Post Utme Madonna University 2021 Accounting Question 7

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

Post Utme Madonna University 2021 Accounting Objective / Multiple Choice
Question 7 POST_UTME_MADONNA_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's balance sheet shows an asset of £ 10,000 with a carrying value of £ 8,000. The asset is expected to be sold for £ 12,000. What is the accounting treatment for this asset?

Answer Options

A. The asset is written down to £ 8,000
B. The asset is written up to £ 12,000
Correct Answer C. The asset is sold for £ 12,000 and the profit is recognized
D. The asset is written off as a loss
Correct Answer
C
Correct Option:
The asset is sold for £ 12,000 and the profit is recognized

About This Question

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

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