Gce Model Questions Vol1 2020 Financial Accounting Question 47

Practice objective / multiple choice question 47 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 47 GCE_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

During April, the business paid \(\text{₦}45{,}000\) cash for a one‑year insurance policy. Record the journal entry for this transaction.

Answer Options

Correct Answer A. Debit Prepaid Insurance ₦45,000; Credit Cash ₦45,000
B. Debit Prepaid Insurance ₦45,000; Credit Revenue ₦45,000
C. Debit Prepaid Insurance ₦45,000; Credit Accounts Payable ₦45,000
D. Debit Insurance Expense ₦45,000; Credit Cash ₦45,000
Correct Answer
A
Correct Option:
Debit Prepaid Insurance ₦45,000; Credit Cash ₦45,000

About This Question

This is Gce Model Questions Vol1 2020 Financial Accounting Question 47. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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