Neco Model Questions Vol1 2025 Financial Accounting Question 12

Practice objective / multiple choice question 12 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2025 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 12 NECO_MODEL_QUESTIONS_VOL1 • 2025 • FINANCIAL_ACCOUNTING • objective

Company XYZ provided the following information for the year ended 31 December 2025 (all amounts in ₦): - Sales revenue: ₦1,200,000 - Opening inventory: ₦150,000 - Purchases: ₦600,000 - Closing inventory: ₦180,000 - Operating expenses: salaries ₦200,000; rent ₦80,000; utilities ₦30,000 - Machinery cost ₦500,000; accumulated depreciation ₦150,000; useful life 10 years; residual value ₦50,000 (straight‑line) - Accounts receivable at year‑end: ₦100,000; allowance for doubtful debts to be set at 5 % of receivables - Equipment sold: original cost ₦80,000; accumulated depreciation ₦50,000; cash received ₦45,000 - Corporate tax rate: 30 % of profit before tax Calculate the profit after tax for the year.

Answer Options

A. ₦182,000
Correct Answer B. ₦199,500
C. ₦215,000
D. ₦210,750
Correct Answer
B
Correct Option:
₦199,500

About This Question

This is Neco Model Questions Vol1 2025 Financial Accounting Question 12. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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