Post Utme Pan Atlantic University 2025 Accounting Question 22

Practice objective / multiple choice question 22 from the 2025 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2025 Accounting Objective / Multiple Choice
Question 22 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2025 • ACCOUNTING • objective

A company's balance sheet shows the following: Current Assets ₦ 150,000, Current Liabilities ₦ 100,000, Long-term Debt ₦ 50,000, Common Stock ₦ 100,000. If the company's net income for the year is ₦ 40,000, what is the correct journal entry to record the net income?

Answer Options

A. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
B. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
C. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
Correct Answer D. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
Correct Answer
D
Correct Option:
Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000

About This Question

This is Post Utme Pan Atlantic University 2025 Accounting Question 22. It is one of the objective questions from the 2025 Post Utme Pan Atlantic University Accounting examination.

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