Post Utme Bells University 2021 Accounting Question 24

Practice objective / multiple choice question 24 from the 2021 Post Utme Bells University Accounting examination.

Post Utme Bells University 2021 Accounting Objective / Multiple Choice
Question 24 POST_UTME_BELLS_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's financial statements show a net income of ₦50,000. However, the company's tax return shows a tax liability of ₦20,000. What is the correct explanation for this discrepancy?

Answer Options

A. The company has made a mistake in preparing the financial statements.
B. The company has made a mistake in preparing the tax return.
Correct Answer C. The company has paid taxes but has not yet been debited.
D. The company has received a tax refund but has not yet been credited.
Correct Answer
C
Correct Option:
The company has paid taxes but has not yet been debited.

About This Question

This is Post Utme Bells University 2021 Accounting Question 24. It is one of the objective questions from the 2021 Post Utme Bells University Accounting examination.

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