Post Utme Madonna University 2021 Accounting Question 8

Practice objective / multiple choice question 8 from the 2021 Post Utme Madonna University Accounting examination.

Post Utme Madonna University 2021 Accounting Objective / Multiple Choice

Question 8 POST_UTME_MADONNA_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's profit and loss account shows a profit of £ 20,000. The company's balance sheet shows a retained profit of £ 15,000. What is the accounting treatment for the remaining profit?

Answer Options

A. The remaining profit is distributed as dividends

Correct Answer B. The remaining profit is retained in the company

C. The remaining profit is transferred to the general reserve

D. The remaining profit is transferred to the revaluation reserve

Correct Answer

Correct Option:

The remaining profit is retained in the company

About This Question

This is Post Utme Madonna University 2021 Accounting Question 8. It is one of the objective questions from the 2021 Post Utme Madonna University Accounting examination.

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