Post Utme Greenfield University 2021 Accounting Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2021 Accounting Objective / Multiple Choice
Question 36 POST_UTME_GREENFIELD_UNIVERSITY • 2021 • ACCOUNTING • objective

A government agency uses the accrual basis of accounting. During the year, it incurred expenses of ₦500,000, but did not pay them until the following year. What is the effect of this on the financial statements?

Answer Options

Correct Answer A. Increase in liabilities
B. Increase in assets
C. Decrease in liabilities
D. Decrease in assets
Correct Answer
A
Correct Option:
Increase in liabilities

About This Question

This is Post Utme Greenfield University 2021 Accounting Question 36. It is one of the objective questions from the 2021 Post Utme Greenfield University Accounting examination.

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