POST UTME PAN-ATLANTIC UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December 2022 shows a profit of ₦500,000. The company's profit and loss account for the same period shows a net profit of ₦750,000. What is the correct journal entry to record the difference between the trading account and profit and loss account?
A. ₦250,000 debit Profit and Loss Account, ₦250,000 credit Trading Account
B. ₦750,000 debit Trading Account, ₦750,000 credit Profit and Loss Account
C. ₦500,000 debit Profit and Loss Account, ₦500,000 credit Trading Account
D. ₦250,000 debit Trading Account, ₦250,000 credit Profit and Loss Account
Question 2
A company uses the straight-line method of depreciation. The asset's cost is ₦100,000, and its useful life is 5 years. What is the annual depreciation charge?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 3
A company's bank reconciliation statement shows a difference of ₦1,500 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦20,000. What is the bank statement balance?
A. ₦21,500
B. ₦22,500
C. ₦23,500
D. ₦24,500
Question 4
A company's balance sheet as of December 31, 2022, shows the following: Cash, ₦200,000; Accounts Receivable, ₦150,000; Inventory, ₦300,000; Total Assets, ₦750,000; and Total Liabilities, ₦300,000. What is the company's equity?
A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000
Question 5
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 5,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦1,250,000
B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000
Question 6
A company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2018 shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the company's net worth?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 7
A company's trading account for the year ended 31st December 2018 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2018 shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the company's net worth?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 8
A company's balance sheet as at 31st December 2018 shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the company's net worth?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 9
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's profit for the year ended 31st December 2022 is ₦1,500,000. What is the amount of profit to be distributed to partner A?
A. ₦1,800,000
B. ₦1,200,000
C. ₦900,000
D. ₦1,500,000
Question 10
A company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2018 shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the company's net worth?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦25,000
Question 12
A government agency prepares its financial statements in accordance with the accrual basis of accounting. If the agency receives ₦100,000 in cash from a customer for services rendered, but the customer has not yet paid for the services, what is the correct treatment of the cash received?
A. The cash received is recorded as revenue.
B. The cash received is recorded as a liability.
C. The cash received is recorded as an asset.
D. The cash received is recorded as an expense.
Question 13
A company's trial balance shows the following balances: Accounts Receivable, ₦120,000; Accounts Payable, ₦90,000; Common Stock, ₦500,000; and Retained Earnings, ₦200,000. What is the total amount of assets?
A. ₦720,000
B. ₦820,000
C. ₦920,000
D. ₦1,020,000
Question 14
A company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2018 shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the company's net worth?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 15
A company's trial balance shows the following balances: Accounts Receivable, ₦120,000; Accounts Payable, ₦90,000; Common Stock, ₦500,000; and Retained Earnings, ₦200,000. What is the total amount of liabilities?
A. ₦220,000
B. ₦320,000
C. ₦420,000
D. ₦520,000

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