POST UTME AFE BABALOLA UNIVERSITY 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the company's total assets?
Question 2
A company's balance sheet shows a non-current liability of ₦100,000 in the account 'Bonds Payable'. However, the company's accounting records show that it has not issued any bonds. What is the most likely cause of this discrepancy?
Question 3
A government agency has a budget of ₦1,000,000 for a project. The project requires an initial investment of ₦200,000 and a recurring expenditure of ₦50,000 per month for 12 months. What is the total expenditure for the project?
Question 4
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦150,000, what is the amount received from the issue of shares?
Question 5
A company's balance sheet shows the following balances: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the company's total liabilities and equity?
Question 6
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Question 7
In a single-entry system, a company records the following transactions:
Sale of goods for ₦100,000 cash
Purchase of goods for ₦80,000 on credit
Payment of ₦20,000 cash to a creditor
What is the total amount of assets on the balance sheet?
Question 8
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their existing capitals. If the capital of the leaving partner is ₦250,000 and the existing capitals of the remaining partners are ₦150,000 and ₦200,000, respectively, what is the amount of capital that the partner with ₦150,000 will receive from the leaving partner?
Question 9
A company's trial balance shows the following accounts: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000, and Common Stock ₦150,000. What is the total amount of assets?
Question 10
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Prepare the journal entries to record the issue of debentures and the subsequent redemption.
Question 11
A company has a profit and loss account as follows: Sales ₦1,000,000, Cost of Goods Sold ₦600,000, Gross Profit ₦400,000, Operating Expenses ₦100,000, Net Profit ₦300,000. What is the gross profit margin?
Question 12
A business uses the cash basis of accounting. If the company receives ₦10,000 in cash from customers and pays ₦5,000 in cash to suppliers, what is the net cash inflow?
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦100,000. Prepare the company's income statement.
Question 14
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the most likely cause of this discrepancy?
Question 15
A company issued 5,000 shares of ₦10 each. If the company's profit for the year is ₦1,200,000, and the company's expenses for the year are ₦600,000, what is the company's net profit?
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