POST UTME AFE BABALOLA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership is formed between two individuals, A and B, with a capital contribution of ₦100,000 each. During the first year, the partnership earns a profit of ₦50,000. The profit is divided in the ratio 2:3 between A and B, respectively. Determine the amount of profit that A will receive.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 2
A company's trial balance shows the following accounts: Debit: Cash 10,000, Accounts Payable 5,000, Equipment 20,000 Credit: Common Stock 30,000, Revenue 15,000. What is the correct procedure to prepare the financial statements?
A. Prepare the balance sheet and income statement
B. Prepare the income statement and balance sheet
C. Prepare the statement of cash flows and balance sheet
D. Prepare the statement of stockholders' equity and balance sheet
Question 3
A company issues 5,000 12% debentures of ₦50 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦2,50,000
B. ₦2,60,000
C. ₦2,70,000
D. ₦2,80,000
Question 4
A company prepares a trial balance. The following accounts are listed: Sales: ₦100,000, Cost of Goods Sold: ₦80,000. What is the gross profit?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A company's assets are valued at ₦100,000. If the company's assets depreciate by 10% in a year, what is the new value of the assets?
A. ₦90,000
B. ₦95,000
C. ₦99,000
D. ₦105,000
Question 6
A partnership is formed between three partners, A, B, and C, with a capital of ₦150,000, ₦200,000, and ₦250,000 respectively. If the profit is divided in the ratio 2:3:4, what is the share of profit of partner B?
A. ₦1,20,000
B. ₦1,40,000
C. ₦1,60,000
D. ₦1,80,000
Question 7
A government agency uses the accrual basis of accounting. The following transactions were recorded in the journal: Debit: Salaries Expense 10,000, Accounts Payable 5,000 Credit: Salaries Payable 15,000, Revenue 20,000. What is the correct procedure to prepare the financial statements?
A. Prepare the balance sheet and income statement
B. Prepare the income statement and balance sheet
C. Prepare the statement of cash flows and balance sheet
D. Prepare the statement of stockholders' equity and balance sheet
Question 8
A company's bank reconciliation statement shows the following discrepancies: Bank Statement Balance 10,000, Cash Balance 12,000, Outstanding Checks 2,000, Deposits in Transit 1,000. What is the correct procedure to reconcile the bank statement and cash balance?
A. Add the outstanding checks and deposits in transit to the bank statement balance
B. Subtract the outstanding checks and deposits in transit from the bank statement balance
C. Add the outstanding checks and deposits in transit to the cash balance
D. Subtract the outstanding checks and deposits in transit from the cash balance
Question 9
A company uses the self-balancing ledger system to record transactions. If the company's assets increase by ₦10,000 and its liabilities increase by ₦5,000, what is the effect on the company's equity?
A. ₦5,000 increase
B. ₦10,000 increase
C. ₦15,000 increase
D. ₦20,000 increase
Question 10
A company uses the weighted average method to value its inventory. The following data is available for the year ended December 31, 2021: 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. ₦700,000
B. ₦900,000
C. ₦1,200,000
D. ₦1,500,000
Question 11
A company uses the straight-line method to depreciate its assets. The following data is available for the year ended December 31, 2021: Cost of asset: ₦200,000; Residual value: ₦20,000; Useful life: 10 years. What is the annual depreciation for the year?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 12
A company's trial balance shows a debit balance of ₦30,000 in the 'Salaries Expense' account. However, the company's accounting records show that it paid ₦40,000 in salaries for the year. Prepare the necessary journal entry to correct the error.
A. ₦30,000 debit to Salaries Expense and ₦40,000 credit to Salaries Expense
B. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Cash
C. ₦40,000 debit to Salaries Expense and ₦40,000 credit to Cash
D. ₦30,000 credit to Salaries Expense and ₦40,000 debit to Cash
Question 13
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦3,15,000
B. ₦3,25,000
C. ₦3,35,000
D. ₦3,45,000
Question 14
A company uses the double-entry system of accounting. The following transactions were recorded in the journal: Debit: Cash 1,000, Accounts Payable 500, Equipment 2,000 Credit: Common Stock 3,000, Revenue 1,500. What is the correct order of posting these transactions to the ledger accounts?
A. Cash, Accounts Payable, Equipment, Common Stock, Revenue
B. Common Stock, Revenue, Cash, Accounts Payable, Equipment
C. Equipment, Accounts Payable, Cash, Common Stock, Revenue
D. Revenue, Common Stock, Accounts Payable, Cash, Equipment
Question 15
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it paid ₦20,000 in rent for the year. Prepare the necessary journal entry to correct the error.
A. ₦15,000 debit to Rent Expense and ₦20,000 credit to Rent Expense
B. ₦5,000 debit to Rent Expense and ₦5,000 credit to Cash
C. ₦20,000 debit to Rent Expense and ₦20,000 credit to Cash
D. ₦15,000 credit to Rent Expense and ₦20,000 debit to Cash

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