POST UTME MADONNA UNIVERSITY 2024 Accounting | Objective

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Question 1 View Details
A company's trading account for the year ended 31st December 2023 is as follows: Debit: Sales: ₦1,500,000 Purchases: ₦1,200,000 Returns outwards: ₦50,000 Returns inwards: ₦20,000 Credit: Cost of goods sold: ₦1,300,000 What is the value of the company's gross profit for the year?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 2 View Details
A company's balance sheet as at 31st December 2023 is as follows: Assets: ₦1,500,000 (Cash) ₦1,200,000 (Debtors) ₦800,000 (Stock) Liabilities: ₦1,000,000 (Creditors) What is the company's net worth as at 31st December 2023?
A. ₦500,000
B. ₦600,000
C. ₦700,000
Correct D. ₦800,000

Correct Answer: D

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Question 3 View Details
A company's cash book for the year ended 31st December 2023 is as follows: Date | Debit | Credit | Balance 01/01/2023 | ₦1,000,000 | ₦1,000,000 | ₦1,000,000 02/01/2023 | ₦500,000 | | ₦1,500,000 03/01/2023 | | ₦1,000,000 | ₦1,000,000 What is the company's cash balance as at 31st December 2023?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 4 View Details
A company's bank reconciliation statement for the year ended 31st December 2023 is as follows: Bank Statement: ₦1,500,000 (Opening Balance) ₦500,000 (Deposits) ₦1,000,000 (Withdrawals) ₦2,000,000 (Closing Balance) Cash Book: ₦1,000,000 (Opening Balance) ₦500,000 (Deposits) ₦1,000,000 (Withdrawals) ₦1,500,000 (Closing Balance) What is the reason for the discrepancy between the bank statement and the cash book?
A. Bank charges
B. Interest on overdraft
C. Cheques returned unpaid
Correct D. Cheques deposited but not yet cleared

Correct Answer: D

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Question 5 View Details
A company's manufacturing account for the year ended 31st December 2023 is as follows: Direct Materials: ₦1,000,000 (Raw materials) ₦500,000 (Direct labour) ₦1,500,000 (Total) Direct Labour: ₦500,000 (Labour cost) ₦500,000 (Total) What is the company's total manufacturing cost for the year?
A. ₦2,000,000
B. ₦2,500,000
Correct C. ₦3,000,000
D. ₦3,500,000

Correct Answer: C

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Question 6 View Details
A company uses the perpetual inventory system. The following transactions occurred during the year: 1. Purchased office supplies for ₦15,000. 2. Sold goods for ₦200,000. 3. Purchased goods for ₦300,000. 4. Sold office supplies for ₦5,000. 5. Purchased goods for ₦150,000. 6. Sold goods for ₦250,000. 7. Purchased office supplies for ₦20,000. 8. Sold goods for ₦100,000. The company's beginning inventory was ₦50,000. The cost of goods sold is ₦400,000. What is the company's ending inventory?
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

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Question 7 View Details
A company's trial balance contains the following accounts: Debit Cash ₦100,000 Accounts Payable ₦50,000 Sales Revenue ₦200,000 Cost of Goods Sold ₦150,000 Common Stock ₦500,000 What is the company's net income?
A. ₦50,000
B. ₦100,000
C. ₦150,000
Correct D. ₦200,000

Correct Answer: D

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Question 8 View Details
A company's bank reconciliation statement shows the following: Bank Balance ₦100,000 Deposits in Transit ₦20,000 Outstanding Checks ₦10,000 What is the company's adjusted bank balance?
A. ₦110,000
Correct B. ₦120,000
C. ₦130,000
D. ₦140,000

Correct Answer: B

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Question 9 View Details
A company's financial statements for the year ended December 31, 2023, are as follows: Balance Sheet: Assets ₦500,000 Liabilities ₦200,000 Equity ₦300,000 Income Statement: Revenue ₦400,000 Expenses ₦200,000 Net Income ₦200,000 What is the company's return on equity?
Correct A. 100%
B. 80%
C. 60%
D. 40%

Correct Answer: A

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Question 10 View Details
A government agency's financial statements for the year ended December 31, 2023, are as follows: Balance Sheet: Assets ₦1,000,000 Liabilities ₦500,000 Equity ₦500,000 Income Statement: Revenue ₦800,000 Expenses ₦400,000 Net Income ₦400,000 What is the agency's return on equity?
Correct A. 80%
B. 60%
C. 40%
D. 20%

Correct Answer: A

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Question 11 View Details
A company uses the double-entry system to record transactions. If the company purchases office supplies for ₦10,000, what is the effect on the accounting equation?
A. Assets increase by ₦10,000 and Liabilities decrease by ₦10,000
Correct B. Assets increase by ₦10,000 and Equity increases by ₦10,000
C. Assets decrease by ₦10,000 and Liabilities increase by ₦10,000
D. Assets decrease by ₦10,000 and Equity decreases by ₦10,000

Correct Answer: B

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Question 12 View Details
A manufacturing company produces 1,000 units of a product, each with a selling price of ₦500. If the company's variable costs are ₦200 per unit and fixed costs are ₦50,000, what is the company's gross profit?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 13 View Details
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 14 View Details
A partnership has two partners, A and B. Partner A invests ₦100,000 and Partner B invests ₦50,000. If the partnership earns a profit of ₦20,000, what is Partner A's share of the profit?
A. ₦10,000
Correct B. ₦12,500
C. ₦15,000
D. ₦17,500

Correct Answer: B

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Question 15 View Details
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦20,000. What is the company's net cash inflow?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 16 View Details
A company's bank reconciliation statement shows the following differences: Bank statement balance ₦100,000, Cash book balance ₦120,000, and Outstanding checks ₦10,000. What is the company's corrected cash balance?
A. ₦110,000
B. ₦120,000
Correct C. ₦130,000
D. ₦140,000

Correct Answer: C

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Question 17 View Details
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 18 View Details
A partnership has two partners, A and B. Partner A invests ₦100,000 and Partner B invests ₦50,000. If the partnership earns a profit of ₦20,000, what is Partner A's share of the profit?
A. ₦10,000
Correct B. ₦12,500
C. ₦15,000
D. ₦17,500

Correct Answer: B

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Question 19 View Details
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦20,000. What is the company's net cash inflow?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: VIEW ANSWER

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Question 20 View Details
The following is a statement of financial position for a manufacturing company. What is the amount of the company's current liabilities?
A. ₦125,000
Correct B. ₦175,000
C. ₦225,000
D. ₦275,000

Correct Answer: B

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Question 21 View Details
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's sales?
A. ₦170,000
B. ₦180,000
Correct C. ₦190,000
D. ₦200,000

Correct Answer: C

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Question 22 View Details
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's purchases?
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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Question 23 View Details
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's cash payments?
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 24 View Details
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's credit sales?
Correct A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: A

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Question 25 View Details
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's credit purchases?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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