Post Utme Aaua 2025 Accounting Question 40

Practice objective / multiple choice question 40 from the 2025 Post Utme Aaua Accounting examination.

Post Utme Aaua 2025 Accounting Objective / Multiple Choice
Question 40 POST_UTME_AAUA • 2025 • ACCOUNTING • objective

A company has the following journal entry: Debit: Rent Expense ₦50,000, Credit: Rent Accrued ₦50,000. What is the effect of this journal entry on the company's financial statements?

Answer Options

Correct Answer A. Increases Net Income by ₦50,000
B. Decreases Net Income by ₦50,000
C. Increases Net Income by ₦100,000
D. Decreases Net Income by ₦100,000
Correct Answer
A
Correct Option:
Increases Net Income by ₦50,000

About This Question

This is Post Utme Aaua 2025 Accounting Question 40. It is one of the objective questions from the 2025 Post Utme Aaua Accounting examination.

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