Post Utme Al Hikmah University 2017 Accounting Question 21

Practice objective / multiple choice question 21 from the 2017 Post Utme Al Hikmah University Accounting examination.

Post Utme Al Hikmah University 2017 Accounting Objective / Multiple Choice
Question 21 POST_UTME_AL-HIKMAH_UNIVERSITY • 2017 • ACCOUNTING • objective

A public sector organization has a capital expenditure of ₦100,000,000 for the year. The organization uses the accrual basis of accounting. What is the accounting treatment for this expenditure?

Answer Options

A. Recognize as an expense in the income statement
B. Recognize as a liability in the balance sheet
Correct Answer C. Recognize as an asset in the balance sheet
D. Recognize as a revenue in the income statement
Correct Answer
C
Correct Option:
Recognize as an asset in the balance sheet

About This Question

This is Post Utme Al Hikmah University 2017 Accounting Question 21. It is one of the objective questions from the 2017 Post Utme Al Hikmah University Accounting examination.

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