POST UTME PAN-ATLANTIC UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 5,000 debentures of ₦100 each at a premium of ₦20 per debenture. If the company receives a total of ₦1,200,000, what is the amount received from the issue of debentures?
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 2
A company has a cash book balance of ₦500,000 and a bank statement balance of ₦700,000. If the company's cash book balance is ₦200,000 less than the bank statement balance, what is the amount of the bank reconciliation statement?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 3
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 4
Determine the amount of depreciation expense for the year ended December 31, 2022, using the straight-line method, given the following information: Cost of asset = ₦120,000; Residual value = ₦20,000; Useful life = 5 years.
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000
Question 5
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 6
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 7
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 8
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 9
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 10
A company's cash book shows a balance of ₦70,000. However, the bank statement shows a balance of ₦80,000. 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 11
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 12
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
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 14
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 15
A company has a cash book balance of ₦100,000 and a bank statement balance of ₦120,000. The bank statement shows a debit of ₦5,000 for a bank charge. The cash book shows a credit of ₦10,000 for a dishonored cheque. What is the correct adjustment to reconcile the two balances?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

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