Post Utme Joseph Ayo Babalola University 2025 Accounting Question 9

Practice objective / multiple choice question 9 from the 2025 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2025 Accounting Objective / Multiple Choice
Question 9 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2025 • ACCOUNTING • objective

A government agency prepares a budget for the upcoming year. The budget shows the following revenues: Taxes 100,000, Fees 50,000, and Grants 20,000. If the agency's total expenses for the year are 150,000, what is the effect on the budget?

Answer Options

A. Revenues increase by 20,000, Expenses increase by 20,000, and Surplus increases by 20,000
Correct Answer B. Revenues increase by 20,000, Expenses decrease by 20,000, and Surplus increases by 20,000
C. Revenues decrease by 20,000, Expenses increase by 20,000, and Surplus decreases by 20,000
D. Revenues decrease by 20,000, Expenses decrease by 20,000, and Surplus decreases by 20,000
Correct Answer
B
Correct Option:
Revenues increase by 20,000, Expenses decrease by 20,000, and Surplus increases by 20,000

About This Question

This is Post Utme Joseph Ayo Babalola University 2025 Accounting Question 9. It is one of the objective questions from the 2025 Post Utme Joseph Ayo Babalola University Accounting examination.

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