Post Utme Oau 2024 Accounting Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Oau Accounting examination.

Post Utme Oau 2024 Accounting Objective / Multiple Choice
Question 21 POST_UTME_OAU • 2024 • ACCOUNTING • objective

A company uses the single-entry system of accounting. The company's trial balance shows the following balances: Cash ¦ 5,000, Accounts Payable ¦ 8,000, Common Stock ¦ 20,000, and Retained Earnings ¦ 15,000. If the company's net income for the year is ¦ 12,000, what is the correct journal entry to record the net income?

Answer Options

A. Debit Cash ¦ 12,000, Credit Retained Earnings ¦ 12,000
B. Debit Retained Earnings ¦ 12,000, Credit Common Stock ¦ 12,000
C. Debit Accounts Payable ¦ 12,000, Credit Retained Earnings ¦ 12,000
Correct Answer D. Debit Cash ¦ 12,000, Credit Retained Earnings ¦ 12,000
Correct Answer
D
Correct Option:
Debit Cash ¦ 12,000, Credit Retained Earnings ¦ 12,000

About This Question

This is Post Utme Oau 2024 Accounting Question 21. It is one of the objective questions from the 2024 Post Utme Oau Accounting examination.

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