?
A. ₦45,000
Correct B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: B

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Question 4
A company's balance sheet shows the following balances: Cash ₦150,000, Accounts Receivable ₦90,000, Inventory ₦120,000, Prepaid Rent ₦30,000, Property, Plant, and Equipment ₦500,000, Accumulated Depreciation ₦100,000, and Total Liabilities and Equity ₦1,200,000. What is the total amount of liabilities?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 5
A company's income statement shows the following balances: Sales ₦800,000, Cost of Goods Sold ₦400,000, Gross Profit ₦400,000, Operating Expenses ₦150,000, Net Income ₦250,000. What is the gross profit margin?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 6
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
Correct 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

Correct Answer: B

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Question 7
A company prepares a trial balance at the end of the year. The trial balance shows the following balances: Accounts Receivable 15,000, Accounts Payable 10,000, and Common Stock 30,000. If the company's net income for the year is 20,000, what is the effect on the accounting equation?
A. Assets increase by 20,000, Liabilities increase by 20,000, and Equity increases by 20,000
Correct 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

Correct Answer: B

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Question 8
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
Correct 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

Correct Answer: B

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Question 9
A government agency prepares a budget for the upcoming year. The budget shows the following revenues: Taxes 100,000, Fees 50,000, and Grants 20,000. If the agency's total expenses for the year are 150,000, what is the effect on the budget?
A. Revenues increase by 20,000, Expenses increase by 20,000, and Surplus increases by 20,000
Correct B. Revenues increase by 20,000, Expenses decrease by 20,000, and Surplus increases by 20,000
C. Revenues decrease by 20,000, Expenses increase by 20,000, and Surplus decreases by 20,000
D. Revenues decrease by 20,000, Expenses decrease by 20,000, and Surplus decreases by 20,000

Correct Answer: B

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Question 10
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
Correct 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

Correct Answer: B

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦22,000
D. ₦18,000

Correct Answer: A

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Question 12
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?
Correct A. ₦280,000
B. ₦270,000
C. ₦260,000
D. ₦250,000

Correct Answer: A

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Question 13
A government agency is required to prepare a budget that allocates ₦1,000,000 for salaries, ₦500,000 for rent, and ₦200,000 for utilities. What is the total amount allocated for these expenses?
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,300,000

Correct Answer: A

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Question 14
A company's financial statements show the following: Total Assets ₦500,000, Total Liabilities ₦200,000, and Total Equity ₦300,000. What is the company's net income?
Correct A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 15
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?
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 16
A company has two types of shares: ordinary and preference. The ordinary shares have a par value of ₦5 each, while the preference shares have a par value of ₦10 each. If the company issues 10,000 ordinary shares and 5,000 preference shares, what is the total amount of share capital?
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 17
A company has the following transactions: Purchased office equipment for ₦120,000; sold goods for ₦80,000; purchased raw materials for ₦60,000; and paid salaries of ₦40,000. What is the total amount of expenses?
A. ₦220,000
Correct B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: B

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Question 18
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
Correct C. ₦600,000
D. ₦650,000

Correct Answer: C

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Question 19
A company has the following transactions: Purchased office equipment for ₦120,000; sold goods for ₦80,000; purchased raw materials for ₦60,000; and paid salaries of ₦40,000. What is the total amount of expenses?
A. ₦220,000
Correct B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: B

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Question 20
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
Correct C. ₦600,000
D. ₦650,000

Correct Answer: C

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Question 21
A company has the following transactions: Purchased office equipment for ₦120,000; sold goods for ₦80,000; purchased raw materials for ₦60,000; and paid salaries of ₦40,000. What is the total amount of expenses?
A. ₦220,000
Correct B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: B

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Question 22
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
Correct C. ₦600,000
D. ₦650,000

Correct Answer: C

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Question 23
A company has the following transactions: Purchased office equipment for ₦120,000; sold goods for ₦80,000; purchased raw materials for ₦60,000; and paid salaries of ₦40,000. What is the total amount of expenses?
A. ₦220,000
Correct B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: B

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Question 24
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

Correct Answer: VIEW ANSWER

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Question 25
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦0,500
B. ₦1,000
Correct C. ₦1,050
D. ₦1,500

Correct Answer: C

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