POST UTME BABCOCK UNIVERSITY 2025 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 2025 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000, and the cost of purchases is ₦1,200,000. The company uses a perpetual inventory system. What is the cost of goods sold?
A. ₦900,000
Correct B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000

Correct Answer: B

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Question 2
A company issues 5,000 shares of its common stock at a par value of ₦10 per share. The company also issues 2,000 shares of its preferred stock at a par value of ₦20 per share. What is the total par value of the shares issued?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 3
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and an estimated useful life of 10 years. What is the annual depreciation expense?
Correct A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000

Correct Answer: A

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Question 4
A company has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | 1/1 | Purchase of goods | ₦100,000 | | 1/15 | Payment of accounts payable | ₦50,000 | | 2/1 | Purchase of goods | ₦150,000 | | 2/15 | Payment of accounts payable | ₦75,000 | What is the balance of the accounts payable at the end of February?
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 5
A company has the following transactions related to its sales: | Date | Description | Amount | | --- | --- | --- | | 1/1 | Sale of goods | ₦200,000 | | 1/15 | Return of goods | ₦50,000 | | 2/1 | Sale of goods | ₦250,000 | | 2/15 | Return of goods | ₦75,000 | What is the net sales revenue for the month of February?
A. ₦225,000
B. ₦250,000
Correct C. ₦275,000
D. ₦300,000

Correct Answer: C

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Question 6
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Calculate the total amount received from the sale of shares and the total amount of share capital.
Correct A. ₦75,000,000
B. ₦75,000,000
C. ₦75,000,000
D. ₦75,000,000

Correct Answer: A

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Question 7
A company purchased a machine for ₦500,000. The machine depreciates at 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦315,000
B. ₦315,000
C. ₦315,000
D. ₦315,000

Correct Answer: A

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Question 8
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures and the total amount of debenture capital.
Correct A. ₦4,750,000
B. ₦4,750,000
C. ₦4,750,000
D. ₦4,750,000

Correct Answer: A

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Question 9
A company purchased a building for ₦1,500,000. The building depreciates at 5% per annum. Calculate the value of the building after 2 years.
Correct A. ₦1,387,500
B. ₦1,387,500
C. ₦1,387,500
D. ₦1,387,500

Correct Answer: A

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Question 10
A company issued 10,000 shares of ₦10 par value at a premium of ₦5 per share. The shares were sold for ₦15 each. Calculate the total amount received from the sale of shares and the total amount of share capital.
Correct A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: A

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Question 11
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Calculate the total amount received from the sale of shares.
A. ₦75,000
B. ₦100,000
Correct C. ₦125,000
D. ₦150,000

Correct Answer: C

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Question 12
A company's assets are valued at ₦500,000, liabilities are ₦200,000, and equity is ₦300,000. Calculate the company's net asset value.
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 13
A company issued 10% debentures of ₦100,000 at a premium of 10%. Calculate the annual interest payable on the debentures.
A. ₦10,000
Correct B. ₦11,000
C. ₦12,000
D. ₦13,000

Correct Answer: B

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Question 14
A company's depreciation policy is to depreciate assets by 10% per annum using the straight-line method. If an asset is valued at ₦100,000, calculate the depreciation for the first year.
Correct A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000

Correct Answer: A

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Question 15
A company's public sector accounting records show a revenue of ₦500,000 and an expenditure of ₦400,000. Calculate the company's surplus.
Correct A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 16
A company uses the single-entry system of accounting. The following transactions occurred during the year: Depreciation on a machine: ₦15,000 Interest on a loan: ₦8,000 Salaries: ₦120,000 Rent: ₦30,000 Purchases: ₦250,000 What is the total amount of expenses recorded in the single-entry system?
A. ₦403,000
B. ₦403,000
C. ₦403,000
Correct D. ₦403,000

Correct Answer: D

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Question 17
A public sector organization has the following transactions: Salaries: ₦120,000 Rent: ₦30,000 Purchases: ₦250,000 Depreciation on a machine: ₦15,000 Interest on a loan: ₦8,000 What is the total amount of expenses recorded in the public sector accounting system?
A. ₦403,000
B. ₦403,000
C. ₦403,000
Correct D. ₦403,000

Correct Answer: D

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Question 18
A company has the following transactions: Purchases: ₦250,000 Depreciation on a machine: ₦15,000 Interest on a loan: ₦8,000 Salaries: ₦120,000 Rent: ₦30,000 What is the total amount of expenses recorded in the company's accounting system?
A. ₦403,000
B. ₦403,000
C. ₦403,000
Correct D. ₦403,000

Correct Answer: D

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Question 19
A partnership has the following transactions: Purchases: ₦250,000 Depreciation on a machine: ₦15,000 Interest on a loan: ₦8,000 Salaries: ₦120,000 Rent: ₦30,000 What is the total amount of expenses recorded in the partnership's accounting system?
A. ₦403,000
B. ₦403,000
C. ₦403,000
Correct D. ₦403,000

Correct Answer: D

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Question 20
A company uses the single-entry system of accounting. The following transactions occurred during the year: Depreciation on a machine: ₦15,000 Interest on a loan: ₦8,000 Salaries: ₦120,000 Rent: ₦30,000 Purchases: ₦250,000 What is the total amount of expenses recorded in the single-entry system?
A. ₦403,000
B. ₦403,000
C. ₦403,000
Correct D. ₦403,000

Correct Answer: D

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Question 21
A company uses the cash book to record all its financial transactions. The cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the reason for the discrepancy?
A. The company has not recorded all its financial transactions.
B. The bank has made an error in its statement.
Correct C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded all its cash transactions.

Correct Answer: C

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Question 22
A partnership is formed between two individuals, A and B. The partnership agreement states that the profits will be shared in the ratio 3:2. However, the partnership has incurred a loss of ₦50,000. How will the loss be shared between A and B?
A. A will bear 60% of the loss and B will bear 40%.
B. A will bear 55% of the loss and B will bear 45%.
Correct C. A will bear 50% of the loss and B will bear 50%.
D. A will bear 65% of the loss and B will bear 35%.

Correct Answer: C

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Question 23
A company uses the single entry system to record its financial transactions. The company's assets at the beginning of the year were ₦100,000. The company's assets at the end of the year were ₦150,000. What is the total amount of expenses incurred by the company during the year?
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 24
A company uses the straight-line method to depreciate its assets. The company's asset has a useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation charge?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 25
A company uses the cash book to record all its financial transactions. The cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the reason for the discrepancy?
A. The company has not recorded all its financial transactions.
B. The bank has made an error in its statement.
Correct C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded all its cash transactions.

Correct Answer: C

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