POST UTME MADONNA UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows the following balances: Account A ₦80,000, Account B ₦60,000. The company's accountant wants to prepare a balance sheet. What is the correct balance for Account A?
A. ₦80,000
B. ₦60,000
C. ₦100,000
D. ₦120,000
Question 2
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦12,000
Question 3
A company has the following transactions for the year: - Purchased office equipment for ₦120,000. - Sold office equipment for ₦80,000. - Purchased office furniture for ₦60,000. - Sold office furniture for ₦40,000. Determine the net change in office equipment and furniture.
A. Increase of ₦40,000
B. Decrease of ₦40,000
C. Increase of ₦80,000
D. Decrease of ₦80,000
Question 4
A company's trial balance as of December 31, 2022, is as follows: Debit Cash 10,000 Accounts Receivable 20,000 Inventory 30,000 Prepaid Rent 5,000 Equipment 50,000 Accumulated Depreciation 10,000 Total Debit 125,000 Credit Accounts Payable 15,000 Salaries Payable 5,000 Unearned Rent 5,000 Common Stock 50,000 Retained Earnings 50,000 Total Credit 125,000 Determine the company's net income for the year ended December 31, 2022.
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 5
A company's balance sheet as at 31st December 2022 is as follows: Assets: - Current Assets: ₦500,000 - Non-Current Assets: ₦1,000,000 Liabilities: - Current Liabilities: ₦200,000 - Non-Current Liabilities: ₦500,000 Determine the company's net worth.
A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦500,000
Question 6
A company issued 5,000 shares of ₦10 each at a premium of ₦2 per share. Determine the total amount received from the issue of shares.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 7
A company prepares its financial statements in accordance with the accruals basis of accounting. If the company has a trade receivable of ₦50,000 and a trade payable of ₦20,000, what is the net amount due from customers?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 8
A company's trading account for the year ended 31st December 2022 is as follows: Debit: - Purchases: ₦1,200,000 - Carriage Inward: ₦20,000 Credit: - Sales: ₦1,500,000 - Carriage Outward: ₦30,000 Determine the gross profit for the year.
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 9
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the net profit for the year is ₦150,000, how much will A receive as their share of the profit?
A. ₦135,000
B. ₦120,000
C. ₦90,000
D. ₦60,000
Question 10
A company's trial balance showed the following balances: Machinery £ 10,000, Accrued Expenses £ 5,000, and Drawings £ 8,000. Prepare the ledger accounts for Machinery and Accrued Expenses.
A. Machinery: Debit £ 10,000, Credit £ 5,000; Accrued Expenses: Debit £ 5,000, Credit £ 8,000
B. Machinery: Debit £ 10,000, Credit £ 8,000; Accrued Expenses: Debit £ 5,000, Credit £ 10,000
C. Machinery: Debit £ 10,000, Credit £ 10,000; Accrued Expenses: Debit £ 5,000, Credit £ 5,000
D. Machinery: Debit £ 8,000, Credit £ 10,000; Accrued Expenses: Debit £ 5,000, Credit £ 5,000
Question 11
Determine the amount of depreciation for a machine that cost ₦250,000 and has a useful life of 5 years. The machine is depreciated using the straight-line method.
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 12
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
C. ₦0
D. ₦300,000
Question 13
A company produces two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 100 units of product X and 80 units of product Y, what is the total labor cost for the day?
A. ₦12,800
B. ₦13,200
C. ₦13,600
D. ₦14,000
Question 14
A company uses the straight-line method of depreciation. The cost of the asset is ₦120,000 and its useful life is 5 years. What is the annual depreciation?
A. ₦20,000
B. ₦24,000
C. ₦30,000
D. ₦36,000
Question 15
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
B. £ 50,000
C. £ 60,000
D. £ 70,000

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