Post Utme Babcock University 2022 Accounting Question 15

Practice objective / multiple choice question 15 from the 2022 Post Utme Babcock University Accounting examination.

Post Utme Babcock University 2022 Accounting Objective / Multiple Choice
Question 15 POST_UTME_BABCOCK_UNIVERSITY • 2022 • ACCOUNTING • objective

A government agency uses the accrual basis of accounting. The agency's financial statements show the following balances: Accounts Payable ₦250,000, Salaries Expense ₦700,000, and Net Income ₦250,000. What is the correct journal entry to record the accrual of salaries?

Answer Options

Correct Answer A. ₦700,000 debit to Salaries Expense and ₦700,000 credit to Accounts Payable
B. ₦700,000 debit to Salaries Expense and ₦700,000 credit to Cash
C. ₦700,000 debit to Cash and ₦700,000 credit to Salaries Expense
D. ₦700,000 debit to Salaries Expense and ₦700,000 credit to Retained Earnings
Correct Answer
A
Correct Option:
₦700,000 debit to Salaries Expense and ₦700,000 credit to Accounts Payable

About This Question

This is Post Utme Babcock University 2022 Accounting Question 15. It is one of the objective questions from the 2022 Post Utme Babcock University Accounting examination.

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