POST UTME AFE BABALOLA UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME AFE BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
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
Correct C. ₦520,000
D. ₦620,000

Correct Answer: C

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Question 2
A company uses the straight-line method of depreciation. If the cost of the asset is ₦200,000 and its residual value is ₦50,000, what is the annual depreciation charge if the asset is expected to last for 5 years?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 3
A company has the following trial balance as at December 31, 2022: Debtors: ₦150,000 Creditors: ₦80,000 Capital: ₦200,000 Profit: ₦50,000 What is the total amount of assets as at December 31, 2022?
A. ₦380,000
B. ₦480,000
Correct C. ₦580,000
D. ₦680,000

Correct Answer: C

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Question 4
A company uses the following accounting equation: Assets = Capital + Profit If the company has assets of ₦500,000 and capital of ₦200,000, what is the amount of profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 5
A company has the following journal entry: Debit: ₦100,000 Credit: ₦150,000 What is the effect of this journal entry on the company's financial position?
A. Increase in assets and decrease in liabilities
Correct B. Decrease in assets and increase in liabilities
C. Increase in assets and increase in liabilities
D. Decrease in assets and decrease in liabilities

Correct Answer: B

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Question 6
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.
Correct 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

Correct Answer: A

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Question 7
A manufacturing company uses a job costing system. The following information is available for Job No. 101: Direct Materials £ 1,000, Direct Labour £ 800, Overheads £ 400. Calculate the total cost of the job.
Correct A. £ 2,200
B. £ 2,200
C. £ 2,200
D. £ 2,200

Correct Answer: A

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Question 8
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.
Correct 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

Correct Answer: A

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Question 9
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
Correct B. Accrued Expenses
C. Accounts Receivable
D. Cash

Correct Answer: B

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Question 10
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?
Correct 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

Correct Answer: A

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Question 11
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over a useful life of 5 years. What is the annual depreciation expense?
A. ₦100,000
Correct B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: B

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Question 12
A company issues 1,000 shares of stock at ₦10 per share. What is the total amount of cash received from the sale of these shares?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 13
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?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 14
A company has the following transactions: Purchased office supplies for ₦10,000, Paid salaries of ₦50,000, and Collected cash from customers of ₦20,000. What is the net change in cash?
A. ₦-20,000
Correct B. ₦0
C. ₦20,000
D. ₦40,000

Correct Answer: B

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Question 15
A company has the following financial statements: Revenue ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000, Operating Expenses ₦20,000, Net Income ₦20,000. What is the gross margin percentage?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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Question 16
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
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 17
A company has the following transactions: Purchased a machine for ₦100,000, Sold a machine for ₦120,000, and Purchased office supplies for ₦20,000. What is the net change in cash?
A. ₦20,000
Correct B. ₦0
C. ₦-20,000
D. ₦-40,000

Correct Answer: B

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Question 18
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: A

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Question 19
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?
Correct A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000

Correct Answer: A

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Question 20
A company issued 10,000 shares of ₦10 each at a premium of ₦2. If the company received ₦120,000 from the issue of shares, what is the amount received from the issue of shares at a premium?
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 21
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
Correct C. ₦55,000
D. ₦60,000

Correct Answer: C

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Question 22
A company has an incomplete record of its transactions. The company's cash book shows a balance of ₦20,000 and the bank statement shows a balance of ₦25,000. The bank statement also shows a credit balance of ₦2,000 for a dishonored cheque. What is the correct balance of the company's cash book?
A. ₦18,000
B. ₦20,000
Correct C. ₦22,000
D. ₦25,000

Correct Answer: C

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Question 23
In a partnership account, the capital of two partners, A and B, is ₦120,000 and ₦90,000 respectively. If the profit-sharing ratio is 5:3, what is the ratio of the capital of A to the capital of B?
Correct A. 2:1
B. 3:2
C. 5:3
D. 1:2

Correct Answer: A

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Question 24
A company maintains a cash book and a general ledger. The cash book shows a debit balance of ₦50,000, while the general ledger shows a credit balance of ₦30,000. What is the correct balance of the company's cash account?
A. ₦20,000
Correct B. ₦30,000
C. ₦50,000
D. ₦80,000

Correct Answer: B

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Question 25
A government agency has a budget of ₦1,000,000 for the year. If the agency has already spent ₦800,000, what percentage of the budget has been utilized?
A. 80%
B. 90%
Correct C. 80.00%
D. 90.00%

Correct Answer: C

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