Post Utme Greenfield University 2021 Accounting Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2021 Accounting Objective / Multiple Choice
Question 6 POST_UTME_GREENFIELD_UNIVERSITY • 2021 • ACCOUNTING • objective

A government agency's trial balance shows a debit balance in the 'Accounts Payable' account. However, the agency's financial statements show a credit balance in the same account. What could be the reason for this discrepancy?

Answer Options

A. The agency has not recorded all its liabilities.
Correct Answer B. The agency has incorrectly recorded a credit transaction as a debit.
C. The agency has not properly accounted for a prior year's error.
D. The agency has incorrectly calculated the interest on its liabilities.
Correct Answer
B
Correct Option:
The agency has incorrectly recorded a credit transaction as a debit.

About This Question

This is Post Utme Greenfield University 2021 Accounting Question 6. It is one of the objective questions from the 2021 Post Utme Greenfield University Accounting examination.

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