Post Utme Caleb University 2021 Accounting Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2021 Accounting Objective / Multiple Choice
Question 36 POST_UTME_CALEB_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's financial statements show a credit balance of ₦20,000 for the same account. What is the likely cause of this discrepancy?

Answer Options

A. The company has not recorded the rent expense for the current period.
B. The company has recorded the rent expense for the previous period but not yet paid it.
Correct Answer C. The company has recorded the rent expense for the current period but has not yet matched it with the corresponding credit entry.
D. The company has not recorded the rent expense for the previous period but has already paid it.
Correct Answer
C
Correct Option:
The company has recorded the rent expense for the current period but has not yet matched it with the corresponding credit entry.

About This Question

This is Post Utme Caleb University 2021 Accounting Question 36. It is one of the objective questions from the 2021 Post Utme Caleb University Accounting examination.

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