POST UTME AFE BABALOLA UNIVERSITY 2020 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 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. ₦20,000
Correct B. ₦24,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 2
A bank's cash book shows a balance of ₦500,000. However, the bank statement shows a balance of ₦450,000. What is the reason for the difference?
A. The bank has made an error in its accounting records.
B. The customer has deposited ₦50,000 into their account.
C. The bank has charged a service fee of ₦50,000.
Correct D. The bank has made an error in its bank reconciliation statement.

Correct Answer: D

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Question 3
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?
A. ₦750,000
B. ₦800,000
C. ₦850,000
Correct D. ₦900,000

Correct Answer: D

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Question 4
A company uses the perpetual inventory system. If the company purchases 100 units of goods at ₦50 each, and the cost of goods sold is ₦5,000, what is the company's ending inventory?
A. ₦4,500
B. ₦5,000
Correct C. ₦5,500
D. ₦6,000

Correct Answer: C

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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?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 6
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.
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
Correct D. ₦1,250,000

Correct Answer: D

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Question 7
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit-sharing ratio in terms of percentage.
A. 40%
B. 50%
Correct C. 60%
D. 70%

Correct Answer: C

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Question 8
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.
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

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Question 9
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of shares and debentures.
A. ₦1,500,000
B. ₦2,000,000
Correct C. ₦2,500,000
D. ₦3,000,000

Correct Answer: C

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Question 10
A company's balance sheet shows the following balances: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. Prepare the company's balance sheet.
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

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Question 11
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?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 12
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation expense if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦25,000

Correct Answer: A

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Question 13
A business uses the perpetual inventory system. If the cost of goods sold is ₦150,000 and the beginning inventory is ₦50,000, what is the cost of goods available for sale?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 14
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?
A. ₦350,000
B. ₦400,000
Correct C. ₦450,000
D. ₦500,000

Correct Answer: C

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Question 15
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?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 16
A company's bank reconciliation statement shows a discrepancy of ₦1,000. If the company's cash balance is ₦50,000 and the bank balance is ₦48,000, what is the cause of the discrepancy?
A. Bank error
B. Company error
C. Theft
Correct D. Deposits in transit

Correct Answer: D

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Question 17
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?
A. ₦80,000
B. ₦100,000
Correct C. ₦120,000
D. ₦140,000

Correct Answer: C

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Question 18
A manufacturing company uses the process cost method to account for its production costs. The company has the following costs: Direct materials: ₦100,000 Direct labor: ₦150,000 Factory overhead: ₦200,000 What is the total cost of production?
A. ₦450,000
B. ₦550,000
Correct C. ₦650,000
D. ₦750,000

Correct Answer: C

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Question 19
A company has the following transactions: Sale of goods for ₦150,000 cash Purchase of goods for ₦120,000 on credit Payment of ₦30,000 cash to a creditor What is the total amount of assets on the balance sheet?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦210,000

Correct Answer: C

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Question 20
A company uses the following accounts: Cash: ₦100,000 Accounts Payable: ₦80,000 Sales: ₦150,000 What is the total amount of assets on the balance sheet?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 21
A company has the following transactions: Sale of goods for ₦200,000 cash Purchase of goods for ₦160,000 on credit Payment of ₦40,000 cash to a creditor What is the total amount of assets on the balance sheet?
A. ₦160,000
B. ₦200,000
Correct C. ₦240,000
D. ₦280,000

Correct Answer: C

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Question 22
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, what is the share of profit of partner A?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: A

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Question 23
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?
A. ₦100,000
Correct B. ₦150,000
C. ₦120,000
D. ₦180,000

Correct Answer: B

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Question 24
A company has a balance sheet as follows: Assets ₦500,000, Liabilities ₦200,000, and Capital ₦300,000. What is the ratio of capital to liabilities?
A. 1:2
Correct B. 2:1
C. 1:1
D. 3:2

Correct Answer: B

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Question 25
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?
Correct A. ₦1,200,000
B. ₦1,000,000
C. ₦900,000
D. ₦1,500,000

Correct Answer: A

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