Post Utme Summit University 2024 Accounting Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Summit University Accounting examination.

Post Utme Summit University 2024 Accounting Objective / Multiple Choice
Question 21 POST_UTME_SUMMIT_UNIVERSITY • 2024 • ACCOUNTING • objective

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

Answer Options

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

About This Question

This is Post Utme Summit University 2024 Accounting Question 21. It is one of the objective questions from the 2024 Post Utme Summit University Accounting examination.

View More Post Utme Summit University 2024 Accounting Questions More Post Utme Summit University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support