Post Utme Greenfield University 2021 Accounting Question 7

Practice objective / multiple choice question 7 from the 2021 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2021 Accounting Objective / Multiple Choice
Question 7 POST_UTME_GREENFIELD_UNIVERSITY • 2021 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance in the 'Accounts Payable' account, what does this indicate?

Answer Options

Correct Answer A. The company has not recorded all its liabilities.
B. The company has incorrectly recorded a credit transaction as a debit.
C. The company has a surplus of cash.
D. The company has a deficit of cash.
Correct Answer
A
Correct Option:
The company has not recorded all its liabilities.

About This Question

This is Post Utme Greenfield University 2021 Accounting Question 7. It is one of the objective questions from the 2021 Post Utme Greenfield University Accounting examination.

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