POST UTME MADONNA UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 for direct materials and ₦80,000 for direct labor. The Assembly department incurred costs of ₦150,000 for direct materials and ₦100,000 for direct labor. The company's total overhead costs for the period were ₦200,000. Prepare a departmental income statement for the Cutting department.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 2
A company uses the single-entry system of accounting. The following transactions were recorded during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000
Question 3
A company's financial statements for the year ended December 31, 2022, show the following: Revenue ₦1,500,000, Cost of Goods Sold ₦900,000, and Net Income ₦300,000. What is the company's gross profit margin?
A. 20%
B. 25%
C. 30%
D. 35%
Question 4
A company has the following transactions: 1. Purchased goods for ₦150,000 on credit. 2. Sold goods for ₦250,000 cash. 3. Purchased office equipment for ₦80,000 cash. 4. Paid salaries of ₦120,000. What is the net effect on the company's cash position?
A. ₦30,000
B. ₦130,000
C. ₦230,000
D. ₦330,000
Question 5
A company's trial balance as of December 31, 2022, is as follows:
A. Debit 10,000 and Credit 10,000
B. Debit 5,000 and Credit 5,000
C. Debit 15,000 and Credit 15,000
D. Debit 20,000 and Credit 20,000
Question 6
The following ledger account is for a manufacturing company. The company uses a job costing system. The ledger account shows the following transactions: Debit: Raw Materials 10,000, Work-in-Progress 15,000 Credit: Sales 25,000 What is the correct balance of the Work-in-Progress account?
A. 30,000
B. 20,000
C. 15,000
D. 10,000
Question 7
A company has the following trial balance: Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000. What is the total amount of assets?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 8
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Accounts Receivable ₦50,000, and Common Stock ₦500,000. What is the total amount of the company's liabilities?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
A public sector organization has a budget of ₦1.2 billion for the year. The organization has a 20% contingency fund, which is not included in the budget. If the organization spends 80% of the budget, how much is left for the contingency fund?
A. ₦192 million
B. ₦240 million
C. ₦288 million
D. ₦360 million
Question 10
A company's balance sheet as of December 31, 2022, shows the following: Cash ₦200,000, Accounts Payable ₦100,000, and Common Stock ₦500,000. What is the company's total liabilities and equity?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 11
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?
A. Assets increase by ₦10,000, Liabilities increase by ₦10,000
B. Assets decrease by ₦10,000, Liabilities decrease by ₦10,000
C. Assets increase by ₦10,000, Liabilities decrease by ₦10,000
D. Assets decrease by ₦10,000, Liabilities increase by ₦10,000
Question 12
A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net income for the year?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 13
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that the rent expense for the year was ₦20,000. What is the correct journal entry to correct the error?
A. ₦5,000 debit to Rent Expense and ₦5,000 credit to Cash
B. ₦20,000 debit to Rent Expense and ₦20,000 credit to Cash
C. ₦5,000 debit to Rent Expense and ₦5,000 credit to Rent Payable
D. ₦20,000 debit to Rent Expense and ₦20,000 credit to Rent Payable
Question 14
A partnership is formed between two individuals, John and Mary, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, what is John's share of the profit?
A. ₦225,000
B. ₦300,000
C. ₦375,000
D. ₦450,000
Question 15
A manufacturing company has a production cost of ₦100 per unit. The company sells each unit for ₦150. If the company produces 1,000 units, what is the company's gross profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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