POST UTME MADONNA UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The partners of XYZ Partnership have decided to share profits in the ratio 3:5:7. If the total profit for the year is ₦1,500,000, calculate the share of each partner.
A. ₦225,000
B. ₦375,000
C. ₦525,000
D. ₦675,000
Question 2
In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' process?
A. To ensure that all transactions are properly authorized and recorded
B. To provide a framework for managing and controlling public sector finances
C. To facilitate the preparation of financial statements
D. To enable the government to make informed decisions about resource allocation
Question 3
A company has the following transactions: Purchased goods on credit for ₦100,000; Sold goods on credit for ₦80,000. Prepare the ledger accounts for the above transactions.
A. Debit Purchases ₦100,000, Credit Accounts Payable ₦100,000
B. Debit Sales ₦80,000, Credit Accounts Receivable ₦80,000
C. Debit Purchases ₦100,000, Credit Sales ₦80,000
D. All of the above
Question 4
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 12 hours and machine B operates for 15 hours, how many units of product X and Y should the company produce?
A. 10 units of X and 15 units of Y
B. 15 units of X and 10 units of Y
C. 20 units of X and 5 units of Y
D. 5 units of X and 20 units of Y
Question 5
In a self-balancing ledger, the control account is used to record the total of all subsidiary accounts. What is the purpose of the control account in a manufacturing company?
A. To record the total of all raw materials purchased
B. To record the total of all finished goods sold
C. To record the total of all direct labor costs
D. To ensure that the total of all subsidiary accounts is equal to the total of the control account
Question 6
A company uses the perpetual inventory system. If the beginning inventory is ₦100,000, and purchases during the period are ₦150,000, what is the total cost of goods available for sale?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 7
A company has the following trial balance: Debit Balance ₦50,000, Credit Balance ₦30,000. What is the correct balance?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 8
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Bank | | 5,000 | | 3 Jan | Cash | | 8,000 | | 4 Jan | Bank | | 3,000 | | 5 Jan | Cash | | 12,000 | Calculate the total cash transactions for the month.
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 9
A company's income statement shows the following: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the company's gross profit?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 10
A company has two departments, X and Y, with sales of ₦500,000 and ₦300,000 respectively. The profit percentage for department X is 25% and for department Y is 20%. What is the total profit?
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 11
A company has the following ledger accounts:
A. Debit A ₦10,000, Credit B ₦10,000
B. Debit B ₦10,000, Credit A ₦10,000
C. Debit A ₦5,000, Credit B ₦5,000
D. Debit B ₦5,000, Credit A ₦5,000
Question 12
A company's depreciation policy is based on the straight-line method. The cost of the asset is ₦100,000, and the useful life is 5 years. Calculate the annual depreciation.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A trader sells an article at a profit of 20% on an investment of ₦1,500. What is the selling price?
A. ₦1,800
B. ₦1,900
C. ₦2,000
D. ₦2,100
Question 14
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Bank | | 5,000 | | 3 Jan | Cash | | 8,000 | | 4 Jan | Bank | | 3,000 | | 5 Jan | Cash | | 12,000 | Calculate the total bank transactions for the month.
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 15
A company's balance sheet shows the following: Assets ₦500,000, Liabilities ₦300,000, and Equity ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

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