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?
A. ₦300,000
B. ₦200,000
C. ₦500,000
D. ₦300,000
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?
A. ₦750,000
B. ₦850,000
C. ₦950,000
D. ₦1,050,000
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?
A. 1.17
B. 1.33
C. 1.50
D. 1.67
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?
A. Current Assets ÷ Current Liabilities
B. Current Liabilities ÷ Current Assets
C. (Current Assets - Current Liabilities) ÷ Current Liabilities
D. (Current Assets + Current Liabilities) ÷ Current Assets
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?
A. ₦225,000
B. ₦300,000
C. ₦375,000
D. ₦450,000
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?
A. ₦50,000
B. ₦150,000
C. ₦250,000
D. ₦350,000
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?
A. ₦1,700,000
B. ₦1,800,000
C. ₦1,900,000
D. ₦2,000,000
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?
A. ₦30,000
B. ₦130,000
C. ₦230,000
D. ₦330,000
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?
A. 1.00
B. 1.33
C. 1.67
D. 2.00
Question 10
A company's ledger accounts as of December 31, 2022, are as follows:
A. Debit 10,000 and Credit 10,000
B. Debit 5,000 and Credit 5,000
C. Debit 15,000 and Credit 15,000
D. Debit 20,000 and Credit 20,000
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?
A. ₦30,000
B. ₦130,000
C. ₦230,000
D. ₦330,000
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?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000
Question 13
A company uses the double-entry system of accounting. The following transactions were recorded during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000
Question 14
A company uses the single-entry system of accounting. The following transactions were recorded during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000
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?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

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