POST UTME MADONNA UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
What is the main difference between a self-balancing ledger and a control account?
A. A self-balancing ledger is used for cash transactions, while a control account is used for non-cash transactions
B. A self-balancing ledger is used for non-cash transactions, while a control account is used for cash transactions
C. A self-balancing ledger is used for both cash and non-cash transactions
D. A control account is used for both cash and non-cash transactions
Question 2
A company uses the Double Entry System of accounting. Which of the following accounts would be classified as a 'control account'?
A. Cash
B. Accounts Payable
C. Accrued Expenses
D. Bank
Question 3
A company has the following transactions: Purchased ₦500,000 goods on credit, Paid ₦200,000 cash to suppliers, Received ₦150,000 cash from customers, and Purchased ₦300,000 goods on credit. What is the balance on the accounts payable account?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 4
A company uses the Single Entry System of accounting. Which of the following accounts would be classified as a 'current liability'?
A. Accounts Receivable
B. Notes Payable
C. Salaries Payable
D. Prepaid Rent
Question 5
A company's share capital consists of 100,000 ordinary shares of ₦1 each. The company issues 50,000 shares at ₦2 per share. Calculate the amount received from the issue of shares.
A. ₦100,000
B. ₦50,000
C. ₦100,000
D. ₦50,000
Question 6
A company uses the single-entry system of accounting. The company's accounting records show the following transactions for the year:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 7
A company has a profit of ₦500,000. If the company's capital is ₦1,000,000 and the drawings are ₦200,000, what is the amount of the dividend to be distributed?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A company's trial balance shows a debit balance of ₦20,000 in the 'Salaries Expense' account. However, the company's accounting records indicate that the salaries expense for the year was ₦30,000. What is the correct journal entry to correct the error?
A. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Cash
B. ₦30,000 debit to Salaries Expense and ₦20,000 credit to Cash
C. ₦20,000 debit to Salaries Expense and ₦30,000 credit to Cash
D. ₦10,000 debit to Cash and ₦10,000 credit to Salaries Expense
Question 9
A partnership has two partners, A and B, who share profits in the ratio 5:3. The company's profit for the year ended 31st December 2022 was ₦1,800,000. If A's drawings for the year were ₦180,000, calculate A's share of the profit.
A. ₦ 675,000
B. ₦ 675,000
C. ₦ 675,000
D. ₦ 675,000
Question 10
A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the rent expense for the year was ₦75,000. What is the correct journal entry to correct the error?
A. ₦25,000 debit to Rent Expense and ₦25,000 credit to Cash
B. ₦75,000 debit to Rent Expense and ₦50,000 credit to Cash
C. ₦50,000 debit to Rent Expense and ₦75,000 credit to Cash
D. ₦25,000 debit to Cash and ₦25,000 credit to Rent Expense
Question 11
What is the correct formula for calculating the net book value of a fixed asset?
A. Cost - Accumulated Depreciation
B. Cost + Accumulated Depreciation
C. Accumulated Depreciation - Cost
D. Cost x Accumulated Depreciation
Question 12
A company's share capital consists of 100,000 ordinary shares of ₦1 each. The company issues 50,000 shares at ₦2 per share. Calculate the amount received from the issue of shares.
A. ₦100,000
B. ₦50,000
C. ₦100,000
D. ₦50,000
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 14
A company uses a job costing system. The following information is available for Job No. 456: Direct Materials: ₦180,000 Direct Labour: ₦120,000 Overheads: ₦90,000 Selling Price per unit: ₦3,000 Number of units produced: 150 Calculate the profit per unit.
A. ₦ 1,800
B. ₦ 1,800
C. ₦ 1,800
D. ₦ 1,800
Question 15
A company has the following balance sheet as at 31st December, 2022: Assets: Cash ₦50,000 Accounts Receivable ₦100,000 Inventory ₦150,000 Total Assets ₦300,000 Liabilities: Accounts Payable ₦50,000 Long-term Debt ₦150,000 Total Liabilities ₦200,000 Equity: Common Stock ₦50,000 Retained Earnings ₦50,000 Total Equity ₦100,000 What is the company's current ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0

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