Post Utme Oau 2023 Accounting Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Oau Accounting examination.

Post Utme Oau 2023 Accounting Objective / Multiple Choice
Question 31 POST_UTME_OAU • 2023 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records indicate that it has not paid any rent for the year. What is the most likely explanation for this debit balance?

Answer Options

A. The company has prepaid rent for the next year.
Correct Answer B. The company has accrued rent for the current year.
C. The company has not recorded any rent expense for the year.
D. The company has paid rent in advance for the current year.
Correct Answer
B
Correct Option:
The company has accrued rent for the current year.

About This Question

This is Post Utme Oau 2023 Accounting Question 31. It is one of the objective questions from the 2023 Post Utme Oau Accounting examination.

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