POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2022 Accounting | Objective

Are you preparing for POST UTME JOSEPH AYO BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. What is the likely reason for the discrepancy?
A. The company has not yet received the bank statement.
Correct B. The bank has charged a fee for the overdraft.
C. The company has deposited a cheque that has not yet been cleared.
D. The company's cash book is not up-to-date.

Correct Answer: B

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Question 2
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 3
A manufacturing company has two departments: A and B. Department A produces 80% of the company's total output, while Department B produces 20%. If the company's total sales revenue is ₦1,000,000, how much of the revenue comes from Department A?
Correct A. ₦800,000
B. ₦600,000
C. ₦400,000
D. ₦200,000

Correct Answer: A

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Question 4
A government agency has a budget of ₦500,000 for a project. The agency spends ₦300,000 on personnel and ₦100,000 on equipment. What is the remaining balance in the budget?
A. ₦100,000
B. ₦200,000
C. ₦300,000
Correct D. ₦400,000

Correct Answer: D

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Question 5
A company issues 5% debentures of ₦100 each at a premium of ₦10 per debenture. What is the total amount received from the issue of debentures?
A. ₦500
B. ₦550
C. ₦600
Correct D. ₦650

Correct Answer: D

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Question 6
A company maintains a self-balancing ledger for its accounts receivable. The ledger shows a balance of ₦150,000. However, the company's trial balance shows a balance of ₦180,000 for the same account. What is the most likely explanation for the discrepancy?
Correct A. The company has not yet recorded a payment from a customer.
B. The company has incorrectly recorded a payment from a customer.
C. The company has incorrectly recorded a sale.
D. The company has not yet recorded a sale.

Correct Answer: A

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Question 7
A company uses the cash book method to record its transactions. The cash book shows a balance of ₦120,000. However, the company's bank statement shows a balance of ₦100,000. What is the most likely explanation for the discrepancy?
A. The company has not yet recorded a deposit.
Correct B. The company has incorrectly recorded a withdrawal.
C. The company has incorrectly recorded a deposit.
D. The company has not yet recorded a withdrawal.

Correct Answer: B

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Question 8
A company uses the single entry method to record its transactions. The company's single entry ledger shows a balance of ₦80,000. However, the company's trial balance shows a balance of ₦60,000 for the same account. What is the most likely explanation for the discrepancy?
Correct A. The company has not yet recorded a payment.
B. The company has incorrectly recorded a payment.
C. The company has incorrectly recorded a sale.
D. The company has not yet recorded a sale.

Correct Answer: A

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Question 9
A company uses the cash book method to record its transactions. The cash book shows a balance of ₦150,000. However, the company's bank statement shows a balance of ₦180,000. What is the most likely explanation for the discrepancy?
A. The company has not yet recorded a deposit.
B. The company has incorrectly recorded a withdrawal.
Correct C. The company has incorrectly recorded a deposit.
D. The company has not yet recorded a withdrawal.

Correct Answer: C

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Question 10
A company uses the single entry method to record its transactions. The company's single entry ledger shows a balance of ₦120,000. However, the company's trial balance shows a balance of ₦100,000 for the same account. What is the most likely explanation for the discrepancy?
Correct A. The company has not yet recorded a payment.
B. The company has incorrectly recorded a payment.
C. The company has incorrectly recorded a sale.
D. The company has not yet recorded a sale.

Correct Answer: A

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Question 11
A company's financial statements are prepared using the accrual basis of accounting. Which of the following statements is true?
Correct A. The company's financial statements will show a higher net income than if it used the cash basis of accounting.
B. The company's financial statements will show a lower net income than if it used the cash basis of accounting.
C. The company's financial statements will show the same net income as if it used the cash basis of accounting.
D. The company's financial statements will not show any difference in net income compared to the cash basis of accounting.

Correct Answer: A

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Question 12
A manufacturing company has the following data for the year ended December 31, 2022:
A. ₦1,500,000
B. ₦1,800,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 13
A company's balance sheet as at December 31, 2022, is as follows:
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 14
A company uses the straight-line method of depreciation. If the cost of the asset is ₦1,500,000 and its residual value is ₦200,000, what is the annual depreciation charge?
Correct A. ₦1,300,000
B. ₦1,500,000
C. ₦1,700,000
D. ₦2,000,000

Correct Answer: A

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Question 15
A government agency has the following data for the year ended December 31, 2022:
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 16
A public sector organization has a capital expenditure of ₦1,500,000 for the year. The organization has a depreciation policy of 10% per annum on its assets. Calculate the amount of depreciation for the year.
Correct A. ₦150,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦100,000

Correct Answer: A

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Question 17
A company has the following transactions for the year: Debit: ₦1,000,000 (Sales), ₦500,000 (Purchases), ₦200,000 (Rent), ₦300,000 (Wages) Credit: ₦1,200,000 (Capital), ₦800,000 (Drawings), ₦400,000 (Interest) Prepare the Trading and Profit and Loss Account for the year.
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 18
A company has the following balances in its ledger: Debit: ₦1,000,000 (Sales), ₦500,000 (Purchases), ₦200,000 (Rent), ₦300,000 (Wages) Credit: ₦1,200,000 (Capital), ₦800,000 (Drawings), ₦400,000 (Interest) Prepare the Balance Sheet for the company.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 19
A company has the following transactions for the year: Debit: ₦1,000,000 (Sales), ₦500,000 (Purchases), ₦200,000 (Rent), ₦300,000 (Wages) Credit: ₦1,200,000 (Capital), ₦800,000 (Drawings), ₦400,000 (Interest) Prepare the Trial Balance for the company.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 20
A company has the following errors in its ledger: Debit: ₦1,000,000 (Sales), ₦500,000 (Purchases), ₦200,000 (Rent), ₦300,000 (Wages) Credit: ₦1,200,000 (Capital), ₦800,000 (Drawings), ₦400,000 (Interest) Correct the errors and prepare the corrected ledger.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 21
A company has the following assets: ₦1,000,000 (Cash), ₦500,000 (Stock), ₦200,000 (Furniture), ₦300,000 (Vehicles) Calculate the total value of the assets.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 22
A company has the following liabilities: ₦1,000,000 (Loans), ₦500,000 (Creditors), ₦200,000 (Tax), ₦300,000 (Wages) Calculate the total value of the liabilities.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 23
A company has the following equity: ₦1,000,000 (Share Capital), ₦500,000 (Retained Earnings), ₦200,000 (Dividends) Calculate the total value of the equity.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 24
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After one year, the profit is ₦200,000. The profit-sharing ratio is 3:2. Calculate the amount of profit that each partner will receive.
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 25
A company issues 5,000, 9% debentures of ₦100 each. The debentures are redeemable at a premium of 10% after 5 years. Calculate the annual amortization of the premium.
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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