Post Utme Abu 2021 Accounting Question 35

Practice objective / multiple choice question 35 from the 2021 Post Utme Abu Accounting examination.

Post Utme Abu 2021 Accounting Objective / Multiple Choice
Question 35 POST_UTME_ABU • 2021 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦40,000 due within 30 days. However, the company's accounting records show that the liability is due in 60 days. What is the correct treatment of this account?

Answer Options

A. Debit the account 'Current Liability' by ₦40,000
B. Credit the account 'Current Liability' by ₦40,000
C. Debit the account 'Current Liability' by ₦40,000 and credit the account 'Long-term Liability' by ₦40,000
Correct Answer D. Credit the account 'Current Liability' by ₦40,000 and debit the account 'Long-term Liability' by ₦40,000
Correct Answer
D
Correct Option:
Credit the account 'Current Liability' by ₦40,000 and debit the account 'Long-term Liability' by ₦40,000

About This Question

This is Post Utme Abu 2021 Accounting Question 35. It is one of the objective questions from the 2021 Post Utme Abu Accounting examination.

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