POST UTME AFE BABALOLA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the perpetual inventory system. The company's beginning inventory was 500 units at ₦20 each. During the year, the company purchased 1,000 units at ₦25 each and sold 800 units at ₦30 each. Calculate the company's cost of goods sold.
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 2
A company uses the FIFO method of inventory valuation. The company's beginning inventory was 500 units at ₦20 each. During the year, the company purchased 1,000 units at ₦25 each and sold 800 units at ₦30 each. Calculate the company's ending inventory value.
A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000
Question 3
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦15,000. The company's trial balance shows a credit balance of ₦20,000. What is the correct journal entry to record the difference?
A. ₦5,000 debit to Profit and Loss Account
B. ₦5,000 credit to Profit and Loss Account
C. ₦5,000 debit to Cash Account
D. ₦5,000 credit to Cash Account
Question 4
A company's balance sheet as at 31st December 2024, showed the following: Share capital ₦5,000,000, Reserves ₦1,500,000, and a loan of ₦2,000,000 from a bank. The company also had a profit of ₦1,500,000 for the year. Calculate the company's retained earnings at the end of the year.
A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000
Question 5
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦120,000, calculate the amount of capital contributed by partner A.
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 6
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the correct balance in the owner's equity account?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 7
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦150,000, ₦50,000, and ₦100,000, respectively. During the year, the company purchased equipment for ₦80,000 and sold goods worth ₦120,000. The company's net income for the year was ₦60,000. Prepare the company's statement of changes in equity for the year.
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 8
A company's balance sheet shows an increase in its current assets of ₦200,000 and a decrease in its current liabilities of ₦150,000. Calculate the net increase in working capital.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 9
A company's balance sheet shows the following balances: Cash ₦20,000, Accounts Payable ₦10,000, Common Stock ₦30,000, and Retained Earnings ₦15,000. What is the company's total liabilities and equity?
A. ₦60,000
B. ₦65,000
C. ₦70,000
D. ₦75,000
Question 10
A company prepares its balance sheet as of December 31st. The balance sheet shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦200,000, Common Stock ₦500,000, Dividends ₦20,000, Retained Earnings ₦300,000, Sales Revenue ₦1,200,000, and Wages Expense ₦100,000. What is the total assets of the company?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 11
A company's financial statements for the year ended 31st December 2024, showed a trading profit of ₦1,500,000, but a net loss of ₦200,000. The company's share capital was ₦5,000,000, and its reserves were ₦1,500,000. The company also had a loan of ₦2,000,000 from a bank. Calculate the company's retained earnings at the end of the year.
A. ₦3,800,000
B. ₦4,000,000
C. ₦4,200,000
D. ₦4,500,000
Question 12
A company's cash book shows a debit balance of ₦20,000. The company's bank statement shows a credit balance of ₦25,000. What is the correct journal entry to record the difference?
A. ₦5,000 debit to Profit and Loss Account
B. ₦5,000 credit to Profit and Loss Account
C. ₦5,000 debit to Cash Account
D. ₦5,000 credit to Cash Account
Question 13
A company has the following trial balance: Debit: ₦50,000 - Rent ₦30,000 - Salaries ₦20,000 - Office supplies Credit: ₦60,000 - Purchases ₦40,000 - Returns inwards ₦10,000 - Dividends What is the net profit for the year?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 14
A company's trading account shows a profit of ₦50,000. However, the profit and loss account shows a loss of ₦20,000. What is the correct balance in the profit and loss account?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company uses the single-entry system to record its transactions. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦1,500,000, and Credit Wages Expense ₦150,000. What is the net income of the company?
A. ₦1,350,000
B. ₦1,450,000
C. ₦1,550,000
D. ₦1,650,000

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