POST UTME BABCOCK UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Prepare the journal entry for the issue of debentures.
A. ₦500,000
B. ₦450,000
C. ₦475,000
D. ₦525,000
Question 2
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 3
A company's cash book showed the following transactions: 1st January, 2022: Cash: ₦10,000; Bank: ₦5,000; 15th January, 2022: Cash: ₦20,000; Bank: ₦10,000. Prepare the company's bank reconciliation statement as at 31st December, 2022.
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 4
A company's accounting policy requires that all assets be recorded at their historical cost. However, the company has a significant amount of inventory that was purchased at a price lower than its current market value. What accounting treatment would be appropriate for this inventory?
A. Write off the difference as a loss in the current period.
B. Recognize the difference as a gain in the current period.
C. Record the inventory at its current market value.
D. Do nothing, as the historical cost is still relevant.
Question 5
A company issues 1,000 shares of common stock at ₦10 per share. If the company has a par value of ₦5 per share, what is the total amount of cash received from the sale of these shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 6
A company uses the perpetual inventory system. If the company purchases 100 units of inventory at ₦50 each, and the previous balance was 50 units at ₦60 each, what is the total cost of inventory?
A. ₦9,000
B. ₦10,000
C. ₦11,000
D. ₦12,000
Question 7
A company's balance sheet contains the following accounts: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 10,000. What is the company's total assets?
A. 25,000
B. 30,000
C. 35,000
D. 40,000
Question 8
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 9
A company has the following balance sheet as of December 31, 2022:
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 10
A company has the following trial balance: Debit: ₦30,000, Credit: ₦35,000. What is the net effect of these transactions on the company's equity?
A. ₦5,000 decrease
B. ₦5,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase
Question 11
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 12
A company's trial balance contains the following accounts: Cash 10,000, Accounts Payable 5,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 10,000. What is the company's net income?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 13
A government agency is responsible for collecting taxes on behalf of the state. The agency's accounting records show that it has collected ₦1,000,000 in taxes but has not yet remitted the funds to the state. What is the correct accounting treatment for this situation?
A. Recognize the taxes as revenue and record a liability for the amount owed to the state.
B. Record the taxes as an asset and recognize the liability for the amount owed to the state.
C. Do nothing, as the taxes have not yet been remitted.
D. Write off the taxes as a loss in the current period.
Question 14
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 2 years.
A. ₦450,000
B. ₦400,000
C. ₦350,000
D. ₦315,000
Question 15
A company has the following transactions in its cash book: Debit: ₦10,000, Credit: ₦15,000. What is the net effect of these transactions on the company's cash balance?
A. ₦5,000 decrease
B. ₦5,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: