POST UTME AFE BABALOLA UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 50,000 | Debentures | 100,000 | | Stock | 150,000 | Bank Loan | 200,000 | | Debtors | 50,000 | Share Capital | 300,000 | | Creditors | 20,000 | | | What is the total amount of liabilities?
A. ₦510,000
B. ₦520,000
C. ₦530,000
D. ₦540,000
Question 2
A company has the following balance sheet: Assets: ₦500,000; Liabilities: ₦300,000. What is the company's net worth?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 3
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 ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 4
A manufacturing company uses a job costing system. The following data are extracted from the company's records for the year ended December 31, 2022: Direct Materials: ₦1,500,000 Direct Labour: ₦750,000 Overheads: ₦1,200,000 Total Cost: ₦3,450,000 Selling Price per unit: ₦2,500 Number of units sold: 1,500 Determine the profit or loss for the year.
A. ₦1,125,000
B. ₦1,250,000
C. ₦1,375,000
D. ₦1,500,000
Question 5
A company uses the cash book to record its cash transactions. What is the purpose of the cash book?
A. To record all transactions of the company.
B. To record only cash transactions of the company.
C. To record only credit transactions of the company.
D. To record only debit transactions of the company.
Question 6
A company uses the self-balancing ledger system. What is the purpose of the self-balancing ledger?
A. To record all transactions of the company.
B. To record only cash transactions of the company.
C. To record only credit transactions of the company.
D. To ensure that the ledger accounts are always balanced.
Question 7
A company has the following transactions for the year ended December 31, 2022: Issued 10,000 shares of ₦10 each at a premium of ₦5 per share, and Purchased a new machine for ₦200,000. Prepare the company's share capital account.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A company has the following transactions: Purchased goods for ₦150,000 on credit, sold goods for ₦200,000 on credit, and paid cash of ₦30,000. Prepare the journal entry for the above transactions.
A. Debit Cash ₦30,000, Credit Accounts Payable ₦150,000, Debit Sales ₦200,000, Credit Cost of Goods Sold ₦150,000
B. Debit Cash ₦30,000, Credit Accounts Receivable ₦200,000, Debit Cost of Goods Sold ₦150,000, Credit Purchases ₦150,000
C. Debit Accounts Payable ₦150,000, Credit Purchases ₦150,000, Debit Sales ₦200,000, Credit Cost of Goods Sold ₦150,000
D. Debit Cash ₦30,000, Credit Accounts Receivable ₦200,000, Debit Purchases ₦150,000, Credit Cost of Goods Sold ₦150,000
Question 9
A company's balance sheet as at December 31, 2022, is as follows: Assets: ₦1,500,000 (Current Assets) ₦2,000,000 (Non-Current Assets) ₦3,500,000 (Total Assets) Liabilities: ₦1,000,000 (Current Liabilities) ₦1,500,000 (Non-Current Liabilities) ₦2,500,000 (Total Liabilities) Determine the company's equity.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 10
A company's cash book shows the following transactions: 1. Cash received from customers ₦50,000. 2. Cash paid to suppliers ₦20,000. 3. Cash received from bank ₦10,000. 4. Cash paid to bank ₦5,000. What is the balance of the cash book at the end of the month?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 11
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and an estimated useful life of 5 years. If the asset is depreciated for 3 years, what is the annual depreciation?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 12
A company has a capital of ₦1,500,000, divided into 150,000 shares of ₦10 each. The company issues 30,000 debentures of ₦50 each. Prepare the company's balance sheet.
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,500,000
Question 13
A company's trading account shows a profit of ₦100,000. The company's balance sheet shows a current liability of ₦50,000 and a non-current liability of ₦200,000. What is the company's net worth?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A company issued 10,000, 9% debentures of ₦100 each at a premium of 10%. Calculate the amount received from debenture holders and the amount of premium.
A. ₦1,100,000
B. ₦1,150,000
C. ₦1,200,000
D. ₦1,250,000
Question 15
A manufacturing company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials have a cost of ₦100,000 and a quantity of 100 units. The work-in-progress has a cost of ₦200,000 and a quantity of 50 units. The finished goods have a cost of ₦300,000 and a quantity of 20 units. If the company uses a weightage of 30% for raw materials, 40% for work-in-progress, and 30% for finished goods, what is the total value of the inventory?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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