Post Utme Unilorin 2018 Accounting Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Unilorin Accounting examination.

Post Utme Unilorin 2018 Accounting Objective / Multiple Choice
Question 1 POST_UTME_UNILORIN • 2018 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has a credit balance of ₦10,000 in the 'Rent Received' account. What is the correct treatment of this discrepancy in the company's financial statements?

Answer Options

A. The discrepancy is ignored as it is a minor error.
B. The discrepancy is treated as a gain and is recorded in the income statement.
C. The discrepancy is treated as a loss and is recorded in the income statement.
Correct Answer D. The discrepancy is treated as a balance sheet error and is corrected in the balance sheet.
Correct Answer
D
Correct Option:
The discrepancy is treated as a balance sheet error and is corrected in the balance sheet.

About This Question

This is Post Utme Unilorin 2018 Accounting Question 1. It is one of the objective questions from the 2018 Post Utme Unilorin Accounting examination.

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