Post Utme Covenant University 2020 Accounting Question 17

Practice objective / multiple choice question 17 from the 2020 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2020 Accounting Objective / Multiple Choice
Question 17 POST_UTME_COVENANT_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's trial balance as at 31st December, 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Bank | ₦20,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦100,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Net Income | ₦0 | ₦20,000 | | Total | ₦30,000 | ₦230,000 | The company's accountant has made an error in the trial balance. Identify the error and correct it.

Answer Options

A. The error is in the Cash account. The debit balance should be ₦0.
Correct Answer B. The error is in the Accounts Payable account. The credit balance should be ₦0.
C. The error is in the Sales account. The credit balance should be ₦0.
D. The error is in the Cost of Goods Sold account. The credit balance should be ₦0.
Correct Answer
B
Correct Option:
The error is in the Accounts Payable account. The credit balance should be ₦0.

About This Question

This is Post Utme Covenant University 2020 Accounting Question 17. It is one of the objective questions from the 2020 Post Utme Covenant University Accounting examination.

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