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.
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.
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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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