Accounts (Principles of Accounts)Accruals, prepayments and provisionsWAEC
Insurance of ₦24,000 paid covers 12 months, of which 3 months relate to next year. How much is charged for the current year?
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Answer: D. ₦18,000
9/12 × 24,000 = ₦18,000; ₦6,000 is prepaid.
An AdmitMe practice question, written for the WAEC syllabus. Not an official past question.