Accounts (Principles of Accounts)Accruals, prepayments and provisionsWAEC
Rent for the year is ₦60,000 but only ₦45,000 has been paid. How is the difference treated?
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Answer: B. ₦15,000 shown as a current liability
The full ₦60,000 is charged; the unpaid ₦15,000 is an accrued expense owed.
An AdmitMe practice question, written for the WAEC syllabus. Not an official past question.