POST UTME MADONNA UNIVERSITY 2024 Accounting | Objective

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Question 1
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 and credit transactions?
A. ₦250,000
B. ₦260,000
C. ₦270,000
D. ₦280,000
Question 2
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
C. ₦100,000
D. ₦125,000
Question 3
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?
A. 100%
B. 80%
C. 60%
D. 40%
Question 4
A company has two types of shares: ordinary shares and preference shares. The ordinary shares have a par value of ₦10 each and the preference shares have a par value of ₦20 each. If the company issues 10,000 ordinary shares and 5,000 preference shares, what is the total amount of share capital?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 5
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
C. ₦100,000
D. ₦125,000
Question 6
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
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 7
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
C. ₦3,000,000
D. ₦3,500,000
Question 8
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦120,000
D. ₦150,000
Question 9
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
Question 10
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
B. ₦12,500
C. ₦15,000
D. ₦17,500
Question 11
A company has a debenture with a face value of ₦100,000 and a redemption value of ₦80,000. If the company issues the debenture at a discount of 10%, what is the amount received from the debenture?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 12
A company's trial balance showed an error of ₦5,000 due to an incorrect posting of a debit entry. The error was discovered during the preparation of the balance sheet. What is the effect of this error on the balance sheet?
A. The error will result in an overstatement of assets.
B. The error will result in an understatement of liabilities.
C. The error will not affect the balance sheet.
D. The error will result in an overstatement of liabilities.
Question 13
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
C. ₦130,000
D. ₦140,000
Question 14
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
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 15
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?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

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