Post Utme Summit University 2021 Accounting Question 24

Practice objective / multiple choice question 24 from the 2021 Post Utme Summit University Accounting examination.

Post Utme Summit University 2021 Accounting Objective / Multiple Choice
Question 24 POST_UTME_SUMMIT_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accountant has informed you that the company has not declared any dividends during the year. What is the most likely explanation for the credit balance?

Answer Options

A. The company has recorded a gain on the sale of an asset.
B. The company has not recorded the depreciation of its assets during the year.
C. The company has not recorded the expenses incurred during the year.
Correct Answer D. The company has recorded a dividend received from another company.
Correct Answer
D
Correct Option:
The company has recorded a dividend received from another company.

About This Question

This is Post Utme Summit University 2021 Accounting Question 24. It is one of the objective questions from the 2021 Post Utme Summit University Accounting examination.

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