Post Utme Osustech 2017 Accounting Question 18

Practice objective / multiple choice question 18 from the 2017 Post Utme Osustech Accounting examination.

Post Utme Osustech 2017 Accounting Objective / Multiple Choice
Question 18 POST_UTME_OSUSTECH • 2017 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦20,000 in the account 'Prepaid Rent'. What is the correct treatment of this account in the preparation of the financial statements?

Answer Options

A. Debit the Prepaid Rent account and credit the Rent Expense account.
B. Credit the Prepaid Rent account and debit the Rent Expense account.
Correct Answer C. Debit the Rent Expense account and credit the Prepaid Rent account.
D. Credit the Prepaid Rent account and debit the Prepaid Rent account.
Correct Answer
C
Correct Option:
Debit the Rent Expense account and credit the Prepaid Rent account.

About This Question

This is Post Utme Osustech 2017 Accounting Question 18. It is one of the objective questions from the 2017 Post Utme Osustech Accounting examination.

View More Post Utme Osustech 2017 Accounting Questions More Post Utme Osustech Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support