POST UTME PAN-ATLANTIC UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a capital of ₦3,000,000 divided into 30,000 shares of ₦100 each. If the company issues 25% bonus shares, what is the new number of shares?
A. 37,500
B. 38,000
C. 38,500
D. 39,000
Question 2
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 3
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 4
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 5
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦1,000,000 in taxes and pays ₦200,000 in salaries. What is the net amount collected by the agency?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,200,000
Question 6
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 7
A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: Debit Cash ₦50,000, Credit Accounts Payable ₦20,000. Debit Accounts Receivable ₦30,000, Credit Sales ₦40,000. Calculate the net income.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 8
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 9
A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: Debit Cash ₦50,000, Credit Accounts Payable ₦20,000. Debit Accounts Receivable ₦30,000, Credit Sales ₦40,000. Calculate the net income.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
In a partnership account, what is the correct method for calculating the capital of a partner who has been absent for a year?
A. Capital is calculated as the average of the partner's capital for the previous and current years.
B. Capital is calculated as the average of the partner's capital for the current and next years.
C. Capital is calculated as the partner's capital for the previous year.
D. Capital is calculated as the partner's capital for the current year.
Question 11
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
Question 12
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 13
A company issued 15,000 shares of 10 par value at a premium of 3 per share. If the company received 90,000 from the sale of these shares, what is the total amount of shareholders' equity?
A. ₦135,000
B. ₦155,000
C. ₦175,000
D. ₦195,000
Question 14
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 15
A company's balance sheet as at 31st December 2020 shows the following: Share Capital: ₦500,000, Retained Earnings: ₦300,000, and Non-Current Liabilities: ₦400,000. Calculate the total equity for the company.
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000

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