Post Utme Christopher University 2020 Accounting Question 15

Practice objective / multiple choice question 15 from the 2020 Post Utme Christopher University Accounting examination.

Post Utme Christopher University 2020 Accounting Objective / Multiple Choice
Question 15 POST_UTME_CHRISTOPHER_UNIVERSITY • 2020 • ACCOUNTING • objective

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

Answer Options

Correct Answer A. The company has purchased more goods on credit.
B. The company has sold some of its inventory.
C. The company has not recorded the purchase of more goods on credit.
D. The company has not recorded the sale of its inventory.
Correct Answer
A
Correct Option:
The company has purchased more goods on credit.

About This Question

This is Post Utme Christopher University 2020 Accounting Question 15. It is one of the objective questions from the 2020 Post Utme Christopher University Accounting examination.

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