POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦22,000
D. ₦18,000
Question 2
A company has the following transactions: Purchased office equipment for ₦120,000; sold goods for ₦80,000; purchased raw materials for ₦60,000; and paid salaries of ₦40,000. What is the total amount of expenses?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000
Question 3
A company's balance sheet shows the following balances: Cash ₦150,000, Accounts Receivable ₦90,000, Inventory ₦120,000, Prepaid Rent ₦30,000, Property, Plant, and Equipment ₦500,000, Accumulated Depreciation ₦100,000, and Total Liabilities and Equity ₦1,200,000. What is the total amount of liabilities?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 4
A manufacturing company uses the weighted average method to value its inventory. The company has two types of inventory: raw materials and work-in-progress. The raw materials are valued at ₦120,000 and the work-in-progress is valued at ₦180,000. The company has a total of 10,000 units of raw materials and 5,000 units of work-in-progress. If the company uses a cost formula of 2/3 direct materials + 1/3 direct labor, what is the total value of the inventory?
A. ₦240,000
B. ₦300,000
C. ₦360,000
D. ₦420,000
Question 5
A company's balance sheet as at 31st December 2024 is as follows: Assets ₦1,500,000, Liabilities ₥0,000,000, Capital ₥1,500,000. Calculate the company's liquidity ratio.
A. 0.6
B. 0.7
C. 0.8
D. 0.9
Question 6
A company has the following transactions: Purchased office equipment for ₦120,000; sold goods for ₦80,000; purchased raw materials for ₦60,000; and paid salaries of ₦40,000. What is the total amount of expenses?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000
Question 7
A company uses the accrual method of accounting and has the following transactions: Sales Revenue ₦100,000, Cost of Goods Sold ₦50,000, and Accounts Payable ₦20,000. What is the company's net income?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 8
A company has the following balance sheet: ₦100,000 in cash, ₦150,000 in accounts receivable, ₦200,000 in inventory, and ₦50,000 in equipment. What is the total amount of assets?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 9
A company's trial balance showed an error of ₦ 500 in the credit side of the purchases account. The error was due to an incorrect posting of ₦ 500 from the sales account. What is the correct balance of the purchases account?
A. ₦ 10,000
B. ₦ 9,500
C. ₦ 9,000
D. ₦ 8,500
Question 10
A company issued 5,000 debentures of ₦ 100 each at a discount of 5%. The issue expenses were ₦ 10,000. Calculate the amount received from the issue of debentures.
A. ₦ 475,000
B. ₦ 485,000
C. ₦ 495,000
D. ₦ 505,000
Question 11
A company has the following balance sheet: ₦100,000 in cash, ₦150,000 in accounts receivable, ₦200,000 in inventory, and ₦50,000 in equipment. What is the total amount of assets?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 12
A company's machinery was valued at ₦ 10,000 at the beginning of the year. During the year, it was depreciated by 10% on the reducing balance method. Calculate the value of the machinery at the end of the year.
A. ₦ 9,000
B. ₦ 8,100
C. ₦ 7,200
D. ₦ 6,300
Question 13
A company's trial balance showed an error of ₦ 1,000 in the debit side of the sales account. The error was due to an incorrect posting of ₦ 1,000 from the purchases account. What is the correct balance of the sales account?
A. ₦ 10,000
B. ₦ 11,000
C. ₦ 12,000
D. ₦ 13,000
Question 14
A government agency prepares a budget for the upcoming year. The budget shows the following revenues: Taxes 100,000, Fees 50,000, and Grants 20,000. If the agency's total expenses for the year are 150,000, what is the effect on the budget?
A. Revenues increase by 20,000, Expenses increase by 20,000, and Surplus increases by 20,000
B. Revenues increase by 20,000, Expenses decrease by 20,000, and Surplus increases by 20,000
C. Revenues decrease by 20,000, Expenses increase by 20,000, and Surplus decreases by 20,000
D. Revenues decrease by 20,000, Expenses decrease by 20,000, and Surplus decreases by 20,000
Question 15
A partnership prepares a balance sheet at the end of the year. The balance sheet shows the following balances: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. If the partnership's net income for the year is 20,000, what is the effect on the balance sheet?
A. Assets increase by 20,000, Liabilities increase by 20,000, and Equity increases by 20,000
B. Assets increase by 20,000, Liabilities decrease by 20,000, and Equity increases by 20,000
C. Assets decrease by 20,000, Liabilities increase by 20,000, and Equity decreases by 20,000
D. Assets decrease by 20,000, Liabilities decrease by 20,000, and Equity decreases by 20,000

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