POST UTME MADONNA UNIVERSITY 2023 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦200,000. What is the company's equity?
Question 2
A company uses the single-entry system of accounting. The following transactions were recorded in the year ended December 31, 2022:
1. Purchased office equipment for ₦120,000 cash.
2. Sold goods for ₦500,000 cash.
3. Purchased goods for ₦300,000 on credit.
4. Paid salaries of ₦150,000.
What is the total amount of cash transactions for the year?
Question 3
A company's balance sheet as at 31st December, 2022 is as follows:
₦
Assets:
Cash and Bank Balances: ₦120,000
Accounts Receivable: ₦80,000
Inventory: ₦150,000
Total Assets: ₦350,000
Liabilities:
Accounts Payable: ₦100,000
Long-term Debt: ₦200,000
Total Liabilities: ₦300,000
Equity:
Common Stock: ₦50,000
Retained Earnings: ₦0
Total Equity: ₦50,000
Total Liabilities and Equity: ₦350,000
What is the company's current ratio?
Question 4
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦150,000 and its current liabilities are ₦75,000, what is the correct formula for the current ratio?
Question 5
A partnership is formed between two individuals, John and Mary, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, what is John's share of the profit?
Question 6
A company has the following transactions:
1. Purchased goods for ₦200,000 on credit.
2. Sold goods for ₦300,000 cash.
3. Purchased office equipment for ₦100,000 cash.
4. Paid salaries of ₦150,000.
What is the net effect on the company's cash position?
Question 7
A public sector organization has the following transactions: Salaries ₦1,000,000, Rent ₦500,000, Utilities ₦200,000. What is the total amount of expenses for the period?
Question 8
A company has the following transactions:
1. Purchased goods for ₦150,000 on credit.
2. Sold goods for ₦250,000 cash.
3. Purchased office equipment for ₦80,000 cash.
4. Paid salaries of ₦120,000.
What is the net effect on the company's cash position?
Question 9
A company's balance sheet as at 31st December, 2022 is as follows:
₦
Assets:
Cash and Bank Balances: ₦120,000
Accounts Receivable: ₦80,000
Inventory: ₦150,000
Total Assets: ₦350,000
Liabilities:
Accounts Payable: ₦100,000
Long-term Debt: ₦200,000
Total Liabilities: ₦300,000
Equity:
Common Stock: ₦50,000
Retained Earnings: ₦0
Total Equity: ₦50,000
Total Liabilities and Equity: ₦350,000
What is the company's debt-to-equity ratio?
Question 10
A company's ledger accounts as of December 31, 2022, are as follows:
Question 11
A company has the following transactions:
1. Purchased goods for ₦150,000 on credit.
2. Sold goods for ₦250,000 cash.
3. Purchased office equipment for ₦80,000 cash.
4. Paid salaries of ₦120,000.
What is the net effect on the company's cash position?
Question 12
A company's cash book shows the following transactions:
Date | Description | Debit | Credit
2022-01-01 | Cash | ₦100,000 |
2022-01-05 | Sales | ₦150,000 |
2022-01-10 | Purchases | ₦80,000 |
2022-01-15 | Cash | ₦120,000 |
What is the company's cash balance as at 31st January, 2022?
Question 13
A company uses the double-entry system of accounting. The following transactions were recorded during the month of January:
Question 14
A company uses the single-entry system of accounting. The following transactions were recorded during the month of January:
Question 15
A company has the following trial balance: Cash ₦500,000, Accounts Payable ₦200,000, Common Stock ₦300,000. What is the total amount of assets?
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