Post Utme Nile University 2024 Accounting Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Nile University Accounting examination.

Post Utme Nile University 2024 Accounting Objective / Multiple Choice
Question 23 POST_UTME_NILE_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's balance sheet shows a debit balance of ₦30,000 in the 'Accrued Expenses' account. However, the company's accounting records show that it has not incurred any expenses. What is the correct treatment for this discrepancy?

Answer Options

A. Debit the 'Accrued Expenses' account by ₦30,000
B. Credit the 'Accrued Expenses' account by ₦30,000
Correct Answer C. Debit the 'Accrued Expenses' account by ₦30,000 and credit the 'Accrued Income' account by ₦30,000
D. Do nothing, as it is a normal transaction
Correct Answer
C
Correct Option:
Debit the 'Accrued Expenses' account by ₦30,000 and credit the 'Accrued Income' account by ₦30,000

About This Question

This is Post Utme Nile University 2024 Accounting Question 23. It is one of the objective questions from the 2024 Post Utme Nile University Accounting examination.

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