POST UTME BABCOCK UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The following transactions were recorded during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000
Question 2
A company's departmental accounts show the following balances:
A. Debit Sales 20,000 and Credit Cost of Goods Sold 20,000
B. Debit Cost of Goods Sold 20,000 and Credit Sales 20,000
C. Debit Direct Materials 20,000 and Credit Direct Labor 20,000
D. Debit Direct Labor 20,000 and Credit Direct Materials 20,000
Question 3
A public sector organization has a budget of ₦1,000,000 for a project. The project has two components, A and B. Component A has a budget of ₦500,000 and a variance of ₦20,000. Component B has a budget of ₦300,000 and a variance of ₦15,000. What is the total variance for the project?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 4
A company's trial balance shows the following: ₦50,000 in sales, ₦30,000 in cost of goods sold, and ₦20,000 in net income. What is the total revenue?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 5
A partnership has two partners, A and B. The partnership agreement states that profits and losses are to be shared in the ratio 3:2. If the partnership's net profit for the year is ₦120,000, how much will each partner receive?
A. ₦60,000 and ₦60,000
B. ₦72,000 and ₦48,000
C. ₦90,000 and ₦30,000
D. ₦80,000 and ₦40,000
Question 6
A company prepares a trading account, profit and loss account, and balance sheet. The trading account shows a profit of ₦10,000, while the profit and loss account shows a profit of ₦15,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
B. The company has made an error in reconciling the trading account and profit and loss account.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.
Question 7
A public sector organization has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 in advance for rent, and received ₦15,000 from a customer. Prepare the journal entries for these transactions.
A. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
C. Debit Accounts Receivable ₦15,000, Credit Cash ₦15,000
D. Debit Office Equipment ₦50,000, Credit Rent Expense ₦20,000
Question 8
A company's cash book shows a balance of ₦50,000. The company's bank statement shows a balance of ₦60,000. The difference between the two balances is due to a bank error. What is the correct balance of the company's cash book?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 9
A company has a financial year end of December 31, 2022. The company's accountant has made an error in the financial statements, resulting in an understatement of revenue by ₦20,000. What is the correct financial year end?
A. December 31, 2022
B. January 1, 2023
C. February 28, 2023
D. March 31, 2023
Question 10
A company prepares a trading account, profit and loss account, and balance sheet. The trading account shows a profit of ₦10,000, while the profit and loss account shows a profit of ₦15,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
B. The company has made an error in reconciling the trading account and profit and loss account.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.
Question 11
A company uses the single-entry system of accounting. The following transactions were recorded during the year: Debit: Raw Materials ₥ 10,000, Wages ₥ 20,000, Rent ₥ 30,000 Credit: Purchases ₥ 40,000, Salaries ₥ 25,000, Dividends ₥ 15,000 What is the total amount of assets recorded by the company?
A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000
Question 12
A company has the following ledger accounts: Sales 100,000, Purchases 120,000. What is the correct journal entry to rectify the error?
A. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Capital Account
B. Debit 20,000 to Capital Account, Credit 20,000 to Profit and Loss Account
C. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Drawings Account
D. Debit 20,000 to Drawings Account, Credit 20,000 to Profit and Loss Account
Question 13
A company's balance sheet at the end of the year shows the following: ₦100,000 in cash, ₦50,000 in accounts receivable, and ₦20,000 in inventory. What is the total current assets?
A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000
Question 14
A company has a balance sheet date of December 31, 2022. The company's accountant has made an error in the financial statements, resulting in an overstatement of assets by ₦50,000. What is the correct date of the balance sheet?
A. December 31, 2022
B. January 1, 2023
C. February 28, 2023
D. March 31, 2023
Question 15
A company uses the straight-line method of depreciation. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation expense?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

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