POST UTME MADONNA UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's share capital consists of 100,000 ordinary shares of ₦1 each. The company issues 50,000 shares at ₦2 per share. Calculate the amount received from the issue of shares.
A. ₦100,000
B. ₦50,000
C. ₦100,000
D. ₦50,000
Question 2
A company has a single entry system. The following transactions were recorded in the single entry system: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Purchases | | ₦15,000 | | 3rd Jan | Sales | | ₦20,000 | What is the total amount of assets recorded in the single entry system?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 3
A manufacturing company uses a job costing system. The following information is available for Job No. 123: Direct Materials: ₦120,000 Direct Labour: ₦80,000 Overheads: ₦60,000 Selling Price per unit: ₦2,500 Number of units produced: 100 Calculate the profit per unit.
A. ₦1,200
B. ₦1,200
C. ₦1,200
D. ₦1,200
Question 4
A company has two partners, A and B, who share profits in the ratio 3:2. The company's profit for the year ended 31st December 2022 was ₦1,500,000. If A's drawings for the year were ₦150,000, calculate A's share of the profit.
A. ₦675,000
B. ₦675,000
C. ₦675,000
D. ₦675,000
Question 5
A company uses the Double Entry System of accounting. Which of the following accounts would be classified as a 'control account'?
A. Cash
B. Accounts Payable
C. Accrued Expenses
D. Bank
Question 6
A public sector organization prepares its financial statements in accordance with the Cash Basis of Accounting. Which of the following accounts would be classified as a 'current asset'?
A. Prepaid Rent
B. Accrued Expenses
C. Unearned Revenue
D. Accounts Payable
Question 7
A company has the following transactions: Purchased ₦500,000 goods on credit, Paid ₦200,000 cash to suppliers, Received ₦150,000 cash from customers, and Purchased ₦300,000 goods on credit. What is the balance on the accounts receivable account?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A company has a profit of ₦500,000. If the company's capital is ₦1,000,000 and the drawings are ₦200,000, what is the amount of the dividend to be distributed?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 9
A company's single-entry accounting system shows the following transactions: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦200,000, and Cost of Goods Sold ₦150,000. What is the company's net income?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 10
A company has a single entry system. The following transactions were recorded in the single entry system: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Purchases | | ₦15,000 | | 3rd Jan | Sales | | ₦20,000 | What is the total amount of assets recorded in the single entry system?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 11
A company's share capital consists of 100,000 ordinary shares of ₦1 each. The company issues 50,000 shares at ₦2 per share. Calculate the amount received from the issue of shares.
A. ₦100,000
B. ₦50,000
C. ₦100,000
D. ₦50,000
Question 12
A company uses the Single Entry System of accounting. Which of the following accounts would be classified as a 'current liability'?
A. Accounts Receivable
B. Notes Payable
C. Salaries Payable
D. Prepaid Rent
Question 13
A company produces two products, X and Y. Product X has a variable cost of ₦100 per unit and a fixed cost of ₦500,000. Product Y has a variable cost of ₦200 per unit and a fixed cost of ₦300,000. If the selling price of X is ₦300 per unit and the selling price of Y is ₦400 per unit, and the company sells 2,000 units of X and 1,500 units of Y, what is the total profit?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 14
A company has a capital of ₦1,000,000, divided into 10,000 shares of ₦100 each. If the company issues 5,000 shares at a premium of ₦20 per share, what is the amount of the premium received?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 15
A company's trial balance as at 31st December 2022 is as follows: Debit ₦ 50,000 Cash ₦ 20,000 Accounts Receivable ₦ 30,000 Office Equipment ₦ 10,000 Prepaid Rent ₦ 15,000 Accrued Expenses ₦ 25,000 Notes Payable Credit ₦ 20,000 Accounts Payable ₦ 30,000 Common Stock ₦ 15,000 Dividends ₦ 25,000 Salaries Payable Determine the company's net income for the year.
A. ₦ 10,000
B. ₦ 10,000
C. ₦ 10,000
D. ₦ 10,000

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