POST UTME MADONNA UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a cash account with a balance of ₦50,000. The company also has a bank account with a balance of ₦100,000. If the company deposits ₦20,000 into the cash account and withdraws ₦10,000 from the bank account, what is the new balance in the bank account?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 2
A company has a cash account with a balance of ₦50,000. The company also has a bank account with a balance of ₦100,000. If the company deposits ₦20,000 into the cash account and withdraws ₦10,000 from the bank account, what is the new balance in the bank account?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 3
A company uses the double-entry system to record transactions. If the company purchases office supplies for ₦10,000, what is the effect on the accounting equation?
A. Assets increase by ₦10,000 and Liabilities decrease by ₦10,000
B. Assets increase by ₦10,000 and Equity increases by ₦10,000
C. Assets decrease by ₦10,000 and Liabilities increase by ₦10,000
D. Assets decrease by ₦10,000 and Equity decreases by ₦10,000
Question 4
A partnership has two partners, A and B. Partner A invests ₦100,000 and Partner B invests ₦50,000. If the partnership earns a profit of ₦20,000, what is Partner A's share of the profit?
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦17,500
Question 5
A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash paid to employees ₦20,000. What is the company's net cash inflow?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company's financial statements for the year ended December 31, 2023, are as follows: Balance Sheet: Assets ₦500,000 Liabilities ₦200,000 Equity ₦300,000 Income Statement: Revenue ₦400,000 Expenses ₦200,000 Net Income ₦200,000 What is the company's return on equity?
A. 100%
B. 80%
C. 60%
D. 40%
Question 7
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's sales?
A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000
Question 8
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's credit sales?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 9
A company has the following transactions during the year: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash for ₦50,000. What is the total amount of the company's credit purchases and sales?
A. ₦220,000
B. ₦230,000
C. ₦240,000
D. ₦250,000
Question 10
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦120,000
D. ₦150,000
Question 11
A manufacturing company produces 1,000 units of a product, each with a selling price of ₦500. If the company's variable costs are ₦200 per unit and fixed costs are ₦50,000, what is the company's gross profit?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company has a self-balancing ledger with the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000, and Cost of Goods Sold ₦50,000. What is the net income for the period?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 13
A company has a debenture with a face value of ₦100,000 and a redemption value of ₦80,000. If the company issues the debenture at a discount of 10%, what is the amount received from the debenture?
A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000
Question 14
A partnership has two partners, A and B. Partner A invests ₦100,000 and Partner B invests ₦50,000. If the partnership earns a profit of ₦20,000, what is Partner A's share of the profit?
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦17,500
Question 15
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 company's net income?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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