Post Utme Coal City University 2019 Accounting Question 31

Practice objective / multiple choice question 31 from the 2019 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2019 Accounting Objective / Multiple Choice
Question 31 POST_UTME_COAL_CITY_UNIVERSITY • 2019 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct treatment of this discrepancy in the preparation of the company's financial statements?

Answer Options

A. The discrepancy is ignored as it is not material.
B. The discrepancy is adjusted by debiting 'Rent Received' and crediting 'Rent Paid'.
C. The discrepancy is adjusted by debiting 'Rent Paid' and crediting 'Rent Received'.
Correct Answer D. The discrepancy is investigated and corrected before preparing the financial statements.
Correct Answer
D
Correct Option:
The discrepancy is investigated and corrected before preparing the financial statements.

About This Question

This is Post Utme Coal City University 2019 Accounting Question 31. It is one of the objective questions from the 2019 Post Utme Coal City University Accounting examination.

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