Post Utme Aaua 2018 Accounting Question 31

Practice objective / multiple choice question 31 from the 2018 Post Utme Aaua Accounting examination.

Post Utme Aaua 2018 Accounting Objective / Multiple Choice

Question 31 POST_UTME_AAUA • 2018 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦120,000 in the account 'Accrued Expenses' and a credit balance of ₦80,000 in the account 'Accrued Income'. What is the net effect on the company's equity?

Correct Answer A. ₦40,000 increase in equity

B. ₦40,000 decrease in equity

C. ₦40,000 increase in liabilities

D. ₦40,000 decrease in liabilities

Correct Answer

Correct Option:

₦40,000 increase in equity

This is Post Utme Aaua 2018 Accounting Question 31. It is one of the objective questions from the 2018 Post Utme Aaua Accounting examination.

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