POST UTME PAN-ATLANTIC UNIVERSITY 2018 Accounting | Objective

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Question 1
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 2
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 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 500 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount received from the issue of shares and debentures?
A. ₦15,000
B. ₦12,500
C. ₦17,500
D. ₦20,000
Question 4
A company has the following incomplete records: Opening capital of ₦100,000, Purchases of ₦80,000, Sales of ₦120,000, and Closing capital of ₦150,000. What is the net profit of the company?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A company's financial statements are prepared in accordance with the accrual basis of accounting. If the company receives ₦200,000 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 6
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 7
A company uses the straight-line method of depreciation for its assets. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 8
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 9
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 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
In a partnership account, the capital of a partner who withdraws cash from the business is reduced by the amount withdrawn. However, if the partner's capital is reduced below the minimum capital required by the partnership agreement, the deficiency is treated as a loan from the partner to the business. What is the correct treatment of the partner's capital when the partner withdraws cash from the business?
A. The partner's capital is reduced by the amount withdrawn.
B. The partner's capital is not reduced by the amount withdrawn.
C. The partner's capital is reduced by the amount withdrawn, but the deficiency is treated as a loan from the partner to the business.
D. The partner's capital is not affected by the withdrawal.
Question 12
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
Question 13
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 14
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 15
A company's cash book shows the following transactions: Cash Sale ₦10,000, Cash Purchase ₦5,000, and Bank Deposit ₦20,000. What is the total amount of the company's cash balance?
A. ₦25,000
B. ₦30,000
C. ₦20,000
D. ₦15,000

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