POST UTME AFE BABALOLA UNIVERSITY 2018 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 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the correct order of operations for the following expression: ( rac{1}{2} (2x + 5) - 3 )
Correct A. Parentheses, Exponents, Multiplication and Division, Addition and Subtraction
B. Parentheses, Multiplication and Division, Exponents, Addition and Subtraction
C. Parentheses, Exponents, Addition and Subtraction, Multiplication and Division
D. Parentheses, Multiplication and Division, Addition and Subtraction, Exponents

Correct Answer: A

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Question 2
A company's balance sheet shows an increase in assets of ₦1,500,000 and an increase in liabilities of ₦1,200,000. What is the net increase in equity?
Correct A. ₦300,000
B. ₦200,000
C. ₦1,500,000
D. ₦1,200,000

Correct Answer: A

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Question 3
A business purchased a machine for ₦250,000 and depreciated it by 10% per annum. What is the value of the machine after 3 years?
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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Question 4
A company's trial balance shows the following accounts: Sales ₦1,500,000, Cost of Goods Sold ₦800,000, and Net Income ₦700,000. What is the company's gross profit?
A. ₦700,000
Correct B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: B

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Question 5
A government agency's budget shows an increase in revenue of ₦2,000,000 and an increase in expenses of ₦1,500,000. What is the net increase in the agency's budget?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 6
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset cost ₦250,000?
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 7
A manufacturing company produces two products, X and Y. Product X requires 2 hours of labor and 3 units of raw material, while product Y requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor available and 180 units of raw material, how many units of product X and product Y should be produced to maximize profit?
Correct A. X = 30, Y = 40
B. X = 40, Y = 30
C. X = 50, Y = 20
D. X = 20, Y = 50

Correct Answer: A

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Question 8
A government agency has the following transactions: Receipt of ₦100,000 cash, Payment of ₦50,000 cash, Purchase of office supplies for ₦20,000, and Sale of services for ₦30,000. What is the total amount of cash received and expended?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 9
A company uses a self-balancing ledger system. If the ledger has the following accounts: Cash, Accounts Receivable, Accounts Payable, and Common Stock, what is the total amount of assets and liabilities?
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 10
A company has the following transactions: Purchase of inventory for ₦50,000, Sale of inventory for ₦60,000, and Payment of cash for ₦20,000. What is the net effect on the company's cash balance?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 11
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a current asset of ₦2,500,000 and a current liability of ₦1,000,000. What is the company's net worth as at 31st December 2022?
A. ₦1,500,000
B. ₦2,500,000
Correct C. ₦3,500,000
D. ₦4,500,000

Correct Answer: C

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Question 12
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company produces 100 units of product A and 50 units of product B, what is the total direct labor hours used?
A. 250
Correct B. 300
C. 350
D. 400

Correct Answer: B

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Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦10,000, what is the amount of the share premium account?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 14
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. What is the correct balance of the company's cash book?
Correct A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: A

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Question 15
A company's balance sheet as at 31st December 2022 shows a current asset of ₦2,500,000 and a current liability of ₦1,000,000. The company's net worth as at 31st December 2022 is ₦1,500,000. What is the company's total equity as at 31st December 2022?
A. ₦1,500,000
Correct B. ₦2,500,000
C. ₦3,500,000
D. ₦4,500,000

Correct Answer: B

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Question 16
A company uses the single entry system for its accounting records. The company's cash book shows a debit balance of ₦15,000. The company's bank statement shows a credit balance of ₦20,000. What is the correct journal entry to reconcile the cash book and bank statement?
A. ₦15,000 debit to Bank and ₦20,000 credit to Cash
Correct B. ₦20,000 debit to Bank and ₦15,000 credit to Cash
C. ₦35,000 debit to Bank and ₦0 credit to Cash
D. ₦0 debit to Bank and ₦35,000 credit to Cash

Correct Answer: B

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Question 17
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. The partnership's profit for the year is ₦120,000. How much profit will partner A receive?
Correct A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 18
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Cash | ₦8,000 | | | 4 Jan | Bank | | ₦12,000 | What is the correct balance of the cash book?
A. ₦2,000
B. ₦18,000
Correct C. ₦22,000
D. ₦28,000

Correct Answer: C

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Question 19
A company's balance sheet shows the following information: | Assets | ₦ | Liabilities | ₦ | Equity | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 30,000 | | Inventory | 15,000 | Creditors | 10,000 | Retained Earnings | 25,000 | | Property, Plant and Equipment | 50,000 | | | | | What is the total amount of the company's equity?
A. ₦55,000
B. ₦60,000
Correct C. ₦65,000
D. ₦70,000

Correct Answer: C

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Question 20
A company's trading account shows the following information: | Sales | ₦ | Cost of Goods Sold | ₦ | | --- | --- | --- | --- | | ₦150,000 | | ₦100,000 | | What is the company's gross profit?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the annual charge for interest on the debentures.
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 22
A firm's trial balance showed a debit balance of ₦50,000 in the account 'Rent Received'. The correct balance should be a credit of ₦50,000. What is the effect of this error on the accounting equation?
A. Assets = Liabilities + Equity
B. Assets > Liabilities + Equity
Correct C. Assets < Liabilities + Equity
D. Assets = Liabilities - Equity

Correct Answer: C

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Question 23
A partnership agreement states that profits are to be shared in the ratio 2:3:5. If the total profit for the year is ₦150,000, what is the share of profit for the partner with a 5% interest?
A. ₦30,000
B. ₦45,000
Correct C. ₦60,000
D. ₦75,000

Correct Answer: C

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Question 24
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from the issue of these shares.
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 25
A firm's bank statement showed a balance of ₦50,000. However, the firm's cash book showed a balance of ₦75,000. What is the reason for this discrepancy?
A. Bank charges
B. Interest on bank balance
Correct C. Cheques deposited but not yet credited
D. Cheques issued but not yet debited

Correct Answer: C

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