Post Utme Delsu 2017 Accounting Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Delsu Accounting examination.

Post Utme Delsu 2017 Accounting Objective / Multiple Choice
Question 16 POST_UTME_DELSU • 2017 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦50,000 in the 'Rent Received' account. However, the company's accounting records show that it has not received any rent from tenants. What is the correct treatment of this account in the final accounts?

Answer Options

Correct Answer A. Treat it as a receivable and show it as an asset in the balance sheet.
B. Treat it as a prepaid expense and show it as an asset in the balance sheet.
C. Treat it as a liability and show it as a current liability in the balance sheet.
D. Treat it as a revenue and show it as a current asset in the balance sheet.
Correct Answer
A
Correct Option:
Treat it as a receivable and show it as an asset in the balance sheet.

About This Question

This is Post Utme Delsu 2017 Accounting Question 16. It is one of the objective questions from the 2017 Post Utme Delsu Accounting examination.

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