POST UTME AFE BABALOLA UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows the following balances: Cash ₦20,000, Accounts Receivable ₦50,000, Inventory ₦100,000, and Total Assets ₦250,000. What is the amount of Total Liabilities?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 2
A company has the following ledger balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, and Common Stock ₦100,000. What is the total amount of assets and liabilities?
A. ₦170,000
B. ₦190,000
C. ₦200,000
D. ₦210,000
Question 3
A company purchases a building for ₦2,000,000 and sells it for ₦2,500,000. What is the gain on the sale of the building?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 4
A partnership has two partners, A and B. A invested ₦50,000 and B invested ₦30,000. The profit is to be divided in the ratio 2:1. If the total profit is ₦20,000, how much will A receive?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 5
A company has the following ledger accounts: Cash ₦100,000, Accounts Payable ₦120,000, Accounts Receivable ₦150,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦30,000, Interest Income ₦25,000, Net Income ₦100,000, Retained Earnings ₦150,000, Salaries Expense ₦80,000, Sales Revenue ₦800,000, and Utilities Expense ₦40,000. Prepare a balance sheet as at 31st December 2022.
A. ₦1,220,000
B. ₦1,250,000
C. ₦1,280,000
D. ₦1,300,000
Question 6
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership has a net income of ₦120,000, how much will partner A receive as their share of the net income?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 7
A company has the following financial statements: Total Assets ₦500,000, Total Liabilities ₦200,000, Total Equity ₦300,000. What is the debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 8
A company's financial statements are prepared using the accrual accounting method. Which of the following accounts would be affected by the accrual method?
A. Accounts Payable
B. Accrued Expenses
C. Accounts Receivable
D. Cash
Question 9
A public sector organization has the following transactions for the year ended December 31, 2022: Depreciation on assets: ₦120,000 Salaries and wages: ₦150,000 Rent: ₦30,000 Utilities: ₦20,000 Total assets: ₦500,000 What is the total amount of expenses for the year ended December 31, 2022?
A. ₦320,000
B. ₦420,000
C. ₦520,000
D. ₦620,000
Question 10
A company uses the accrual method of accounting. If the company's accounts payable balance at the beginning of the year is ₦30,000 and the company purchases goods worth ₦100,000 during the year, what is the amount to be recorded as accounts payable at the end of the year?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 11
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Debit Issue Expenses £ 10,000
C. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000
D. Debit Share Capital £ 100,000, Debit Share Premium £ 50,000, Credit Issue Expenses £ 10,000
Question 12
A company has the following ledger accounts: Cash ₦100,000, Accounts Payable ₦120,000, Accounts Receivable ₦150,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦30,000, Interest Income ₦25,000, Net Income ₦100,000, Retained Earnings ₦150,000, Salaries Expense ₦80,000, Sales Revenue ₦800,000, and Utilities Expense ₦40,000. Prepare a balance sheet as at 31st December 2022.
A. ₦1,220,000
B. ₦1,250,000
C. ₦1,280,000
D. ₦1,300,000
Question 13
A company's trial balance as at 31st December 20X7 is as follows: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Bank £ 2,000, Cash £ 1,000, Common Stock £ 50,000, Dividends £ 5,000, Equipment £ 20,000, Interest Expense £ 2,000, Interest Income £ 1,000, Net Income £ 10,000, Prepaid Rent £ 5,000, Salaries Expense £ 10,000, Sales £ 50,000, Sales Returns £ 5,000, Taxes Payable £ 2,000, Utilities Expense £ 2,000. Prepare the balance sheet as at 31st December 20X7.
A. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000
B. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 21,000 Total Equity £ 71,000
C. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000
D. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 21,000 Total Equity £ 71,000
Question 14
A company has a cash book balance of ₦50,000 and a bank statement balance of ₦60,000. The bank statement shows a credit balance of ₦5,000 for a dishonored cheque. What is the correct balance of the company's cash book?
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 15
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and Product B requires 3 hours of direct labor. If the company works 8 hours a day, what is the total number of units of Product A and Product B that can be produced in a day?
A. 10 units of Product A and 6 units of Product B
B. 12 units of Product A and 4 units of Product B
C. 15 units of Product A and 3 units of Product B
D. 18 units of Product A and 2 units of Product B

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