Post Utme Caleb University 2023 Accounting Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2023 Accounting Objective / Multiple Choice
Question 16 POST_UTME_CALEB_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records indicate that the rent was actually paid in advance. What is the correct treatment of this account?

Answer Options

A. Debit the account 'Rent Received' and credit the account 'Rent Paid'
Correct Answer B. Credit the account 'Rent Received' and debit the account 'Rent Paid'
C. Debit the account 'Rent Received' and credit the account 'Cash'
D. Credit the account 'Rent Received' and debit the account 'Accrued Expenses'
Correct Answer
B
Correct Option:
Credit the account 'Rent Received' and debit the account 'Rent Paid'

About This Question

This is Post Utme Caleb University 2023 Accounting Question 16. It is one of the objective questions from the 2023 Post Utme Caleb University Accounting examination.

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