POST UTME MADONNA UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership has two partners, A and B. The capital contributions of A and B are ₦80,000 and ₦60,000 respectively. The profit sharing ratio is 3:2. What is the ratio of A's capital to B's capital?
A. 1:1
B. 2:1
C. 3:2
D. 4:3
Question 2
A company's balance sheet as of December 31, 2022, is as follows: Assets: Cash 10,000 Accounts Receivable 20,000 Inventory 30,000 Prepaid Rent 5,000 Equipment 50,000 Accumulated Depreciation 10,000 Total Assets 125,000 Liabilities: Accounts Payable 15,000 Salaries Payable 5,000 Unearned Rent 5,000 Total Liabilities 25,000 Equity: Common Stock 50,000 Retained Earnings 50,000 Total Equity 100,000 Determine the company's total liabilities and equity.
A. 25,000
B. 50,000
C. 75,000
D. 100,000
Question 3
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
C. ₦0
D. ₦300,000
Question 4
A company uses the single entry system of accounting. The following transactions were recorded in the journal during the year: Dr. Cash A/c ₦ 10,000 Cr. Capital A/c ₦ 10,000 Dr. Cash A/c ₦ 5,000 Cr. Expenses A/c ₦ 5,000 Dr. Capital A/c ₦ 15,000 Cr. Drawings A/c ₦ 15,000 What is the balance on the Capital A/c at the end of the year?
A. ₦ 10,000
B. ₦ 25,000
C. ₦ 35,000
D. ₦ 45,000
Question 5
A company uses a process costing system to account for its manufacturing operations. The company has two departments: Mixing and Packaging. The Mixing department incurs a direct labor cost of ₦20,000 and an indirect labor cost of ₦15,000. The Packaging department incurs a direct labor cost of ₦30,000 and an indirect labor cost of ₦20,000. What is the total labor cost for the company?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 6
A company uses a job costing system to account for its manufacturing operations. The company has two departments: Cutting and Assembly. The Cutting department incurs a direct labor cost of ₦10,000 and an indirect labor cost of ₦5,000. The Assembly department incurs a direct labor cost of ₦15,000 and an indirect labor cost of ₦10,000. What is the total labor cost for the company?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 7
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦12,000
Question 8
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
B. £ 50,000
C. £ 60,000
D. £ 70,000
Question 9
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦210,000
Question 10
A company uses the weighted average method to value its inventory. The following data is available: Item 1: 100 units @ 10 each Item 2: 200 units @ 20 each Item 3: 300 units @ 30 each Determine the total cost of goods sold for the period.
A. 6,000
B. 8,000
C. 10,000
D. 12,000
Question 11
A company's bank reconciliation statement shows a difference of ₦30,000. The company's accountant wants to prepare a cash book. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦210,000
Question 12
A company uses the straight-line method of depreciation. The cost of the asset is ₦120,000 and its useful life is 5 years. What is the annual depreciation?
A. ₦20,000
B. ₦24,000
C. ₦30,000
D. ₦36,000
Question 13
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
C. ₦0
D. ₦300,000
Question 14
Determine the amount of depreciation for a machine that cost ₦250,000 and has a useful life of 5 years. The machine is depreciated using the straight-line method.
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 15
A company's trial balance as of December 31, 2022, is as follows: Debit Cash 10,000 Accounts Receivable 20,000 Inventory 30,000 Prepaid Rent 5,000 Equipment 50,000 Accumulated Depreciation 10,000 Total Debit 125,000 Credit Accounts Payable 15,000 Salaries Payable 5,000 Unearned Rent 5,000 Common Stock 50,000 Retained Earnings 50,000 Total Credit 125,000 Determine the company's net income for the year ended December 31, 2022.
A. 10,000
B. 20,000
C. 30,000
D. 40,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: