Post Utme Babcock University 2018 Accounting Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Babcock University Accounting examination.

Post Utme Babcock University 2018 Accounting Objective / Multiple Choice
Question 1 POST_UTME_BABCOCK_UNIVERSITY • 2018 • ACCOUNTING • objective

The following is a trial balance for a partnership between A and B: Debit Cr. Credit Cash 100,000 100,000 Bank 50,000 50,000 Accounts Receivable 20,000 20,000 Equipment 80,000 80,000 Accounts Payable 10,000 10,000 Salaries Expense 40,000 40,000 Rent Expense 20,000 20,000 Utilities Expense 10,000 10,000 Total 270,000 270,000 What is the correct order of closing entries for this partnership?

Answer Options

Correct Answer A. Prepare a trial balance, then prepare the closing entries for the income statement and balance sheet.
B. Prepare the closing entries for the income statement, then prepare a trial balance, then prepare the closing entries for the balance sheet.
C. Prepare a trial balance, then prepare the closing entries for the balance sheet, then prepare the closing entries for the income statement.
D. Prepare the closing entries for the income statement, then prepare the closing entries for the balance sheet, then prepare a trial balance.
Correct Answer
A
Correct Option:
Prepare a trial balance, then prepare the closing entries for the income statement and balance sheet.

About This Question

This is Post Utme Babcock University 2018 Accounting Question 1. It is one of the objective questions from the 2018 Post Utme Babcock University Accounting examination.

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