Post Utme Bowen University 2020 Accounting Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2020 Accounting Objective / Multiple Choice
Question 21 POST_UTME_BOWEN_UNIVERSITY • 2020 • ACCOUNTING • objective

A government agency is responsible for collecting taxes on behalf of the government. The agency's accounting records show that it has collected ₦500,000 in taxes but has not remitted the amount to the government. What is the correct treatment for this transaction?

Answer Options

A. Debit the 'Taxes Collected' account and credit the 'Taxes Remitted' account.
B. Debit the 'Taxes Remitted' account and credit the 'Taxes Collected' account.
Correct Answer C. Debit the 'Taxes Collected' account and credit the 'Government' account.
D. Do nothing, as the transaction is not material.
Correct Answer
C
Correct Option:
Debit the 'Taxes Collected' account and credit the 'Government' account.

About This Question

This is Post Utme Bowen University 2020 Accounting Question 21. It is one of the objective questions from the 2020 Post Utme Bowen University Accounting examination.

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