POST UTME BABCOCK UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME BABCOCK UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
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?
Correct A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000

Correct Answer: A

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Question 2
A company has the following ledger balances: Debtors: ₥ 50,000, Creditors: ₥ 30,000, Capital: ₥ 100,000 What is the total amount of assets recorded by the company?
A. ₥ 180,000
B. ₥ 190,000
Correct C. ₥ 200,000
D. ₥ 210,000

Correct Answer: C

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Question 3
A company uses the double-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?
Correct A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000

Correct Answer: A

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Question 4
A company has the following ledger balances: Debtors: ₥ 50,000, Creditors: ₥ 30,000, Capital: ₥ 100,000 What is the total amount of assets recorded by the company?
A. ₥ 180,000
B. ₥ 190,000
Correct C. ₥ 200,000
D. ₥ 210,000

Correct Answer: C

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Question 5
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?
Correct A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000

Correct Answer: A

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Question 6
A company's trial balance shows a difference of ₦15,000 between the debit and credit balances. The company's accountant suspects that the difference is due to an error in the posting of a transaction. Which of the following steps should the accountant take first?
Correct A. Verify the journal entries for the period to identify the error.
B. Reconcile the bank statement to ensure that all transactions have been recorded.
C. Check the cash book to ensure that all cash transactions have been recorded.
D. Prepare a revised trial balance to reflect the correct balances.

Correct Answer: A

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Question 7
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
Correct B. ₦72,000 and ₦48,000
C. ₦90,000 and ₦30,000
D. ₦80,000 and ₦40,000

Correct Answer: B

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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
Correct C. ₦60,000
D. ₦65,000

Correct Answer: C

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Question 9
A company's trial balance shows a difference of ₦20,000 between the debit and credit balances. The company's accountant suspects that the difference is due to an error in the posting of a transaction. Which of the following steps should the accountant take next?
A. Verify the journal entries for the period to identify the error.
Correct B. Reconcile the bank statement to ensure that all transactions have been recorded.
C. Check the cash book to ensure that all cash transactions have been recorded.
D. Prepare a revised trial balance to reflect the correct balances.

Correct Answer: B

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Question 10
A company's cash book shows a balance of ₦30,000. The company's bank statement shows a balance of ₦40,000. The difference between the two balances is due to a bank error. What is the correct balance of the company's cash book?
A. ₦30,000
B. ₦35,000
Correct C. ₦40,000
D. ₦45,000

Correct Answer: C

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Question 11
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦12,000, while the general ledger shows a balance of ₦15,000. The bank statement shows a balance of ₦18,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
B. The bank has made an error in sending the statement.
Correct C. The company has made an error in reconciling the cash book and bank statement.
D. The company has made an error in recording a deposit.

Correct Answer: C

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Question 12
A single entry system is used by a company to record transactions. The company's cash book shows a balance of ₦10,000, while the general ledger shows a balance of ₦12,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
Correct B. The company has made an error in reconciling the cash book and general ledger.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.

Correct Answer: B

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Question 13
A partnership has two partners, A and B. The partnership's capital account shows a balance of ₦20,000, while the partner's capital account shows a balance of ₦15,000. What is the correct explanation for the discrepancy?
A. Partner A has made an error in recording a transaction.
B. Partner B has made an error in recording a transaction.
Correct C. The partnership has made an error in reconciling the capital account and partner's capital account.
D. The partnership has made an error in recording a deposit.

Correct Answer: C

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Question 14
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.
Correct 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.

Correct Answer: B

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Question 15
A company prepares a trading account, profit and loss account, and balance sheet. The balance sheet shows a total assets of ₦50,000, while the trading account shows a total assets of ₦40,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
Correct B. The company has made an error in reconciling the balance sheet and trading account.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.

Correct Answer: B

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Question 16
A company prepares a trading account, profit and loss account, and balance sheet. The profit and loss account shows a profit of ₦15,000, while the balance sheet shows a total assets of ₦50,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
Correct B. The company has made an error in reconciling the profit and loss account and balance sheet.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.

Correct Answer: B

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Question 17
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.
Correct 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.

Correct Answer: B

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Question 18
A company prepares a trading account, profit and loss account, and balance sheet. The balance sheet shows a total assets of ₦50,000, while the trading account shows a total assets of ₦40,000. 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 balance sheet and trading account.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.

Correct Answer: VIEW ANSWER

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Question 19
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
Correct 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

Correct Answer: B

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Question 20
A company's trial balance shows the following balances:
Correct A. Debit Sales 10,000 and Credit Cost of Goods Sold 10,000
B. Debit Cost of Goods Sold 10,000 and Credit Sales 10,000
C. Debit Sales 10,000 and Credit Accounts Receivable 10,000
D. Debit Accounts Receivable 10,000 and Credit Sales 10,000

Correct Answer: A

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Question 21
A company's ledger accounts show the following balances:
A. Debit Accounts Payable 5,000 and Credit Purchases 5,000
Correct B. Debit Purchases 5,000 and Credit Accounts Payable 5,000
C. Debit Accounts Receivable 5,000 and Credit Sales 5,000
D. Debit Sales 5,000 and Credit Accounts Receivable 5,000

Correct Answer: B

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Question 22
A company's manufacturing account shows the following balances:
Correct A. Debit Work-in-Progress 10,000 and Credit Cost of Goods Sold 10,000
B. Debit Cost of Goods Sold 10,000 and Credit Work-in-Progress 10,000
C. Debit Direct Materials 10,000 and Credit Direct Labor 10,000
D. Debit Direct Labor 10,000 and Credit Direct Materials 10,000

Correct Answer: A

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Question 23
A company's departmental accounts show the following balances:
Correct 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

Correct Answer: A

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Question 24
A company has the following trial balance: Debit 100,000, Credit 120,000. What is the correct journal entry to rectify the error?
Correct 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

Correct Answer: A

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Question 25
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
Correct 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

Correct Answer: B

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