Post Utme Nile University 2025 Accounting Question 18

Practice objective / multiple choice question 18 from the 2025 Post Utme Nile University Accounting examination.

Post Utme Nile University 2025 Accounting Objective / Multiple Choice
Question 18 POST_UTME_NILE_UNIVERSITY • 2025 • ACCOUNTING • objective

A government agency uses the cash basis of accounting. The agency receives a grant of ₦500,000 from the government. What is the effect of this transaction on the agency's financial position?

Answer Options

Correct Answer A. The agency's cash balance increases by ₦500,000.
B. The agency's cash balance decreases by ₦500,000.
C. The agency's accounts receivable balance increases by ₦500,000.
D. The agency's accounts payable balance increases by ₦500,000.
Correct Answer
A
Correct Option:
The agency's cash balance increases by ₦500,000.

About This Question

This is Post Utme Nile University 2025 Accounting Question 18. It is one of the objective questions from the 2025 Post Utme Nile University Accounting examination.

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