Post Utme Christopher University 2020 Accounting Question 13

Practice objective / multiple choice question 13 from the 2020 Post Utme Christopher University Accounting examination.

Post Utme Christopher University 2020 Accounting Objective / Multiple Choice
Question 13 POST_UTME_CHRISTOPHER_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's profit and loss account shows a net profit of ₦100,000. However, the company's balance sheet shows a decrease in the 'Cash' account from ₦50,000 to ₦30,000. What is the most likely reason for this decrease?

Answer Options

Correct Answer A. The company has paid off some of its debts.
B. The company has received a refund from its suppliers.
C. The company has not recorded the payment of its debts.
D. The company has not recorded the receipt of a refund from its suppliers.
Correct Answer
A
Correct Option:
The company has paid off some of its debts.

About This Question

This is Post Utme Christopher University 2020 Accounting Question 13. It is one of the objective questions from the 2020 Post Utme Christopher University Accounting examination.

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