POST UTME BABCOCK UNIVERSITY 2021 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 2021 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A public sector organization has a cash book account for 'Cash in Hand' with a balance of ₦120,000. The organization also has a bank account with a balance of ₦150,000. What is the total cash available to the organization?
A. ₦270,000
B. ₦270,000.00
C. ₦270,000.00
Correct D. ₦270,000

Correct Answer: D

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Question 2
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦80,000. The company also has a bank overdraft of ₦30,000. What is the company's net cash position?
A. ₦50,000
B. ₦50,000.00
C. ₦50,000
Correct D. ₦110,000

Correct Answer: D

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Question 3
A public sector organization has a cash book account for 'Cash in Hand' with a balance of ₦120,000. The organization also has a bank account with a balance of ₦150,000. What is the total cash available to the organization?
A. ₦270,000
B. ₦270,000.00
C. ₦270,000.00
Correct D. ₦270,000

Correct Answer: D

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Question 4
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦80,000. The company also has a bank overdraft of ₦30,000. What is the company's net cash position?
A. ₦50,000
B. ₦50,000.00
C. ₦50,000
Correct D. ₦110,000

Correct Answer: D

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Question 5
A public sector organization has a cash book account for 'Cash in Hand' with a balance of ₦120,000. The organization also has a bank account with a balance of ₦150,000. What is the total cash available to the organization?
A. ₦270,000
B. ₦270,000.00
C. ₦270,000.00
Correct D. ₦270,000

Correct Answer: D

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Question 6
A company is preparing its financial statements for the year ended December 31, 2021. The company's accounting policy requires that all assets and liabilities be recorded at their historical cost, except for property, plant, and equipment, which are recorded at their fair value. The company's financial statements for the year ended December 31, 2020, showed a total asset value of ₦10,000,000. The company's accountant has prepared the following journal entry for the year ended December 31, 2021:
A. ₦12,000,000
B. ₦11,000,000
Correct C. ₦10,000,000
D. ₦9,000,000

Correct Answer: C

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Question 7
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's capital account balance as at December 31, 2021, is ₦50,000. If the partnership's profit for the year ended December 31, 2021, is ₦20,000, and the partners' drawings for the year are ₦10,000 and ₦5,000 respectively, what is the amount of the partners' capital account balance as at December 31, 2022?
A. ₦60,000
Correct B. ₦55,000
C. ₦50,000
D. ₦45,000

Correct Answer: B

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Question 8
A company manufactures and sells a product that has the following costs per unit:
A. ₦100
B. ₦120
Correct C. ₦150
D. ₦180

Correct Answer: C

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Question 9
A company's cash book shows the following transactions for the month of January 2022:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 10
A company's bank reconciliation statement for the month of January 2022 shows the following discrepancies:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 11
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?
Correct A. The company has not recorded a deposit of ₦30,000.
B. The company has not recorded a withdrawal of ₦30,000.
C. The company has not recorded a bank charge of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: A

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Question 12
A business has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash received from customers | ₦100,000 | | | 2nd Jan | Cash paid to suppliers | | ₦50,000 | | 3rd Jan | Cash received from bank | | ₦20,000 | | 4th Jan | Cash paid to bank | ₦30,000 | | What is the total cash balance at the end of the month?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 13
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | | | Bank | | ₦60,000 | | Accounts Payable | | ₦30,000 | | Sales Revenue | ₦100,000 | | What is the total assets of the company?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 14
A business has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash received from customers | ₦100,000 | | | 2nd Jan | Cash paid to suppliers | | ₦50,000 | | 3rd Jan | Cash received from bank | | ₦20,000 | | 4th Jan | Cash paid to bank | ₦30,000 | | What is the total cash balance at the end of the month?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 15
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | | | Bank | | ₦60,000 | | Accounts Payable | | ₦30,000 | | Sales Revenue | ₦100,000 | | What is the total assets of the company?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 16
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?
Correct A. The company has not recorded a deposit of ₦30,000.
B. The company has not recorded a withdrawal of ₦30,000.
C. The company has not recorded a bank charge of ₦30,000.
D. The company has not recorded a loan of ₦30,000.

Correct Answer: A

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Question 17
A business has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash received from customers | ₦100,000 | | | 2nd Jan | Cash paid to suppliers | | ₦50,000 | | 3rd Jan | Cash received from bank | | ₦20,000 | | 4th Jan | Cash paid to bank | ₦30,000 | | What is the total cash balance at the end of the month?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 18
A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The difference between the two balances is ₦5,000. What is the reason for this difference?
A. The company has a loan from the bank.
B. The company has deposited cash into the bank.
Correct C. The company has paid a bill through the bank.
D. The company has received a loan from a shareholder.

Correct Answer: C

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Question 19
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the ratio of the profit-sharing ratio to the capital ratio?
Correct A. 3:2
B. 2:3
C. 1:1
D. 4:3

Correct Answer: A

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Question 20
A company's cash book shows a debit balance of ₦20,000. The bank statement shows a credit balance of ₦25,000. The difference between the two balances is ₦5,000. What is the reason for this difference?
A. The company has a loan from the bank.
B. The company has deposited cash into the bank.
Correct C. The company has paid a bill through the bank.
D. The company has received a loan from a shareholder.

Correct Answer: C

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Question 21
A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The difference between the two balances is ₦5,000. What is the reason for this difference?
A. The company has a loan from the bank.
B. The company has deposited cash into the bank.
Correct C. The company has paid a bill through the bank.
D. The company has received a loan from a shareholder.

Correct Answer: C

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Question 22
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the ratio of the profit-sharing ratio to the capital ratio?
Correct A. 3:2
B. 2:3
C. 1:1
D. 4:3

Correct Answer: A

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Question 23
A company's cash book shows a debit balance of ₦20,000. The bank statement shows a credit balance of ₦25,000. The difference between the two balances is ₦5,000. What is the reason for this difference?
A. The company has a loan from the bank.
B. The company has deposited cash into the bank.
Correct C. The company has paid a bill through the bank.
D. The company has received a loan from a shareholder.

Correct Answer: C

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Question 24
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the ratio of the profit-sharing ratio to the capital ratio?
Correct A. 3:2
B. 2:3
C. 1:1
D. 4:3

Correct Answer: A

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Question 25
A company's cash book shows a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The difference between the two balances is ₦5,000. What is the reason for this difference?
A. The company has a loan from the bank.
B. The company has deposited cash into the bank.
Correct C. The company has paid a bill through the bank.
D. The company has received a loan from a shareholder.

Correct Answer: C

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