Post Utme Crawford University 2020 Accounting Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Crawford University Accounting examination.

Post Utme Crawford University 2020 Accounting Objective / Multiple Choice
Question 6 POST_UTME_CRAWFORD_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦200,000. What is the correct journal entry to record the decrease in inventory?

Answer Options

A. Debit Inventory ₦200,000, Credit Cost of Goods Sold ₦200,000
Correct Answer B. Debit Cost of Goods Sold ₦200,000, Credit Inventory ₦200,000
C. Debit Inventory ₦200,000, Credit Sales ₦200,000
D. Debit Sales ₦200,000, Credit Inventory ₦200,000
Correct Answer
B
Correct Option:
Debit Cost of Goods Sold ₦200,000, Credit Inventory ₦200,000

About This Question

This is Post Utme Crawford University 2020 Accounting Question 6. It is one of the objective questions from the 2020 Post Utme Crawford University Accounting examination.

View More Post Utme Crawford University 2020 Accounting Questions More Post Utme Crawford University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support