POST UTME PAN-ATLANTIC UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accountant has forgotten to record a payment of dividends worth ₦10,000. What is the correct amount to be recorded in the 'Dividends' account?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A company has a ledger account for 'Sales' with a credit balance of ₦500,000. If the company receives ₦200,000 from a customer, what is the new balance in the 'Sales' account?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 4
A company has a ledger account for 'Accounts Payable' with a debit balance of ₦200,000. If the company pays ₦150,000 to settle the account, what is the new balance in the 'Accounts Payable' account?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 5
A company has two departments: A and B. Department A has a balance of ₦100,000 in its control account, and department B has a balance of ₦50,000 in its control account. If the total balance in the company's control account is ₦150,000, what is the balance in the company's general ledger?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 6
A company purchased a machine for ₦ 60,000 and depreciated it by 15% per annum. Calculate the book value of the machine after 2 years.
A. ₦ 36,000
B. ₦ 40,000
C. ₦ 45,000
D. ₦ 50,000
Question 7
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 8
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 9
A company uses the cash book to record all its cash transactions. What is the purpose of the cash book?
A. To record all cash transactions
B. To record all credit transactions
C. To record all sales transactions
D. To record all purchases transactions
Question 10
Under the double entry system, what is the effect of a decrease in the value of a company's assets on its equity?
A. Increase in equity
B. Decrease in equity
C. No effect on equity
D. Increase in liabilities
Question 11
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 12
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 13
A company's profit and loss account shows a gross profit of ₦150,000 and a net profit of ₦80,000. What is the company's operating profit?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 14
A bank statement shows a balance of ₦25,000, but the cash book balance is ₦20,000. The bank statement also shows a debit of ₦1,000 for 'Bank Charges' and a credit of ₦500 for 'Interest Received'. What is the correct bank reconciliation?
A. ₦4,500
B. ₦5,000
C. ₦5,500
D. ₦6,000
Question 15
A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its current liabilities by ₦30,000. What is the net effect on the company's working capital?
A. ₦20,000 decrease
B. ₦20,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

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