POST UTME PAN-ATLANTIC UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government agency has the following transactions for the year: Cash received from customers: ₦100,000 Cash paid to suppliers: ₦80,000 Cash paid to employees: ₦30,000 Cash received from loans: ₦20,000 What is the net cash inflow for the year?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A company prepares its trading and profit and loss account for the year. The company's sales are ₦500,000, and its cost of goods sold is ₦300,000. Calculate the gross profit.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 3
A company has a capital of ₦2,000,000 divided into 20,000 shares of ₦100 each. If the company issues 20% bonus shares, what is the new number of shares?
A. 24,000
B. 24,500
C. 25,000
D. 25,500
Question 4
A company maintains a cash book and bank reconciliation statement. The cash book shows a balance of ₦120,000, while the bank statement shows a balance of ₦100,000. The bank reconciliation statement shows a difference of ₦10,000 due to outstanding checks. Calculate the corrected cash balance.
A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 5
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000
Question 6
A company has a capital of ₦1,500,000 divided into 15,000 shares of ₦100 each. If the company issues 15% bonus shares, what is the new number of shares?
A. 17,250
B. 17,500
C. 17,750
D. 18,000
Question 7
What is the correct journal entry for the following transaction: A partner withdraws ₦10,000 cash from the partnership?
A. Partner's Capital a/c Dr. ₦10,000, Cash a/c Cr. ₦10,000
B. Partner's Capital a/c Cr. ₦10,000, Cash a/c Dr. ₦10,000
C. Cash a/c Dr. ₦10,000, Partner's Capital a/c Cr. ₦10,000
D. Partner's Capital a/c Dr. ₦10,000, Cash a/c Dr. ₦10,000
Question 8
A company has the following transactions: Purchased office supplies for ₦20,000, sold goods for ₦100,000, and purchased equipment for ₦30,000. What is the total amount of assets?
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 9
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received 60,000 from the sale of these shares, what is the total amount of shareholders' equity?
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 10
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received 50,000 from the sale of these shares, what is the total amount of shareholders' equity?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 11
A company's cash book shows the following transactions: Cash received from customers: ₦500,000, Cash paid to suppliers: ₦300,000, and Cash paid to employees: ₦200,000. Calculate the net cash inflow for the period.
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 12
What is the correct formula for calculating depreciation using the straight-line method?
A. Depreciation = (Cost - Residual Value) / Useful Life
B. Depreciation = (Cost - Residual Value) / (Useful Life - Residual Value)
C. Depreciation = (Cost - Residual Value) / (Useful Life + Residual Value)
D. Depreciation = (Cost + Residual Value) / Useful Life
Question 13
A manufacturing company has the following departmental expenses: Direct Labour: ₦120,000, Direct Materials: ₦150,000, and Overheads: ₦80,000. Calculate the total departmental expenses.
A. ₦350,000
B. ₦380,000
C. ₦400,000
D. ₦420,000
Question 14
A company has the following transactions: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and purchased equipment for ₦20,000. What is the total amount of assets?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 15
A company has the following transactions in its ledger: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Sales | ₦100,000 | | | 1/2 | Purchases | | ₦80,000 | | 1/3 | Wages | | ₦90,000 | | 1/4 | Rent | ₦10,000 | | What is the net profit?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

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