Post Utme Eksu 2023 Accounting Question 19

Practice objective / multiple choice question 19 from the 2023 Post Utme Eksu Accounting examination.

Post Utme Eksu 2023 Accounting Objective / Multiple Choice
Question 19 POST_UTME_EKSU • 2023 • ACCOUNTING • objective

A company's manufacturing account shows a cost of goods sold of ₦1,000,000. However, the company's accounting policy requires that all costs be matched with revenues. What is the correct accounting treatment for the cost of goods sold of ₦1,000,000?

Answer Options

Correct Answer A. Debit the Cost of Goods Sold account and credit the Inventory account for ₦1,000,000.
B. Debit the Inventory account and credit the Cost of Goods Sold account for ₦1,000,000.
C. Debit the Cost of Goods Sold account and credit the Accounts Payable account for ₦1,000,000.
D. Debit the Accounts Payable account and credit the Cost of Goods Sold account for ₦1,000,000.
Correct Answer
A
Correct Option:
Debit the Cost of Goods Sold account and credit the Inventory account for ₦1,000,000.

About This Question

This is Post Utme Eksu 2023 Accounting Question 19. It is one of the objective questions from the 2023 Post Utme Eksu Accounting examination.

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