Practice Post UTME MADONNA UNIVERSITY accounting 2022 Past Questions

Question 1

A company produces two products, X and Y. Product X has a variable cost of ₦100 per unit and a fixed cost of ₦500,000. Product Y has a variable cost of ₦200 per unit and a fixed cost of ₦300,000. If the selling price of X is ₦300 per unit and the selling price of Y is ₦400 per unit, and the company sells 2,000 units of X and 1,500 units of Y, what is the total profit?

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 2

A company has the following transactions: Purchased ₦500,000 cash from the bank, 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 cash account?

A. ₦250,000

Correct B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: B

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Question 3

A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a profit of ₦1,000,000, how much will Partner A receive?

Correct A. ₦600,000

B. ₦700,000

C. ₦800,000

D. ₦900,000

Correct Answer: A

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Question 4

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

Correct B. ₦300,000

C. ₦400,000

D. ₦500,000

Correct Answer: B

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Question 5

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 receivable account?

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 6

A company has two partners, A and B, who share profits in the ratio 3:2. The company's profit for the year ended 31st December 2022 was ₦1,500,000. If A's drawings for the year were ₦150,000, calculate A's share of the profit.

Correct A. ₦675,000

B. ₦675,000

C. ₦675,000

D. ₦675,000

Correct Answer: A

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Question 7

A manufacturing company uses a job costing system. The following information is available for Job No. 123: Direct Materials: ₦120,000 Direct Labour: ₦80,000 Overheads: ₦60,000 Selling Price per unit: ₦2,500 Number of units produced: 100 Calculate the profit per unit.

Correct A. ₦1,200

B. ₦1,200

C. ₦1,200

D. ₦1,200

Correct Answer: A

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Question 8

A company's trial balance as at 31st December 2022 is as follows: Debit ₦ 50,000 Cash ₦ 20,000 Accounts Receivable ₦ 30,000 Office Equipment ₦ 10,000 Prepaid Rent ₦ 15,000 Accrued Expenses ₦ 25,000 Notes Payable Credit ₦ 20,000 Accounts Payable ₦ 30,000 Common Stock ₦ 15,000 Dividends ₦ 25,000 Salaries Payable Determine the company's net income for the year.

Correct A. ₦ 10,000

B. ₦ 10,000

C. ₦ 10,000

D. ₦ 10,000

Correct Answer: A

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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.

Correct A. ₦ 675,000

B. ₦ 675,000

C. ₦ 675,000

D. ₦ 675,000

Correct Answer: A

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Question 10

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.

Correct A. ₦ 1,800

B. ₦ 1,800

C. ₦ 1,800

D. ₦ 1,800

Correct Answer: A

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Question 11

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

Correct 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

Correct Answer: C

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Question 12

A company uses the single-entry system of accounting. The company's accounting records show the following transactions for the year:

A. ₦100,000

Correct B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: B

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Question 13

A company's balance sheet as at December 31, 2022, shows the following balances:

A. ₦500,000

B. ₦750,000

C. ₦1,000,000

Correct D. ₦1,250,000

Correct Answer: D

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Question 14

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

Correct 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

Correct Answer: B

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Question 15

A company's balance sheet as at December 31, 2022, shows the following balances:

A. ₦200,000

B. ₦300,000

Correct C. ₦400,000

D. ₦500,000

Correct Answer: C

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Question 16

In a partnership account, what is the correct order of preparation of the final accounts?

Correct A. Trading Account, Profit and Loss Account, Balance Sheet

B. Balance Sheet, Profit and Loss Account, Trading Account

C. Trading Account, Balance Sheet, Profit and Loss Account

D. Profit and Loss Account, Trading Account, Balance Sheet

Correct Answer: A

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Question 17

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

Correct 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

Correct Answer: B

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Question 18

A company has a capital of ₦1,000,000, divided into 10,000 shares of ₦100 each. If the company issues 5,000 shares at a premium of ₦20 per share, what is the amount of the premium received?

A. ₦50,000

B. ₦100,000

Correct C. ₦150,000

D. ₦200,000

Correct Answer: C

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Question 19

What is the correct formula for calculating the net book value of a fixed asset?

Correct A. Cost - Accumulated Depreciation

B. Cost + Accumulated Depreciation

C. Accumulated Depreciation - Cost

D. Cost x Accumulated Depreciation

Correct Answer: A

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Question 20

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

Correct B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: B

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Question 21

A public sector organization prepares its financial statements in accordance with the Cash Basis of Accounting. Which of the following accounts would be classified as a 'current asset'?

Correct A. Prepaid Rent

B. Accrued Expenses

C. Unearned Revenue

D. Accounts Payable

Correct Answer: A

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Question 22

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

Correct C. Salaries Payable

D. Prepaid Rent

Correct Answer: C

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Question 23

A bank reconciliation statement is prepared to reconcile the differences between the bank statement and the cash book. Which of the following items would be included in the 'add' column of the bank reconciliation statement?

Correct A. Deposits in Transit

B. Bank Charges

C. Interest Earned

D. Fees Collected

Correct Answer: A

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Question 24

A company uses the Double Entry System of accounting. Which of the following accounts would be classified as a 'current asset'?

A. Accounts Payable

B. Accrued Expenses

C. Unearned Revenue

Correct D. Cash

Correct Answer: D

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Question 25

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

Correct D. Bank

Correct Answer: D

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