Waec Model Questions Vol1 2024 Financial Accounting Question 37

Practice objective / multiple choice question 37 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 37 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

Under the accrual basis of accounting, a company receives ₦50,000 cash on 1 May for services that will be performed in June. How should the receipt be recorded in the books on 1 May?

Answer Options

A. Debit Accounts Receivable ₦50,000; Credit Unearned Revenue ₦50,000
B. Debit Cash ₦45,000; Credit Unearned Revenue ₦45,000
Correct Answer C. Debit Cash ₦50,000; Credit Unearned Revenue ₦50,000
D. Debit Cash ₦50,000; Credit Service Revenue ₦50,000
Correct Answer
C
Correct Option:
Debit Cash ₦50,000; Credit Unearned Revenue ₦50,000

About This Question

This is Waec Model Questions Vol1 2024 Financial Accounting Question 37. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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