POST UTME PAN-ATLANTIC UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Sold office equipment for 6,000, purchased office equipment for 8,000, and paid 2,000 cash. Prepare the journal entries for these transactions.
A. Debit Office Equipment 8,000, Credit Cash 2,000, Credit Bank Loan 6,000
B. Debit Office Equipment 8,000, Credit Cash 6,000
C. Debit Office Equipment 8,000, Credit Bank Loan 6,000
D. Debit Office Equipment 8,000, Credit Cash 8,000
Question 2
A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000, and Common Stock ₦150,000. What is the net income of the company?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 3
A company issues 10,000, 10% debentures of ₦10 each at a discount of 5%. The company receives ₦ 9,500 per debenture. What is the amount of discount on the debentures?
A. ₦ 10,000
B. ₦ 50,000
C. ₦ 1,00,000
D. ₦ 5,00,000
Question 4
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, and Paid rent for ₦20,000. What is the total amount of cash outflows?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 5
A company's income statement shows the following revenues: Sales 100,000, Interest Income 20,000 What is the total value of the company's revenues?
A. 120,000
B. 140,000
C. 160,000
D. 180,000
Question 6
A company uses the single-entry system of accounting. The company's accountant records the following transactions in the journal: Debit: Purchases 10,000, Salaries 8,000, Rent 2,000 Credit: Cash 20,000 What is the correct journal entry for the purchase of office equipment for 3,000?
A. Debit: Office Equipment 3,000, Credit: Cash 3,000
B. Debit: Office Equipment 3,000, Credit: Purchases 3,000
C. Debit: Purchases 3,000, Credit: Office Equipment 3,000
D. Debit: Office Equipment 3,000, Credit: Salaries 3,000
Question 7
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 8
A company has a bank account with a balance of ₦50,000. If the company deposits ₦20,000 and withdraws ₦15,000, what is the new balance in the bank account?
A. ₦55,000
B. ₦50,000
C. ₦45,000
D. ₦40,000
Question 9
A company's balance sheet as at 31st December 2017 is as follows: Assets: ₦10,000,000 Liabilities: ₦5,000,000 Capital: ₦3,000,000 Calculate the current ratio.
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 10
A company's balance sheet shows the following assets: Cash 10,000, Accounts Receivable 20,000, Inventory 30,000 What is the total value of the company's assets?
A. 60,000
B. 70,000
C. 80,000
D. 90,000
Question 11
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The proceeds from the issue were credited to a share capital account. Prepare the journal entry for the issue of shares.
A. Debit Share Capital 30,000, Credit Cash 30,000
B. Debit Share Capital 30,000, Credit Cash 40,000
C. Debit Share Capital 40,000, Credit Cash 30,000
D. Debit Share Capital 40,000, Credit Cash 40,000
Question 12
A company's manufacturing overheads for the year ended 31st December 2017 were as follows: Direct Labour: ₦1,200,000 Indirect Labour: ₦800,000 Rent: ₦500,000 Depreciation: ₦300,000 Insurance: ₦200,000 Total: ₦2,500,000 Calculate the manufacturing overheads as a percentage of prime cost.
A. 15%
B. 20%
C. 25%
D. 30%
Question 13
A company issues 500 debentures of ₦100 each at a premium of ₦20 per debenture. If the company receives a cash payment of ₦50,000, what is the total amount received from the issue of debentures?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 14
A manufacturing company has the following production costs for a month: direct materials 15,000, direct labor 20,000, and overhead 30,000. If the company sold 10,000 units at 15 per unit, what is the gross profit for the month?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦15,000, what is the total amount received from the issue of shares?
A. ₦15,000
B. ₦16,000
C. ₦17,000
D. ₦18,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: