POST UTME BABCOCK UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account shows a profit of ₦1,200,000. The company's profit and loss account shows a net profit of ₦1,500,000. Calculate the company's net worth.
A. ₦2,700,000
B. ₦2,500,000
C. ₦2,300,000
D. ₦2,100,000
Question 2
A company uses the double-entry system to record its transactions. 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 3
A company has the following final accounts:
A. Trading Profit 10,000 and Loss 10,000
B. Trading Loss 10,000 and Profit 10,000
C. Profit 10,000 and Loss 10,000
D. Loss 10,000 and Profit 10,000
Question 4
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000
Question 5
A company's incomplete records showed the following: Purchases £ 80,000, Sales £ 100,000, Capital £ 20,000. Prepare the company's statement of financial position.
A. ₦120,000
B. ₦125,000
C. ₦130,000
D. ₦135,000
Question 6
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
A. ₦50,000
B. ₦45,000
C. ₦40,000
D. ₦35,000
Question 7
A company's trial balance shows a debit balance in the 'Salaries and Wages' account of ₦150,000. However, the company's accounting records show that the actual salaries and wages paid during the year were ₦200,000. What is the correct journal entry to correct the error?
A. Debit 'Salaries and Wages' account by ₦50,000 and credit 'Profit and Loss' account by ₦50,000
B. Debit 'Profit and Loss' account by ₦50,000 and credit 'Salaries and Wages' account by ₦50,000
C. Debit 'Salaries and Wages' account by ₦50,000 and credit 'Cash' account by ₦50,000
D. Debit 'Cash' account by ₦50,000 and credit 'Salaries and Wages' account by ₦50,000
Question 8
A company manufactures two products: X and Y. Product X has a selling price of ₦100 and a variable cost of ₦50. Product Y has a selling price of ₦200 and a variable cost of ₦100. What is the contribution margin ratio?
A. 50%
B. 60%
C. 70%
D. 80%
Question 9
A company has the following ledger accounts:
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
Question 10
A company has two departments: A and B. Department A has a balance of ₦100,000 and Department B has a balance of ₦50,000. What is the total balance of the company?
A. ₦150,000
B. ₦120,000
C. ₦100,000
D. ₦50,000
Question 11
A company's departmental accounts for the year ended 31st December 20X7 showed the following: Sales £ 200,000, Cost of goods sold £ 150,000, Gross profit £ 50,000. Calculate the operating profit.
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 12
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦200,000, what is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 13
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 14
The following is a diagram of a circuit: { "type": "svg", "category": "physics", "elements": [ { "type": "circuit", "label": "A", "position": "left" }, { "type": "resistor", "label": "B", "position": "right" } ], "connections": [ [ "A", "B" ] ], "style": "black_and_white_textbook" }
A. The circuit is a series circuit.
B. The circuit is a parallel circuit.
C. The circuit is a combination of series and parallel circuits.
D. The circuit is a closed circuit.
Question 15
A company has the following transactions: 1. Issued 10,000 shares of common stock at 5 per share. 2. Purchased equipment for 80,000 cash. 3. Sold 5,000 shares of common stock at 10 per share. 4. Declared and paid a dividend of 20,000. What is the total amount of retained earnings at the end of the period?
A. 30,000
B. 40,000
C. 50,000
D. 60,000

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