Post Utme Abu 2024 Accounting Question 6

Practice objective / multiple choice question 6 from the 2024 Post Utme Abu Accounting examination.

Post Utme Abu 2024 Accounting Objective / Multiple Choice
Question 6 POST_UTME_ABU • 2024 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦1,500 in the 'Dividends Received' account. However, the company's accounting records show that no dividends were received during the year. What is the most likely explanation for this discrepancy?

Answer Options

A. The company's accountant made an error in preparing the trial balance.
Correct Answer B. The company received dividends from a subsidiary, which was incorrectly recorded as a credit.
C. The company's financial statements were incorrectly prepared, resulting in an incorrect trial balance.
D. The company's accounting records were not up-to-date, resulting in an incorrect trial balance.
Correct Answer
B
Correct Option:
The company received dividends from a subsidiary, which was incorrectly recorded as a credit.

About This Question

This is Post Utme Abu 2024 Accounting Question 6. It is one of the objective questions from the 2024 Post Utme Abu Accounting examination.

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