POST UTME PAN-ATLANTIC UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a cash book balance of ₦80,000 and a bank statement balance of ₦100,000. The bank statement shows a credit of ₦15,000 for a dishonored cheque. The cash book shows a debit of ₦5,000 for a bank charge. What is the correct adjustment to reconcile the two balances?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 2
A company's financial statements for the year ended December 31, 2022, are as follows: Total Assets ₦5,000,000, Total Liabilities ₦2,000,000, and Total Equity ₦3,000,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 3
A company uses the accrual basis of accounting. The following transactions occurred during the year: Sales revenue = ₦250,000; Cost of goods sold = ₦180,000; Operating expenses = ₦30,000. Determine the net income.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 4
A government agency prepares a budget for the upcoming fiscal year. The budget includes a provision for depreciation of ₦500,000. If the agency's total assets are ₦10,000,000, what is the percentage of the budget allocated for depreciation?
A. 5%
B. 10%
C. 15%
D. 20%
Question 5
A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Equipment | | 8,000 | | 3 Jan | Rent | | 2,000 | What is the total amount of assets recorded in the journal?
A. 12,000
B. 10,000
C. 8,000
D. 2,000
Question 6
A company's trial balance shows the following account balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦100,000. What is the correct order of the accounts in a classified balance sheet?
A. Assets, Liabilities, Equity, Revenues, Expenses
B. Assets, Revenues, Expenses, Liabilities, Equity
C. Liabilities, Assets, Revenues, Expenses, Equity
D. Equity, Liabilities, Assets, Revenues, Expenses
Question 7
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦10,000 for a dishonored cheque. The cash book shows a debit of ₦5,000 for a bank charge. What is the correct adjustment to reconcile the two balances?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 8
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000 for the year, and the Sales department has a budget of ₦2,000,000. If the company's total budget is ₦4,000,000, 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 9
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. What is the correct procedure to reconcile this difference?
A. Prepare a bank reconciliation statement to identify the differences
B. Prepare a cash book reconciliation statement to identify the differences
C. Prepare a journal entry to adjust the cash book balance to match the bank statement balance
D. Prepare a journal entry to adjust the bank statement balance to match the cash book balance
Question 10
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Equipment | | 8,000 | | Rent | | 2,000 | | Profit | | 5,000 | What is the total amount of assets recorded in the trial balance?
A. 17,000
B. 15,000
C. 12,000
D. 10,000
Question 11
A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Equipment | | 8,000 | | 3 Jan | Rent | | 2,000 | What is the total amount of assets recorded in the journal?
A. 12,000
B. 10,000
C. 8,000
D. 2,000
Question 12
A company uses the single-entry system of accounting. The company's assets are ₦150,000, liabilities are ₦50,000, and equity is ₦100,000. What is the company's net income?
A. ₦0
B. ₦10,000
C. ₦20,000
D. ₦30,000
Question 13
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦1,500,000, what is the amount received from the issue of shares?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 14
A company uses the single-entry system of accounting. The company's accountant has recorded the following transactions in the journal: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Equipment | | 8,000 | | 3 Jan | Rent | | 2,000 | What is the total amount of assets recorded in the journal?
A. 12,000
B. 10,000
C. 8,000
D. 2,000
Question 15
A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office supplies = ₦15,000; Sold office supplies = ₦8,000; Purchased office equipment = ₦30,000. Determine the net change in office supplies.
A. ₦7,000
B. ₦12,000
C. ₦17,000
D. ₦22,000

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