POST UTME PAN-ATLANTIC UNIVERSITY 2022 Accounting | Objective

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Question 1
A company's trial balance showed the following balances: Accounts Payable ₦ 40,000, Accounts Receivable ₦ 20,000, Common Stock ₦ 80,000, and Retained Earnings ₦ 30,000. Prepare a balance sheet for the company.
A. Assets: ₦ 140,000, Liabilities: ₦ 40,000, Equity: ₦ 100,000
B. Assets: ₦ 100,000, Liabilities: ₦ 20,000, Equity: ₦ 80,000
C. Assets: ₦ 120,000, Liabilities: ₦ 40,000, Equity: ₦ 80,000
D. Assets: ₦ 140,000, Liabilities: ₦ 20,000, Equity: ₦ 120,000
Question 2
A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 5 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦ 500,000
B. ₦ 525,000
C. ₦ 550,000
D. ₦ 575,000
Question 3
A company's bank reconciliation statement shows a difference of ₦2,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦15,000 and the bank statement balance is ₦17,000. What is the correct treatment of this difference in the preparation of the company's financial statements?
A. Debit the 'Bank' account and credit the 'Cash' account for ₦2,000.
B. Credit the 'Bank' account and debit the 'Cash' account for ₦2,000.
C. Debit the 'Cash' account and credit the 'Bank' account for ₦2,000.
D. Credit the 'Cash' account and debit the 'Bank' account for ₦2,000.
Question 4
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, and Retained Earnings ₦ 20,000. Prepare a balance sheet for the company.
A. Assets: ₦ 200,000, Liabilities: ₦ 50,000, Equity: ₦ 150,000
B. Assets: ₦ 150,000, Liabilities: ₦ 30,000, Equity: ₦ 120,000
C. Assets: ₦ 120,000, Liabilities: ₦ 50,000, Equity: ₦ 70,000
D. Assets: ₦ 200,000, Liabilities: ₦ 30,000, Equity: ₦ 170,000
Question 5
A company's trial balance shows a debit balance of ₦15,000 in the 'Office Supplies' account. However, the company's accountant has forgotten to record a purchase of office supplies worth ₦8,000. What is the correct amount to be recorded in the 'Office Supplies' account?
A. ₦23,000
B. ₦27,000
C. ₦15,000
D. ₦8,000
Question 6
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000, and the Sales department has a budget of ₦2,000,000. If the company's total budget is ₦3,500,000, what is the ratio of the Manufacturing department's budget to the Sales department's budget?
A. 1:2
B. 2:3
C. 3:4
D. 4:5
Question 7
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦10,000 in the account 'Cash' and a credit balance of ₦5,000 in the account 'Bank'. What is the correct treatment of these accounts in the preparation of the company's financial statements?
A. Debit the 'Bank' account and credit the 'Cash' account.
B. Credit the 'Bank' account and debit the 'Cash' account.
C. Debit the 'Cash' account and credit the 'Bank' account.
D. Credit the 'Cash' account and debit the 'Bank' account.
Question 8
A company's financial statements show a trading profit of ₦50,000 and a net loss of ₦20,000. What is the correct treatment of this net loss in the preparation of the company's financial statements?
A. Debit the 'Profit and Loss Account' and credit the 'Capital Account' for ₦20,000.
B. Credit the 'Profit and Loss Account' and debit the 'Capital Account' for ₦20,000.
C. Debit the 'Capital Account' and credit the 'Profit and Loss Account' for ₦20,000.
D. Credit the 'Capital Account' and debit the 'Profit and Loss Account' for ₦20,000.
Question 9
A company's balance sheet shows a decrease in its non-current assets by ₦100,000 and an increase in its non-current liabilities by ₦50,000. What is the net effect on the company's long-term solvency?
A. ₦50,000 decrease
B. ₦50,000 increase
C. ₦100,000 decrease
D. ₦100,000 increase
Question 10
A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦60,000. What is the company's net profit?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 12
A company purchased a machine for ₦ 50,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 13
A company produces two products, X and Y, using a joint production process. The company's cost of goods sold for product X is ₦10,000 and for product Y is ₦15,000. What is the total cost of goods sold for the company?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 14
A company's financial statements show a trading profit of ₦50,000 and a net loss of ₦20,000. What is the correct treatment of this net loss in the preparation of the company's financial statements?
A. Debit the 'Profit and Loss Account' and credit the 'Capital Account' for ₦20,000.
B. Credit the 'Profit and Loss Account' and debit the 'Capital Account' for ₦20,000.
C. Debit the 'Capital Account' and credit the 'Profit and Loss Account' for ₦20,000.
D. Credit the 'Capital Account' and debit the 'Profit and Loss Account' for ₦20,000.
Question 15
A company issues 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

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