Post Utme Abu 2021 Accounting Question 33

Practice objective / multiple choice question 33 from the 2021 Post Utme Abu Accounting examination.

Post Utme Abu 2021 Accounting Objective / Multiple Choice
Question 33 POST_UTME_ABU • 2021 • ACCOUNTING • objective

A company's balance sheet shows a non-current asset of ₦100,000. However, the company's accounting records show that the asset is expected to be sold within the next 12 months. What is the correct treatment of this account?

Answer Options

A. Debit the account 'Non-Current Asset' by ₦100,000
B. Credit the account 'Non-Current Asset' by ₦100,000
Correct Answer C. Debit the account 'Non-Current Asset' by ₦100,000 and credit the account 'Current Asset' by ₦100,000
D. Credit the account 'Non-Current Asset' by ₦100,000 and debit the account 'Current Asset' by ₦100,000
Correct Answer
C
Correct Option:
Debit the account 'Non-Current Asset' by ₦100,000 and credit the account 'Current Asset' by ₦100,000

About This Question

This is Post Utme Abu 2021 Accounting Question 33. It is one of the objective questions from the 2021 Post Utme Abu Accounting examination.

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