POST UTME AFE BABALOLA UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following ledger balances: Cash ₹50,000, Debtors ₹30,000, and Creditors ₹20,000. What is the total amount of assets?
A. ₹80,000
B. ₹90,000
C. ₹100,000
D. ₹110,000
Question 2
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
C. Assets < Liabilities + Equity
D. Assets = Liabilities - Equity
Question 3
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
C. ₦300,000
D. ₦350,000
Question 4
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
C. ₦22,000
D. ₦28,000
Question 5
The following is a statement of financial position for a company. What is the amount of non-current liabilities?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 6
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
C. ₦60,000
D. ₦75,000
Question 7
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
B. 300
C. 350
D. 400
Question 8
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
B. ₦2,500,000
C. ₦3,500,000
D. ₦4,500,000
Question 9
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
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 10
A company purchased a machine for ₹80,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₹67,200
B. ₹68,400
C. ₹69,600
D. ₹70,800
Question 11
A company uses the weighted average method to value its inventory. The company has the following data for the year ended December 31, 2022: Cost of goods available for sale: ₦1,500,000; Net realizable value of ending inventory: ₦1,200,000; Beginning inventory: ₦800,000. What is the cost of goods sold for the year?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 12
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
C. ₦100,000
D. ₦110,000
Question 13
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?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 14
A company has the following transactions: Purchased office supplies for ₦20,000; Purchased office equipment for ₦50,000; Sold office equipment for ₦30,000. What is the net effect on the company's office equipment account?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company has two departments: A and B. Department A has a balance of ₹50,000 and department B has a balance of ₹30,000. The company has a total balance of ₹80,000. What is the balance of department C?
A. ₹0
B. ₹10,000
C. ₹20,000
D. ₹30,000

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