Post Utme Summit University 2024 Accounting Question 17

Practice objective / multiple choice question 17 from the 2024 Post Utme Summit University Accounting examination.

Post Utme Summit University 2024 Accounting Objective / Multiple Choice
Question 17 POST_UTME_SUMMIT_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦100,000 due within one year. However, the company's accounting records indicate that the liability is due in two years. What is the correct accounting treatment for this error?

Answer Options

Correct Answer A. Debit Current Liability ₦100,000, Credit Long-term Liability ₦100,000
B. Debit Current Liability ₦100,000, Credit Cash ₦100,000
C. Debit Current Liability ₦100,000, Credit Current Asset ₦100,000
D. Debit Current Liability ₦100,000, Credit Long-term Asset ₦100,000
Correct Answer
A
Correct Option:
Debit Current Liability ₦100,000, Credit Long-term Liability ₦100,000

About This Question

This is Post Utme Summit University 2024 Accounting Question 17. It is one of the objective questions from the 2024 Post Utme Summit University Accounting examination.

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