Post Utme Unn 2023 Accounting Question 22

Practice objective / multiple choice question 22 from the 2023 Post Utme Unn Accounting examination.

Post Utme Unn 2023 Accounting Objective / Multiple Choice
Question 22 POST_UTME_UNN • 2023 • ACCOUNTING • objective

A company's trial balance showed an error of ₦ 1,000 due to an omission of a transaction. The error was discovered and corrected by passing a correcting entry. What is the effect of this correcting entry on the company's retained earnings?

Answer Options

A. Increases Retained Earnings by ₦ 1,000
Correct Answer B. Decreases Retained Earnings by ₦ 1,000
C. Has no effect on Retained Earnings
D. Increases Retained Earnings by ₦ 2,000
Correct Answer
B
Correct Option:
Decreases Retained Earnings by ₦ 1,000

About This Question

This is Post Utme Unn 2023 Accounting Question 22. It is one of the objective questions from the 2023 Post Utme Unn Accounting examination.

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