Post Utme Pan Atlantic University 2018 Accounting Question 3

Practice objective / multiple choice question 3 from the 2018 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2018 Accounting Objective / Multiple Choice
Question 3 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2018 • ACCOUNTING • objective

A government agency prepares its financial statements in accordance with the accrual basis of accounting. If the agency receives ₦100,000 in cash from a customer for services rendered, but the customer has not yet paid for the services, what is the correct treatment of the cash received?

Answer Options

A. The cash received is recorded as revenue.
B. The cash received is recorded as a liability.
Correct Answer C. The cash received is recorded as an asset.
D. The cash received is recorded as an expense.
Correct Answer
C
Correct Option:
The cash received is recorded as an asset.

About This Question

This is Post Utme Pan Atlantic University 2018 Accounting Question 3. It is one of the objective questions from the 2018 Post Utme Pan Atlantic University Accounting examination.

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