Post Utme Summit University 2022 Accounting Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Summit University Accounting examination.

Post Utme Summit University 2022 Accounting Objective / Multiple Choice
Question 34 POST_UTME_SUMMIT_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's financial statements are prepared using the accrual basis of accounting. The company has a liability of ₦500,000 that is due within 6 months. What is the correct accounting treatment for this liability?

Answer Options

Correct Answer A. Debit the liability and credit the expense
B. Credit the liability and debit the revenue
C. Debit the liability and credit the asset
D. Credit the liability and debit the asset
Correct Answer
A
Correct Option:
Debit the liability and credit the expense

About This Question

This is Post Utme Summit University 2022 Accounting Question 34. It is one of the objective questions from the 2022 Post Utme Summit University Accounting examination.

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