POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2020 Accounting | Objective

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Question 1
A company has two departments: Manufacturing and Sales. The Manufacturing department has a direct labor cost of ₦1,500,000 and an indirect labor cost of ₦750,000. The Sales department has a direct labor cost of ₦2,000,000 and an indirect labor cost of ₦1,000,000. What is the total direct labor cost for the company?
A. ₦3,500,000
B. ₦3,250,000
C. ₦3,500,000
D. ₦3,250,000
Question 2
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. The accountant suspects that the discrepancy is due to an error in the journal entries. Which of the following steps should the accountant take to correct the error?
A. Reconcile the trial balance by investigating the journal entries
B. Recompute the trial balance from the ledger accounts
C. Adjust the trial balance by adding the discrepancy to the debit or credit side
D. Reopen the accounting period to correct the error
Question 3
A company's balance sheet as at 31 December 2020 is as follows: | Particulars | ₦ | ₦ | | --- | --- | --- | | Assets | 1,500,000 | | | Liabilities | 1,000,000 | | | Capital | | 500,000 | What is the value of the capital?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 4
A company has the following transactions in its cash book:
A. ₦35,000
B. ₦45,000
C. ₦55,000
D. ₦65,000
Question 5
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | | 4 Jan | Bank | | 200 | What is the balance of the cash book?
A. ₦1,200
B. ₦1,400
C. ₦1,200
D. ₦1,400
Question 6
A company's financial statements show a net income of ₦1,000,000. The company's tax rate is 25%. What is the amount of income tax paid?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A company has a manufacturing department that produces two products: A and B. Product A has a direct material cost of ₦50,000 and a direct labor cost of ₦30,000. Product B has a direct material cost of ₦40,000 and a direct labor cost of ₦20,000. What is the total direct material cost for the company?
A. ₦90,000
B. ₦80,000
C. ₦90,000
D. ₦80,000
Question 8
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦200,000 and its current liabilities are ₦100,000. What is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 9
A company has the following transactions in its cash book:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 10
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 1 Jan | Equipment | | 10,000 | | 15 Jan | Rent | | 5,000 | | 20 Jan | Sales | | 15,000 | What is the total amount of the debit entries?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 11
A company has the following transactions in its cash book:
A. ₦45,000
B. ₦55,000
C. ₦65,000
D. ₦75,000
Question 12
In a self-balancing ledger, what is the purpose of the trial balance?
A. To verify the accuracy of the ledger accounts
B. To identify any errors or discrepancies in the ledger accounts
C. To prepare the financial statements
D. To calculate the net worth of the business
Question 13
A company's balance sheet shows a current ratio of 2:1. The company's current assets are ₦200,000 and its current liabilities are ₦100,000. What is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 14
A company has the following transactions in its cash book:
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company has the following transactions in its cash book:
A. ₦25,000
B. ₦35,000
C. ₦45,000
D. ₦55,000

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