POST UTME MADONNA UNIVERSITY 2020 Accounting | Objective

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Question 1
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
Correct 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

Correct Answer: B

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Question 2
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will A receive as their share of the profit?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 3
A company uses the double-entry system of accounting. If a customer pays ₦50,000 for goods sold, and the company has a trade receivable account with a balance of ₦20,000, what is the journal entry to record this transaction?
A. Debit Trade Receivable ₦50,000, Credit Cash ₦50,000
Correct B. Debit Cash ₦50,000, Credit Trade Receivable ₦20,000
C. Debit Trade Receivable ₦30,000, Credit Cash ₦30,000
D. Debit Cash ₦30,000, Credit Trade Receivable ₦30,000

Correct Answer: B

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Question 4
A company has the following trial balance:
Correct 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

Correct Answer: A

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Question 5
A company has the following ledger accounts:
Correct 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

Correct Answer: A

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Question 6
A company purchases a machine for ₦250,000. The machine has an estimated useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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Question 7
A company has the following transactions: Purchased goods on credit for ₦100,000; Sold goods on credit for ₦80,000; Purchased office supplies for ₦5,000 cash. Prepare the journal entries 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 Office Supplies ₦5,000, Credit Cash ₦5,000
Correct D. All of the above

Correct Answer: D

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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.
Correct A. ₦5,500
B. ₦5,000
C. ₦5,100
D. ₦5,200

Correct Answer: A

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Question 9
A company has the following trial balance: Debit Balance ₦50,000, Credit Balance ₦30,000. What is the correct balance?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 10
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
Correct D. All of the above

Correct Answer: D

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset cost ₦150,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 12
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 total amount of assets?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 13
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?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 14
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
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 15
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
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 16
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
Correct 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

Correct Answer: B

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Question 17
A company's trial balance as of December 31, 2022, is as follows: Debit 100,000; Credit 120,000. What is the company's net income for the year?
Correct A. 20,000
B. 30,000
C. 40,000
D. 50,000

Correct Answer: A

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Question 18
A company has the following ledger accounts: Cash 10,000; Accounts Receivable 20,000; Inventory 30,000; Prepaid Rent 40,000. What is the company's total assets?
A. 100,000
B. 120,000
Correct C. 140,000
D. 160,000

Correct Answer: C

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Question 19
A company's balance sheet as of December 31, 2022, is as follows: Assets 100,000; Liabilities 50,000; Equity 50,000. What is the company's net income for the year?
A. 20,000
B. 30,000
C. 40,000
Correct D. 50,000

Correct Answer: D

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Question 20
A company has the following ledger accounts: Cash 10,000; Accounts Receivable 20,000; Inventory 30,000; Prepaid Rent 40,000. What is the company's total liabilities?
A. 50,000
Correct B. 60,000
C. 70,000
D. 80,000

Correct Answer: B

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Question 21
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
Correct B. ₦375,000
C. ₦525,000
D. ₦675,000

Correct Answer: B

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Question 22
A company uses the single entry system of accounting. The following transactions were recorded during the year:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 23
The following is a partial manufacturing account for XYZ Ltd.
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 24
The following is a partial trading account for ABC Ltd.
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 25
The following is a partial balance sheet for DEF Ltd.
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦1,800,000

Correct Answer: C

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