Post Utme Eksu 2023 Accounting Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Eksu Accounting examination.

Post Utme Eksu 2023 Accounting Objective / Multiple Choice
Question 16 POST_UTME_EKSU • 2023 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦25,000 in the account 'Rent Received'. The company's accounting policy requires that all rent received be recognized as revenue when received. However, the company's management has decided to recognize the rent received as revenue only when it is used. What is the correct accounting treatment for the debit balance of ₦25,000 in the account 'Rent Received'?

Answer Options

Correct Answer A. Debit the Rent Received account and credit the Revenue account for ₦25,000.
B. Debit the Rent Received account and credit the Cash account for ₦25,000.
C. Debit the Rent Received account and credit the Accounts Payable account for ₦25,000.
D. Debit the Rent Received account and credit the Revenue account for ₦0.
Correct Answer
A
Correct Option:
Debit the Rent Received account and credit the Revenue account for ₦25,000.

About This Question

This is Post Utme Eksu 2023 Accounting Question 16. It is one of the objective questions from the 2023 Post Utme Eksu Accounting examination.

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